Trading execution services provider Wolverine Execution Services (WEX) has chosen trading analytics provider Corvil’s platform to navigate factors affecting the functions in the trading environment such as networks, messaging, order routing and client support desk actions, according to company officials.
“Generally, Corvil has allowed us to tie everything together,” says Troy Googins, head of product and business development at WEX. “We may have a client that will send in an order via FIX that will hit a FIX server, then go out to a smart router, which goes out to an exchange. When a latency issue occurs, we can pinpoint the issue to the system or network at fault nearly instantly, which is extremely beneficial in the many cases where the latency issue is outside of WEX’s control in an external system.”
The Corvil platform allows WEX to more readily see if latency issues are occurring in its clients’ order flow, added Googins. “There’s a lot of value to isolating latency issues, both from a time perspective and the effort required to track it down,” he said. “The ability to make it more efficient is a big advantage for us.”
WEX sets a 99% fill rate for marketable options orders as a standard for itself. To maintain that standard, WEX needs a real-time picture of operations performance across its network of trading venues.
Overall, industry standards for monitoring access gateway latencies used to be more modest, according to Donal Byrne, CEO of Corvil. “Today, it’s a more sophisticated ask,” he said.
“You may have clients wondering what exactly happened to an order, why wasn’t a cancel accepted? Why did you send it to a venue or why was it matched against an internal pool? To answer all those questions, you need a complete view of both the overall client execution lifecycle all the way through your infrastructure hops, venues and back. If something is happening in the infrastructure, you need to be able to drill down and see if there was something in the market data or something strange going on in a particular gateway.”
In discussions with WEX that began last year, Corvil demonstrated that it could bring together the functions WEX needed coordinated, submitting a proof of concept and addressing use cases WEX supplied, Byrne recalled. WEX has been phasing in use of Corvil’s platform over the past month.