Lime Brokerage, a direct-access agency broker located in the Tribeca section of New York City, recently began offering a service bureau model providing low-latency market data to other brokers dealers, according to George Hessler, EVP at Lime who heads sales and strategy. As one of the leading low-latency agency brokers, it does a lot of work with high frequency hedge funds. In fact, Lime's founder and director, Mark Gorton and its CEO and co-founder Alistair Brown, co-founded hedge fund manager Tower Research Capital, specializing in quantitative trading and investment strategies.Now Lime has created a service bureau model for broker dealers that want to take advantage of Lime's speed, says Hessler. They could either accept market data through Lime or execute through Lime out to the market centers, he says.
Clients can direct orders through its pipes to a variety of liquidity destinations, such as NYSE Arca, Nasdaq single book, BATS ECNs and traditional exchanges such as NYSE and AMEX, its Web site notes. Trading is predominantly in U.S. equities though Lime does have connectivity to the Tokyo Stock Exchange and the London Stock Exchange, says Hessler who joined Lime in May from Lava Trading after six years where he was SVP and member of the management committee of Lava Trading Inc., owned by Citi.
One of the reasons Hessler came over to Lime is that "the market has changed so quickly. "The sector of the market that relies on low latency has increased so much. Now there are estimates that over 40 percent of the volume is low latency trading from people that rely on super fast trading," he says. Though its Citrius Quote Delivery System, Lime offers streaming, full depth-of-book market data feeds direct from the exchanges and ECNs. "Citrius is how we deliver market data out and that's considered the fastest in the industry," contends Hessler.
"Service bureaus are a relatively new model for Lime. It kind of allows us to use the advantages that until recently have been available to the hedge fund clients to now offer it out to the broker dealers," says Hessler. "We think there's going to be a fair amount of growth in that area," predicts Hessler.Lime Brokerage, a direct-access agency broker located in the Tribeca section of New York City, recently began offering a service bureau model providing low-latency market data to other brokers dealers, according to George Hessler, EVP at Lime who heads sales and strategy. 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