London (Vocus) November 8, 2010
SunGard has launched an ultra low latency direct market access (DMA) service for pan-European equity markets through its European broker-dealer, Valdi Execution Services. Valdi addresses the ultra low latency requirements of high-velocity traders, providing a broker-managed solution that includes clearing and settlement.
SunGard’s Valdi Execution Services measures latency in microseconds, while maintaining high capacity, stability and resiliency. Customers can easily code to the service’s FIX API for rapid time-to-market. The DMA access infrastructure is centrally deployed, and exchange co-location and distributed infrastructure are also available to help decrease latency and increase time-to- market. A pre-trade risk management layer is included, to help further reduce latency by eliminating hops in the transaction process.
The demand for ultra low-latency market access continues to grow, with US market volumes currently estimated to be comprised of 70% high frequency flow according to research firm Aite Group*. In Europe, Aite Group estimates that the current 25% volume share of high frequency trading will reach over 40% by 2012, and the adoption of algorithms and DMA is expected to increase to 70% during the same period. With the introduction of Valdi Execution Services’ European DMA offering, SunGard is providing a solution that will help latency-sensitive firms reduce the time-to-market and infrastructure burdens that most firms encounter in entering new markets.
Initially, the new DMA offering will connect to the BATS and Chi-X MTFs, and will then extend its connectivity to Turquoise and the London Stock Exchange. Pan-European market access will also be offered following the initial deployment.
Sang Lee, a co-founder and managing partner at financial markets research and advisory firm Aite Group, said, “The European equity markets are characterized by increasing liquidity fragmentation, burdening trading and brokerage firms with rising operational and infrastructure costs in order to access liquidity. As a result, high frequency trading is expanding in Europe and the demand for low-latency market access continues to grow and more firms will look to utilize direct market access (DMA) to remain competitive.”
Raj Mahajan, president of SunGard’s trading business, said, “SunGard brings in-depth expertise to changing regulation, market structure and trading venues via our own memberships throughout Europe. Our neutrality and provision of integrated risk management tools within the Valdi ultra low latency DMA platform provide the competitive advantage high velocity traders need to help reduce latency and increase speed to market.”
To hear more about the Valdi ultra low latency DMA, click here: http://www.sungard.com/en/sitecore/content/campaigns/fs/trading/360trading/aboutus/davemishoedmapodcast.aspx
About SunGard’s Valdi
SunGard’s Valdi provides equities, futures, fixed income and options traders with multi-asset, front-to-back trading and risk management solutions on 110 markets worldwide. SunGard’s Valdi global trading solutions support the entire trade lifecycle including integrated trade and order management systems, execution services, risk management, compliance, and clearing and settlement services. With connectivity via SunGard’s global network, SunGard's global trading solutions help customers achieve increased performance, low latency and execution across multiple platforms, instruments and geographies.
SunGard is one of the world's leading software and technology services companies. SunGard has more than 20,000 employees and serves 25,000 customers in 70 countries. SunGard provides software and processing solutions for financial services, higher education and the public sector. SunGard also provides disaster recovery services, managed IT services, information availability consulting services and business continuity management software. With annual revenue exceeding $5 billion, SunGard is ranked 380 on the Fortune 500 and is the largest privately held business software and IT services company. For more information, visit http://www.sungard.com
*Aite Group Report - High Frequency Trading in FX: Open for Business, 2010
Trademark Information: SunGard, the SunGard logo and Valdi are trademarks or registered trademarks of SunGard Data Systems Inc. or its subsidiaries in the U.S. and other countries. All other trade names are trademarks or registered trademarks of their respective holders.
Valdi Execution Services are provided by SunGard Global Execution Services Limited. Trade execution and clearing services in UK and Europe are provided by SunGard Global Execution Services Limited - Authorized and Regulated by the Financial Services Authority * Registered in England and Wales No. 3127109 * Registered Office: 25 Canada Square, London E14 5LQ.
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