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

A-Team Insight Blogs

Q&A: October’s Low Down on Latency with Pete Harris

More questions from the IntelligentTradingTechnology.com community e-mail bag, with some thoughts from me.

Q: Profits are down at HFT firms, and regulation of them looks to be on the increase.  What does than mean for low-latency technology spend?

A: I am sure there will be an impact, but I also expect investment in low latency systems to continue to be high as trading firms look to enter new asset classes and geographies, and evolve their trading strategies in other ways.  It will be swings and roundabouts for some time to come.  But sure, there will always be downward pressure on IT spend.

Q: Redline Trading Solutions just stopped using Cell processors in favor of mainstream Intel chips.  So is this the end of hardware acceleration?

A: Nope.  But its a notable event.  Of course, Redline was using fairly dated hardware acceleration technology, and Intel’s multi-core chips overtook it in terms of power and functionality.  I doubt that’s the case for the latest FPGAs vs Intel chips, but some people reckon it is.  The debate of architectures just got louder.  Come to our Low-Latency Summit next month to be a part of it.

Q: With NYSE Technologies’ former head Stanley Young now at Bloomberg, some people think the exchange will sell the unit to the data vendor.  What do you think?

A: I think some people are delusional.  Could there be more cooperation, like symbology and perhaps APIs?  Yes, I think that could happen.  I suspect most in the marketplace would like it to happen.

Q: Is cloud technology really fast enough for low latency trading?

A: Correctly configured and deployed, virtualised infrastructure – the basis of multi-tenant clouds – can deliver impressive performance that can support low latency trading as some, perhaps many, would define it.  It’s getting there, and there’s some work going on to benchmark virtualised stacks running trading apps.  Hopefully the results will soon be publicly available – watch this space!

Q: I’ve heard of a company called Kove.  What does it do?

A: It has a RAM-based disk appliance, so data storage and retrieval is very very fast.  And I just wrote a white paper about it, that you can download here.  And yes, that was a shameless plug.

More questions please, to pete@low-latency.com.

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

Chronicle Adds Tier 1 Bank, North American Exchange to Client Roster

Low-latency trading solutions specialist Chronicle Software says its flexible commercial model was a key factor in two new client implementations announced this past week. The customer deployments – at a major global bank and North American exchange operator – involve deployment of Chronicle’s FIX engine solution, underpinned by the company’s high-performance messaging platform. According to...

EVENT

TradingTech Summit London

The TradingTech Summit in London brings together European senior-level decision makers in trading technology, electronic execution and trading architecture to discuss how firms can use high performance technologies to optimise trading in the new regulatory environment.

GUIDE

Fatca – Getting to Grips with the Challenge Ahead

The industry breathed a sigh of relief when the deadline for reporting under the US Foreign Account Tax Compliance Act (Fatca) was pushed back to July 1, 2014. But what’s starting to look like perhaps the most significant regulation of the next 12 months may start to impact our marketplace sooner than we think, especially...