Optimise Buoys ISE

Terry Flanagan

The International Securities Exchange’s proprietary Optimise trading system has provided a substantial boost for the venue since its launch.

Since implementing its Optimise trading platform, the International Securities Exchange has seen steady gains in market share and order flow as volatility reached year-to-date highs and order flow spiked to record levels.

“We are happy and proud of the performance of the Optimise platform since its launch,” said Danny Friel, chief information officer of ISE. “We have seen market share grow steadily each month, which speaks volumes about the reliability, functionality and latency of the platform. Latency has remained consistent, even with volatility in the markets.”

Excluding dividend trades, the ISE has seen market share increase from 18.4% in July to just over 20% in October. The system has not suffered from any market-wide outages since its launch, despite periods of sustained market volatility and record transaction rates.

“It is times of extreme market volatility when customers most need reliability,” added Friel.

The ISE last week announced that it had completed the latest upgrade to the Optimise trading architecture. It plans to provide updates to the platform every two months, with the next release scheduled for mid-December, with two more coming in the first third of 2012.

The International Securities Exchange launched Optimise in April. About three months later, the rollout was complete with the migration of all of the exchange’s product tranches to the new platform.

Optimise was jointly developed by the technology teams at Deutsche Borse and the ISE. The company touts its speed, performance, efficiency, capacity, throughput, reliability and availability. The platform, which runs out of two data centers, reduced latency compared to the previous system by about 90%, according to the ISE. Because of the flexibility of the technology, it can be adapted to serve as the backbone of all the Deutsche Borse Group Exchanges. In the future, Eurex expects to develop a trading system utilizing the same basic infrastructure underpinning Optimise.

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