Firm: Deutsche Bank
What: Deutsche Bank’s Autobahn equity electronic trading business announced the expansion of the ultra Field Programmable Gate Array (FPGA) risk checking product suite to all major U.S. stock exchange co-location facilities. The ultra FPGA performs pre-trade compliance and risk management checks while minimizing order latency for traders who require the lowest latency.
Background/Why: Originally the ultra FPGA was only available in the NASDAQ Carteret, N.J. data center, but it is now hooked up to NYSE, NYSE Arca, Direct Edge and BATS. According to Jose Marques, global head of electronic equity trading, clients can now maximize access to the entire U.S. equity markets with a predictable, high-speed pre-trade risk gateway system. This levels the playing field between high frequency traders and less speedy traders and brings all traders into compliance with the market access rule.
Prospects/Expectations: By offering clients hyper-fast pre-trade risk checks in under two microseconds, Deutsche Bank looks to attract more trading business through its Autobahn platform. "Our clients can now maximize access to U.S. equity markets with a predictable, high-speed pre-trade risk gateway system," Marques said.
How It Works: The ultra FPGA performs passive comprehensive, pre-trade compliance and risk management checks while an order is in flight to an exchange. The FPGA monitors an exchange’s network traffic in real-time. If a risk control or credit parameter is violated, the user’s order is pulled from the exchange. The system runs right from Deutsche Bank’s cabinets at the exchanges’ data centers.