Why You Need FPGA In Your High-Frequency Trading Business


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Why You Need FPGA In Your High-Frequency Trading Business

  1. 1. Why YOU need FPGA in yourhigh-frequency tradingbusinessCopyright © 2009 Jeff JohnsonElectronic & FPGA Design Services 1
  2. 2. The Need for Speed• In high-frequency trading, money is madeand lost in milliseconds• Speed is the edge and the fastest playersmake all the profits• If your HF trading is not powered by thetop-of-the-line hardware, you WILL losemoney to those whose isElectronic & FPGA Design Services 2
  3. 3. The Inadequacy of Computers• Computer hardware is designed to performa myriad of different tasks and is notoptimized for the particularities involvedin trading• Computers are burdened with operatingsystems and protocols that limit how fastthey can run your trading algorithmsElectronic & FPGA Design Services 3
  4. 4. The Operating System Burden• When you implement your trading strategiesin software, the Operating System (OS)slows you down• The OS uses "time-slicing" to share theprocessors time between your tradingsoftware and other applications such asanti-virusElectronic & FPGA Design Services 4
  5. 5. The Protocol Stack Burden• When you implement your tradingstrategies in software, your interface to themarket is buffered by multiple protocollayers• Protocol layers result in a delay betweenthe time the price data arrives and when wecan actually use it, and also between thetime we create an order and the time it isactually sentElectronic & FPGA Design Services 5
  6. 6. Solution: Specialized Hardware• Gain edge over your competitors withspecialized hardware• Dont share processing time with otherapplications and speed up your algorithms• Operate on lower protocol layers andeliminate the stack delaysElectronic & FPGA Design Services 6
  7. 7. But IC Development is Expensive!• Thats where FPGA comes in!• FPGA stands for Field Programmable GateArray and it allows us to design andimplement custom high-performance logicwithout the cost of IC manufactureElectronic & FPGA Design Services 7
  8. 8. The FPGA Solution• Develop hardware that is optimized forexecuting your trading strategies• Bypass the OS and protocol stack to get inbefore your competitors• Use hardware to process the FIX protocolfor a lightning fast connection to themarketElectronic & FPGA Design Services 8
  9. 9. Want to know more?• Contact me for more information on:o Benefits of hardware vs softwareo FPGA pricingo Engineering costso Tool costs• If you are interested in implementing anFPGA based trading platform, ask me for aproject estimationElectronic & FPGA Design Services 9
  10. 10. Contact details• Through my website:• FPGA Design Services• By email:• FPGA Consultant• LinkedIn profile:o FPGA Consultant on LinkedInElectronic & FPGA Design Services 10