Primary Trading Solutions, a Latin American leader in securities and financial transaction technology, is pleased to announce that the first performance tests conducted in collaboration with Intel Corporation position the latest version of its trading platform for exchanges among the fastest platforms running on commercial of-the-shelf hardware.
The growing need to attract traders who use automated execution systemsc, known as algorithmic or high frequency traders and accounting for the bulk of the volume traded in the main financial centers (up to 75% in US stock markets), has put exchanges around the globe in a race to minimize response time, also known as latency, and maximize order processing capability in their trading systems.
Since 2008, Latin American exchanges and markets have been experiencing a large scale transformation process that involves substantial investments to implement this kind of high performance software platforms. BM&F BOVESPA — a leader in the region — has announced that they will allocate 70% of their 2010 budget to technology, including investments for around USD150 million, focusing on high frequency traders.
The tests included 15 simulated clients entering orders in 8 matching engines running on a standard server with 2 four-core Xeon E5620 processors which uses the new 32-nanometer manufacturing technology. Around 15% of the orders resulted in fills.
"As comparative example for the results of the tests, the whole market in Europe across all exchanges/ MTFs is approximately only 75,000 orders per second, according to their web sites and press releases. This indicates that this new generation of processors creates new paradigms, such as the possibility of implementing an entire market on a single mid-range server with minimum latency given that there are no networks hops between system components. In the near future high frequency traders will be able to rent virtual servers within the market's physical Data Center Infrastructure" commented Ignacio Plaza, Director at Primary.
"The emergence of algorithmic high frequency trading is revolutionizing the way the financial services industry is architecting their computing systems" said Shannon Poulin, Enterprise Marketing Director and LAR Executive Sponsor in Intel's Data Center Group. "The work that Primary Trading Soluttions is doing on our latest 32nm Intel Xeon 5600 series processors is leading the way for advanced securities and financial services technology adoption that provides tremendous performance improvements to Latin America and beyond."
"As users of Primary trading technology, we're very excited about the test reports we've received. We know that the dissemination of DMA and the future emergence of HFT will require much faster speeds in order processing, and these hardware advances are an incentive and give us confidence to move forward in this regard," said Diego Fernández, CEO at Rofex.
"These software platforms, along with the outstanding performance and cost-effectiveness of the hardware based on the new Intel Xeon 5600 Series processors, will certainly bring change to the capital markets in the region, allowing all local exchanges to seamlessly integrate with each other and connect to the world's leading financial centers," stated Alfredo Conde, Director at Primary.