Rival Systems, a Chicago-based trading software provider, said on Monday it has partnered with trading solutions provider Algo-Logic Systems to jointly develop and launch an integrated trading platform. The new solution will use Algo-Logic’s field programmable gate array (FPGA) hardware and Rival Systems’ trading and algorithmic strategy development software.
The tick-to-trade solution for futures and options will enable traders to access sub-microsecond latency and performance that are typically available to large trading firms. This is possible thanks to the use of Algo-Logic Systems’ FPGAs, which are silicon chips that can be re-programmed to their desired application or functionality requirements after manufacturing.
“Rival and Algo-Logic have begun sharing details with clients, and they expect the integrated offering will be ready for deployment in the second quarter,” Rival Systems said in a statement. “The integration will begin with Algo-Logic’s ultra-low latency Tick-to-Trade (T2T) System for the CME. The companies expect to provide similar capabilities for other exchanges going forward.”
The new solution will fight some of the limitations that come from trading a large number of instruments.
“By combining the fastest software and hardware solutions, we have been able to find innovative ways to get around those constraints,” said Rival Systems CEO Robert D’Arco. “From options market makers to futures algo traders, all Rival users will be able to benefit from the accelerated offering. The Algo-Logic integration is the next step in Rival’s mission to empower professional traders,” he added.
About a year ago, Rival Systems reduced the latency on its trading platform by 25%. The company is one of few trading software providers to offer daily reports showing the true tick-to-trade latency of every order. Now the latency will be further lowered.
“Algo-Logic fits complex designs in FPGA chips and meets timing and performance levels unattainable in software. With this integration, Rival’s software developers have integrated with Algo-Logic’s API and custom programmed events so no additional development work is required from clients,” Algo-Logic CEO John Lockwood said.
Rival Systems, set up in 2015, provides various trading-related software solutions. Its offering includes the platforms Rival Trader, a derivatives trading system; Rival API, an algorithmic strategy development framework; Rival Risk, a fully hosted enterprise risk management platform; and Rival Trainer, an online options training course for beginner, intermediate, and advanced traders.
Algo-Logic Systems provides Gateware Defined Networking products and solutions running on FPGA devices complemented with open APIs. Algo-Logic Systems’ products and solutions are used to lower latency in financial trading systems, increase packet throughput in data centers and clouds, and lower energy consumption for data processing in embedded systems.