Checking More Boxes for Electronic Trading

Having worked with technologies that have fueled electronic trading for 15 years, my decision to join Corvil was an easy one. You are always working at the leading edge in this sector, cutting a path that other businesses will eventually follow, but it quickly became obvious to me that Corvil takes it to a whole new level.

Right now almost every business is talking about digital transformation, something this sector went through over a decade ago. In 2005 I was involved in migrating derivatives market participants from voice to an electronic trading platform; before that, I was worked with voice solutions when telephony was still the tool of choice on trading floors.

Into the algorithms

The big step away from that world were high frequency trading platforms and the rise of algorithms. Today, as market participants get more sophisticated, they need tools to ensure the automated processes they put in place are behaving the way they should. They need to know that the speed and accuracy of their market data feeds will give them the insights they need to compete.

On the liquidity provision side of the house, market makers need to understand liquidity taker behaviors; they need to be alerted to toxic flows that might interfere with trading performance. Crucially, Liquidity Providers need to monitor their trading for clients that are consistently executing microseconds in front of a price update.

The numbers can get very big, very quickly if someone has a microsecond advantage that goes undetected for a long period of time. What starts out as a paper cut can turn into a hemorrhage that will seriously impact P&L. You need visibility of the problem, which is where Corvil comes in.

Through a combination of appliances that decode network traffic and analytics dashboards that let you slice and dice the data, you can start to understand exactly what’s going on and how to correct it.

Build or buy solutions

The relentless pace of change in trading technology, where shaving milliseconds off transactions can affect outcomes, prompts organizations to ask themselves the big question: build or buy? It’s nothing new in this business or any other; it’s just the stakes are so much higher in financial trading.

Pressure is on traditional market makers to upgrade and compete with new entrants who monitor the market with their own platforms and algorithms. But these disruptors also risk becoming slaves to their technology. If you build it, you have to maintain it. You find yourself trapped in a constant refresh cycle; always vulnerable to the risk that in-house expertise will walk out the door and take critical knowledge with them.

What drew me, and I suspect a lot of customers, to Corvil is their domain expertise. Using Corvil as a primary or secondary provider, you get a hotline to a fast-moving marketplace and leading-edge technology. You get someone you can depend upon for continual updates and ongoing improvements; you get independent verification from a respected third party that specializes in something that you may not.

But it’s the depth and breadth of what Corvil does that really sold me. In the past, I’ve worked for providers who were focused on a particular specialty and got to check off two boxes for clients if they were lucky. What I find compelling about Corvil is the way we get to check multiple boxes because network data is tied to so many business outcomes.

Find out more about Corvil’s analytics for trading.

Checking More Boxes for Electronic Trading

Checking More Boxes for Electronic Trading,
Pico is a leading provider of technology services for the financial markets community. Pico provides a best-in-class portfolio of innovative, transparent, low-latency markets solutions coupled with an agile and expert service delivery model. Instant access to financial markets is provided via PicoNet™, a globally comprehensive network platform instrumented natively with Corvil analytics and telemetry. Clients choose Pico when they want the freedom to move fast and create an operational edge in the fast-paced world of financial markets.