iX-eCute Zero Latency (ZL) is a next generation FPGA-based pre-trade risk system that is capable of running industry risk checks on orders as they are being generated. As a consequence, orders can be placed without incurring the latency that other forms of pre-trade risk control sustain by having to interrupt the order ‘mid-flight’ to check it.
iX-eCute ZL utilises the patented technology system within the current Fixnetix iX-eCute solution, which is able to concurrently process over 40 risk assessments across up to 16 million orders per day, per appliance, all with a latency of 1.2 – 2.5 microseconds (depending on trading protocol). However, rather than executing these risk checks by interrupting the flow of the order ‘in-flight’ between an order generating device and a venue, iX-eCute ZL operates a multi-processor environment to assess orders at the point at which they are generated within the order generating device. This eliminates the need for orders to be checked downstream, comparatively lowering the latency of pre-trade risk checks to zero.
-A post-manufacture, user configurable microchip
-FPGA hardware based system providing pre-trade risk controls in nanoseconds
-Deterministic performance regardless of order load
-Supports any exchange protocol and any asset class
-‘Fat finger’ checks, restricted lists, single cancel, cancel all
-Full symbology look up and normalisation
-Client processor and FPGA in ‘cache coherence’
For orders deemed to be outside the defined risk parameters, iX-eCute ZL is able to send a rejection message both to the client’s order generating device and the market venue. The order itself is never generated, due to iX-eCute ZL’s unique method of running risk checks in parallel with order generation.
The defining characteristic of iX-eCute ZL is that it offers optimal performance or outcome for every stakeholder in the trading cycle. For the sell-side, iX-eCute ZL gives the broker full control over their trading environment, enabling them to run the required risk checks on client orders and shoulder the burden of compliance. For their buy-side clients, iX-eCute ZL offers the fastest time to market since naked access was accepted practise prior to 2010.
For exchanges, the advantage lies in iX-eCute ZL’s ability to stop only ‘bad’ orders reaching the market and for regulators, iX-eCute ZL offers the assurance of safe markets, protected from market manipulation.