Mexico Launches High-Speed Trading Engine
September 17, 2012
The Mexican Stock Exchange has launched a new trading engine that is 300 times faster than the system it replaces.
Bolsa Mexicana de Valores, as the exchange is formally titled, said it launched its new trading engine, MoNeT at the outset of September, replacing its Sentra system.
MoNeT processes orders in about 90 millionths of a second and can handle as many as 100,000 orders a second.
The new system will be used in equities and derivatives trading. The engine goes live on the Mexican derivatives market in December.
The system was developed in-house, in conjunction with the Software Engineering Institute (SEI) of Carnegie Mellon University, Roland Tibell at Bourse Consult LLP, IBM, and Oracle Java Labs.
The development of the system cost BMV $11.5 million.
U.S. high-frequency trading firms now represent about 90 percent of average daily volume on the Mexican exchange, according to Institutional Investor.
