Azul and Pontus Networks combine to help reduce the risk of FX Market arbitrage

Azul and Pontus Networks combine to help reduce the risk of FX Market arbitrage

Apr 28, 2016 | 3 MIN READ

Written by Guest Blog

Why is this important?

Azul and Pontus Networks have launched an Azul Zing®-based edition of PontusVision Thread Manager (PVTM), Pontus’s flagship product which reduces capital and operational IT infrastructure expenditures by improving the way software threads run on specific CPU cores. In a recent benchmark study, the combination of Zing and PVTM helped an investment bank improve the latency of its FX pricing system without changing a single line of code, by reducing the pricing system’s peak latency from receipt of a raw market data tick to sending a FIX market data snapshot to clients by 20X.

Both buy- and sell-side organizations require predictable behavior in their systems. If a sell-side market maker has a predictably slow system, the prices can be adjusted by applying the appropriate level of spreads to prevent the bank from being targeted because they are providing stale prices.  If a pricing system has lower average latency, but higher peak latencies than a predictably slow system at a competitor, the sell-side organization can easily wind up randomly sending inaccurate prices to the market, and be cherry-picked by a nimble buy-side organization.

Pontus’ PVTM was designed to help financial institutions reduce the need for weeks of performance analysis by highly-skilled Java engineers. PVTM is an easy to deploy solution that accelerates software by optimizing the execution layout of threads within production servers. PVTM improves the performance of applications — improving latency in FX pricing systems and delivering better throughput for batch- and Database-centric workloads. The benefits of deploying PVTM include up to 270% performance gains, plus the ability to improve performance in minutes instead of weeks — and without hardware or code changes.

Leo Martins, Founder at Pontus Networks, said: “In a nutshell, Thread Manager reduces capital and operational expenditure by solving a performance problem in a minute as opposed to a month. By offering clients a Zing edition of our solution, we not only guarantee lower latencies, adherence to service level objectives and a twenty fold improvement in performance, but crucially we can help eradicate the industry-wide issue of arbitrage. Moving forward, we are looking to work with Azul in the big data space and solve industry-specific issues there as well.”

Category: Azul News

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