Assess the live performance of price information sent between FX brokers and trading partners via FIX and other protocols.
FIX engines play a vital role in FX trading, with many brokers relying on their FIX engines to effectively manage all electronic communications with liquidity providers and clients.
As the systems responsible for creating and parsing all incoming and outgoing trading messages, the failure to detect that a FIX engine is not receiving all expected FX pricing streams or publishing timely and accurate prices to clients, can quickly result in considerable trading losses. In these situations, brokers can find that they have been unknowingly publishing potentially unprofitable or uncompetitive prices calculated using incomplete pricing data or sending clients delayed responses to requests for quotes or order placements.
Bringing together proven FX market data quality assessment and transaction tracking capabilities, Velocimetrics’ technology is able to accurately assess the live performance of pricing information sent between FX brokers and their trading partners via FIX and other protocols. In doing so, instantly detecting health issues that could negatively impact trading profitability.
Providing FX brokers with detailed insight, Velocimetrics’ technology is not only able to detect whether a FIX gateway is alive and has a heartbeat, but also whether the FIX engine is sending and receiving trading messages to all liquidity providers and liquidity clients at the levels the user anticipates. In doing so, providing sophisticated analysis of the quality of individual pricing streams, right down to the symbol and bid/ask field level.
This high performance solution is able to support extremely high volumes of pricing data and trade communications. Using non- intrusive network monitoring techniques, Velocimetrics’ technology accurately examines both the data’s completeness, and the frequency that messages are sent or received against thresholds over time. In doing so, raising real-time alerts to unanticipated behaviour that could lead to trade profitability, performance, operational risk or client experience concerns.
Once an issue has been detected, adopters can then immediate access the detailed business and technical level analysis necessary for effective decision-making, pinpoint the issues’ exact location and drill-down to the root cause. With this information:
Ultimately enabling developing situations to be more proactively managed and controlled.
Read on to learn more about how Velocimetrics’ technology can support FX brokers keen to instantly detect health issues impacting their FIX engines:
Instantly Identify missing pricing streams
Velocimetrics’ technology is able to continually assess the pricing streams received from liquidity providers, by comparing these to the configured or subscribed streams, and alert users to discrepancies. In doing so, notifying users of issues impacting the data being used to formulate trading decisions.
This assessment is performed at the individual stream level, instantly identifying abnormal pricing tick delays on all streams by precisely measuring the intervals between pricing ticks. For instance if a broker expects to be receiving pricing spreads at 3 tiers for EUR/USD and at 4 tiers for GDP/JPY, Velocimetrics’ technology will instantly raise an alert should problems start to develop on any of these 7 streams.
The console provides a rich interface for reviewing alerts and access to real time metrics and analysis. Alerts are dynamically configured to detail the expected pricing streams and their individual status, with severity determined by the level of activity detected for each stream. Streams that are being received but are not updating as frequently as expected are marked as ‘suspect’, should the situation then further evolve, and fail to update within a pre-agreed timeframe, they are then marked as stale.
Immediately detect issues impacting client experience
Velocimetrics’ technology can immediately detect problems emerging with the transmission or receipt of messages via the FIX client gateway.
Assessing the frequency of communication between the FX broker and its client, Velocimetrics is able to raise alerts if message rates fall below certain thresholds, or if response times exceed broker defined limits. In doing so, indicating that certain clients may be experiencing performance issues impacting their confidence in sending order flow to the broker.
These thresholds can be pre-configured by the user based on expected client and system behaviour, enabling different thresholds to be set for individual clients or different groups of clients.
With this approach the experience of each client can be accurately assessed on an on-going basis throughout the business day.
Real-time order-to-ack and order-to-fill latency analysis
Velocimetrics’ technology is able to identify the relationships that exist between data traversing the network, tying together for instance a client’s order request and the acknowledgement sent. By recording timings at every stage, hop-by-hop order-to- acknowledgement and order-to-fill latency metrics can be generated.
Examining these metrics in real-time, users can be quickly notified if latency spikes. These spikes can be an early indication that without intervention their FIX engines could start to experience stress. With this advanced insight, engineers can immediately investigate the issue and potentially curtail the system’s degradation and its impact on trading activity.
Additionally, by analysing latency over time, patterns of system under or over utilisation may be identified; with this information users can make load adjustments enabling the infrastructure to more effectively manage future increases in required capacity.
Rapid order reconstruction
Velocimetrics’ technology contemporaneously chains together the data related to all orders, enabling for instance the quote request, prices provided, the order, its acknowledgement and fills to be tied together. The data can then be stored as complete end-to-end flows, along with all associated timings at every stage.
Users can instantly search for any order and rapidly view the reconstructed flow. By examining these reconstructed flows, users can clearly identify the factors that influenced decision-making at different points and retrieve full order life-cycle timings.
This enables users to conduct detailed post-trade analysis and investigate if, for instance, an underlying infrastructure issue may be causing latency resulting in loss making trades. It also enables client queries to be efficiently addressed as client-support teams can very quickly access a detailed order history for any given order executed on the request of any given client.
Easily integrate alerts into existing systems
Velocimetrics’ technology has been designed to easily integrate with existing client infrastructures and processes, for example its detection alerts can be incorporated within SNMP systems, enabling users to view a consolidated alerting feed.