Redline Trading Speeds Up NBBO Calculations

Redline Trading Solutions will unveil InRush NBBO, a solution that can calculate the national best bid and offer in as little as five microseconds for the U.S. equities market, according to the company’s release today.

Redline will demonstrate the high-speed solution at the SIFMA Financial Technology Leaders Forum in New York City this week (Booth # 1509).

Redline’s InRush NBBO cuts through the delays of relying on the central consolidators (securities information processors or SIPs) by calculating the NBBO from direct connections to the major exchanges with hardware-accelerated software embedded directly into single-server trading applications.

SEC regulations require that all equities brokers ensure that their customer trades execute at the best price across all competing U.S. market centers (exchanges).

NBBO pricing information is typically calculated by SIPs, which combine all the information from each market center for dissemination to financial institutions. While SIP-sourced feeds meets the needs of many applications, there is a lot of “overhead” in the formation and redistribution which means these feeds can be “out of synch” with the market by many milliseconds by the time they reach the financial application, says Redline.

According to Redline, its solution eliminates the redistribution overhead and calculates the NBBO view of the markets in as little as 5 microseconds.

Redline’s InRush Accelerated Ticker Plant delivers NBBO-compliant answers milliseconds ahead of the SIP — without using the computational resources of the client’s trading server. The solution is geared to smart-order routing, crossing engines algorithmic trading strategies or high frequency trading firms that need faster access for profitable trading.

“We have taken the same technology that we supply to high-frequency trading applications and used it to help trading firms get better prices for their customers’ trades,” said Mark Skalabrin, CEO of Redline Trading Solutions. “With InRush NBBO, our customers can react first to changing market events with the speed they need ensure the most profitable trades.”

Ivy is Editor-at-Large for Advanced Trading and Wall Street & Technology. Ivy is responsible for writing in-depth feature articles, daily blogs and news articles with a focus on automated trading in the capital markets. As an industry expert, Ivy has reported on a myriad ... View Full Bio