New technologies applied for pre-trade risk control — FixPreTrade for Linux
ARQA Technologies developed the new software for direct trading venue access with pre-trade control of transactions.
Similarly to other trading interfaces suitable for latency-sensitive trading infrastructures the new software solution — FIXPreTrade for Linux — is a FIX proxy service that is integrated into the broker’s infrastructure for the purpose of fast pre-trade control of operations bypassing the QUIK server.
The module FIXPreTrade for Linux has been developed for the operational system Linux (RedHat6) which supports the latest technological network developments with high signal transmission/reception performance.
The use of special network equipment (Solarflare) and high capacity network stack (OpenOnload) allowed cutting the actual roundtrip latency of trade operations by several times. This resulted from optimization of reception and transmission of incoming and outgoing signals to and from the pre-trade control module (RISQ filter). Up to now the latency resulting from the stages of order forwarding and execution confirmation has not been taken into account. The latency figures that used to be provided referred only to the stage that took place inside the RISQ filter, i.e. to the stage of transaction processing itself.
The application of the latest technological developments will raise the overall efficiency of using RISQ solutions which underpin the range of trading interfaces with inbuilt pre-trade control.