Zing Meets Cheetah - The Low Latency Solution by Azul Systems and Rapid Addition

Azul Systems has partnered with Rapid Addition to enhance its elastic Java Virtual Machines (JVMs) to offer financial services firms low latency and jitter-free Java trading engines. The alliance comes on the back of client demand for increased transaction rates and consistent response times.

Both technology providers operate to optimize banks and brokers trading experience, they remove jitter and garbage that affect trade Execution Execution Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Read this Term. Azul’s JVM will collaborate with Rapid Addition’s Cheetah FIX engine; results have shown that the combination of Zing and Cheetah had a significant reduction in latency and an increase in performance.

Kevin Houstoun, Chairman at Rapid Addition, spoke about the advantages the partnership entails in a statement to the media, saying: “Azul Systems has demonstrated the strength of Zing though extensive testing and we believe this high-caliber product provides a perfectly complementary set of capabilities for organizations using RA-Cheetah.”

The rapid price movements of financial instruments have highlighted the role of speed. In 2010’s unforgettable flash crash, the markets dropped over 600 points in a 5 minute period. Access to reliable low latency trading solutions is paramount for firms on both sides of the spectrum whether they are buy-side firms looking for trade opportunities or sell-side firms providing price discovery and Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term.

“Both latency and jitter are significant and expensive obstacles in today’s trading environments. The combination of Zing and RA-Cheetah offers a pioneering solution that will give clients better predictability, control, and performance” adds Scott Sellers, Azul Systems CEO in the company's statement.

Both Rapid Addition and Azul Systems have been providing solutions to brokers and exchanges in the margin FX business. Saxo Bank, one of the world’s leading multi-asset brokerage firms was using the Cheetah FIX engine to enhance its performance (March 2012). London based LMAX Exchange announced in April 2013, that it was using Azul’s Zing to strengthen its technological base and seamlessly manage increasing transaction volumes. Zing eliminates operational interruptions, response time outliers and the scalability limits of Java-based trading.

In the technology arms race, firms need to ensure that their systems and solutions are in line with new developments that are affecting the industry to remain competitive.