NovaSparks Adds Algo Hosting to Second Generation FPGA Technology

NovaSparks’ second generation field programmable gate array (FPGA) technology adds hosting support for algos and promises level one market data processing at sub-microsecond speeds and level two processing at no more than 1.5 microseconds, knocking over 100 microseconds off market data processing handled by typical software solutions.

NovaSparks Gen2 will be available from June 2011, a year after the company emerged from the renaming of Paris-based data packet processing specialist HPC Platform with a focus on ultra low latency services and solutions (read it here) Last June, the company hoped to sign up a dozen customers for its FPGA products within a year and two US customers and three major European banks have deployed the first version of NovaSparks’ FPGA hardware only feed handler, ticker plant and order book management solution with a pipeline of 10 to 20 prospects that could become customers in the third or fourth quarter. 

Despite the shortfall, the company stands resolutely behind the technology. Yves Charles, CEO of NovaSparks, says: “We are the only company in the market with a hardware only appliance. Its potential is huge. Our focus is on high frequency traders, but others now want low latency infrastructure too and the market has become more open. Users of NovaSparks version one will move on to version two, and we look forward to signing up new customers this year.”

NovaSparks claims Gen2 can deliver guaranteed sub-microsecond speed through the appliance on an end-to-end basis using highly parallel processing paths and that it provides deterministic latency irrespective of volume and number of markets being processed. It can be configured with up to three feed handlers and cross connected to additional appliances with no latency, says the vendor.

Charles explains: “Thanks to uniquely configured connectivity, the solution provides up to 24 output/input connections per appliance, including up to 12 PCIe Gen2 connections in addition to 10G Ethernet connections. Customer application servers can therefore access market data with the lowest latency possible and can process order books with the greatest flexibility.”

NovaSparks Gen2 moves on from version one in being able to host clients’ proprietary algos within the appliance, a first for FPGA solutions according to the company. The company goes on to claim that customers will be able to embed FPGA-based algo trading programmes – although this depends on their complexity – and compliance checks within the NovaSparks appliance and offer a zero latency tick-to-trade capability in a nanosecond timescale.

Building out beyond the appliance, Matthew Gadd, NovaSparks’ vice president of operations in EMEA, suggests it makes sense to build relationships with other algo technology developers. Algo Technologies springs to mind, but Gadd will not confirm whether the companies are in discussion, saying only: “Our strategy is to add value to other suppliers who could use our solution and we also sell direct to customers. We are open to discussion with potential partners including those developing hardware or software algo technology.”