Morgan Stanley is to use latency monitoring technology from Corvil to analyse and optimise data transmission speeds from its market data plants in New York and London and to and from execution venues.
The US bank is using CorvilNet at its NY and London ticker plants and CorvilClear for inter-party latency monitoring, enabling Morgan to see where and why latency in the trading loop is occurring, and how to minimise it.
Kevin Twitchen, executive director Morgan Stanley says the CorvilClear implementation will enable the bank to measure in real-time the true end-to-end latency and loss for market data and order execution traffic from its data centre through to the execution venue matching engine.
He explains: "With CorvilClear, we intend to collaborate closely with all of our exchange and MTF partners to provide real-time latency transparency to our trading businesses and clients."
The Corvil platform offers real-time latency compliance reporting and automated event capture with common root-cause analysis tools for problem-solving.
Says Twitchen: "With Corvil's...low-latency infrastructure analytics, we are confident that our new trading plant can meet the stringent performance levels demanded by our electronic trading businesses."
Finextra verdict: Operating in a depressed market, Corvil has tapped into a rich seam of interest among capital markets participants in its latency management technology. The Dublin-based vendor scored a $12 million funding round last year after signing deals with Credit Suisse, Deutsche Börse and the London Stock Exchange. Other big execution venue clients brought in since then include Turquoise and the CME. Corvil has also secured deals with Thomson Reuters, Fixnetix, Neonet and BT. With investment banks loosening the purse strings once again, that $12 investment by Vesbridge, ACT Ventures and Apax is beginning to look like money well spent.