Since the roll-out of Eurex’s optional interface EnhancedTransaction Solution (ETS) on 14 April 2008, average roundtrip times of future orders for users of this access option have been reduced to five milliseconds, halving the times 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.
“ETS is primarily aimed at customers with transaction-intensive andalgorithmic trading strategies. The new interface is limited to the management and maintenance of order and quotes,” says Jrg Spillmann, deputy CEO, Eurex.
According to Spillmann, ETS does not require any special hardware andcan be easily integrated into customers existing IT infrastructure. Atpresent, up to 30% of the daily order volume for benchmark products such as DJ Euro STOXX 50 futures and DAX futures is entered via the new interface.
Spillmann explains that Eurexs Technology Roadmap is not only aresponse to current trends in electronic derivatives trading it also promotes them. New trading strategies such as algorithmic trading and new products have led to a considerable increase in daily transaction volumes, resulting in a greater demand for more order book depth and additional market information.
The next milestone is the planned implementation of the Real-time RiskManagement function in the final quarter of 2008. This will allowparticipants to obtain a permanent evaluation of their risks throughout the trading day based on current market conditions.