The Nasdaq OMX Group, Inc. announced today plans to implement CorvilNet, an independent solution for operational performance monitoring that provides a new level of visibility, safeguards and protection for the exchange group's U.S. trading platforms. CorvilNet is powered by Corvil, the leading provider of real-time operational performance monitoring for wire data.
Nasdaq OMX will leverage CorvilNet to better serve member firms that contribute to the exchange group's deeply liquid marketplaces. CorvilNet's operational performance monitoring system provides the exchange group with the ability to simultaneously analyze activity at the network, application and trading layers. The comprehensive information that is captured will allow the exchange group to alert for anomalies in real time and improve technology systems performance. Advanced diagnostic tools may be used to track the full life cycle of a trade, enhancing Nasdaq OMX's ability to respond effectively to member firm queries relating to technical issues, performance levels, or trading outcomes.
In addition, the independently developed tool will strengthen Nasdaq OMX's ability to ensure compliance in a fragmented marketplace with heightened focus on transparency. The exchange group will use CorvilNet to support regulatory functions such as tracking all outbound data feeds to member firms and the Securities Information Processors. With an enhanced view into its system, Nasdaq OMX will continue to optimize its core INET trading engine, which powers 1 in 10 of the world's security transactions.
"Our adoption of Corvil's operational performance monitoring technology demonstrates our commitment to better serve our member firms," said Eric Noll, Executive Vice President of Transaction Services U.S. and U.K. at Nasdaq OMX. "The CorvilNet solution monitors and enhances the trading experience, detects complex anomalous behavior, achieves an additional level of visibility into trading events and intelligently alerts our information technology systems and staff."
"We continue to proactively integrate sophisticated technology solutions as a means to reduce risk exposure in a constantly evolving electronic marketplace. There is a need for greater visibility to deal with competitive and regulatory forces that shape operations," Mr. Noll added.
CorvilNet uses dedicated network-attached data appliances, which acquire data passively from the network wire, thereby avoiding any extra burden on trading system components. After time-stamping all acquired data, the system provides real-time decoding of the content within the data, allowing it to expose all data fields from hundreds of market data, orderflow and middleware protocols. This allows users to search, filter and process captured data based on order IDs, client IDs and other meaningful application-layer data fields, in real-time.
"Many monitoring tools and architectures struggle to deal with the high volume, variety and velocity of data present in the world's leading electronic exchanges," said Donal Byrne, Chief Executive Officer of Corvil. "Tapping into the network wire is the most effective method to achieve this but it requires a sophisticated system than can transform the unstructured wire data into operational context and business intelligence in real-time. This is what our platform provides thus making it possible to build a new generation of independent visibility, detection and control systems that greatly reduce risk and improve the orderly operation of electronic trading systems."
"We are delighted that Nasdaq OMX has chosen Corvil for this important initiative and we look forward to working with them to realize their vision for a faster and safer electronic exchange," Mr. Byrne added.
Approximately 25 billion messages pass through Nasdaq OMX's U.S. equities and options systems on an active day, which amounts to over 1 million transactions per second in a trading day. During volatile periods, peak message traffic can be double. Nasdaq OMX will use Corvil for latency monitoring and performance measurement on its U.S. equities platforms including The Nasdaq Stock Market, Nasdaq OMX BX and Nasdaq OMX PSX; and U.S. options platforms including Nasdaq OMX PHLX, Nasdaq Options Market and Nasdaq OMX BX Options. The Corvil platform maintains a high-velocity data store of approximately 0.5 petabytes containing records of orders, market data and various metadata that provide operational and business context to the data. In 2011, Nasdaq OMX and Corvil partnered to launch the CorvilNet OMnet Module that provides full latency measurement and transaction performance visibility for the Nasdaq OMX Market Technology suite of trading platforms which are used by 70 marketplaces in 50 developed and emerging countries.