17 December 2017
Paul Blank

e-Trading thoughts

Paul Blank - TradAir

30Posts 157,145Views 1Comments
Finance 2.0

Finance 2.0

A community for discussing the application of Web 2.0 technologies to financial services.

Trading Platforms need to perform in all market conditions

12 May 2010  |  4045 views  |  0

WallStreet & Technology touches on an interesting topic relating to last weeks near 1,000 point fall in the Dow in late US trading.

Data released by Gomez Inc (see chart at end of article), shows many on-line trading platforms struggled to cope with the resulting surge in investor activity, with some platforms showing a 10 fold increase in the time taken from log-in to trade execution, compared to ‘normal’ market conditions. Such delays can rapidly kill hard won client loyalty for a platform.

I am sure senior management at many of those platforms are struggling to understand why their platforms were unable to scale sufficiently to support user numbers under conditions of extreme market volatility, without excessive latency and delays being introduced.

This clearly highlights the importance at the design stage of ensuring that the platform has been architected for scalability and performance, even under the most extreme market conditions.

Rigorous automated performance and regression testing should be incorporated into a continues build process testing performance and functionality at every phase. Prior to go-live comprehensive stress testing must be carried out, throughout the entire platform stack, to ensure pricing, trading and all end user GUI functionality is performing to acceptable levels and within agreed latency thresholds.

As the graph below shows, time spent in final UAT testing, will be worth its weight in gold!

Website response times for top 15 online brokerages 6th May TagsTrade execution

Comments: (0)

Comment on this story (membership required)

Latest posts from Paul

Talk of ICE exchange to buy FX platform Fastmatch

20 July 2015  |  6881 views  |  0 comments | recomends Recommends 0 TagsTrade executionWholesale banking

Why SDPs should provide TCA tools for buy-side clients

13 July 2015  |  2993 views  |  0 comments | recomends Recommends 0 TagsTrade executionWholesale banking

Review of major FX Platforms volumes for June 2015

12 July 2015  |  3179 views  |  0 comments | recomends Recommends 0 TagsTrade executionWholesale banking

Paul's profile

job title e-Trading Solutions
location London
member since 2007
Summary profile See full profile »
Commentator on all aspects of developments around eTrading solutions for banks, looking at the business needs and real-world trading problems of clients. Typically our clients are banks, and trad...

Paul's expertise

Member since 2007
29 posts1 comments
What Paul reads
Singledealerplatforms.org

Who's commenting on Paul's posts