Europe Sees High-Speed Trading Buildouts04.29.2013
European exchanges and infrastructure providers are creating high-speed gateways connecting far-flung trading networks.
CQG, a provider of high-performance trade routing is providing low-latency, hosted connectivity to NASDAQ OMX NLX.
NLX, the new London derivatives market, offers a range of both short-term interest rate (STIRs) and long-term interest rate (LTIRs) euro- and sterling-based listed derivative products, subject to Financial Conduct Authority approval. Both trade execution and market data will be available to CQG customers from launch.
This new connectivity is an important addition to the liquidity pool available to traders accessing European interest rate products through CQG’s trading gateways.
With CQG’s robust market aggregation tool, traders will be readily able to seek fills on the NLX market as part of their price and quantity trading objectives.
“From an early stage in the development of NLX we have focused on partnering with vendors who facilitate ease of connectivity to our market”, said Charlotte Crosswell, CEO of NLX, in a statement. “We are delighted that CQG will provide market data and trade execution so their customers can benefit from accessing our market.”
Market aggregation can be used in conjunction with CQG Spreader for low-latency execution of orders comprised entirely of aggregated legs or any combination of outright and aggregated legs. The smart order routing capabilities of CQG’s aggregation help achieve best execution by allowing traders to set personal preferences, including the preferred market.
Separately, ARQA Technologies, financial software firm based in Russia, has developed a high-speed matching core QUIK Matching Engine (QME) for its flagship software EMS QUIK.
QME is a core for quick matching of broker clients’ orders forwarded through QUIK. The system may be used by broker-dealers for setting up electronic trading platforms which provide their clients with access to additional asset classes.
“We are pleased to present our new solution. It’s a new generation solution which helps our clients to achieve their specific goals at high-speed-and-with-assured quality,” said Vladimir Kurlyandchik, director of business development of ARQA Technologies, in a statement.
Currently, the QME supports processing limit and market orders for equities and FX. Matching is done anonymously by double auction rules. Client position control and trade limiting takes place in the QUIK server according to its standard models.
Matching may be carried out in several ‘cores’ of the module simultaneously and separately for several instruments. This makes it possible to process over 5, 000 transactions per second with the average transaction time of 200 microseconds.
NASDAQ OMX NLX will launch with six interest rate futures products: Euribor, Sterling, Long Gilt, Schatz, Bobl, and Bund contracts. NLX aims to enhance the competitive landscape by providing highly competitive execution and clearing fees and significant margin efficiencies, via the use of NASDAQ OMX Genium Inet technology and a partnership with LCH.Clearnet.
Net sales registered net outflows of €3bn, compared to €42bn in March 2022.
European financial markets would benefit from a well-functioning fixed income consolidated tape.
European government bond trading volumes increased 17.5% year-on-year in the first quarter.
Net sales turned negative for the first time since March 2020.
The EU needs to implement a consolidated tape across Europe to compete as a global player.