Ultra-low latency provider of FPGA solutions to exchanges and the electronic trading industry NanoSpeed has announced connectivity to the London Stock Exchange’s derivatives marketplace, marking the latest development in London’s premier trading venue maintaining its technological edge, joining 30 other exchanges globally which use NanoSpeed’s Nano-Risk, including NASDAQ, Eurex and the CME.
The high speed solution for the LSE will cut down the amount of time required for critical risk checks, such as fat-finger and client-specific checks for direct market access (DMA).
Sanjay Shah, NanoSpeed’s CTO, said: “Because performing risk checks in software is very slow, our approach is to enable an institution to do the same thing, but on an FPGA. An institution can perform the vital calculations in under half a microsecond, which is 50-100 times faster than using software.”
NanoSpeed supports order entry for the LSE (using the MIT protocol), while the market data, utilized in pre-trade risk checks, uses the LSE Group Ticker Plant (GTP) and the MIT ITCH protocols.
Outgoing orders are put through exceptionally fast risk checks, with a latency of less than half a microsecond. Once the risk checks have been completed the orders are passed to the matching engine for execution.
Investment banks, proprietary trading firms and hedge funds use NanoSpeed solutions to gain a competitive edge in trading, market data processing and risk management. “The speed advantages are borne-out by a recent implementation by a tier-1 bank, which has started using Nano-Risk for access to the LSE and another large, global bank, which is accessing the CME with Nano-Risk,” said Mr. Shah.
NanoSpeed’s founders boast an aerospace background in the development of its technology, which provides optimized connectivity, combined with exceptionally low and deterministic latency to global exchanges, across all asset classes.