AFTAs 2014: Most Cutting-Edge IT Initiative—IEX Group
The True Price matching engine uses real-time pricing information consolidated from displayed protected markets. It is designed to ensure that its market participants cannot receive and act upon changes in market data before the market itself, on the market’s own matching engine.
The platform consists of two parts. First is the ultra-low-latency InRush ticker plant, which was provided by Redline Trading Solutions. IEX calculates NBBO after consuming BBO from each of the Reg NMS protected venues through direct feeds..
The second piece of the puzzle is a patent-pending architecture, which the company’s chief strategist, Ronan Ryan, describes as a “simple but elegant solution that delays all incoming orders by 350 microseconds to ensure no trader with slightly faster technology can know a more accurate price than IEX knows.”
In order to provide the built-in latency—or a speed bump, as it is called—the dark pool created a 38-mile coil of fiber optic cable between True Price, which is located at the CenturyLink/Bats datacenter in Secaucus, NJ, and IEX’s “front door” at Equinix in Mahwah, NJ. The length imposes a delay precisely calculated to exceed the time the IEX system takes to calculate the most accurate NBBO, according to IEX. Ryan calls the fiber IEX’s “magic shoebox” that protects resting orders from arbitrage sharks.
While IEX has been portrayed as anti-high frequency trading (HFT), the company is simply looking to create a fairer playing field through the use of technology, Ronan Ryan noted at the Waters USA conference last month in New York. In fact, some of IEX’s staff are former high-frequency traders themselves, and don’t have an ideological problem with the practice.
In order to provide the built-in latency—or a speed bump, as it is called—the dark pool created a 38-mile coil of fiber optic cable between True Price, which is located at the CenturyLink/Bats datacenter in Secaucus, NJ, and IEX’s “front door” at Equinix in Mahwah, NJ.
As regulators and attorneys general continue to examine the practice of HFT and of the use of brokerage-run dark pools, IEX is aiming to come up with new and inventive ways to improve this market practice. It’s about more than words on paper—it’s about technology investment.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@waterstechnology.com or view our subscription options here: http://subscriptions.waterstechnology.com/subscribe
You are currently unable to print this content. Please contact info@waterstechnology.com to find out more.
You are currently unable to copy this content. Please contact info@waterstechnology.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@waterstechnology.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@waterstechnology.com
More on Awards & Rankings
Witad Awards 2024: EDM professional of the year—Neslihan Yegul, S&P Global Market Intelligence
Neslihan Yegul, vice president, head of EDM and thinkFolio at S&P Global Market Intelligence, wins EDM professional of the year in the 2024 Women in Technology and Data Awards.
Witad Awards 2024: Technology innovator of the year (end-user)—Laura Hamilton, Bank of America
Laura Hamilton, global head of corporate treasury, credit risk, climate risk, and financial forecasting technology at Bank of America, wins technology innovator of the year (end-user) in the 2024 Women in Technology and Data Awards.
Witad Awards 2024: Vendor professional of the year (data and operations)—Joanna Davies, OSTTRA
Joanna Davies, head of trade processing at OSTTRA, wins vendor professional of the year (data and operations) in the 2024 Women in Technology and Data Awards.
Sell-Side Technology Awards 2024: Best sell-side front-office platform—Bloomberg
Product: Bloomberg TOMS
Most read
- Chris Edmonds takes the reins at ICE Fixed Income and Data Services
- Deutsche Börse democratizes data with Marketplace offering
- Sell-Side Technology Awards 2024: All the winners