Algorithmic and high-frequency trading isn’t just capturing headlines, it’s driving trade volumes through the roof, increasing liquidity and generally accelerating capital markets. The famous “algos” are just one piece of the puzzle, though. They can only do their job when they have the real-time market data they need to identify profitable trades, and when they can get those trades placed before the competition. So algorithmic trading systems must be based on an infrastructure that routes market data from feed to algo as quickly as possible, and lets them send information and instructions to back-office systems.
Solution Summary
By supporting low latency market data distribution and guaranteed delivery as part of one platform, Solace’s high-performance messaging solution can help financial institutions accelerate their trading systems while reducing their complexity and cost.
Advantages and Benefits
- Faster market data in the front office: Each Solace appliance can deliver more than 10 million market data messages per second, efficiently filtering and forwarding market data to appropriate algos so they each get precisely the data they need.
- Faster orders in the back office: Solace’s high-performance messaging solution supports the delivery of over 200,000 guaranteed messages per second, enabling high-volume MQ-style interactions among the myriad of back-office applications responsible for functions such as assessing risk, placing orders and settling transactions.
- Lower costs: Reliable messaging, guaranteed messaging and content routing are typically handled by three distinct solutions running as independent deployments. Solace consolidates these high-performance messaging functions, effectively enabling the replacement of dozens of general purpose middleware servers and associated network ports per Solace device.
- Better isolation of slow consumers: Solace’s innovative hardware-based high-performance messaging solution queues messages in on-board memory until receipt is acknowledged, and only sends messages to disk when a subscriber is offline for an extended period of time. Software-based solutions, on the other hand, need to queue all undeliverable messages to disk, which throttles performance and causes all subscribers to be affected when one subscriber can’t keep up with their message flow.
- Improved visibility: Solace’s solution tracks performance and usage statistics on a per-client basis with no impact on throughput or latency. This includes visibility into statistics that are difficult or impossible to get in multicast environments, such as queue depths and message rates by client application, network behavior, and distribution link failures.