Commentary

Robert Hegarty
Traders Magazine Online News

Reinventing Trading Venues: How AI Can Help Create a More Efficient Market

In this whitepaper shared with Traders Magazine, the Hegarty Group examines how artificial intelligence and machine learning can help traders execute more efficiently.

Traders Poll

If Members Exchange (MEMX) gets SEC approval and launches, do you think it will force downward pressure on market data fees?




Free Site Registration

August 1, 2011

Redline Offers Sellside Feeds

By John D'Antona Jr.

 

Redline Trading Solutions, a provider of high-speed trading products for high-frequency traders, is offering brokers a quote feed faster than the one provided by the Securities Information Processors.

The new service, dubbed in InRush NBBO, is able to compute the national best bid and offer for a stock in 10 to 20 milliseconds, on average, said Mark Skalabrin, chief executive at Redline. The industry standard computation time for the NBBO from the Securities Information Processors can run between 100 to 200 milliseconds.

The InRush software lies in the sellside's smart order routers, where the pricing data can feed directly into the brokers' routers and algorithms and direct orders.

"We can compute the NBBO in about five microseconds once the data arrives," Skalabrin said. "By doing that, as they arrive, that makes us faster."

InRush does not rely on other data consolidators or securities information processors to get and consolidate NBBO pricing information, as is standard practice. Rather, InRush calculates the NBBO from direct connections to the major exchanges with hardware-accelerated software embedded directly into single-server trading applications.

The service is designed to respond to a Securities and Exchange Commission requirement that all brokers ensure that their customers' trades are executed at the best public price across all stock exchanges.

While InRush is currently limited to U.S. equities, Canadian equities prices and U.S. options price data will be available later this year, Skalabrin said.

 


(c) 2011 Traders Magazine and SourceMedia, Inc. All Rights Reserved.