Ready Products
The rise of high frequency trading (HFT) firms has meant that the level of competition has greatly increased while the uncertainty of the current economic climate has caused the availability of volumes to decrease. The same economic uncertainty is, to a large extent, responsible for the high volatility we have been seeing in all markets and this effect has been exacerbated by the fact that the majority of banks are unwilling to hold any amount of new risk on their books. This is why it is now more important than ever to have an adequate technological base when competing for prices available in the market.
Communicating Ltd has in the past developed and provided some pretty impressive solutions for banks, ECNs and brokers on both the execution and order matching side. We have already produced and run an internet-based exchange and have off-the-shelf internet-exchange solutions available for the electronic market place.
Execution:
We have co-operated with some of the top FX players (by market share) on streamlining their execution process so as to deliver the fastest path to the price and capture the largest possible alpha. Our performance in the market has been documented in magazines such as Automated Trader and Futures Magazine which praised our speed of execution and general performance. Through the years we have been active in the market we developed low latency execution solutions such as sub-microsecond APIs and whole trading frameworks whose full run time remains in low microsecond territory. It is worth mentioning, in comparison, that light takes 5.4 microseconds to travel one mile in a vacuum. We are currently in the market for a potentially exclusive partnership or a usage agreement with someone wishing to utilize our execution capabilities which are ready for deployment (pending client model .dll inclusion).
Order Matching:
Our activity in the market has alerted us to inefficiencies of some of the largest exchanges in the world and, in turn, inspired us to create a truly durable and ultra fast matching engine. “Shrink-wrapped” and easily customized to meet and exceed all exchange needs, the Aquarius 2.0 matching engine is capable of matching 290,000 trades per second (on relatively modest Intel hardware) with first and second level implied matching as well as real-time credit checking and real-time database administration. Furthermore, the solution developed by Communicating Ltd offers an automated full market state recovery within 5 seconds following a fail-over to the secondary server. This would allow any exchange to meet (and exceed) its SLA targets. We have also developed a Real-Time Options Pricing Engine that has similar performance levels, and are currently in the market for a buyer or a usage agreement with an established exchange or bank. A bank choosing to apply technology developed by Communicating Ltd would be able to gain a substantially larger market share and take the next step in automation. With a single matching engine we are able to match trades in a variety of markets and provide a substantial revenue boost with regard to both savings and new earnings. Markets such as FRAs and Options which have until now been predominantly made by traders acting as market makers can be fully automated – offering tighter spreads, higher throughput and lower cost. It is worth noting that the Tabb Group estimates that one microsecond in latency can work to reduce revenues by USD 4 million for the average broker/dealer. Therefore, Aquarius 2.0 would offer an unparalleled advantage to any platform or bank it was applied to.