Catena Benchmarks Messaging Appliance for FX Trading Applications
Catena Technologies, a consulting firm that implements high-performance solutions for financial institutions, announced the release of a report that benchmarks the performance of a leading middleware messaging appliance used for foreign exchange (FX) trading applications. The average latency between components was measured at 22 microseconds for reliable delivery and 66 microseconds for guaranteed delivery with low variability (or jitter) in both modes.
“Hardware-based messaging appliances are particularly interesting for banks that have high-volume FX rate distribution and order routing requirements”, said Randall Duran, the C.E.O. of Catena Technologies.
“Solace’s platform demonstrated consistent low latency message delivery when put to test under a number of real-world FX trading business scenarios.”
Banks typically face a wide range of requirements with regards to their FX trading platforms. Internal applications, such as rate aggregation and auto-hedging applications, will typically require high throughput and low latency message delivery. On the other hand, external customer systems may have limitations as to how quickly they can receive and process streaming FX rates. Hardware-based messaging appliances provide the ability to address both types of consumers using the same infrastructure components.
The report, Middleware Messaging: Rise of the Appliances, reviews how hardware-based messaging appliances have evolved and how they can provide capabilities that are not available from software-based platforms. The report then measures the performance of a Solace 3260 message router sending FX rate and order information between simulated trading applications deployed on several different servers. Solace’s “eliding” feature is also examined. Eliding enables slow consumers to receive only the most recent rate updates at a throughput rate that is lower than the original stream of data being published.