December 2009: The Chicago-based execution management system builders designed HiFREQ to supply the required technology to let hedge funds and smaller prop shops write their own high-frequency strategies. This technology includes a framework that can connect to any FIX-compliant destination, adapters to several different market data providers and the wherewithal to write such strategies as arbitraging across global equities and futures.
HiFREQ is an extension of the InfoReach TMS EMS, which runs on a stripped-down version of the platform. To this, InfoReach added functionality that would let the trading system achieve a higher rate of messages per second over an FIX connection, as well as lower latency, said Vitaly Shatsky, the vendor’s chief technology officer.
“We took out anything we felt wouldn’t be used or leveraged by a high-frequency trader, and anything that would cause a slowdown in performance,” he said. “And we came up with a stronger product, from a performance perspective.”
Armed with HiFREQ on their InfoReach TMS, budding speed traders can send 10,000 orders a second with microsecond latency or consolidate their multiple exchange feeds. But smaller shops with high-frequency ambitions do still need to supply their own fast market data feeds, servers and execution pipes, Shatsky said, the basic infrastructure for running these trading strategies.