Wombat Financial Software Inc., the high speed trading technology experts, today demonstrated further leadership in the provision of high performance market data solutions An independent study conducted by the Securities Technology Analysis Center (STAC), recently provided evidence that latency spikes common to traditional market data environments can be substantially reduced by implementing the Wombat solution on an infrastructure comprised of CiscoÂ® (Nasdaq: CSCO) low latency InfiniBand Server Fabric Switches (SFS) and AMD (Nasdaq: AMD) Opteronâ¢ processor-based servers.
Cisco Server Fabric Switches use standards-based InfiniBand technology to provide a high performance unified fabric for connecting servers together into grids of compute resources.
Increasing volumes from securities exchange feeds like OPRA need high performance, high-capacity infrastructures. Improving performance in automated trading environments is a critical requirement for companies in the financial services industry to stay competitive.
The STAC study consisted of a rigorous benchmarking exercise designed to simulate the throughput demands of a real world data feed. Results demonstrated that latency spikes of over 30 millisecondsâ typically induced by the âinitial imageâ request occurring at the instantiation of new clientsâ were eliminated when using a Cisco InfiniBand SFS networking infrastructure. Single client mean latency for update sizes of 214 Bytes was reduced from 220 microseconds to 80 microseconds, a 63% reduction. Reductions of over 50% were demonstrated with payload sizes of 1KB and 6KB. A full description of the testing methodology and results may be found at www.STACresearch.com.
Peter Lankford, Director of STAC, said: âThis initial comparison of Wombat transport latencies indicates that Ciscoâs InfiniBand infrastructure has several benefits over gigabit Ethernet. In addition to reducing the average latency of market data updates, it also reduced the variability of latency. We were especially impressed with the way that the Cisco SFS solution improved the softwareâs predictability under extreme load. Under conditions that caused latency on the Ethernet-based system to spike upward by tens of milliseconds, the Cisco InfiniBand solution held steady. Predictability is valuable to firms that engage in automated trading. Unexpected increases in latency can throw off an algorithm and hurt profits.â
âWe are deeply engaged with industry leaders including Wombat and AMD, in offering compelling low latency solutions for accelerating automated trading platforms, for the financial services industry,â said Bill Erdman, Director of Product Management, Server Virtualization Business Unit at Cisco. âThis recent study is a clear proof point regarding the applicability of InfiniBand, as the premier low latency technology for this market.â
Cisco Server Fabric Switches provide up to 288 ports of non-blocking, InfiniBand 4X that can operate in either 20-Gbps double data rate (DDR)) or 10-Gbps single data rate (SDR) mode for server and inter-switch connectivity. InfiniBand takes advantage of Remote Direct Memory Access (RDMA) technology greatly reducing latency, latency jitter and CPU utilization while increasing the throughput and message capacity of automated trading environments.
âDistributed applications demand the unprecedented performance of AMD Opteronâ¢ processors,â said Patrick Patla, Director, Server and Workstation Division, AMD. âWhen combined with leading high performance solutions like Cisco SFS and Wombat, customers have a tested solution that delivers greater business agility and a competitive advantage.â