The Toronto Stock exchange will be spending approximately $4 million a year to speed trades up as well as make them more efficient. And when they say speed things up they mean it. The new technology will give them a 20 fold increase in speed. With the new system, it will take less than 100 microseconds to execute your order.
Hardware acceleration technology to provide ultra-low latency trading
TORONTO, Feb. 1, 2012 /CNW/ – TMX Group Inc. today announced that
it is advancing its technology roadmap with the planned production
implementation of the company’s next generation equity trading
technology, which is based on hardware acceleration. Hardware
acceleration is a general term that refers to the off-loading of
processing work from server CPUs onto specialized hardware.The next generation trading technology, which is called TMX Quantum XATM,
will provide TMX Group equity trading participants with dramatically
enhanced speed and capacity as well as more efficient order processing.
It is expected that there will be a twenty-fold reduction in median
latency to sub-100 microseconds on order executions. The new trading
system is designed to be capable of handling 200,000 orders per
second. To augment these new capabilities, 10 Gb communication access
will be made available for the first time to Toronto Stock Exchange,
TSX Venture Exchange and TMX Select customers.TMX Quantum XA is the product of two years of research and development
(R&D). The R&D phase included the development of a fully-functioning
prototype that encompasses the complete functionality of the current
Toronto Stock Exchange, TSX Venture Exchange and TMX Select
marketplaces.“We are very excited about the results of our prototype and about the
significant benefits that TMX Quantum XA will provide,” said Brenda
Hoffman, Chief Information Officer, Group Head of Technology, TMX
Group.“TMX Group is providing cutting-edge service to our trading customers
with TMX Quantum XA,” added Kevan Cowan, President, TSX Markets and
Group Head of Equities, TMX Group. “We are confident that this leap
forward in our equity trading technology will help our customers
succeed in the rapidly-evolving global marketplace.”TMX Quantum XA will initially be implemented on TMX Select in Q1 2013.
Implementation on Toronto Stock Exchange and TSX Venture Exchange will
follow, beginning at the end of 2013. The company expects to incur
incremental annual operating expenses of approximately $4 million to
support this initiative.See the Canada NewsWire press release for more on the story
