June 10, 2008

Tervela (booth #1606), the company behind the hardware-based messaging switch, is introducing at the SIFMA Technology Management Conference the latest release of the Tervela Messaging Network (TMX). Release 3.0 includes a persistence engine for high-performance storage and a message-based services engine that adds intelligence to the network, according to the vendor.

"We're extending the messaging fabric to put much more intelligence into the network itself," says Tervela CEO Robert Cramer. "One way that Tervela is doing this is with the persistence engine's ability to maintain a history of the information. The second part is a services engine that allows us to do processing against that engine. All of a sudden people have the ability to do processing in this message fabric. Applications can be far more efficient that way."

Tervela's TPE Persistence Engine indexes and retrieves data so the data can be examined and made available to downstream applications, such as time series analysis, according to Barry Thompson, Tervela's founder and chief technology officer. For example, the persistence engine can be used in options market-making solutions that include volatility calculations and independent variables. The persistence engine can capture each state of the calculation, Thompson says.

"People can take all of that market data and all the information about their applications in a raw state at the same time," says the CTO. A market maker can replay the exact state of its application, or the exact state of its algorithm, at any given point so that it can see the conditions under which it made a certain decision, he explains.

According to Tervela, under continuous conditions of 500,000 messages per second, the TPE Persistence Engine can store an entire day's worth of messaging information, while leaving time for subsequent processing and archiving of the data.

Another application for which the persistence engine comes into play is in intelligent order routing, when a firm needs to prove that it's routing to the right destination under Reg NMS or MiFID requirements. "With the launch of 3.0, we've got a bunch of customers that are pushing us into the order routing space," says Thompson. Tervela's base product is the Tervela Messaging Switch (TMX), a hardware-accelerated messaging appliance released in September 2007 that sits at the center of the Tervela Messaging Network for handling millions of messages per second. In a recent test at AMD's (booth #2000) labs that simulated options market making, Tervela TMX was able to handle 10 million messages per second with sub-100-microsecond median and mean roundtrip latency, the company says.