CME Group Deploys Corvil's Latency Management System

Derivatives exchange operator CME Group recently deployed CorvilNet, a latency management system from Corvil, a global provider of electronic trading and market data latency technologies and services.

“A key element of our business is to provide low-latency trading and data services to our customers: CorvilNet’s real-time monitoring capability and in-depth analytical tools enable us to optimize the performance of these core services,” stated Kevin Kometer, CME Group managing director and chief information officer.

CorvilNet monitors, analyzes and optimizes electronic trading infrastructures against ultra-low latency objectives encompassing market data feeds and order execution traffic. The company operates in New York, London and Dublin, serving a global client base including electronic market centers, liquidity venues, traders and allied service providers.

Clients utilize the CorvilNet latency management system to specify latency objectives of their trading and market data infrastructures in terms of microsecond targets, and automatically and continuously monitor for compliance against those baselines, according to the company’s release issued today. If latency violations occur, CorvilNet immediately alarms, performs a ‘smart’ packet capture for deep forensics and provides immediate recommendations for adjustments to re-establish compliance. CorvilNet also measures headroom available for market surges, traffic growth and impact of new applications or customers on a network.

In the release, Corvil cites the TABB Group report, “The Value of a Millisecond: Finding the Optimal Speed of a Trading Infrastructure,” which estimated that 56 percent of all exchange revenues are exposed to latency risk up from 22 percent in 2003.

CME was introduced to Corvil by Enterprise Ireland, the government agency responsible for development and promotion of indigenous businesses.

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