Joint Pontus/Azul solution helps reduce the risk of FX Market Arbitrage by enhancing FX application performance and reducing peak latencies
April 28, 2016
- 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
SUNNYVALE, Calif., and LONDON, UK, April 28, 2016 — Azul Systems (Azul), the award-winning leader in Java runtime solutions, and Pontus Networks, a specialist in improving the performance of software in financial institutions, 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.
Azul Zing is often an appropriate choice for Java-based applications and systems that require consistent low latency and/or high scalability. Zing eliminates the operational interruptions and response time outliers often experienced by Java-based trading, risk or compliance applications across a wide variety of asset classes. Zing’s ReadyNow!® technology also solves Java’s warm-up problem by allowing applications to start up fast (and fully optimized) at the opening bell and stay fast even as market conditions change throughout the day.
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 SLAs 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.”
Scott Sellers, CEO of Azul Systems, said: “Pontus’s decision to work with Azul on developing a joint solution highlights the importance of using the right JVM for Java-based FX applications that require predictable low latency and rapid scalability. In today’s ultra-competitive financial markets where resources are stretched, having a proven joint solution which can be deployed rapidly with zero changes to existing code or hardware offers a great advantage to both buy-side and sell-side institutions.”
Request a free evaluation copy of Zing at www.azul.com/trial.
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About Pontus Networks
Pontus Networks specializes in improving performance of software in financial institutions. We sell both products (PONTUS VISION Thread Manager) and services to help customers improve performance in front, middle, and back office applications. Pontus Networks Consultants have over 40 man-years of hands-on experience in the Low-latency Messaging Middleware market; we have worked directly with some of the biggest players in the industry, and retain key contacts with most of the major vendors (e.g. Tibco, Informatica/29west, Solace).
With the help of various contributors from top tier banks in the financial services industry, Pontus Networks was founded in the UK in 2011 by Martin Raumann, Leonardo Martins and Deepak Aggarawal, specialists in hardware, middleware consultancy and deployment management respectively. For more information, visit http://www.pontusvision.com.
About Azul Systems
Azul Systems, the industry’s only company exclusively focused on Java and the Java Virtual Machine (JVM), builds fully supported, certified standards-compliant Java runtime solutions that help enable the real time business. Zing is a JVM designed for enterprise Java applications and workloads that require any combination of low latency, high transaction rates, large working memory, and/or consistent response times. Zulu and Zulu Embedded are Azul’s certified, open source builds of OpenJDK with a variety of flexible support options, available in configurations for the enterprise as well as custom and embedded form factors. For additional information, visit www.azul.com.
Azul Systems, the Azul Systems logo, Zulu, Zing and ReadyNow! are registered trademarks. Java and OpenJDK are trademarks of Oracle Corporation and/or its affiliated companies in the United States and other countries. All other trademarks are the property of their respective holders.