Rival Systems (Rival), an award-winning provider of trading and risk management software, and Algo-Logic Systems, a leading FPGA ultra-low latency trading solutions provider, announced today that they have teamed up to develop an integrated offering using Algo-Logic’s FPGA hardware and Rival’s trading and algorithmic strategy development software. The complete tick-to-trade “out-of-the-box” solution for futures and options enables traders and firms of all sizes to capture the sub-microsecond latency and deterministic performance that typically only the largest trading firms with expensive internal infrastructures have enjoyed.

Rival and Algo-Logic have begun sharing details with clients, and they expect the integrated offering will be ready for deployment in the second quarter. The integration will begin with Algo-Logic’s ultra-low latency Tick-to-Trade (T2T) System for the CME. The companies expect to provide similar capabilities for other exchanges going forward.

Rival Systems CEO Robert D’Arco said: “At Rival, we’re always looking for new ways to help our users compete in the market. We reached out to the Algo-Logic team and are thrilled we were able to develop a turnkey offering that further enhances our platform. The seamless integration will allow users running the Rival Electronic Eye, Auto-Quoter and Rival API to leverage the accelerated solution automatically.”

Algo-Logic CEO John Lockwood said: “Trading firms are always facing that ‘build vs. buy’ decision, and all but the very largest firms have to wonder whether the huge investment in infrastructure and time will pay off when they choose to build their own trading system from scratch. With this integration with Rival, they get the best of both worlds – a pre-built, easy-to-enable solution with the features they want, without an upgrade to their infrastructure.”

Typical FPGA solutions in the market have significant limitations when it comes to trading a large number of instruments, D’Arco said.  “By combining the fastest software and hardware solutions, we have been able to find innovative ways to get around those constraints. From options market makers to futures algo traders, all Rival users will be able to benefit from the accelerated offering. The Algo-Logic integration is the next step in Rival’s mission to empower professional traders.” 

Last year at this time, Rival announced that the latest version of its platform reduced latency by 25 percent.  Rival is also the only trading software company to provide users with daily reports showing the true tick-to-trade latency of every order.

Algo-Logic’s FPGA trading system also allows for deterministic sub-microsecond latency on some types of trades.  Unlike the Application-Specific Integrated Circuit (ASIC) chips, the Field Programmable Gate Arrays (FPGAs) are silicon chips that can be re-programmed to their desired application or functionality requirements after manufacturing.

Lockwood said: “Algo-Logic fits complex designs in FPGA chips and meets timing and performance levels unattainable in software. With this integration, Rival’s software developers have integrated with Algo-Logic’s API and custom programmed events so no additional development work is required from clients.”