Extensive research within Cinnober has resulted in a highly streamlined, scalable and fully redundant matching engine that offers the most frequently used order types, such as limit and iceberg orders, at record low latency. At transactions loads greater than those at today’s most busy exchanges, the average door-to-door* latency in TRADExpress Ultra is less than ten microseconds.
TRADExpress Ultra is ideal for fragmented markets where many smart order routers take the speed of a trading venue’s matching engine into account, routing orders to the trading venue that offers the lowest latency if more than one are offering the same price.
With consistently low latency, market makers and liquidity providers gain greater control over their orders. Knowing that they can quickly modify their orders, they can be expected to offer tighter spreads and greater volumes, that is, to contribute to improved liquidity of the marketplace.
TRADExpress Ultra is also suitable as an internal crossing engine at financial institutions that wish to check against an internal order flow before routing orders to an external trading venue, with barely any latency impact.
The system performs full transactions replication, meaning that system integrity and reliability are not compromised. With synchronous transaction replication to hot standby servers, the average latency is still less than ten microseconds door-to-door, that is, ten millionth parts of a second.
TRADExpress Ultra has been optimized to run on commercially available hardware platforms.
* Door-to-door latency is the time it takes for the system to receive an order, process it in the matching engine (ME), replicate it to the standby ME and submit a full response containing the complete order state. See details on latency measurement in our white paper, The route to single-digit microsecond latency.