Chi-Tech, the technology services unit of trading platform operator Chi-X Global, has signed an agreement to use IBM’s high-speed messaging technology, enabling it to reduce latency and increase capacity for clients.
Chi-Tech will integrate IBM’s WebSphere MQ Low Latency Messaging in matching platforms provided to clients and can include IBM’s messaging technology in platforms deployed by regional Chi-X market centres.
IBM’s WebSphere MQ Low Latency Messaging is designed to process the high-volume requirements of financial marketplaces and their members. Version 2.2 of the software can process up to 90 million messages per second with a latency of one microsecond.
Frankfurt-based exchange group Deutsche Börse has implemented the same technology for its Xetra equities platform, derivatives exchange Eurex and New York-based equity options platform International Securities Exchange.
“Chi-Tech selected WebSphere MQ Low Latency Messaging as a messaging backbone for our high performance, low latency matching technology,” said Richard Leung, Chi-Tech’s chief technology officer, “assuring that our platform continues to meet the speed and mission-critical reliability requirements of today’s algorithmic and high frequency trading communities.”
“As more exchanges and the firms that trade on them seek to increase speed, reduce latency and ensure adequate capacity to succeed in the fiercely competitive and highly automated trading environment of the future, many are actively evaluating new systems to support these more demanding trading requirements,” added Paul Michaud, a financial services, trading and risk management specialist at IBM. “Implementing and fine tuning such new systems will require the expertise of financial technology specialists like IBM and Chi-Tech and the power of technologies such as IBM WebSphere MQ Low Latency Messaging.”