High Frequency traders still earn the front pages as more and more market participants look at the real implications. The flash crash which affected US’s Dow 30 index was the first major sign that HF traders can cause potential dismay in an already bleak market.
Celoxica, a leading provider of hardware accelerated low-latency, low-footprint, market data, order execution and pre-trade risk management solutions for automated trading, today announced the addition of fixed income and foreign exchange (forex) asset class coverage to its Generalized Market Accelerator (GMAC) market data feed handler and Generalized Exchange Access (GXA) order entry technologies.
Celoxica’s GMAC and GXA solutions are engineered to optimize inbound market data and outbound execution speed through the use of FPGA card technology. Both solutions also provide asset class coverage across the equities, options and futures markets.
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Celoxica clients can take GMAC and GXA as stand-alone technologies or as part of Celoxica’s ContainerTM solution offering hardware accelerated market data and order entry on a single server. The Container’s compact, single-server design minimizes trading latency and dramatically reduces the total cost of running the strategy by reducing the datacenter footprint.
The addition of fixed income and forex asset class coverage comes as trading firms are rapidly increasing the use of automated high-frequency trading strategies in these two markets. It’s estimated that 70 percent of all forex trading will be automated by the end of 2012.
“High frequency trading strategies have come to dominate the equities and futures markets over the last few years, and we are delighted to have helped our clients achieve a competitive trading edge through smarter engineering of market data and execution technologies,” said Lee Staines, President at Celoxica. “The forex and fixed income markets are the new frontier for high frequency traders, and we remain committed to providing our clients with a measureable competitive advantage as they move their strategies into these asset classes.”
BIS conducted a detailed study on High Frequency Trading. With the rise in automated trading more and more traders have looked at EA’s on the popular Metatrader 4 platform.