03.28.2014
By Terry Flanagan

Traders Look for Speed Outside Equities

Sanjay Shah, chief technology officer of NanoSpeed, a provider of ultra-fast low latency trading technology, said traders are interested in futures, options and foreign exchange as almost three quarters of global FX volumes were executed electronically systems last year.

Shah told Markets Media: “We started with clients in cash equities. Now more and more clients are interested in futures, options and foreign exchange.”

Consultancy Greenwich Associates said in a report this week that 74% of global foreign exchange trading volumes were executed through electronic platforms last year, up from 71% in 2012.

Greenwich said: “Much of last year’s gains can be attributed to retail aggregators with an increase in share of trading volume to 98% in 2013 from 92% in 2012.”

Electronic foreign exchange volumes in Continental Europe fell last year and was unchanged in the US at around 83% of market participants according to the study.

Greenwich Associates interviewed 1,584 financial professionals using foreign exchange at large, top-tier corporations and financial institutions between September and November 2013.

Shah said: “We are concentrating more on customer demand in developed economies but demand is also developing in BRIC countries.”

This week Nanospeed said in a statement that it had connected to Deutsche Boerse’s Eurex T7 trading platform and eight Eurex T7 derivatives partners including exchanges in Singapore, Korea, Taiwan and Bombay.

Shah said NanoSpeed supports all asset classes on more than 30 exchanges and access to the new Eurex marketplace was added in response to clients. “We are in discussions about connecting our order entry gateway to several exchanges in Europe, North America and Asia,” he added.

He said the Nano-TG technology, announced last October, is 10 to 20 times faster than the firm’s nearest software competitorwith trading speeds in nanoseconds as opposed to microseconds. “We are working on the next generation of stacks and expect to get significantly faster,” Shah added.

The CTO said Nanospeed clients have been able to replace between 8 and 16 of their servers in co-location centres with one server with their FPGA cards. “Their power consumption falls from 10,000 watts to 35 watts per FPGA  card,” he added.

Featured image via Flicker/Russell Trow under CC

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