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Risk Management

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Intel Launches New Low Latency Server Processors to Financial Community

Intel Xeon 5600 and Intel Xeon 7500 processors to enable lower latency, increase data and order throughput, and improve risk management.

Intel has launched its new Xeon processor 5600 series and the Intel Xeon processor 7500 series.

Each of these new processor families is expected to bring significant benefits to the financial services industry both in terms of lowering latency and dramatically increasing data and order throughput, the company said in a release.

Highly expandable [to include from two to 256 chips per server], the new Intel Xeon 7500 processors have an average performance three times that of Intel's existing Xeon 7400 series on leading IT enterprise benchmarks, and come equipped with more than 20 new reliability features. This helps to achieve impressive throughput which will handle the vast data loads for today's risk management and trading requirements, Intel said.

The Intel Xeon 5600 processor is the successor to the Intel Xeon processor 5500 series introduced in early 2009, and can deliver up to 60% performance improvement over the Xeon 5500. The extra speed comes mainly thanks to Intel's industry-leading manufacturing technology which enables smaller (32 nanometres in length), faster and more energy-efficient transistors (the building blocks of processors) thus improving performance and reducing energy consumption of the chip overall. This makes them ideal for deployment in trading environments as the faster processing speeds will feed directly into the demands of latency sensitive trading activities.

The technology is already being applied to the market, and early adopters are seeing immediately the relevance to and the immediate benefits in today's trading conditions.

Anthony Warden, ED Global Head of Algorithmic Trading and Quant Prime Broker Technology, Nomura, said: "Handling bursts in trade traffic is a key factor in DMA and low latency, high throughput trading platforms. By enabling us to spread processing over more cores, the Intel Xeon processor 7500 series will allow us to handle larger peaks more efficiently without any increase in response times. The increased core count of the 7500 series also allows us to host more trading algorithms on a single box which can communicate through local memory, thereby reducing latency."

He added: "Compared to the last-generation Intel Xeon processor 5500 series, early analysis of the Intel Xeon processor 5600 series shows an approximate 35% reduction in latency. With this improvement, our clients are able to process even more orders in a given timeframe where they see market opportunity. It is critical for Nomura to maintain and build on its position as the leader in the low latency, high throughput trading space and our partnership with Intel has helped drive significant improvements in our client offering."

Nigel Woodward, Director of Financial Services, Intel Corporation said: "I am delighted that fasterCITY London marks the arrival to market of the new Intel Xeon 7500 series and Intel Xeon 5600 Series processors to the international financial community. Infrastructure technologies now matter in the building of effective financial services compute operations; bringing new products to market continues to be of immense benefit for everyone involved. Those clients who have quickly utilised the features of these technologies are gaining immediate commercial benefits in trading and the high data processing capability over multicore feeds through to improved risk management and analytics at the enterprise level which, as a result of greater supervisory scrutiny, will see increasing focus across the market in the coming years."

Melanie Rodier has worked as a print and broadcast journalist for over 10 years, covering business and finance, general news, and film trade news. Prior to joining Wall Street & Technology in April 2007, Melanie lived in Paris, where she worked for the International Herald ... View Full Bio

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