Technology Arms Race in High Frequency Trading Escalates to
2009-12-16 21:49 | View:Scottsdale, AZ (PRWEB) December 16, 2009 -- Modulus Financial Engineering, Inc., a leading provider of financial software and hardware technology for professional traders and financial institutions, today announced the planned January release of a new type of high speed trading technology aimed at High Frequency Traders.
High Frequency Trading Systems influence fractional price fluctuations that swing billions of dollars in profits and losses each and every day. But Modulus Financial Engineering claims that “simply co-locating trading software on computer servers at exchange data centers does not guarantee that orders will be first in line.”
Similar to an arms race, High Frequency Trading is constantly evolving as hardware and software speeds improve on an almost-daily basis.
The latest in high-speed trading technology, to be released by Modulus Financial Engineering in January, is designed to allow professional market participants the ability to identify trades faster than their counterparties using an entirely new type of hardware and software design.
The new patent-pending technology is based on a type of fiber optic switching hardware, designed to run on servers co-located inside or within close proximity to equity and futures exchanges worldwide. The technological advancements allow traders to develop complex co-located trading strategies capable of running up to 200% faster than previous HFT software, thereby allowing trades to be executed faster.
"Our new high-speed trading technology is different from TradeStation, MetaStock, eSignal and other trading applications that retail users are accustomed to, where executions are sometimes measured in seconds, depending on network speed.” says Richard Gardner, CEO of Modulus Financial Engineering, Inc.
Mr. Gardner adds “Co-located High Frequency Trading Systems are measured in milliseconds, whereas our new technology is benchmarked using tens or hundreds of microseconds.”
A microsecond is one thousandth of a millisecond.
Mr. Gardner continues to explain that "Although our product release is flying under the radar so to speak, trading firms worldwide will be made aware of the technology when even their best High Frequency Trading Systems developed in C++ begin to underperform against the new systems that we introduce into the wild..."
The company plans to provide complete customization, setup and hosting services for professional traders and financial institutions worldwide.
Barring any regulatory changes, the technology is scheduled to be released on January 12th, 2010.
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