Reuters Market Data System in a Box
Financial entities utilize market data systems to make informed trading decisions. They use these systems to stay ahead of their competititors. Market data latency affects how quickly a trading firm can respond to new information so latency is critical. A difference of milliseconds can be measured in millions of dollars.
In this IBM BladeCenter-based solution with 10GbE from Blade Network Technologies and Chelsio Communications, the customer was able to reduce the market data latency to give them an advantage over their competitors, allowing them to profit from a difference of milliseconds. In addition, they were able to increase their network throughput capacity to handle the growing market data volumes where update-rates have increased 2 to 6 times a year.
Automated trading is used aggressively in North America and in Europe, and is growing worldwide. Maintaining a latency edge is imperative to stay competitive and also to defend against many new latency arbritrage opportunities.
The other challenge was to plan for the rapidly growing market data traffic volumes as update rates increase 2 to 6 times per year. Additionally, there are enormous amounts of real-time data that is generated internally by the company. Most companies have traditionally used Gigabit Ethernet for their market data systems, but this is becoming a competitive disadvantage in today's business.
Changing to a closed solution like InfiniBand was an option as it provided lower latency and higher throughput over Gigabit Ethernet, but InfiniBand required additional training and expertise. InfiniBand was also found to be lower performing than 10 Gigabit Ethernet.
Using an IBM BladeCenter solution based on 10GbE technology from BLADE Networks and Chelsio Communications provided the throughput and latency improvements that were second to none. STAC Research verified the results and found the latency numbers to be the lowest they had ever seen.
The 10GbE solution by BLADE Network Technologies and Chelsio Communications provided the lowest latency and highest throughput solution for Reuters Market Data System version 6. Considerable power was also saved.
|