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: Unlocking value: Harnessing modern data platforms for data integration, advanced investment analytics, visualisation and reporting

Modern data platforms are bringing efficiencies, scalability and powerful new capabilities to institutions and their data pipelines. They are enabling the use of new automation and analytical technologies that are also helping firms to derive more value from their data and reduce costs. Use cases of specific importance to the finance sector, such as data...

BLOG

ITRS Acquires IP-Label to Expand Digital Experience Monitoring Capabilities

ITRS, the performance monitoring and analytics provider, has agreed to acquire IP-Label, the Paris-based specialist in Digital Experience Monitoring (DEM) and performance analytics, with the aim of strengthening its DEM capabilities and expanding its presence in Europe. The acquisition brings IP-Label’s Ekara platform into the ITRS portfolio, adding capabilities including Synthetic Transaction Monitoring (STM), Real...

EVENT

TradingTech Summit London

Now in its 15th year the TradingTech Summit London brings together the European trading technology capital markets industry and examines the latest changes and innovations in trading technology and explores how technology is being deployed to create an edge in sell side and buy side capital markets financial institutions.

GUIDE

Regulatory Data Handbook 2014

Welcome to the inaugural edition of the A-Team Regulatory Data Handbook. We trust you’ll find this guide a useful addition to the resources at your disposal as you navigate the maze of emerging regulations that are making ever more strenuous reporting demands on financial institutions everywhere. In putting the Handbook together, our rationale has been...