Ultra-Low Latency Trading

The term latency refers to the total amount of time a data packet takes to travel from one point to another. However, in terms of trading it relates to the nanoseconds it takes information to travel from the trading system to the exchange reception at the brokerage firm. Improved ultra-low latency technology is the key to winning your trade at the price you want before the stock price moves. This is true whether you are a high-frequency trader, a market maker, or a statistical arbitrage trader.

Algorithmic trading systems use techniques such as co-location, shortest path networks, and, increasingly, 10G Ethernet interfaces and Field Programmable Gate Array (FPGA) technologies in order to minimize latency and gain a competitive advantage. FPGA-based low-latency trading system technologies—often referred to as programmable logic devices—are invaluable in competing at the premier level. Take your specific algorithms and implement them into fully-customized FPGA cards to create an optimal algorithmic trading system boasting ultra-low latency that will save you precious nanoseconds for your high-frequency trading.

New Wave DV are experts at these custom programmable device technologies that have proven time-and-time-again to give our partners the competitive edge when it comes to high-frequency, low-latency trading solutions. Receive a timely response to any questions you have about New Wave DV’s FPGA-based trading systems and watch as our fully-customized algorithmic trading design implementations make the difference between winning the trade and watching someone else win.

Fully-Customized FPGA Cards for Ultra-Low Latency Trading

Financial trading systems that utilize low-latency, high-frequency, and algorithmic trading technologies can perform numerous tasks in mere nanoseconds. Some of the responsibilities of a fully-customized FPGA trading device, include:

  • Analyzes market data from multiple stock exchanges.
  • Utilizes financial trading strategies to find trading opportunities.
  • Operates with an ultra-low latency interface to get orders into the trading queue first.
  • Reprogrammable, user-definable algorithm support for optimization, testing, and live updating.

To reduce latency, it is necessary to push the decision-making on trades to the Network Interface Card (NIC), which alleviates the need to involve the main system processor, which could cause undesirable delays in response time. This network-side processing (where processing occurs as close to the network interface as possible) is essential for the design of a truly ultra-low latency trading system.

Trading Advantages Using Low-Latency FPGA Devices

Ultra-low latency algorithmic trading systems that are implemented within New Wave’s fully-customized FPGA cards provide numerous benefits over less sophisticated system options.  Some of the direct advantages of New Wave DV low-latency trading devices include:

  • Executing trades located close to the network’s physical interface eliminates the latencies caused by the host bus, the host processor, and the operating system. This drastically reduces trading response time.
  • Wire-speed performance, allowing the almost-instant execution of the part of the algorithm that detects and acts on trading opportunities before others even notice the opportunity.
  • Reprogrammable during operation, allowing parameters and algorithms to be changed and updated and keeping you ahead of the competition.
  • Excellent parallel processing, which enables them to act on multiple trades simultaneously.
  • Include a development framework that shortens the development cycle for users and allows them to focus on the development of their systems and proprietary algorithms.
  • Every FPGA from New Wave Design & Verification is a custom programmable logic device; whatever your needed specifications, we can support them.
Ultra Low Latency Trading Diagram

Contact New Wave DV for Ultra-Low Latency Trading Solutions

New Wave DV provides our partners with the best ultra-low-latency trading capabilities in the market. Our 10G Ethernet FPGA cards provide easy-to-use application development framework, while our expert software developers provide innovative solutions for today’s complex financial markets. We deliver on-time and on-budget in an industry where every second and every penny makes or breaks a deal.

Contact New Wave DV for more information regarding high performance, ultra-low latency FPGA technology. Alternatively, we’re available at 952-224-9201 to discuss your ultra-low latency needs and special requirements.

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