Liquidnet is the global institutional trading network that connects equity investors with the liquidity they need to trade in size, at any time, from anywhere. Liquidnet serves more than 630 asset management firms and dominates block trading around the world, with an average execution size of nearly 50, 000 shares in the U.S. It is critical that Liquidnet’s systems can reliably deliver all data and orders—once and only once—in the same order they were sent. The messaging solution Liquidnet used prior to Solace had limited throughput that did not meet its business requirements and Liquidnet could not sacrifice reliability to meet speed objectives. The previous platform was also nearing end of life and Liquidnet wanted to switch to a solution that would meet expanding needs for the foreseeable future. Liquidnet considered building a system in house, but decided it would be prohibitively expensive and would pull people away from the critical work of improving their core platform. Liquidnet selected Solace’s solution for its superior message rate and lower, more consistent latency. They also liked that as a turnkey appliance Solace is less costly and easier to deploy and upgrade than software running on servers. Finally, their operations team valued Solace’s management and monitoring tools which make it easy to configure message queues and troubleshoot problems. With Solace in place Liquidnet saw roundtrip latency drop by as much as 4 milliseconds in critical transactional paths, giving traders the confidence of knowing they have an absolutely up-to-date picture of liquidity and opportunities, and that their transactions will go through without a hitch.
With Solace we’ve defined the next-generation infrastructure that will help us extend our position of leadership in trading services.