About a-team Marketing Services
The knowledge platform for the financial technology industry
The knowledge platform for the financial technology industry

A-Team Insight Blogs

Solving the Multicast Challenge of Distributing Market Data in the Cloud

Subscribe to our newsletter

As cloud becomes increasingly widely adopted in the financial markets sector, one area of cloud migration that remains elusive is that of market data distribution. The key stumbling block is the fact that the industry almost exclusively relies on multicast for distributing real-time market data. Multicast is tried and tested, it works, it is well understood, and the majority of systems that process real-time market data have been built with multicast in mind.

However, many believe that this current state of affairs is holding the industry back, and that if multicast distribution can be made possible via the cloud, a wide range of new opportunities, particularly around real-time data and analytics, could be opened up, which could move the industry forward in new and exciting ways.

A common perception in the industry is that cloud and multicast distribution are mutually exclusive. But is this actually true? In a recent webinar held as part of the AWS EMEA Financial Services Symposium, Peter Williams, Chief Technology Officer at CJC, shared his recent experience of running a proof of concept (PoC) with AWS, which demonstrated how to solve the challenges of distributing financial data in the cloud with joint multicast.

The goal of CJC’s PoC was to determine if multicast over the cloud was viable not just from a technical perspective, but also from an economic one. And according to Williams, despite various challenges they faced along the way, the results were positive, with acceptable – and deterministic – performance and latency in real-world trading scenarios.

It remains to be seen whether multicast will continue to be the method of choice for distributing real-time market data going forward, even if it can operate in cloud environments. But it is encouraging to see that CJC and AWS have run such a successful PoC, which shows that multicast and cloud can work together, for specific use cases.

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: Best Practices for Building High-Performance Data Infrastructures

The requirement for high-performance data systems to support trading analytics for hedge funds, high-frequency trading firms and electronic liquidity providers is well established. But the explosion in Big Data over the past several years has expanded the scope of inputs being used by these firms. At the same time, cloud technologies have added complexity to...

BLOG

Buy to Build: How Providers Help Make Unique Trade Surveillance Systems Possible

By Ollie Cadman, Chief Product Officer, Eventus. “Buy versus Build” was a dilemma that financial institutions traditionally faced when working to create modern surveillance systems or other key elements in the risk technology stack. What groups were trying to figure out was whether purchasing products and services was more cost-effective and future-proofed than building a...

EVENT

A-Team Innovation Briefing: Innovation in Cloud

This Innovation Briefing will explore approaches to data infrastructure transformation, technologies required and how to make sure processes are optimised to support real time data management. Hear from leading practitioners and innovative technology solution providers who will share insight into how to set up and leverage your data infrastructure to provide user access to consistent data and analytics, and companies the ability to monetise their data.

GUIDE

ESG Data Handbook 2022

The ESG landscape is changing faster than anyone could have imagined even five years ago. With tens of trillions of dollars expected to have been committed to sustainable assets by the end of the decade, it’s never been more important for financial institutions of all sizes to stay abreast of changes in the ESG data...