SIFMA TECH 2011: Shaving 5 Microseconds off the NBBO & More
June 13, 2011
Redline Trading Solutions said it will introduce a high-speed service for accurately calculating the National Best Bid and Offer for trading on stocks in U.S. equities markets, at the annual Securities Industry and Financial Markets Association technology conference in New York.
SIFMA's Financial Services Technology Leaders Forum and Expo opens Tuesday and closes Thursday, at the Hilton New York.
Redline calls its calculator INRush NBBO. The service is designed to respond to Securities and Exchange Commission, which require that all equities brokers ensure that their customer trades execute at the best price that can be found, across all competing U.S. national stock exchanges.
Redline said that its service does not rely on intermediaries to get and consolidate National Best Bid or Offer (NBBO) pricing information. InRush NBBO calculates the NBBO from direct connections to the major exchanges with hardware-accelerated software embedded directly into single-server trading applications. The tack aims to eliminate the redistribution overhead and calculate the NBBO in 5 millionths of a second, across all exchanges.
National Best Bid or Offer (NBBO) pricing information is typically provided by central consolidators, known as securities information processors, or SIPs. The processors combine information from each market center and make it available for dissemination to financial institutions. While SIP-sourced feeds serve the needs of many applications, "the inherent overhead in the formation and distribution of these feeds can make them out of sync with the markets by many milliseconds, by the time they reach a trading application,'' Redline said.
"We have taken the same technology that we supply to high-frequency trading applications and used it to help trading firms get better prices for their customers' trades," said Mark Skalabrin, CEO of Redline Trading Solutions.
Also on the eve of SIFMA Tech 2011:
* Progress Software Corporation said that Ativa Corretora, a Brazilian brokerage firm, deployed its leading algorithmic trading software, Progress Apama Capital Markets platform. The Apama platform is being used to help Ativa’s create custom algorithms for customers using its new electronic trading services. Three global hedge funds requested low latency arbitrage strategy execution on the Brazilian Stock Exchange, BM&FBOVESPA, through the Ativa brokerage firm.
* Exegy, Inc., said it added a system for storing market data on the "edge" of their networks. The market data appliance company said the Exegy Edge Cache will help "hundreds of market data consumers" to connect to their Exegy Ticker Plant installations, after plunging in the edge cache.