Celoxica, a UK based IT company, has launched a new version of its Accelerator product, which it claims can reduce latency to less than 10 microseconds – or one hundredth of a millisecond.
The product is a hardware card that can be plugged into a client’s server to speed up its functioning. Celoxica claims it can process more than 3 million messages a second. Not long ago IT executives were talking about speeds of around 600,000 messages a second as being desirable.
The main value of such superfast systems is to stock and derivatives exchanges, which put out vast quantities of price-sensitive information, and algorithmic traders, who trade on that information.
Algo traders not only want to be able to trade more quickly than their competitors, but also face operational problems if they cannot process data fast enough.
“In the present challenging market conditions when volatility is increasing, the...