NYSE Euronext to Adopt Correlix Speed Measurement System
January 9, 2011
Correlix said that NYSE Euronext will begin using its RaceTeam service for measuring the speed of orders traveling to and back from its exchanges in the United States.
The service will be rolled out starting later this year in NYSE Euronext’s primary data center in Mahwah, New Jersey and will measure speed of instructions moving to and back from its NYSE Classic, NYSE Arca Equities, NYSE Arca Options and NYSE Amex Options exchanges.
This latest deal means most trading in equities and equity options in the United States will be measured by the RaceTeam service. Correlix already has signed similar pacts with Nasdaq OMX Group, Direct Edge and CBOE Holdings, noted Shawn Melamed, founder, president and chief technology officer at Correlix.
"I think it just shows the industry is moving toward move of a standard way of reporting latency and enabling customers that are doing electronic trading and high-frequency trading to use this real-time latency information to optimize the way they're trading" with a specific venue or across venues, said Melamed.
He estimated that 75 percent of all U.S. equities trading will now be measured by Correlix. This will make its measures of speeds at each step of communications "almost an industry standard for equities.’’
This will give trading firms a "much deeper visibility" on how strategies and connectivity work with an exchange, he said. This will let the operations departments of both trading firms and exchange firms streamline interactions of their systems.
"The customer is seeing what the exchange is seeing," Melamed said.
This will make it easier to resolve bottlenecks. Where before communications issues might take half a day to figure out, resolution should take minutes, he said. With this kind of measuring system, “everybody is talking the same language, the same data''''
The service will enable NYSE Euronext and its customers to monitor and manage their low latency trading infrastructures for order execution and market data.
NYSE Euronext customers will be to track speeds through exchange gateways to matching engines, heloping them refine the execution of trading strategies.
“As business transactions move through NYX trading applications within our datacenter, application latency information can be shared with the firms that initiate it,” said Paul Adcock, executive vice president, NYSE Euronext. .
NYSE Euronext latency data is expected to be available on RaceTeam early this year.
In November 2009, Nasdaq OMX Group said it would use Correlix to provide speed measurements for the NASDAQ Stock Market, making it the first global exchange group to connect to RaceTeam.