STAC Report: Latency reduction with Cape City Command Trade Xccelerator

Trade Xccelerator reduces mean latency up to17% versus round robin methodology in simulated trading

October 30, 2014 - London STAC Summit

Today STAC released a STAC Report that examines the impact of best-routing recommendations from Cape City Command's Trade Xccelerator product as an alternative to round-robin routing algorithms.

Trade Xccelerator is an appliance that monitors the order-to-acknowledgement latency of each gateway for a given trading venue (at both the exchange protocol and network transport layer), predicts the lowest-latency path to that venue, and transmits those predictions to trading applications. CCC asked STAC to simulate a trading environment and measure the reduction in latency that ensues when trading applications follow the Trade Xccelerator’s recommendations rather than a simple round-robin routing method used by many trading applications. 

In these tests, Trade Xccelerator reduced latency by 87 usec (17%) under low-volume trading levels and 34 usec (5%) under high volumes.

Click here to read the details of the test methodology, simluated trading system configuration, and test results.