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

‘Tick To Trade’ Emerges As Latency Solution

Subscribe to our newsletter

The latency solution developed jointly by Solarflare and LDA Technologies has delivered a lower latency by figuring out how to push packets of information through their system faster and more directly, explains Ahmet Houssein, vice president of marketing at Solarflare.

Using the “tick-to-trade” method of picking up packets sent through a user datagram protocol (UDP), the combination of Solarflare’s network interface controller (NIC) and LDA’s transmission control protocol (TCP) hardware ships a stock tick through to algorithms in a high-frequency trader’s systems. The trader’s algorithm can then execute a trade based on that tick or stock value.

Solarflare and LDA’s latency solution is aimed at high-frequency traders.

“The faster you can make that trade, the faster and more accurate and effective you can be with that trade,” says Houssein. Solarflare and LDA have reduced the time for a transmission of such stock tick information to 120 nanoseconds.

In effect, capabilities or functions normally only in software are executed using hardware in the arrangement between Solarflare and LDA, particularly a field programmable gate array (FPGA). “You can program for the algorithm you want to execute, including extensions,” says Houssein. “Our relationship with LDA provides a capability for those algorithmic applications that can be extended to make decisions and make a trade faster. It solves the piece in the middle of the algorithm — and how fast the algorithm can respond to the tick or the trade.”

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

The Electronification of Credit Markets: What’s Fuelling the Uptake

By Tommaso Di Grazia, Head of Fixed Income Product Development at ION Markets. In recent years, the credit market has become increasingly complex and fragmented, making it harder for firms to find liquidity and offer customers fast and accurate services. However, simultaneously, the market has seen a growth in electronic trading; according to industry analysts...

EVENT

RegTech Summit New York

Now in its 6th year, the RegTech Summit in New York will bring together the regtech ecosystem to explore how the North American capital markets financial industry can leverage technology to drive innovation, cut costs and support regulatory change.

GUIDE

Trading Regulations Handbook 2022

Welcome to the third edition of A-Team Group’s Trading Regulations Handbook, a publication designed to help you gain a full understanding of regulations that have an impact on your trading operations, data and technology. The handbook provides details of each regulation and its requirements, as well as ‘at-a-glance’ summaries, regulatory timelines and compliance deadlines, and...