Data Distribution Challenges for Next Generation Applications
Issue 09 Q2 2008
Automated Trader Magazine
Angelo Corsaro, Product Marketing Manager, PrismTech Corp., outlines the advantages of a new middleware – data distribution service (DDS) – over messaging technologies currently deployed to support automated and algorithmic trading.
A growing number of stock exchanges, data aggregators, trading and investment firms are being challenged with the problem of distributing ever-increasing message volumes, while at the same time trying to reduce end-to-end distribution and trading latency. This problem, further exacerbated by the very nature of the financial markets – where the right answer delivered too late becomes the wrong answer, and where the difference of a millisecond could be worth millions of dollars – is motivating firms to find new and innovative ways of reducing latency while simultaneously increasing the number of messages handled per unit of time.
In fact, the need for ultra-low latency and high throughput messaging technologies has been widely accepted and is starting to receive an increase in attention within the industry. Messaging technologies that promise the extra-low latency and high throughput are already available, but a complete solution to the problem requires the provision of low latency and high throughput along with the proper level of control, stability, usability and expressiveness, thus addressing the need for increased performance as well as reduced time to market.
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