Order Trades at Scale with Ultra-Low Latency
The Challenges in the Financial Market
In recent years, digital transformation and adaptation to digital banking solutions has become a necessity in the finance industry due to its enormous scale, volatility and time-pressure.
In order to remain competitive in the investment banking landscape, reducing operating margins and minimising network and other types of latencies has become essential to making informed investment decisions and delivering profitable strategies.
This means every action in the investment chain requires ultra-low latency, starting from market data analysis and building trading strategies, all the way through to the generation, routing, and execution of orders.
Furthermore, regulations promoting market transparency and competition along with narrowing spreads have resulted in traders seeking better fintech solutions, which allow them to act extremely quickly to take advantage of momentary lags.
Turning Challenges into Opportunities
These challenges and regulatory changes in investment banking have given rise to a new approach in advanced trading solutions.
Thanks to sophisticated high-speed financial software development technologies, Algorithmic Trading and High-Frequency Trading (also known as HFT, a specialised case of algorithmic trading solutions) have become a significant part of determining the necessary trading strategies in the trading landscape.
Now, let’s clarify these two financial technologies that led to the fintech solution provided by Foreks Digital a little bit deeper.
Understanding Algorithmic Trading and HFT Solutions
Algorithmic trading system uses a high-frequency trading platform that enables tens of thousands of transactions per second. It simply makes use of complex formulas that utilize mathematical models and are also integrated with human oversight. That’s how it determines the best algorithmic trading strategies and makes decisions to buy and sell orders on the stock market.
High frequency trader solutions, in short, are a method that analyzes multiple markets in real-time through complex algorithms, also manages orders according to market conditions and uses powerful programming languages to process all necessary orders in the fastest way possible. This technology, which is fast enough to process an order in fractions of a second, is an important digital banking solution that increases profitability in investment banking.
Solution
In response to these changes, with years of experience, Foreks Digital developed Unica Algo and Unica Foreks HFT, a Digital Algorithmic Trading Platform and HFT Platform respectively.
1. Foreks Algorithmic Trading Platform: Unica Algo
Unica Algo trading automates trades by using pre-programmed trading instructions with an advanced scripting language: cScript. The trading platform developed by Foreks Digital provides the full-fledged environment for managing and optimising an automated trading program.
Capabilities
Unica Algo includes a number of structures (functions, control structures, loops, arithmetic operators, and more.) in a high-level programming language. Access to the Unica Algo Server can be managed on an individual user basis, with privileges including:
● Access to algorithms for execution or intervention
● Ability to remove or create a new algorithm
● Ability to review or stop running algorithms
● Access to algorithms only within certain symbols
Benefits
Unica Algo allows you to utilise your resources for more complex and sensitive orders, and achieve high-performance at scale.
2. Foreks High-Frequency Trading Platform: Unica Foreks HFT
Unica Foreks HFT processes data from HFT protocols and transfers the order decisions to the stock market in fractions of a second. The platform meets a wide range of operating needs with customised algorithms.
In addition to basic performance features, Unica Foreks HFT includes advanced features, such as Database Centered Reporting and Monitoring, and Integrated CRM Module. Our HFT algorithms can manage billion-dollar volumes every month.
“Foreks Digital is the first company to receive an OUCH certificate among data vendors.”
Unica Foreks HFT Platform – Response and Process Speed
| Processing ITCH packages | ~< 100 Nano Seconds |
| Processing simple decision structures | ~< 5 Nano Seconds |
| Processing moderately complex decision structures | 5~15 Nano Seconds |
| Processing highly complex decision structures | 10~100 Nano Seconds |
| OUCH order preparation time | < 5 Microseconds |
| OUCH pre-prepared order usage time | < 2 Microseconds |
| OUCH order execution time (depending on network usage rate and network infrastructure) | 5-10 or 15 – 20 Microseconds |
| Total preparation and execution time of the order(not pre-prepared after the decision) | 15-30 Microseconds |
| Inıtiating orders and delivery time within Cscript (depending on the configuration of optimisation and coding) | 25-80 Microseconds |
Benefits
Unica Foreks HFT allows you to analyse multiple markets, execute orders and achieve high turnover rates at scale by leveraging high-frequency financial data with sophisticated algorithms.
By opening HFT order structures to manual usage, Unica Foreks HFT enables you to easily monitor transactions and identify new opportunities. You can also maintain extremely short timeframes for liquidating positions, which results in the frequent turnover of many small positions in financial instruments.
Low Latency for High Profit
With Generic and Customised Trading, HFT, and Algorithmic Trading Solutions with ultra-low latency provided by Foreks Digital, it is easy to identify profitable opportunities.
Discover our trading solutions developed with our 30+ years of experience to ensure business growth.