September 08, 2005

FIX Organization Tests Fast Protocol

FIX Protocol Ltd. (FPL) released initial results from a proof of concept (POC) developed by FPL's Market Data Optimization Working Group in response to the growth of electronic trading volumes and market data message rates.

The POC consisted of a series of tests applied to a new data compaction methodology called FIX Adapted for Streaming, also known as the Fast Protocol.

The results indicate that the proposed encoding algorithm is fast enough to keep up with data rates of more than 10 Mbit/second and in some cases more than 50 Mbit/second, according to the release. Testing demonstrated 79 percent to 89 percent peak utilization rates when compared to the original size of the data source. CPU utilization was measured at 3.4 microseconds per message (or 294,000 messages per second) or less. The sample data sets in the initial phase of the POC are Archipelago, Exchange's ArcaBook Feed, Options Price Reporting Authority (OPRA) Feed, Chicago Mercantile Exchange (CME) Globex Feed, and Nordic Exchange (NOREX) Feed.

The Fast protocol utilizes implicit tagging, field encoding and serialization in order to radically reduce message size and bandwidth utilization, said the release. According to FPL, with the increased use of direct feeds, coupled with sheer growth in electronic trading volumes and the resultant market data message rates, several market centers and market participants have expressed interest and participated in the FPL Market Data Optimization Working Group activities.

The next phase of the POC will result in the final publication of a reference implementation of the Fast Protocol, a user reference guide and supporting white papers covering best practices. FPL will demonstrate the Fast Protocol at its November 1-2 FPL Electronic Trading Conference in New York.

BNP Paribas Deploys Grid Computing for Credit Derivatives BNP Paribas' global structured credit group has implemented Data Synapse's grid computing infrastructure software, GridServer.

BNP Paribas deployed the grid at its London operations and plans to roll it out to additional sites in New York and Tokyo, as well as across multiple business lines, including the credit and interest-rate derivatives group.

The investment bank deployed GridServer across HP blades in the bank's structured credit group to improve performance of its credit derivatives operations, according to the release. As a result of sharing IT resources, the bank also will increase utilization of existing hardware and reduce capital spending requirements.

According to Data Synapse, heterogeneous system resources are pooled, virtualized and allocated as needed to eliminate IT constraints and processing bottlenecks. This in turn enables BNP Paribas to accelerate bringing more complex derivatives to market, while increasing the ability to trade larger volumes.

CME Launches Emerging Markets Incentive Program

CME announced the launch of a new Emerging Markets Partner Program (EMPP) to support the geographic expansion of European and U.S.-based proprietary trading firms and trading arcades into developing trading centers. The two-year program is scheduled to begin October 1, 2005, and will provide fee waivers for new users of CME electronic markets in qualified regions around the world.

According to the release, global incentive programs for market participants in Europe and Asia, so far this year, have averaged up to 100,000 contracts traded per day.

To participate in the program, eligible firms that have established new trading facilities with at least five traders in emerging marketplaces must dedicate a minimum of fifty percent of their new traders to trading CME products over the two-year period. All participating trades must be new to derivatives trading and must be recruited locally in eligible locations.

SunGard to Link STN to SWIFTNet FIX

SunGard will link the SunGard Transaction Network (STN) to SWIFTNet FIX to enhance connectivity between the global buy-side and sell-side communities. A pilot sponsored by SunGard Institutional Brokerage will pilot a relay service to connect its customers to SWIFTNet FIX, according to the release.

Similar to STN, a trade and connectivity solution that connects institutions to promote straight-through processing, SWIFTNet FIX provides asset managers, broker-dealers, exchanges and ECNs (electronic communication networks) with a secure and reliable messaging platform to exchange FIX messages with counterparties worldwide.

SunGard says that as result of the linkage, STN will be able to provide U.S. broker-dealers and asset managers with connectivity to an expanded list of global counterparties for cross-border trading.