Algorithmic Trading

“Follow effective action with quiet reflection.
From the quiet reflection will come even more effective action.”

- Peter Drucker

Algorithmic and high-frequency trading isn’t just capturing headlines, it’s driving trade volumes through the roof, increasing liquidity and generally accelerating capital markets. The famous “algos” are just one piece of the puzzle, though. They can only do their job when they have the real-time market data they need to identify profitable trades, and when they can get those trades placed before the competition. So algorithmic trading systems must be based on an infrastructure that routes market data from feed to algo as quickly as possible, and lets them send information and instructions to back-office systems.

Solution Summary

By supporting low latency market data distribution and guaranteed messaging with a single platform and API, Solace’s solution can help financial institutions accelerate their trading systems from end-to-end while reducing the complexity and cost of their infrastructure.

Advantages and Benefits

• Faster market data in the front office: Each Solace message router can deliver more than 10 million market data messages per second, efficiently filtering and forwarding market data to appropriate algos so they each get precisely the data they need.
• Faster orders in the back office: Solace’s solution supports the delivery of over 100,000 guaranteed messages per second, enabling high-volume MQ-style interactions among the myriad of back-office applications responsible for functions such as assessing risk, placing orders and settling transactions.
• Lower costs: Reliable messaging, guaranteed messaging and content routing are typically handled by three distinct solutions running as independent deployments. Solace consolidates these functions, effectively enabling the replacement of 10 to 20 general purpose middleware servers and associated network ports per Solace device.
• Better isolation of slow consumers: Solace’s innovative hardware queues messages in high-speed memory until receipt is acknowledged, and only sends messages to disk when a subscriber is offline for an extended period of time. Software-based solutions, on the other hand, need to queue all undeliverable messages to disk, which throttles performance and causes all subscribers to be affected when one subscriber can’t keep up with their message flow.
• Improved visibility: Solace’s solution tracks performance and usage statistics on a per-client basis with no impact on throughput or latency. This includes visibility into statistics that are difficult or impossible to get in multicast environments, such as queue depths and message rates by client application, network behavior, and distribution link failures.