About a-team Marketing Services
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: How to move to a modern, component based trading architecture using a Buy AND Build approach

To remain competitive in today’s electronic markets, firms need trading architectures that support rapid innovation, effortless integration of new capabilities, and the agility to respond to shifting market demands. This is prompting technology leaders to move beyond the traditional “Buy vs. Build” debate, a false dichotomy that oversimplifies the choice between generic, off-the-shelf platforms and...

BLOG

Why the Buy Side’s Real Agility Problem is its Operating Model

Most buy-side firms know how to find an opportunity. What an increasing number are discovering is that the gap between identifying one and acting on it has become a structural weakness. And that the weakness sits not in the front office but in the operating model underneath it. That was the recurring argument of a...

EVENT

RegTech Summit New York

Now in its 10th 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

MiFID II Handbook

As the 3 January 2018 compliance deadline for Markets in Financial Instruments Directive II (MiFID II) approaches, A-Team Group has pulled together everything you need to know about the regulation in a precise and concise handbook. The MiFID II Handbook, commissioned by Thomson Reuters, provides a guide to aspects of the regulation that will have...