eXtremeDB Slashes Latency in NSE.IT’s Algorithmic Trading (Algo/HFT) and Front-Office Trading Solutions
NSE.IT’s Algo Solution integrates eXtremeDB as the real-time database for NeatXS’s risk management features, which protect Algo Solution users – typically brokerages, specialized trading firms, asset management firms and hedge funds – from a wide range of risks related to factors including order size, allocation of margins, gross and net exposure, options coverage, securities’ mark-to-market value, and “fat fingers” keystroke errors.
Risk management is a process of measuring and analyzing risk and then strategizing to cope with it while attempting to manage returns. Not all risk can be controlled, but with a good strategy, the effect of risk can be managed and controlled for a portfolio. NSEIT's risk management approach combines required methodologies, technology and data in one solution to help clients make more informed financial decisions and effectively meet their business objectives.
In algorithmic and high-frequency trading, risk management is automated and requires analysis of orders after they are placed but before they are executed. “The NeatXS risk management function receives thousands of new data points per second. This flow has increased exponentially and is still growing, due in part to exchanges’ expanding data broadcast services. Storing, filtering and organizing the data for complex analysis can become a bottleneck for algorithmic strategies that must ‘get in and get out’ quickly. For our most recent upgrade, we identified the risk management module’s real-time database technology as an area where we could optimize the product and deliver greater value to users,” said V.S. Kumar, NSE.IT’s President – Americas.
In-memory database systems work with data entirely in main memory, eliminating disk and file I/O as well as caching. In contrast, these sources of overhead are “hard-wired” into RDBMSs that are designed to store data on disk. eXtremeDB supports SQL, but NSE.IT’s engineers chose to use its faster, native interface consisting of C language functions. Finally, eXtremeDB utilizes in-process database architecture rather than client/server. By running entirely within the application process, eXtremeDB eliminates inter-process communication from the execution path.
“eXtremeDB has enabled us to reduce latency to the sub-millisecond level per order while implementing a complex risk and compliance system, successfully positioning our Algo Solution in an increasingly competitive marketplace,” said Dr. Pareshnath Paul, Chief Delivery Officer at NSE.IT.
“Achieving ultra-low latency while leveraging the robust risk management framework has improved the value proposition of our Algo Solution to buy-side firms in the Asian, American and European markets,” said V.S. Kumar, NSE.IT’s President – Americas.
“The eXtremeDB IMDS has emerged as a key tool to purge latency from data-intensive, real-time software applications. In capital markets, shaving processing time can quite literally translate to increased profitability, making eXtremeDB a natural ‘fit’ for this application category. McObject is working increasingly with customers in the financial industry and is pleased with the success NSE.IT has achieved using our technology,” said Chris Mureen, McObject’s Chief Operating Officer.
NSE.IT Limited is a wholly-owned subsidiary of the National Stock Exchange of India, Ltd., the third largest stock exchange in the world (by volume). As a vertical specialist focused on the financial services industry, NSE.IT provides solutions that are domain-intensive, leverage NSE.IT’s intellectual property as accelerators, built with specific technology choices for the industry, and delivered using a Global Delivery model that maximizes customer ROI. NSE.IT provides a comprehensive set of solutions to institutional customers on the buy side and sell side, as well as to liquidity providers.
Incorporated as a stand-alone company in 1999, NSE.IT's accomplishments include: India's first Internet-based and mobile stock trading solutions; a public key infrastructure-enabled, Internet-based gateway for collateralized borrowing and lending obligation (CBLO) trading; e-auction system for Tea Board of India; trading and clearing solution for Power Exchange of India, and an innovative spot exchange solution with an integrated trading platform.
NSE.IT also manages mission critical data centers for the NSE, National Commodities & Derivatives Exchange Limited (NCDEX), Power Exchange of India Limited (PXIL) & Tea Board of India, provides solutions to the largest insurance portal of India for agent examination, and implements NSE co-location and service desk facilities.
NSE.IT is based in Mumbai, India, with operations in the United States of America and United Kingdom. For more information see www.nseit.com.
Founded by embedded database and real-time systems experts, McObject offers proven data management technology that makes applications and devices smarter, more reliable and more cost-effective to develop and maintain. McObject counts among its customers industry leaders such BAE Systems, Siemens, Phillips, EADS, JVC, Tyco Thermal Controls, F5 Networks, CA, Motorola and Boeing. McObject, based in Issaquah, WA, is committed to providing innovative technology and first-rate services to customers and partners. The company can be reached at +1-425-888-8505, or visit www.mcobject.com.
McObject and eXtremeDB are registered trademarks of McObject LLC. All other company or product names mentioned herein are trademarks or registered trademarks of their respective owners.