TMX to Cut Trading Time By 20X. Next Year.
February 1, 2012
TMX Group said it would use hardware acceleration cut the speed of executing an order below 100 microseconds, next year.
The operator of the Toronto and Montreal exchanges said its next-generation trading system, TMX Quantum XA, will cut delays by 20 times, or 95 percent, meaning orders can be executed in fewer than 100 millionths of a second.
The new trading system also will be able to handle 200,000 orders a second. The system will use 10 billion-bit-a-second communications pipes.
That communication spseed will be provided available for the first time to Toronto
Stock Exchange, TSX Venture Exchange and TMX Select customers.
Work that is typically handled by general-purpose central processors will be moved to specialized circuit boards, a process known as hardware acceleration.
TMX Quantum XA is the product of two years of research and development (R&D).
TMX Quantum XA will initially be implemented on TMX Select in the first quarter of 2013, the Toronto Stock Exchange and TSX Venture Exchange will follow, beginning at the end of 2013.
The company expects to incur incremental annual operating expenses of approximately $4million to support this initiative.
