Provide every client with a real-time view of their trading performance, detailing market data quality and latency metrics by venue
Consistently delivering mission critical connectivity, optimised to meet the ultra low latency and high capacity demands of financial service clients, requires managed service providers to supply fast and reliable services around-the-clock.
However, as the demand for co-location and outsourcing intensifies, clients are increasingly requesting a real-time understanding of how their co-located trading systems are performing, the quality of market data being employed into trading decisions and how latency compares by venue. With this valuable insight, clients can adjust trading behaviours intraday to enhance profitability.
Velocimetrics enables managed service providers to minimise and more effectively control latency, assess the quality of market data being passed onto clients and measure their performance compared to SLA commitments in real-time. Additionally, Velocimetrics’ technology also enables providers to offer clients access to a multi-tenanted portal, so they too can gain a detailed understanding of their own performance.
Providing clients with a real-time dashboard enables users to evaluate the quality of the market data they are consuming, comprehend how their trades are performing and assess the comparative latency of the venue they are trading on in relation to the other venues available to them.
With Velocimetrics’ technology, managed service providers can:
Identify performance issues occurring at any point throughout their environment
- Velocimetrics’ technology can capture data at multiple points throughout the end-to-end process; using a combination of application, middleware and network capture techniques.
- These techniques can be mixed and matched so the optimium capture solution, based on the managed service provider’s requirements, can be employed.
- This approach enables congestion issues or latency occurring at any point throughout the process to be instantly detected by the managed service provider and the issue’s source pinpointed.
- In doing so, Velocimetrics’ technology is able to illuminate the blind spots that employing only network or application monitoring techniques can generate.
Immediately detect emerging latency issues to limit the impact on client trading speeds and service availability
- Velocimetrics’ technology will rapidly analyse the timings achieved at each hop, applying live, statistical distribution modelling techniques, using standard deviation and percentile calculations. With this information, latency issues and other performance outliers can be identified as they are generated.
- The instant an issue is detected an alert is raised and the problem’s exact location pinpointed.
- Alerts can be raised via the Velocimetrics console or dovetailed into native client systems and third party enterprise monitoring systems using SNMP.
- This approach enables users to immediately commence with the issue’s repair, without the need to use additional tools to determine the problem’s source.
- In doing so, presenting the potential to swiftly eliminate time delays and reliability issues that might otherwise impact a client’s ability to trade by presenting the potential to address the issue before it has had time to develop.
Precisely measure order round-trip latency and latency between venues
- Velocimetrics’ technology is able to provide users with accurate measurements for both order round-trip latency and the latency experienced as the order traverses different venue hops along the way.
- Velocimetrics’ technology achieves this by tying the data it captures at different points together to establish the exact path taken by a piece of data and create a seamless end-to-end flow. Association techniques are then applied to distinguish the relationships between different flows, such as a client’s order that is then executed as a series of trades, whilst simultaneously revealing the timings at every hop.
Accurately assess the quality of market data being passed onto clients
Velocimetrics’ technology will alert users in real-time to the emergence of degradation in the quality of market data being passed onto clients. This is achieved by enabling users to:
- Understand if market data is ticking as fast as expected. With Velocimetrics’ technology, users can identify latency variations and intelligently assess data timeliness on an instrument-by-instrument basis. Users can also compare absolute thresholds, content timestamps, historical norms and statistical distributions.
- Comprehend the impact that stale data or periodic congestion may be having on an instrument-by-instrument basis and fine-tune detection thresholds.
- Detect market data tick absence at the feed, market, instrument or field level to identify on a live feed, if certain trading venues or individual instruments may be missing.
- Compare current price movements to a 5 or 30 day moving average, understand if pricing ticks are moving as expected compared to historical norms and receive alerts of sudden price jumps, indicating that ticks may be missing.
To learn more about how Velocimetrics’ technology is able to assess the quality of data being passed onto clients visit our Velocimetrics’ Market Data Quality solution page
Provide clients with a real-time view of their trading performance with detailed latency and market data quality analytics
- Velocimetrics’ technology enables managed service providers to offer clients a real-time view of their trading performance.
- With this insight clients are instantly alerted to issues impacting their trading environment, so they can immediately pinpoint an issue’s source and access detailed analytics to aid effective decision-making.
- The functionality can be offered as a service for clients through a multi-tenanted portal. This shared facility enables each subscribing client to gain detailed metrics so they can assess:
- Their real-time trading performance
- The quality of market data being employed into trading decisions
- The latency of the venues they are currently trading on, compared with others available to them from their environment
- This intelligence enables clients to take informed trading decisions intra-day.
- This shared facility is available to clients through an easy to use dashboard, enabling each client to privately access only the data relating to their trading activity.
- The functionality offered through the dashboard can be extended to include additional features or limited to a smaller set of core features. This flexible approach enables managed service providers to determine the functionality that would best meet their client’s requirements.
Independently verify if client service level agreements (SLA) are being met
- Velocimetrics’ technology monitors environments at both the statistical and individual trade level. By doing so, full-order lifecycle timings, plus a wealth of additional and completely customisable analytics can be accessed. This functionality enables managed service providers to continuously monitor and analyse client trading latency against critical SLAs.
- SLA performance can be assessed on a venue-by-venue basis and alerts raised, for instance, if the speed of connectivity to a particular venue is in danger of breaching SLA commitments.
- Performance against SLA commitments can be examined on both an individual client basis or by groups of clients. For instance, the latency being experienced by different groups of clients trading on the same venue could be compared.
Customise business-level analytics to accurately address client questions
- Velocimetrics’ technology enables different groups throughout the business to customise the data they wish to analyse. This versatile approach enables the performance, for example, of individual clients, markets, instruments, trades, prices or venues to be examined.
- With access to this insight, client servicing teams can very quickly retrieve the exact information required to address in-bound client questions relating to the delivery of their orders and trades, and investigate and diagnose more complex client problems.
Quickly identify which clients have been negatively impacted by latency issues and how, so their experience can be proactively managed
- By capturing data traversing the managed service providers’ infrastructure at both a business and technical level, Velocimetrics’ technology can not only rapidly detect an issue’s occurrence but also quickly and very accurately determine exactly which orders or trades were being processed across impacted systems or networks when the issue took place. In doing so, providing analytics that will instantly establish which clients submitted the impacted orders.
- Reports can be generated on-demand and automatically emailed to client-servicing teams in a matter of seconds, providing all the detail required to commence notifying impacted clients.
- This approach enables the managed service provider to rapidly analyse the issue from a client centric perspective and use this insight to proactively contact impacted clients and reassure them of measures being taken.
Transform the economics of achieving continuous, real-time monitoring on a multi-venue / multi-geographical basis
- By collecting data at each location using cost-effective capture agents, and then centrally analysing the data in real-time, with Velocimetrics’ technology there is no need to deploy expensive hardware at each monitored location, presenting significant financial savings.
- This scalable approach supports managed service providers as they expand coverage in an increasingly fragmented global marketplace.
- Additionally, through the deployment of a single monitoring solution, Velocimetrics’ technology enables managed service providers to offer clients visibility into their specific trading activity and share the cost of provision across multiple clients.
Overlay business and technical analysis charts to identify relationships between latency and TCP metrics
- Velocimetrics’ technology is able to provide users with a range of TCP monitoring statistics that can be broken down by stream and key. It is able to analyse TCP behaviour and alert users to irregularities using various statistics including retransmission metrics, microburst and window size analysis.
- Velocimetrics’ technology enables users to analyse data with highly configurable charts to mix-and- match data requirements. These charts enable various views to be overlaid such as the ability to superimpose order execution latency charts with TCP analysis.
Run customised reports intra-day detailing latency outliers, execution latency statistics or SLA breaches
- Velocimetrics’ technology enables users to create customised PDF, CSV or XML reports based on a wide variety of business attributes.
- These reports could detail for instance latency outliers within a given period, execution latency performance by venue or client, or performance against SLA commitments.
- These reports can be run intra-day as required or set to run on a schedule and then automatically emailed to a pre-agreed list of recipients.
Conduct effective capacity planning to ensure volume increases don’t negatively impact client experience
- Understand if your firm’s performance is being impacted by periodical, unusual or even extremely brief peaks in activity.
- Quickly identify areas of strain across the infrastructure, such as delays caused by capacity limitations on a particular network link, and use this insight to rapidly resolve issues, optimise operational efficiencies and plan future investment.
Interested in seeing Velocimetrics' technology in action?
Schedule a demo and see how uncompromised visibility accompanied by performance-improving analytics could transform your business insight
Find out More