With the successful roll-out of its optional Enhanced Transaction Solution interface last month, international derivatives exchange Eurex says it has achieved another key milestone of the
With the successful roll-out of its optional Enhanced Transaction Solution interface last month, international derivatives exchange Eurex says it has achieved another key milestone of the Eurex Technology Roadmap launched at the end of 2006.
Since the interface was introduced, average round-trip times for futures orders by users of this access option have been reduced to five milliseconds, half the time previously achieved via the traditional MISS interface. The minimum latency time achieved by the Eurex system for single order transactions, when using the Proximity Services, is as low as around one millisecond.
‘The Enhanced Transaction Solution is primarily aimed at customers with transaction-intensive and algorithmic trading strategies,’ says Eurex deputy chief executive Jürg Spillmann. ‘The new interface is limited to the management and maintenance of order and quotes.’
Spillmann notes that the interface does not require any special hardware and can be easily integrated into customers’ existing IT infrastructure. At present, up to 30 percent of the daily order volume for benchmark products such as DJ Euro Stoxx 50 and Dax futures is entered via the Enhanced Transaction Solution.
According to Spillmann, the Technology Roadmap is not simply a response to current trends in electronic derivatives trading but seeks to promote them. New trading strategies such as algorithmic trading and new products have led to a considerable increase in daily transaction volumes, resulting in demand for more order book depth and additional market information.
The next milestone is the planned implementation of the real-time risk management function in the final quarter of this year, allowing participants to obtain a permanent evaluation of their risks throughout the trading day based on current market conditions.