10.26.2011
By Terry Flanagan

Exchanges Build Out Latency Tools

Nasdaq OMX and Corvil to provide transparency into trade execution.

Exchanges are providing transparency into the performance of their marketplace to participants, as information about performance and speed become critical to optimizing and de-risking complex trading strategies.

Corvil, a provider of latency management systems for high performance trading and market data, together wrath Nasdaq OMX, are providing full latency measurement and performance visibility across Nasdaq OMX’s Genium INET trading platforms.

The CorvilNet OMnet module provides full visibility into transactions, including the routing of individual messages as well as the outcome of the transaction itself.

“The module provides full trade life-cycle visibility, for Corvil clients, to monitor order lifecycles on Nasdaq OMX’s trading platforms,” Donal Byrne, CEO of Corvil, told Markets Media. “The OMnet module allows the full decode and monitoring of order transactions, including the routing of individual messages and the outcome of transactions.”

The Corvil-NASDAQ OMX collaboration has enabled Singapore Exchange to achieve ultra low- latency performance for its new generation trading platform Reach, which is powered by the Genium INET technology and monitored by CorvilNet.

In addition, SGX market participants can benefit from visibility of their order flow latency to our marketplace by using the CorvilNet OMnet module.

“Platforms that are built on Nasdaq OMX technology, including Singapore Exchange Reach, have a set of protocols and application programming interfaces (APIs) that are propriety to Nasdaq OMX,” said Byrne.

To provide full transaction visibility from a participant point of view Corvil has built a suite of parsers that decode activity within NASDAQ OMX’s protocols and APIs to determine the latency of orders, without requiring users of the module to understand the protocols and interfaces.

“This means users can now monitor all the dependencies along the path between participant and venue, incentivizing any exchange, or participant using a Nasdaq platform to use Corvil on top,” Byrne said.

Participants can also compare the relative latency of different transaction types, e.g. fill-or-kill, order vs. bid and order cancels; as well as measuring latency contributions from their own equipment, such as trading gateways, smart order routers and firewalls.

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