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

Why is this important?

  • The combination of Azul Zing plus PontusVision Thread Manager provides investment banks with a proven 20X latency improvement on FX pricing system performance
  • By deploying Thread Manager, FX market arbitrage risk is greatly reduced through improved platform performance and the eradication of response time outliers
  • The Zing edition of Thread Manager is a game changer for FX traders – increasing price predictability and reducing risk/analytics calculation times while improving messaging and business workflow performance — and keeping arbitrage risk at bay

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.”

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