Eurex has unveiled further elements of its roadmap for technical improvements to its trading system. Initiated in Q1 2006, the roadmap covers areas for improvement: software and hardware upgrades, the launch of new services and the distribution of new and differentiated market data packages.
The next major step in the implementation of the technology roadmap will be, among others, the introduction of the Enhanced Broadcast Solution. This service will further improve the un-netted market data and full order book depth which Eurex has been providing since December 2006 and is currently used by 80 customers.
The Enhanced Broadcast Solution will allow customers to receive low latency trading data according to their individual needs. Other steps are improvements to the area of connectivity/accessibility and risk management. These measures will be part of the upcoming Eurex Release 10.
In December 2006 Eurex upgraded its network and introduced new system hardware: The bandwidth was upgraded to 1 Mbps and Eurex was the first exchange to upgrade to the next generation processors, the so-called Itanium technology. In combination with various software enhancements, these measures have already significantly improved the system's performance: the average roundtrip time of orders and quotes has been lowered by two-third for the whole network; e.g. measured figures for latency stand at 15 milliseconds for Frankfurt-based trading systems.
The improvements in the technology roadmap address major trends currently observed in electronic derivatives trading: new trading strategies such as algorithmic trading and new products result in a significant growth in daily quotes and order volume and create an increasing demand for higher order book depth and additional market information.
With its technology roadmap, Eurex is aiming to preempt new requirements by constantly tuning its systems to accelerate trading speed and throughput, upgrading system capacity, enhancing real-time information distribution, and improving interfaces and risk management.