Rapid processing of data improves decision-making
in trading, research, and operations, benefitting enterprises and consumers. Computer
servers accelerated with Field
Programmable Gate Arrays[1] (FPGAs) operate at the
greatest speeds to collect, analyze, and act on data. As data volumes sky
rocket, processing speed becomes critically important.
Algo-Logic[2] leverages the speed of
FPGAs to achieve the lowest possible trading latency. Their clients have access
to data in 1.5 millionths of a second, enabling them to make better trades. Algo-Logic
Systems’ CAPI-enabled Order Book is a part of a complete Tick-to-Trade (T2T) System[3] for market makers, hedge
funds, and latency-sensitive trading firms. The exchange data feed is instantly
processed by an FPGA. The results go to the shared memory of an IBM POWER8
server equipped with the IBM CAPI[4] card and specialized FPGA
technology. Then, in less than 1.5 microseconds, it updates an order book of transactions
(buy/sell/quantity).
Stock trading generates an enormous data
flow about the price and number of shares available. Regulated exchanges, such
as NASDAQ, provide a real-time feed of market data to trading systems so that
humans and automated trading systems can place competitive bids to buy and sell
equities. By monitoring level 3 tick
data and generating a level 2 order book, traders[5] can precisely track the
number of shares available at each price level. Firms using Algo-Logic’s
CAPI-enabled Order Book benefit from the split-second differences in understanding and
interpreting the data[6] from the stock exchange
feed.
Algo-Logic released their CAPI-enabled
Order Book in March 2015. Multiple customers now use it in projects that
include accelerated network processing of protocol parsing, financial
surveillance systems, algorithmic trading, etc. with many proof-of-concept
projects underway.
Algo-Logic found success with Linux,
POWER8, and CAPI. We expect to write more about, Algo-Logic and other OpenPOWER Foundation[7] partners as they continue
to develop solutions and POWER8-Linux systems demonstrate their ability to handle
big data at the speeds developers, architects, and users need.
[3] See http://algo-logic.com/ticktotrade,
also see: “CAPI Enabled Order Book Running on IBM® POWER8™ Server” at: http://algo-logic.com/CAPIorderbook
[4] For a discussion of CAPI see: http://www-304.ibm.com/webapp/set2/sas/f/capi/home.html
[5] We oversimplify stock market operations for clarity.
For more details visit the footnotes.
[6] This is High Frequency Trading (HFT), for
information, see: https://en.wikipedia.org/wiki/High-frequency_trading
No comments:
Post a Comment