The leading knowledge platform for the financial technology industry
The leading knowledge platform for the financial technology industry

A-Team Insight Blogs

Canuck Exchanges Take Solace in Data Distribution

So Toronto’s TMX Group just let it be known that it’s using Solace Systems’ message routers to distribute its market data. That makes it the second Canadian exchange group to go public with such news, following CNSX Markets, which revealed its planned adoption last September.

Neither exchange group had to travel far to find their new data dissemination technology, Solace being headquartered in Ottawa.

[Musical side note, because I can: The Falcon Lake Incident, by Ottawa’s Jim Bryson, with the Weakerthans, is well worth a listen.]

TMX has apparently been using Solace in production for a while now, distributing data from the Toronto Stock Exchange and the Toronto Venture Exchange. CNSX – probably better known by the Canadian National Stock Exchange and Pure Trading exchanges that it operates – should be rolling out next month, after the usual “integration issues” put go live back from before the holiday season, says CNSX VP of corporate development, Richard Carleton.

There’s not a lot of detail in the TMX press release, but the motivation for going with Solace is likely to be similar to the reason why CNSX has adopted the technology. It’s about being able to distribute lots of data, using standard protocols, to many recipients, at low latency.

While CNSX uses TCP/IP data streams (and so Solace certainly will help a lot with scaleout), TMX’s data services use multicast for outbound, and TCP/UDP for retransmission (so the scaleout benefit is really on the retransmission side).

With an increasing number of trading firms looking to take direct feeds for high frequency and algo trading, Solace’s messaging appliances represent a pretty straightforward route that market centres can take to boost performance, essentially by offloading the communications handling from a central matching system.

Architecture wise, separating out the matching and data dissemination processes is pretty simple. Which is good news for TMX (and Solace’s tenure there), where the central system may well change in the future, should the planned merger with the London Stock Exchange go ahead.

Related content

WEBINAR

Recorded Webinar: Approaches to migrating market data to the cloud to drive agility in trading operations

Market data in the cloud is an attractive proposition in terms of reducing the cost of on premise servers and storage, and moving into a more agile and flexible data delivery environment. It is also well suited to working from home, the fall-back of many financial institutions during lockdowns caused by the coronavirus pandemic. But...

BLOG

TRG Screen Acquires J&J’s Reporting Platform to Complement Axon ADS

TRG Screen has added to its inventory of market data management and administration capabilities with the acquisition of Jordan & Jordan’s Market Data Reporting (MDR) business. The MDR managed services solution complements the Axon Declaration Service (ADS) TRG Screen acquired through its 2019 purchase of Axon, strengthening its reporting offering particularly in the US and...

EVENT

Data Management Summit USA Virtual

Now in its 11th year, the Data Management Summit USA Virtual explores the shift to the new world where data is redefining the operating model and firms are seeking to unlock value via data transformation projects for enterprise gain and competitive edge.

GUIDE

Impact of Derivatives on Reference Data Management

They may be complex and burdened with a bad reputation at the moment, but derivatives are here to stay. Although Bank for International Settlements figures indicate that derivatives trading is down for the first time in 10 years, the asset class has been strongly defended by the banking and brokerage community over the last few...