Corvil, a provider of electronic trading and data latency management systems, has launched CorvilClear, a solution for measuring latency performance between interconnected market participants, liquidity destinations and market service providers.
According to Corvil, the system helps users assure order execution and market data performance while controlling costs associated with identifying and troubleshooting external latency issues.
“We have witnessed broad industry appeal for CorvilClear’s premise; firms see it as a way to reduce risks, increase confidence and control costs associated with managing a low-latency trading infrastructure that is not totally under their control,” said Donal Byrne, CEO of Corvil, in a statement.
CorvilClear uses peer-to-peer latency sharing technology to exchange performance data between trading partners. Users mutually agree to the level of transparency and employ a latency sharing policy to prevent exposure of proprietary information.
The system also employs service level agreement verification, which allows users to check the compliance of external services and infrastructures against latency and loss objectives for every packet of data.
Pan-European multilateral trading facility (MTF) Turquoise and three investment banks have already implemented CorvilClear. “CorvilClear gives us, for the first time, the ability to analyse latency across the entire network instead of individual components,” said Yann L’Huillier, Turquoise’s chief information officer. “Turquoise sees CorvilClear as an opportunity to develop the first latency-transparent market on our MTF.”
Chris Marsh, head of Advanced Execution Services (AES) trading and product development in Europe at Credit Suisse, added, “Latency transparency with our trading partners is important to us. We want to know exactly where and when latency is induced; this could be inside or outside our networks.
CorvilClear is a novel means of achieving that clarity.”
CorvilClear allows all parties to access common performance data. Corvil said the system’s uniform set of tools and analytics help avert the misinterpretation of the information it produces.