FiNETIK – Asia and Latin America – Market News Network

Asia and Latin America News Network focusing on Financial Markets, Energy, Environment, Commodity and Risk, Trading and Data Management

Sao Paulo based BLK Sistemas Financeiros Accelerates Trading with Perseus LiquidPath®

-          Perseus Telecom Brazil Connects BLK Sistemas Financeiros to Brazil Exchange in less than 50 microseconds

-          BLK Sistemas Financeiros Enhances Liquidity options with Perseus Ultra-Low Latency DMA Connectivity

SAO PAULO– 15 July 2013 – Perseus Telecom, a leading provider of ultra-low latency, high capacity global networks, today announced BLK Sistemas Financeiros has connected to the BM&F Bovespa through the Perseus Telecom LiquidPath connection of sub 50 microseconds. LiquidPath launched late in 2012 by Perseus, connects the ALOG/Equinix (SP1) datacenter with the BM&F Bovespa data center (CT1) in less than 50 microseconds Round Trip Delay (RTD).

Perseus Telecom winners of the Global Telecoms Business Innovation award in 2012 for building the fastest connection between the Nasdaq OMX datacenter in New York and the BM&F Bovespa data center in Sao Paulo, has since launched its LiquidPath product, which furthers the commitment to market-to-market trading. LiquidPath assists brokers, vendors and their customers, with international communications, infrastructure support and ultra low-latency last mile connectivity to exchanges.

Rogério Paiva Managing Director at BLK Sistemas Financeiros said, “We carefully selected Perseus Telecom, who is well known in Brazil for its exchange connectivity platform, LiquidPath, which has helped ensure the best performance locally for our customers.”

BLK Sistemas Financeiros specializes in electronic & algorithmic trading with new infrastructure developed in Brazil called ‘Proximity Colocation’ for high speed electronic trading operations. BLK customers utilize sophisticated ultra low-latency straight through processing environment, based on the latest technological advancements available.

“BLK Sistemas Financeiros is a great new addition to the Perseus Telecom community connecting to our global network from Brazil, said Marcos Guimaraes, President of Perseus Telecom Brazil, “BLK can now help its customers take advantage our LiquidPath infrastructure to provide access to the BM&F Bovespa for its trading customers, but also to other exchanges in the 60 global markets Perseus serves.”

Source, Perseus, 15.07.2013

Filed under: BM&FBOVESPA, Brazil, Latin America, Trading Technology, , , , , , , , , ,

Perseus Clocks Sub-Nanosecond UTC Timescale in Equinix’s London Slough Campus

Sub-nanosecond FINRA Provable Timestamp; Live in the US and Europe for Global Synchronization of Trading Systems

 LONDON – 03 July 2013 – Perseus Telecom, a leading provider of ultra-low latency, high capacity networks from market-to-market, today announced its High Precision Time™ offering that provides deterministic synchronization with the US timescale UTC (Coordinated Universal Time) assisting firms balance enterprise systems and meet regulation guidelines.

Regulatory mandates and technological efficiencies continue to drive the need for more transparency in low latency high speed trading. This has pushed firms to move low latency policies deeper through the stack from the wire to the chipset, garnering the need to ingest provable time more accurately. Widespread deployment of time platforms use a combination of GPS time data and NTP (Network Time Protocol) for the delivery of time, where both are proving less reliable with high latency time synchronization despite the growth of market data and faster processing speeds across financial markets.

The Perseus time service utilizes 1 PPS (Pulse Per Second), an electrical signal Perseus uses to condition a customer server clock with the highest precision time data delivery backed by a Perseus SLA of less than one nanosecond. Other Perseus technologies such as fiber-optic and wireless connectivity with proximity colocation, all contribute to condition local grandmaster atomic clocks that feed time at electrical pulse speeds to customer trading systems and applications.

Stewart Orrell, Managing Director, Global Capital Markets at Equinix commented, “We are very pleased to have Perseus provide new critical infrastructure for certifiable time data across the Equinix ecosystem both in the US and now in Europe. Having financial firms able to reference UTC time data across existing trading ecosystems helps meet client requirements as they communicate and trade from market to market.”

The atomic clock installation at the Equinix LD4 datacenter was built to serve local and international broker dealers and the buy-sides such as High Frequency Trading firms. This new environment allows participants to interoperate their extremely fast market data, algorithmic and order execution servers in a colocated LAN environment a few feet from the Perseus atomic clocks and the markets of the Aquis Exchange, BATS-Chi-X, BOAT, ICAP EBS, Nasdaq OMX NLX, Turquoise and the London Metal Exchange (LME).

 Andrew Kusminsky, Chief Operating and Strategy Officer at Perseus said, “Rolling out High Precision Time™ in Equinix datacenters is one of our key strategies to help our financial customers performing at the lowest latency speeds in global markets. The Perseus precision time services help to mitigate risk, meet new stringent financial compliance guidelines, and ensure HFT systems are consistently accurate as they trade over our ultra low-latency networks including QuanTA, LiquidPath® and wireless/microwave.”

Source: Perseus,03.07.2013

Filed under: Trading Technology, , , , ,

Perseus Brazil Debuts Market-To-Market Liquidity Platform LiquidPath®

  • Fastest Connection to the BM&F Bovespa from Equinix/ALOG in Sao Paulo
  • Financial Compliant Network for Global Direct Market Access

Perseus Telecom, a leading provider of ultra-low latency, high capacity networks for market-to-market connectivity, today announced a fully managed ultra low latency solution offering called LiquidPath®. The service offering encompasses a complete trading network solution and infrastructure service for local and international exchange trading across global financial markets. LiquidPath® was developed to empower both the international Buy-Side with the local Sell-Side in order to take full advantage of the ever-evolving Emerging Markets landscape.

LiquidPath® connects the Perseus ultra low latency global network with key exchange data centers around the world. The service assists with procurement, staging and management of infrastructure for firms in need of support in foreign or emerging markets. Deployed at the beginning of 2013, the LiquidPath® platform connects the Perseus award winning network connection of New York’s Nasdaq OMX datacenter with the Sao Paulo Equinix/ALOG datacenter and into the site of the BM&F Bovespa exchange.

In Brazil, LiquidPath® is run by a local Perseus team of financial technology experts who purchase, install and manage equipment used for market data and trading in the Brazilian financial markets. The solution has connected Equinix/ALOG with BM&F Bovespa in less than 50 microseconds making LiquidPath® the fastest connection in market. LiquidPath® is an RCB compliant network of Brazilian exchange market data and trade execution messages.

Key Features of LiquidPath® Brazil

  • Market-To-Market: Global connectivity to 60+ financial markets.
  • Ultra Low-Latency: Fastest trans-Atlantic connection between London & Frankfurt; New York & London; New York & Sao Paulo.
  • Market Access Acceleration: Turn-up connections with exchanges, vendors and counter parties within proximity datacenters in days not months.
  • Agile Technology Support: Immediate adoption of new trading technologies as made available to stay competitive.
  • Financial Network Compliant: RCB network allowing for DMA access to local CVMs and exchange ports.

The LiquidPath® platform has seen an immediate market adoption, as many customers have connected onto the fast path between the Equinix/ALOG data center and the BM&F Bovespa data center with less than 50 microseconds RTD.

Marcos Guimaraes, President of Perseus do Brazil said, “In this new world of globalized, multi-market and multi-asset trading, the total cost of ownership for a firm has become extremely complex and competitive. Our latest offering provides simple, fast and flexible access to global exchange liquidity solving the problems our top end customers face.”

The Perseus LiquidPath® product is part of a suite of services designed to help trading firms get access to far reaching exchanges’ market data, send order execution and be in proximity with the trading community of multiple markets. Perseus stands by its testament of simplifying the process of trading connectivity, solving the problems that the complexities of international deployment involves and keeping the process efficient so that customers can mitigate risk and save money.

Source: Perseus 25.06.2013

Filed under: Asia, BM&FBOVESPA, Brazil, Exchanges, Latin America, Market Data, Trading Technology, , , , , , , , , , ,

Mexico, The Emerging Latin American Powerhouse

TABB Forum:  For the past few years, coverage of Mexico in the U.S. media has largely been dominated by stories of violence stemming from the country’s drug cartels. Lately though, the media have increasingly been turning their attention to the story of Mexico’s booming economy, and new president Enrique Peña Nieto’s bold moves to radically reshape it. This robust growth in Mexico looks set to continue for some time, which has led the Financial Times to label Mexico as the “Aztec Tiger.”1

MexDer, the nation’s only futures exchange, has been taking steps to ensure that it grows apace with the nation’s economy by making substantial upgrades to its matching engine, while continuing to make it easier for foreign investors to access the market. As a result of these changes, as of yesterday, April 14, north-to-south routing to MexDer via CME Group’s Globex® platform is available on Trading Technologies. You can read the details in the news release that we published today and on  TradingTechnology website.

The Aztec Tiger 

A perfect storm of positive influences is coming together to make Mexico one of the world’s emerging economic powerhouses. Mexico has a young and growing population, low levels of government debt and low inflation. The country is developing into a leading exporter due in part to widespread implementation of new manufacturing processes, but also due to the fact that Mexico has free trade pacts with 44 countries—more than any other nation on earth.These forces have combined to make Mexico’s economy one of the few bright spots in a global economy still working off the hangover resulting from the credit bubble. Mexico’s economy grew at around four percent in 2012, quadruple the growth rate of Latin America’s largest economy, Brazil.2 The Mexican peso hit a 19-month high against the U.S. dollar in March, and has outpaced 16 other major world currencies over the last month.3

With its growth track record and favorable conditions for growth to continue, a Nomura Equity Research report in July 2012 predicted that Mexico would overtake Brazil to become the largest Latin American economy within the next decade.4 In addition, Standard & Poor’s and Fitch have indicated that in the near future, they are likely to upgrade Mexico’s debt, which is already investment grade.5

A Pact for Mexico, An Open Door for Growth

Much of the optimism for Mexico’s future can be traced back to its new president, Enrique Peña Nieto. He hails from the Institutional Revolutionary Party (PRI), which ruled Mexico uninterrupted for 71 years and was identified with corruption and inefficient bureaucracy. That being said, President Nieto is quickly making himself known as a risk taker, willing to take on fights in which none of his predecessors seemed willing to engage.

Within two days of his swearing-in last December, Nieto’s PRI signed a “Pact for Mexico”6 with the opposition National Action Party (PAN). This pact outlines 95 proposals to modernize and liberalize Mexico’s economy. Nieto began by taking on the richest man in the world, Carlos Slim, by announcing plans to foster competition in the telecommunication and television industries, which are currently dominated by monopolies. Later this year, Nieto is expected to propose his most significant change, opening up Mexico’s energy market and allowing the state-run oil concern Pemex to work with the world’s largest oil companies. It’s expected that these reforms, once enacted, will increase Mexico’s GDP growth from four percent to six percent a year.7

Making MoNeT

In parallel, MexDer and the Mexican government have done quite a bit to attract foreign investors, and to make it easy for them to access the market. Perhaps one of the most significant changes has been the development of the MoNeT matching engine, which went live on Bolsa Mexicana de Valores (BMV), the equities segment, last fall.

The MoNeT matching engine was designed to attract high-frequency traders, mainly from the U.S. and Europe. It boasts internal latencies of 90 microseconds, which is faster than the 110 microseconds of NASDAQ or 125 microseconds at the London Stock Exchange.8 BMV volumes have increased 30 percent to 40 percent since the launch of the new matching engine.9For international traders and investors, accessing MexDer is straightforward. The north-to-south routing available via CME Globex allows any TT customer with an existing CME infrastructure to route orders to MexDer’s matching engine. MexDer is also accessible now in TT’s MultiBroker environment, which is currently available in beta. Additional information regarding how CME users can access MexDer is posted on the CME website.There are a number of other reasons why doing business in Mexico is easier than most other Latin American countries. Unlike Brazil, there is no withholding tax of any kind on foreign investment. The Mexican peso is a freely traded and easily convertible currency, and MexDer’s clearing house, Asigna, accepts U.S. dollar-denominated collateral.

La Oportunidad Está En Todas Partes

Owing to the fact that the U.S. does $1.5 billion per day in trade with Mexico,10 the Mexican markets are, predictably, highly correlated with America’s. North-to-south customers trading MexDer via Globex have access to a number of financial futures that allow for arbitrage opportunities against their American counterparts.

MexDer lists the IPC index of the BMV, which in general tracks closely to the S&P 500. The full Mexican yield curve is available on MexDer, from one-month bills to 30-year bonds, and it converges with the U.S. yield curve. Finally, MexDer lists a Mexican peso/U.S. dollar FX future, one of the 20 biggest FX futures contracts in the world by volume, which sets up arbitrage opportunities with the CME’s equally liquid peso/U.S. dollar future. In a recent MarketsWiki interview, MexDer CEO Jorge Alegria indicated that going forward, the exchange would likely look to list commodity futures linked to similar contracts listed on CME Group.

BMV IPC vs. S&P 500
Chart obtained from Yahoo! Finance

The ascent of the Aztec Tiger is no sure thing. There is always the danger of President Nieto’s PRI party losing its appetite for reform and returning to its old ways. There’s the chance that the hiccups in the U.S. economic recovery may impact Mexico, given that 30 percent of the Mexican economy is tied to U.S. exports. There may even be signs that Mexico’s economy is stalling already, which led the central bank to reduce interest rates for the first time since March 2009. Either way, TT users now have the ability to participate in one of today’s most interesting markets.

1 Thomson, Adam. “Mexico: Aztec tiger.” Financial Times. January 30, 2013.
2 Rathbone, John-Paul. “Mexico’s reform plan lifts hopes for greater prosperity.” Financial Times. March 20, 2013
3 Kwan Yuk, Pan. “Mexican peso hits 19 month high”. Financial Times. March 14, 2013.

Filed under: BMV - Mexico, Exchanges, Latin America, Mexico, News, Trading Technology, , , , , , , , , , , , , , , , , , ,

Mexico City-Based Broker CI Casa de Bolsa Signs with Perseus Telecom

  •  For the Fastest, Market-To-Market Connection with Mexico
  • Partnership enables New York and Mexico City trading communities to receive market signals and send transactions at the lowest latency rates available

Perseus Telecom, a leading global provider of connectivity, today announced that it has signed CI Casa de Bolsa to its ultra-low latency network between the New York and Mexico City markets. The launch of this partnership represents a landmark development as the fastest trading route between the two marketplaces and creates new opportunities for trading firms across the globe.

CI Casa de Bolsa, a leading Mexico City-based brokerage house, has a global client base seeking liquidity in the Mexican marketplace. With US-listed stocks displayed in Mexico, CI Casa de Bolsa has chosen Perseus Telecom for its high-speed, ultra low-latency network connection from New York to Mexico City for the fastest execution capabilities possible for foreign investors.

“We are very happy with our decision to use Perseus Telecom. Their network is built for performance and customer satisfaction without the overbearing costs that low-latency technology can sometimes bring to our bottom line,” states Mauricio Suarez, Head of International Sales at CI Casa de Bolsa. “The beneficiaries of lower costs and lower latency are our clients and serving them stands as CI Casa de Bolsa’s primary objective.”

Dr. Jock Percy, CEO of Perseus Telecom, explains, “We are quite pleased to have a reputable firm like CI Casa de Bolsa join the Perseus Telecom global network. As Perseus Telecom looks to bring more value to investment communities at different corners of the globe, markets like Latin America, led by Brazil and Mexico, are important to us and our customers. CI Casa de Bolsa coming on-net is a testament to our commitment to these markets.”

Source: Perseus Telekom, 07.01.2013

Filed under: Mexico, Trading Technology, , , , , , , , ,

Mexico: BMV Mexican Stock Exchange Aims to Attract High Frequency Traders with Platform Upgrade

Mexican stock exchange operator Bolsa Mexicana de Valores detailed its investment in a new trading platform that the bourse hopes will reduce execution time for trades while also boosting trading activity.

The platform will enable the bourse to complete a trade in 90 microseconds, or to facilitate around 100,000 transactions per second, putting it on par with the Singapore Stock Exchange and besting the New York Stock Exchange’s completion rate of 150 microseconds per trade, the Mexican exchange said. The platform, which began handling stock transactions on Sept. 3 and will handle derivatives trades starting in December, cost the bourse 150 million pesos ($11.5 million.)

The Mexican exchange hopes the updated platform will attract a greater number of sophisticated international market participants who are interested in executing algorithmic trades. Currently, such high-frequency trades account for 17% of the volume operated on the bourse, versus 70% of the volume in the U.S., the exchange said. In August the exchange averaged 1.9 million stock transactions a day.

The new platform also incorporates filters to prevent erroneous trades, for example by detecting price action that is out of sync with the market or unusually high volumes. In April the local brokerage house of Bulltick Capital Markets triggered a mini “flash crash” by entering an erroneous trade, knocking Mexico’s benchmark IPC stock index down about 2 percentage points.

Source: FIF Financial Information Forum, 17.09.2012

Filed under: BMV - Mexico, Exchanges, Latin America, Mexico, Trading Technology, , , , , , , , , , , , , , , ,

Brazil: Perseus Telecom acquires ETradeLab Brazilen Trading Tech Co

Perseus Telecom, a global connectivity provider, today announces the acquisition of ETradeLab, a Sao Paulo-based financial technology provider of hosting, managed connectivity, order routing and trade monitoring support. The purchase comes at a time of global demand for efficient trading systems with low-latency connectivity and local support models suited for banks, hedge funds and proprietary firms.

The joint company expects to add significant value to its services by tightly integrating them. Combining ETradeLab’s hosting solutions with Perseus’ ultra-low latency networks will provide cost effective, efficient and valuable network solutions for its customers. Anticipating and responding to innovative demands while having pricing sensitivities further led to this agreement.

“Our purchase of ETradeLab shines light on the accelerating market growth in Brazil, Peru, Chile, Panama and Colombia where capital markets require ultra-fast, reliable connections to mitigate risk and to provide worldwide reach,” states Dr. Jock Percy, Chief Executive of Perseus Telecom. “Incorporating ETradeLab into our brand was an easy decision given its expertise in the market and trade monitoring services.”

Effective immediately, Marcos Guimarães, founder of ETradeLab, is President of Perseus Telecom, Brazil. “It is a thrill to be part of Perseus Telecom’s top-tier management team. Perseus brings innovation and high performance networks at fair prices due to its strong portfolio that allow customers to increase revenues while reducing operating costs,” states Guimarães. “The LATAM region’s continuing market growth requires such building blocks for optimum time-to-market and even faster development; Perseus has the DNA to deliver them allied to ETradeLab’s local market knowledge. I’m ready for the challenge and can’t wait to start working with our customers.”

The expansion of Perseus’ Brazilian presence follows its recent Global Telecoms Business award for “Best Innovation,” related directly to building the fastest connectivity from London to BM&F BOVESPA, Brazil. Prior to the award, Perseus announced the fastest route to BM&F BOVESPA with its strategic partner GlobeNet.

“Our recent announcements and awards with regards to Brazil and South America have indicated the firm is taking a permanent and local stake in the region and we have done this with the valuable acquisition of ETradeLab,” says Percy. “We welcome Marcos Guimarães as President of Perseus do Brazil and will continue our path of commitment to providing the lowest latency networks globally whilst delivering intelligent and cost efficiencies.”

Source: LowLatency.c0m, 12.09.2012

Filed under: BM&FBOVESPA, Brazil, Latin America, News, Trading Technology, , , , , , , , , , , , ,

Fidessa explores the development of electronic trading in Latin America

Fidessa group plc , provider of high-performance trading, investment management and information solutions for the world’s financial community, has today announced the publication of a white paper, Life in the fast lane: the development of electronic trading in Latin America. The paper explores the current trading landscape in Brazil, Mexico and the Andean region, and how recent technology and regulatory developments will affect domestic and international brokers trying to establish a rewarding position in these fast-paced markets.

White paper looks at market growth and trading technology in Brazil, the Andean region and Mexico

To highlight the unique trading conditions, market challenges, technology and regulatory changes shaping each market, Fidessa’s white paper considers specific regions in Latin America individually: from the extreme growth of Brazil as a strategic trading destination, to upgrades being made to Mexico’s trading infrastructure as well as the Andean region’s efforts to boost liquidity and exploit economies of scale. The paper explores the challenges presented by Latin America’s varying stages of growth as an electronic marketplace and concludes that flexibility, agility and scalability will be key attributes of the technology solution.

Alice Botis, Fidessa’s Head of Business Development in Latin America comments: “Latin America is attracting significant interest from global market participants and this shows no signs of stopping. Brokers are looking at the unique benefits each country has to offer and are taking the necessary steps to gain a presence in multiple locations across the region, in financial centers such as Brazil, Chile, Colombia, Mexico and Peru. Each country retains its unique style of trading, so it is important for buy-side and sell-side firms to understand how the marketplace is evolving in each region within Latin America and how those developments fit in with their local and global trading strategies.”

Source: Bobsguide, Fidessa 12.07.2012

Filed under: Brazil, Chile, Colombia, Latin America, Mexico, News, Peru, , , , , , , , , , , , , , , , , , , ,

Interactive Data Asian ticker plants go live

Interactive Data Corporation, a leading global provider of managed ultra-low latency IT and market data services to facilitate electronic trading today announced that its ticker plants in Asia are now live.  Based in two data centres in Hong Kong, the new ticker plants offer a significant reduction in the latency of PlusFeed, Interactive Data’s low-latency, consolidated global data feed.

With increasing adoption of electronic trading in Asia, market data has become a crucial issue. Firms require high quality data at the desired speed from across the region. The new ticker plants, located with Pacnet at MEGA-iAdvantage and with Equinix in their HK1 facility, provide Interactive Data’s clients with lower latency access to Asian venues covered by PlusFeed, as well as to a wide range of additional international sources.

Interactive Data’s new low-latency co-location facilities in Hong Kong will also offer international clients the option to co-locate their applications alongside the ticker plants. This will enable them to obtain optimised low-latency delivery of Asian data via the Interactive Data sites in Hong Kong.

Emmanuel Doe, president, Trading Solutions Group for Interactive Data, said: “With the growth of electronic trading in Asia and higher data volumes globally, clients in Asian markets have an increasing need for cost-effective, real-time market data and delivery. We continue to expand our electronic trading services in Asia and elsewhere throughout the world to meet these requirements.”

Dan Videtto, managing director for Asia Pacific for Interactive Data, added: “The addition of two new ticker plants within one of the region’s primary trading hubs is a significant development. This is one of many enhancements that we will be delivering to Asian markets as we look to support firms in the region through our low latency data and global trading infrastructure solutions.”

Interactive Data’s PlusFeed delivers low-latency data from more than 450 sources worldwide, covering more than 140 exchanges and including multi-asset class instrument coverage and extensive Level 2 data. The feed is used by financial institutions globally to power algorithmic and electronic trading applications and is now supported by ticker plants located in Europe, the US and Asia.

In addition, clients can use the Interactive Data 7ticks network to gain direct market access (DMA), advanced co-location and proximity hosting to global direct exchange data, consolidated data, as well as reference and corporate actions data.

Direct or cross-connect access to a wide range of global exchanges is also available in Asia through Interactive Data’s Points of Presence (POPs) with leading global providers of data centers and technology services, including Equinix, Inc. (Nasdaq: EQIX), Interxion, Telex and KVH.

Source: Finextra, 27.06.2012

Filed under: Asia, Data Management, Data Vendor, Market Data, , , , , ,

Brazilian Markets Still Driving Low-Latency Connectivity

The Brazilian financial markets – with the Sao Paulo-based BM&F BOVESPA securities market in particular – continue to drive activity among connectivity and infrastructure providers looking to support trading firms looking to take advantage of trading opportunities in a hot market.

Most recently, GlobeNet – which operates a submarine cable from Nasdaq’s Carteret, NJ data centre to BM&F BOVESPA with 106 milliseconds of round-trip latency – reported that is has built out its own network infrastructure within Sao Paulo, connecting in to Florencio de Abreu, 195, a connection point for the exchange.  Previously, it relied on third party telecom providers for the leg within the city.  The new link gives it more control and faster implementation of customer connections.

Meanwhile, Sidera Networks is looking to the future by purchasing bandwidth on Seabras-1, a new 32 Tb/second submarine cable, being built by Seaborn Networks, linking Miami, FL to Sao Paulo.  The network – which Seaborn execs say will be the fastest route, but they are not saying yet by how much – is expected to be operational in the fourth quarter of 2014.  Seaborn execs also say connectivity from Miami to the New York City metro area will also be announced in due course.

Also, back in April, Thomson Reuters opened an Elektron Hosting and Managed Services centre in Sao Paulo, to provide low-latency access to BM&F BOVESPA.

Source: Low-Latency, 12.06.2012 Peter Harris

Filed under: BM&FBOVESPA, Brazil, Exchanges, Trading Technology, , , , , , , ,

Coming to Grips With Big Data Challenges by Dan Watkins

The rate of data growth in financial markets has scaled beyond the means of manageability.

Debates have gone so far as to dismiss Big Data as being tamable and controlable in the near term with the current computing architecture commonly adopted as an acceptable solution. I agree but argue that conventional data transport – not management – is the real challenge of handling and utilizing Big Data effectively.

From exchange to trading machine, the amount of new ticks and market data depth are delivered only as fast as the delivery speed can endure. Common market data feeds that are used in conventional exchange trading are but a fraction of the market information actually available.

Perhaps due to high costs of $100,000 per terabyte, many market participants deem the use of more data as a bit too aggressive. Or they believe that high performance computing (HPC) is the next generation technology solution for any Big Data issue. Firms, therefore, are sluggishly advancing their information technology in a slow cadence in tune with the old adage: “if it ain’t broke don’t fix it.”

Over the last decade, Wall Street business heads have agreed with engineers that the immense perplexity of Big Data is best categorized by Doug Laney’s 2001 META Group report’s Three B’s: Big Volume, Big Velocity and Big Variety.

When looking at “Big Volume” 10 years ago, the markets had just defragmented under Regulation ATS. A flurry of new market centers arose in U.S. equities as did dark liquidity pools. This gave rise to a global “electronic trading reformation.” Straight-through processing (STP) advocates and evangelized platforms such as BRASS, REDIPlus and Bloomberg Order Management Systems (OMS) resulted in voluminous and fragmented market data streaming to 5,000 NASD/FINRA trading firms and 700,000 professional traders.

Today, the U.S. has 30+ Securities and Exchange Commission-recognized self-regulatory organizations (SROs), commonly known as exchanges and ECNs. For the first time since 2002, full market depth feeds from NASDAQ allow firms to collect, cache, react, store and retrieve feeds on six hours of trading for nearly 300 days a year more transparently than ever. Big Data volume has grown 1,000 percent and has reached three terabytes of market data depth per day.

Billions of dollars are being spent on increasing “Big Velocity.” The pipes that wire exchanges through the STP chain to the trader have become 100 times faster and larger but still not fast enough to funnel the bulk of information laying idle back in the database. Through “proximity hosting,” the telco is eliminated and latency is lowered. This structure results in adjustments made for larger packets but not really for more information as Big Data remains the big, quiet elephant in the corner.

Five years after Reg ATS, markets are bursting at the seams with electronic trading that produces explosive market data that breaks new peak levels seemingly every day. The SEC’s Regulation National Market System (Reg NMS), struck in 2007, requires exchanges and firms to calculate the best price for execution to be compliant. Firms are also now mandated to sweep all exchanges’ market order books and process all of that data for a smart execution.

After the execution, traders have to track the “order trail” from price to execution for every trade and store all of that information for seven years in the event of an audit recall of a transaction.

Under Reg NMS, subscribing to the full depth of all 30+ markets in “real time” would mean a firm would have to have a 1x terabyte pipe for low latency. Since a T-pipe is not realistic, data moves at 1x gigabits, which is relatively slow with the data in queue at 50-100 terabytes deep. Multi-gbs pipes, as fast as they seem, are still similar to driving five miles an hour on a 55 mph highway.

Analysts typically call data from a database with R (Revolution Analytics) and “SAS” Connectors. The process includes bringing data to an analytical environment in which the user runs models and computations on the subsets of a larger store before moving on to the next data crunch job. The R and SAS Connectors between the file servers and the database are at 10/100BASE-T, making the movement of 50 terabyte environment like driving one mile per hour in a 55 mph zone.

We all hear the polemics regarding data formats and the jigsaw puzzle of unstructured data and the fact that “Big Variety” is the obstacle. Even after standardization of SQL-based queries where analysts can ask any “ad hoc” question, too many sources and too many pipes from analytic servers cause traffic jams. SQL databases are ideal for unstructured queries but are slow in unstructured data compiling. Aggregating market information is where much of market’s processing technologies are being evaluated today to meet the requirements of regulations, sweeping for best execution and for risk management.

Comparing where current prices of stocks are against bids and asks to trade across multiple exchanges, markets, sources, asset classes and clients is essentially the Big Data task of risk management. In addition to managing data changes, firms are also tasked with managing their trading accounts, client portfolios and trading limits such as with the implementation of Credit Valuation Adjustments (CVAs) for counterparty risk.

So why are we still piping data around the enterprise when we just need more compute and memory power? Hardware-accelerated core processing in databases such as XtremeData’s dbX and IBM’s Netezza are powered by FPGAs (field programmable gate arrays). Processing of massive amounts of data with FPGAs can now occur at “wireless” speed. Along with high performance computing, high-speed messaging technology provided by companies like TIBCO, Solace Systems and Informatica have redefined transport times into ultra-low latency terms from one database to another in single microseconds, sometimes in nanoseconds, from memory-cache to memory-cache.

The colloquial phrase “in-database” analytics is an approach of running analytics and computations as near as possible inside a database where the data is located. Fuzzy Logix, an algorithmic HPC vendor, replaces the need for SAS and R connecting analytics, which stretch along the wire from the database to the analyst. With Fuzzy Logix, the need to call a database for small files is eliminated because computations can be done with the rest of the database in real-time: days to seconds faster.

With in-database or in-memory analytics, BI engineers can eliminate transport latency altogether and now compute at server speeds with computations sitting inside the database or in memory for tasks to be completed locally, not on the transport wire.

Wall Street is as risk averse as ever in today’s atmosphere so the adoption of new technology or new vendors continues to present operational risk challenges. ParAccel is a company that appears to be addressing the operational risk of new technology adoption by helping firms utilize the power of parallel processing of Big Data analytics on OEM hardware.

Since ParAccel is software, an IBM, HP or Dell shop could essentially rely on the reliability of their well-known, established database vendor but use next generation Big Data analytic processing an order of magnitude faster than what is currently in place. ParAccel allows firms to aggregate, load and assimilate different data sets faster than traditional platforms through its “columnar database” nodal system. The columns in a ParAccel environment provides firms with the flexibility to first run analytics in-database or in-memory, then bring massive amounts of data to a common plane and finally, aggregate the unstructured data and do it all in lightning speed.

Other companies like NVIDIA have been building graphic processing units (GPUs) for the video game industry for three decades and are now swamped with customer requests to help build parallel computing environments, giving financial firms the ability to run trillions of algorithmic simulations in microseconds for less than $10,000 per card, essentially. GPUs can have up to 2,000 cores of processing on a single NVIDIA Tesla card embedded inside. A GPU appliance can be attached to a data warehouse for advanced complex computations. Low-latency processing can also be achieved due to minimum movement of data over a short distance analyzing most of what Wall Street claims is Big Data in seconds compared with the days it takes now.

The vendors and players are ready to get to work; there just needs to be some consensus that the Big Elephant in the room is there and it’s standing on a straw when it could be surfing a Big Wave!

Source: Tabb Forum , 02.05.2012 by Dan Watkins, President @ CC- Speed dwatkins@cc-speed.com

Filed under: Data Management, Market Data, Risk Management, Trading Technology, , , , , , , , , , ,

Market Data Technology to Hit $3.6B in 2012

Demand for market data acceleration is driving the global investment in sell-side, market-data distribution technology in 2012 to $3.6 billion, according to a report released by the Tabb Group.

The report, Market Data Acceleration: More than Just Speed, also predicts 4.5% compound annual growth in these investments for the next three years based on expected growth in FX, Derivatives and Commodities as well as movement by Asian markets towards automation.

The largest segment of this investment, 73%, will come from Europe and North America, but according to Tabb Group, there’s considerable growth potential from the Asian markets.

Moreover, while the equities markets are matured from a growth perspective, driving 45% of the global spend, a strong percentage of growth will come from over-the-counter (OTC) derivatives, FX and commodities.

According to the report, market data is an area where performance can play a crucial role for a host of trading activities. Obtaining, decoding and utilizing market data in a timely and efficient manner are no longer the purview of the ultra-low-latency firms; everyone involved needs to be able to get at market data in as timely a fashion as possible.

“This is not to say that everyone needs to be at the ‘tip of the spear’; however, it does mean that anyone who is actively involved in trading needs to be moving in that direction,” said the report.

However, according to the research firm, firms are struggling with conflicting pressures of the “need for speed” in comparison to the “need to save,” as they try reconcile price with performance.

“Market participants need to ensure that their investment in speed gets them more than just a solitary solution for a single platform,” said Tabb partner and report writer Alexander Tabb in a statement.

Different firms, according to Tabb, have different strategies, thus different needs. Whether a firm is a high frequency trader, an institutional market maker, or an algo-trading desk, the challenge is placing speed into its proper context within the accelerated market data equation.

“Due to the democratization of speed, it’s essential for every buyer to remember to factor in total cost of ownership, price versus performance, operational flexibility, control, scalability and time-to-market,” says the report.

Source: Securities Technology Monitor. 23.04.2012

Filed under: Data Management, Data Vendor, Market Data, , , , , , , , , , ,

S&P Capital IQ aquieres QuantHouse low latency market data provider

S&P Capital IQ, a business line of The McGraw-Hill Companies (NYSE: MHP) offering global multi-asset class data solutions, market research and portfolio risk analytics to global investors, today announced it has acquired QuantHouse, an independent global provider of market data and end-to-end systematic trading solutions. This includes ultra-low-latency market data technologies, algo-trading development frameworks, proximity hosting and order routing services for hedge funds, market makers, proprietary desks and latency-sensitive sell-side firms.

“The acquisition of QuantHouse will provide our clients with access to exchange pricing globally, including securities valuations and portfolio analytics, throughout all our desktop and enterprise solutions. In addition, the extensive capabilities QuantHouse brings will enable S&P Capital IQ to build our own unique real-time monitors, derived data sets and analytics,” said Lou Eccleston, President of S&P Capital IQ and S&P Indices.  “As the foundation for our growing Enterprise Solutions business, QuantHouse will enable us to offer one integrated low-latency feed for all our data, including fundamental, fixed-income, equity and derivatives.”

“We are very excited to be a part of S&P Capital IQ,” said Pierre-Francois Filet, chairman and co-founder, QuantHouse. “Together, we can focus on developing a new generation of alpha-generation tools, low-latency transaction infrastructure and integrated low-latency data feeds to maximize offerings and strengthen S&P Capital IQ’s competitive positioning.”

This purchase, along with the recently announced acquisition of R2 Financial Technologies and the expected acquisition of CMA later this year, provides S&P Capital IQ with the components necessary to offer its clients the most comprehensive market data and risk analytics platforms in the industry.

Following the acquisition, QuantHouse’s 90 employees, based in Paris, London and New York, will become a critical component to S&P Capital IQ’s global growth strategy as part of the Enterprise Solutions unit. In the short term, its products and services will continue to be sold as standalone feeds and applications, although all S&P Capital IQ and S&P Indices content will gradually be consolidated into QuantHouse feeds.

Source: Mondovisione, 04.04.2012

Filed under: Data Vendor, Market Data, , , , ,

Active Financial expands offerings through Global Infrastructure ActivNet

Activ Financial, a global provider of fully managed low-latency and enterprise market data solutions, today announced that ActivNet, the firm’s global infrastructure for the transmission of financial data worldwide, is expanding its offerings to include raw feed delivery and trade order routing. Originally developed to provide access to locally aggregated raw direct exchange feeds as well as globally aggregated exchange feeds, the collocated, highly managed and reliable system is now also being utilized for trade/execution transport and other latency sensitive data.

“ActivNet is a fully realized global infrastructure that has a proven track record as a high-performance, stable and low-latency communications platform,” said Antonio Bernard, Chief Network Architect of Activ Financial. “By offering additional capabilities vital to the financial sector, businesses across the world can access high-quality data and execute trades at the fastest speeds available, all without the added costs necessitated by building and maintaining their own global network infrastructure.”

ActivNet is optimized for real-time information services related to price discovery, eliminating transfer issues often facing multi-purpose networks. To support the infrastructure, ACTIV’s proximity centers operate in more than 20 physical global centers around the world, either in or near exchanges in key market locations, ensuring space, power, cooling, and an extensive, flexible network that is able to meet demanding requirements.

The architecture behind ActivNet provides the speed advantages of local direct feeds plus fast delivery of content from away markets. By leveraging the concept of an A & B Ring, which provides a fully resilient and dynamic path for delivery of raw exchange data and market data, coupled with strategic points of presence across major international locations, users are granted extremely high levels of traffic engineering capability. This architecture provides best in class latency characteristics while also providing the highest degree of resiliency. In addition, the commitment to carrier neutrality allows ACTIV to leverage the best providers between points where reliability is critical.

“ActivNet was originally designed to drive our core business at Activ Financial, and as such customers can trust that the network is maintained at the highest level.” said Activ Financial President Frank Piasecki. “We are consistently searching for and testing new routes and offerings and investing in our infrastructure, and businesses can take advantage of the quality system that Activ Financial uses for its own data needs every day.”

Source: A-Team, 03.04.2012

Filed under: Data Vendor, Market Data, Trading Technology, , , , , ,

Bloomberg boosts network speed and efficiency in Asia

Bloomberg L.P., financial data, news and analytics provider, has extended availability of its enterprise data services in markets throughout Asia. An efficient network of data centers across the region enables the delivery of reliable collocation, connectivity and infrastructure services along with reduced latency in data distribution.

The expansion of low-latency services throughout Asia includes Equinix Inc.‘s Hong Kong and Sydney-based International Business Exchange (IBXÒ) data centers, further strengthening the existing Bloomberg deployments in New York, Chicago, Slough and Frankfurt. Current and prospective customers located inside these Equinix IBX data centers can now directly connect to Bloomberg’s real time data, B-Pipe and Event Driven Trading feeds.

The coordinated service delivery also benefits customers of Bloomberg’s agency broker, Bloomberg Tradebook, in New York, London and Hong Kong.

“Together, Equinix and Bloomberg address a market need for secure and reliable connectivity to multiple partners simultaneously,” said John Knuff, general manager, global financial services at Equinix. “The expansion of services into Asia enables Bloomberg customers to leverage our global footprint of data centers. And Bloomberg’s presence across these markets adds further value to the global financial ecosystem inside Equinix.”

Source: NetworkAsia,02.03.2012

Filed under: Asia, Australia, Data Vendor, Hong Kong, Japan, Market Data, Singapore, , , , , ,

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