US-based agency broker Lime Brokerage has launched high-speed options execution capabilities, with ”through-box' latency in the low double-digit microseconds (1/1,000,000th of a second). The firm claims that this represents a significant reduction in latency over existing solutions, allowing options traders to receive optimal prices and fills.
”Through-box' latency refers to the latency incurred via Lime's infrastructure from the point at which Lime receives an order from a client until it arrives at an exchange's matching engine, including both data going back to client and all risk checks.
Designed to be fully integrated with Lime's ultra-low-latency Citrius options data feed, the new execution offering aggregates data, execution, pre-order risk controls and clearing/reporting into a single platform.
The move follows Lime's enhancement of its equity options data offering last month, with the addition of direct access to the data for non-members of the Chicago Board Options Exchange (CBOE) via the Citrius platform. Options exchanges available include BATS Options, Boston Options Exchange, CBOE, International Securities Exchange, Nasdaq OMX Options, Nasdaq OMX PHLX, NYSE Amex Options and NYSE Arca Options.
Lime clients can directly access the options markets by co-locating within Lime's data centre in Jersey City. The data centre employs dark fibre connectivity directly to venues using Lime's hardware and software infrastructure.
The firm already offers low-latency equities and futures trading capabilities.
“An increasing variety of trading strategies now require the lowest data and execution latency to maximise options trading opportunities and improve execution quality,” said Jeff Wecker, president and CEO of Lime Brokerage. “What happened in the equities space is now occurring in options, and those traders still using older, slower, screen-based technologies are being marginalised by more competitive traders leveraging the most up-to-date tools and technologies available.”