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Turquoise and Three Investment Banks Share Latency Data

MTF and trading participants use CorvilClear to measure inter-party latency throughout infrastructure.

Turquoise, the Pan European multilateral trading facility, and three of its participating investment banks, are utilizing Corvil’s new latency measurement offering to gain visibility into the causes of latency between interconnected trading parties.

The new offering called CorvilClear, announced this week, is designed to offer transparency into inter-party latency that is experienced between trading partners and market centers. In what could be a new trend among execution venues and their participants, Turquoise could be one of the first execution venues to share latency data with its trading participants.

“Nobody has visibility. They have visibility on their own infrastructure. We don’t have visibility in the middle, and if we do, it’s after the fact,” says Yann L’ Huillier, chief information officer at Turquoise, the London-based Pan-European trading platform that is using CorvilClear along with three of its investment banking participants.

“I will be opening my infrastructure to the market participants so they can se orders going in and going out. It’s what’s called inter-party latency system” says L’ Huillier in an interview with Advanced Trading. He explained that Turquoise purchased two of the Corvil boxes and worked with the technology for six months. Then it talked to some of the market participants in Turquoise and did a proof-of-concept that ran for three months.

According to Donal Byrne, CEO of Corvil, an electronic trading and market-data latency management company in New York, London and Dublin, the firm is trying to solve a difficult problem for firms trying to do high speed and high frequency trading, which is “how do they get visibility or control into latency when they don’t control a lot of infrastructure over which they trade,” says Byrne.

The solution is a black box, (customized software and hardware), which inserts into the network passively, without disturbing the infrastructure. “It takes its measurements and we do analysis and we provide all the analysis back to the parties in the trading room,” says Byrne. “Its very sophisticated technology to be able to measure these things at microsecond granularity and multiple gigabytes of speed,” he says.

Ivy is Editor-at-Large for Advanced Trading and Wall Street & Technology. Ivy is responsible for writing in-depth feature articles, daily blogs and news articles with a focus on automated trading in the capital markets. As an industry expert, Ivy has reported on a myriad ... View Full Bio

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