Endace, a network monitoring infrastructure firm, has teamed up with Verizon to help financial firms prevent losing critical market data from trading venues.
Endace will be using Verizon’s gap detection technology in a new software application that allows the financial firm to locate and resolve glitches which can degrade market data so that valuable information isn’t “lost in translation” from market centers to trading terminals and servers.
The new gap detection software provides financial firms with statistical information on the quality and integrity of every market data feed to users through a web-based graphical user interface. That statistical information includes details of how packets of data are being lost and where in the complex networks this is occurring.
When Endace had developed the gap detection technology for Verizon three years ago it gave Verizon exclusive rights to adopt it in the Verizon Financial Network (VFN). Verizon is now allowing Endace to market that technology to Endace’s customers. Customers of Endace will now be able to perform gap detection on their own corporate networks used to disseminate critical multicast market data.
“The ability to rapidly detect and resolve problems in market data feeds is crucial for all trading firms, particularly those involved in high-speed algorithmic trading,” says Kevin Formby, vice president at Endace, headquartered in Auckland, New Zealand.. “Verizon has successfully used this technology within its VFN to reduce the time taken to resolve multicast network faults from hours to minutes.”
Financial firms can lose some market data if there is a glitch in their network or servers. It is important to find the cause of the problem quickly because the loss of such data can be expensive; it can result in not only opportunity costs but wrong trading strategies.
The new application will be licensed separately from the Endace Application Suite, which includes high-performance packet capture and time stamping, data mining, analytics and latency monitoring capabilities.