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White Papers

In the world of the financial markets, securing an edge over the competition can mean life or death for a trading firm. Whether it is acting on news alerts or price movements, determining the best trading opportunity, or delivering an order to the marketplace, microseconds mean the difference between winning or just playing.

Reducing those microseconds – referred to as latency – is a continuing focus of trading firms, and an increasing challenge as that latency is pushed down to double and single digit microseconds. The “race to zero” becomes increasingly difficult and expensive to engage in as it nears its conclusion.

This industry briefing - sponsored by SAP - provides insight and analysis on how financial markets firms see Big Data approaches and technologies being leveraged for trading and risk applications.

The briefing draws upon research conducted by A-Team Group’s BigDataForFinance.com web community, which included a survey of major financial markets firms based in the U.S.  The survey was conducted during the spring and summer of 2012.

Free white paper, authored by GE Intelligent Platforms

IP traffic is increasing globally at a breath-taking place. In order to support the demand of high performance IP packet processing particularly for High Frequency Trading applications demanding low latency and higher throughput, users and developers are adopting a novel approach of combining PCI Express packet processing accelerator cards in a standalone network server with efficient TCP/IP stack to create a multi-port compute engine capable of executing high frequency trading algorithms along with regulatory and other necessary functions supporting the HFT server.

Free white paper, authored by Symmetricom

Trading applications at market participants require access to precise timing information - the same precise timing information - in order to transact business profitably, without risk and within regulatory edicts.

In the financial trading markets, the race to zero is on, with participants including competing marketplaces, algorithmic trading operations, high frequency trading firms, market data aggregators and execution network providers all playing their role in pushing down transaction times from hundreds of milliseconds to tens of microseconds.

Linking all of these players together is data itself, binary digits that have real meaning – and often great value – to those that can capture it, understand it, and leverage it. But as the race heats up, market data rates and volumes are exploding, presenting an extreme challenge to all those needing to manage the deluge, and stay ahead in the race.

Financial markets firms can no longer spend what it takes to compete in the “low latency arms race.” The new reality demands high performance to be competitive with peers, but with an emphasis on upfront deployment and ongoing operational costs.
High performance is measured not simply in trading execution speed and round-trip latency figures. Those metrics remain a factor, but in a world where performance is measured not in absolute terms but against trading peers, the ability to enter new markets cost effectively and react to business changes – agility and flexibility – are just as important.

This white paper was written by Ixia.

Ixia is the Leader in Converged IP Testing and offers solutions for higher speed gigabit Ethernet as well as testing network performance

The importance of minimizing latency in data center networks has been discussed intensely in the last year, mostly with respect to trading in financial markets – where time is literally money. Device and network latency is critically important in data centers of all types. Cloud data centers can benefit significantly from lower-latency devices.


 

The growing speed and complexity of today’s financial markets are placing all but the most technologically well-resourced participants at a strategic disadvantage. Buy- and sell-side firms, the execution venues they use, and the wide range of post-trade, market data and other service providers whose offerings they consume, are all struggling to keep up with the pace of change throughout the lifecycle of the financial transaction.

Everywhere in this lifecycle, technology is giving those willing to invest in it a competitive edge. In the pre-trade area, the growth of high frequency trading has emphasised the need for low-latency connectivity for both market and order data. Firms of all sizes are making use of collocation and proximity hosting services, in order to ensure their execution engines are as close as physically possible to the execution venues they trade on. Those wishing to compete on speed will fail unless they make the required investment in technology; for them, being second is not an option.

This white paper was written by Hardcore Computer.

A millisecond delay can mean the loss of hundreds of millions of dollars for algorithmic traders engaged in high frequency trading (HFT) in today's financial markets. To gain that valuable competitive edge, financial institutions require high-performance computing solutions that are fast, reliable and offer low latency.

But performance demands are pushing the physical boundaries of conventional computing equipment – from the desktop and workstation to the server. While today's processors are faster and better, they still are negatively impacted by the heat generated when overclocked, and how to cool equipment is still a fundamental challenge.