Why sacrifice latency when using RIAs and web streaming?

When capital markets firms began using rich internet applications (RIAs) built with Javascript, Flash/Flex, Silverlight and Objective C, it was accepted that applications designed for internet environments come with internet-like latencies. So capital markets firms that measure the performance of internal trading systems in the tens of microseconds got used to tens of milliseconds of latency when building Single Dealer Platforms, retail brokerage consoles, or other real time applications.

After all, we’re talking about connecting over the public internet, where the best you can hope for is about 20-30 milliseconds round trip time just for the network. So who cares if the infrastructure distributing data to the RIAs adds a handful of milliseconds? That’s a small percentage of total latency right?

Not necessarily.

RIAs Not Just for the Public Internet

RIAs may have been created with the public internet in mind, but they’re so feature rich that companies are now using them as a single application/interface for people connecting over all kinds of other networks including:

  • leased lines (between offices)
  • wifi (think iPad on the trading floor)
  • LANs

Suddenly that RIA infrastructure latency that seemed like noise in context of an internet round trip time is significant on a much faster network.… Read the rest

Web messaging and RIAs in focus at Waters event

On Wednesday, lab49‘s CTO Matt Davey presented a case study entitled Optimizing High-Performance Trading Solutions: An Engineering Perspective to an SRO audience of over 100 people at the Waters North American Trading Architecture Summit. Lab 49 is a leading technology consulting firm with a track record of innovation in delivering cutting edge solutions to many of the big investment banks, hedge funds and other capital markets firms.

During the session, Matt demonstrated an innovative ETF arbitrage system and a new Single Dealer Platform (SDP) solution that Lab 49 has developed using Solace’s recently announced web messaging infrastructure. In each case, the combination of RIA applications, integration with data sources and high-volume, low latency distribution between the two are the key’s to the system’s architecture.

Matt’s presentation was one of the best attended at the event, and underscored the rabid interest in capital markets for distribution of real time information to RIAs.… Read the rest