Reuters (LSE: RTR; NASDAQ: RTRSY) today launched its Reuters Latency Monitor (RLM) to meet growing demand for monitoring the speed or latency at which market data is delivered. RLM offers customers continuous monitoring of system latency in real time with the ability to generate alerts if the speed of the data falls.
The product allows Reuters customers to understand the exact amount of network delay between the origination of market data and its delivery to their trading applications. This is vital for algorithmic trading applications in particular, which capitalize on the fleeting opportunities created in high-velocity markets where the timely use of data is essential.
Measurements can be made right across a network or focused on specific areas within it. The monitoring is passive and causes no additional strain on the network and needs no modifications to the existing Reuters Market Data System (RMDS).
Terry Roche, Executive Vice President, Head of Strategic Business, Reuters, said; "Reuters customers need to know that their trading applications are getting data at the high speeds they need to trade effectively. If this speed falls for any reason, RLM will alert users instantaneously so that they can adjust their trading method immediately. Reuters Latency Monitor will give them the vital insight they need on the speed at which data is reaching them on a second-to-second basis."
Endace Limited ('Endace'; LSE/AIM: EDA), a world leader in network monitoring and latency measurement, announced today that it will supply product to Reuters (LSE: RTR; NASDAQ: RTRSY) for the Reuters Latency Monitor (RLM) for RMDS, an integrated hardware/software solution that enables Reuters Market Data System (RMDS) customers to measure the exact amount of network delay between the origination of market data and its delivery to their trading applications.
The RLM will be delivered using Endace's Ninjabox-LM hardware platform and Trading Metrics software for latency performance analysis. The solution will be co-marketed by Reuters, Endace and Trading Metrics across each of their existing and prospective customer bases.
"Much of today's trading capitalises on fleeting opportunities created in high-velocity markets," said Terry Roche, Executive Vice President, Strategic Business at Reuters. "Traders who are first to identify and act on those opportunities usually execute the most profitable trades. By installing the NinjaBox-powered Reuters Latency Monitor in their Reuters Market Data System networks, our customers can pinpoint and measure where latency is occurring, from the feed handler source to consuming applications, in real-time. This information can be used to measure transit point and end to end performance of market data traffic traversing the RMDS network. Our customers are able to identify bottlenecks and take action, shifting strategies within their networks accordingly."
Built on Endace probe technology and pre-installed analysis software from Trading Metrics, the NinjaBox-LM measures market data messages as they move between RMDS infrastructure components and the customer's trading applications.
"Our solution connects to span ports of enterprise switches or routers, continuously comparing timestamps in the messages with very accurate timestamps generated by passive Endace probes," explained Mike Riley, CEO at Endace. "This drives real-time displays, links into trading applications, and generates alerts when network delays exceed set thresholds. The co-operation with Trading Metrics validates our vision of high performance Endace hardware driving best-in-class, network monitoring software."
"Algorithmic trading is forcing an advance in network and service performance," added Jeff Drew, CEO of Trading Metrics. "Ninjabox-LM delivers a key component in this quest for low latency solutiotions. You cannot improve what you cannot measure, and with RLM, Reuters' customers now have the capability to accurately chart performance at all points in a network infrastructure that ties directly to trade execution and corporate profitability."
Trading Metrics, provider of latency measurement products, announces a world wide licensing agreement with Reuters using the Endace NinjaBox as the high speed message time-stamping platform.
The agreement allows Reuters to sell, support and distribute Trading Metrics products world wide. Initially Reuters will distribute the Market Latency Metrics product under the branding Reuters Latency Monitor for RMDS. Additionally, the software will be pre-installed and packaged with the Endace Ninjabox for ease of deployment.
"This announcement brings innovative software to market with the 'world class' sales and support capabilities of Reuters, combined with the reliable high performance time-stamping platform from Endace", said Jeff Drew, CEO, Trading Metrics.
"Reuters is seeing growing demand from our client base to integrate real time and continuous latency tracking into their daily operations and trading processes" commented Terry Roche, Executive Vice President, Strategic Business, Reuters. "Our relationship with Trading Metrics allows us to rapidly respond to this demand on a global basis."
"Trading Metrics demonstrates thought leadership with their latency measurement and analysis techniques across multiple sources," notes Mike Riley, Endace CEO. "We are excited to deliver this robust solution to the marketplace."