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Did High Frequency Trading Software Force NYSE to Shut Down?

Posted by Nadeesha Thewarapperuma

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Jul 9, 2015 3:07:00 PM

high_frequency_trading_software     Yesterday, a glitch forced the New York Stock Exchange (NYSE) to halt all trade for around three hours. The temporary halt raised concerns of a cyber attack, but regulators responded to concerns, saying that the glitch occurred because of a problem with the software that's used to enable complex trading. Regulators halted all trade to address the issue.

     A recent Bloomberg article questioned if the glitches were caused by the precedence of high frequency trading (HFT). Bloomberg's Cory Johnson believes that Wall Street has adjusted itself to accommodate HFT and the profit that can be made off of it. This includes undergoing massive infrastructure changes to accommodate short duration transactions. HFT transactions usually last milliseconds, and the trades are in place to take advantage of certain short-term discrepancies in the market. These discrepancies occur as the market self-adjusts itself to reach equilibrium and eliminate inefficiencies.

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     In a lure to attract high frequency traders, the infrastructure changes include updates to the hardware, software, and their physical design. The sudden influx of complex hardware and software have made the trading system more complicated. Regulators feel that the software problem may have stemmed from an update that was scheduled the night before. High frequency trading software is available to accommodate these complex calculations. Often, the software has a set of algorithms which dictate the actions that should be taken if a certain threshold is passed.

     To compete in the HFT industry, a trading company's algorithms should be built around the latest FPGA hardware. Xilinx Virtex 7 FPGA are recommended to handle these high-speed calculations. Xilinx Virtex 7 FPGA are part of Xilinx's all-programmable 7 Series. The other families include the Artix 7 and Kintex 7 FPGA.

     The Xilinx Virtex-7 family are available as the following models: 330T, 415T, 485T, 550T, 580T, 585T, 690T, 870T, 980T, 1140T, and 2000T.Compared to the previous Xilinx Virtex 6 generation, the newer generation uses 40% less cost and 70% less power consumption. Virtex 7 FPGA are capable of handling ASIC prototyping and ASIC replacement.

    Currently, EarthTron has 6 pieces of Xilinx XC7VX690T-2FFG1158I. The Xilinx FPGA are factory-sealed and a COC is available. Click here for pictures and other applications of Xilinx Virtex 7.

 

Special Pricing On: XC7VX690T-2FFG1158I

Sources referred:

Bloomberg

Topics: FPGA, XC7VX690T-2FFG1158I

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Special Pricing On: XC7VX690T-2FFG1158I