Lime Brokerage Taps Correlix for Latency Measurement
October 19, 2010
Lime Brokerage, a New York-based agency brokerage firm, is installing Correlix’s RaceTeam service to monitor the latency of orders and market data, Correlix officials said.
Lime, which specializes in executing orders for quant and high-frequency traders, will roll out the Correlix RaceTeam service into five different data centers in the United States in the fourth quarter of 2010and the beginning of 2011.
The RaceTeam service will help Lime Brokerage measure its latency at the network level: how quickly it sends customer order to different execution venues and receives confirmations that the orders have been executed. The service will also help Lime determine how quickly it receives market data from trading venues
Coupled with the client’s measurement of just how quickly the trade message migrates through its systems, the trader can use the results from RaceTeam to understand what it needs to do to reduce latency on its part. It also allows traders to maximize their trading strategies. Such an analysis is of particular interest to high frequency traders.
“More and more buy-side firms realize that placing an order with a low latency broker requires complete latency transparency by the broker to facilitate predictable trading strategies,” says Shawn Melamed, founder and president of Correlix in New York.
John Jacobs, director of operations for Lime Brokerage, says that his firm was previously using an internal application to measure latency but it was cumbersome to reformat internal metrics into a consistent format. By contrast, the Correlix service will have the data readily available and easy to use for its customers.
The deal with Lime Brokerage marks the fifth brokerage firm to use the Correlix service. It is also used by Nasdaq OMX and Direct Edge.
