In Formula One racing, all cars must comply with a defined set of rules (the formula) and find ways to differentiate with a car, driver and support team that all follow the basic guidelines.
The same is true of automated trading systems. The formula is simple: each trading system consumes market data and produces orders. What happens in between is how each firm differentiates themselves. Just like in F1, anything that can be improved is up for evaluation when it comes to achieving fast, consistent performance.
Today we announced a partnership with Solarflare Communications to accelerate linux-based networking of high performance messaging. Let me take a minute to lay out what this partnership does for our customers.
It is well understood that in the software world trading performance is negatively impacted by “context switching”. This is an operating system issue, where the OS needs to manage state as control is passed from “kernel space” where the network drivers reside, to “user space” where the application runs.… Read the rest