High-Frequency Trading Need High-Intelligence Computing

By Suresh Aswani, Senior Manager, Solutions Marketing, Hewlett Packard Enterprise

April 4, 2016

In the time it takes the average person to sneeze, today’s high-frequency trader can execute over 10,000 trades.

Securities trading has evolved from the frenzied “open outcry” system to the quiet automation of high-frequency trading (HFT), where supercomputers execute hundreds of trades each millisecond based on financial algorithms.

Naturally, high-frequency traders are very concerned with transaction speed, and in the early days of HFT, simply executing orders as quickly as possible was enough to compete. But the propagation of high performance computing has made fast processing achievable for nearly every trader. In addition to speed, quality Big Data analytics and tools for insight-based trading have become equally important differentiators in this fast-paced world of finance.

In other words, these days it’s more about high-intelligence trading.

Whether we dub them high-frequency or high-intelligence, today’s electronic traders face the arduous task of delivering critical financial returns in less time than ever before, with the added complexity of having to sift through more data to do so.

In addition to continually increasing transaction speed, traders aim to uncover new ways to extract value from an enormous volume of financial data. The ones that succeed will be able to react in real-time to changing market conditions, predict the success of trading strategies and capitalize on data-driven decision-making.

Firms rely on Big Data algorithms to rapidly fire off trade orders without human intervention every millisecond, and a key challenge for traders is putting checks in place to monitor those algorithms and ensure they continue to function properly. Becoming a victim of “runaway data” could have catastrophic consequences for an HFT firm.

The rapidly growing volume of financial data also poses a significant hurdle for regulators, who have been forced to adapt their procedures and expand computing power in order to properly track and monitor trades that happen thousands of times per second.

Regulators have had to intervene to set rules for high-frequency trading that protect financial markets, and reduce the incidence of “flash crash” types of events similar to the one that occurred in 2010.

The challenge for traders is not only keeping pace with changing regulations, but also developing a compliance strategy that addresses how easily regulators can now mine and search their data, revealing non-compliant or suspicious activity more readily. Proper information governance procedures such as risk analytics and low-latency trade checks can help traders achieve compliance and address changing regulatory requirements.

Pinpointing which data should be retained for compliance purposes is key. Software solutions can be put in place to ensure that data is organized, easily discoverable and accessed readily by both internal users and outside regulators. Compliance officers should also aim to continually gain deeper insight about the many data types that might be part of an audit or regulatory check.

Legacy IT infrastructures will be insufficient in scaling to support the growing volumes of data generated daily from high-frequency trading. High performance computing solutions that provide a mix of speed, intelligence and storage are available to help traders accelerate trade speed while also meeting regulatory requirements. Soft bundles of hardware and software can be built onto legacy infrastructures to boost cost savings.

 

Robust computing infrastructures capable of high-speed, high-intelligence trade transactions are a make-or-break for the HFT community. Firms who are able to keep pace with computing needs in this new era of finance will be able to inspire investor confidence, reap greater financial returns and meet ever-changing compliance regulations.

To learn more about the advantages of high-intelligence computing, I invite you to follow me on Twitter at @sureshaswani2.

HPE Resources

Follow @HPE_HPC

HPE on Facebook

Subscribe to HPCwire's Weekly Update!

Be the most informed person in the room! Stay ahead of the tech trends with industy updates delivered to you every week!

Sandia to Take Delivery of World’s Largest Arm System

June 18, 2018

While the enterprise remains circumspect on prospects for Arm servers in the datacenter, the leadership HPC community is taking a bolder, brighter view of the x86 server CPU alternative. Amongst current and planned Arm HPC installations – i.e., the innovative Mont-Blanc project, led by Bull/Atos, the 'Isambard’ Cray XC50 going into the University of Bristol, and commitments from both Japan and France among others -- HPE is announcing that it will be supply the United States National Nuclear Security Administration (NNSA) with a 2.3 petaflops peak Arm-based system, named Astra. Read more…

By Tiffany Trader

Challenges Face Astroinformatics as It Sorts Through the Stars

June 15, 2018

You might have seen one of those YouTube videos: they begin on Earth, slowly zooming out to the Moon, the Solar System, the Milky Way, beyond – and suddenly, you’re looking at trillions of stars. It’s a lot to take Read more…

By Oliver Peckham

The Machine Learning Hype Cycle and HPC

June 14, 2018

Like many other HPC professionals I’m following the hype cycle around machine learning/deep learning with interest. I subscribe to the view that we’re probably approaching the ‘peak of inflated expectation’ but not quite yet starting the descent into the ‘trough of disillusionment. This still raises the probability that... Read more…

By Dairsie Latimer

HPE Extreme Performance Solutions

HPC and AI Convergence is Accelerating New Levels of Intelligence

Data analytics is the most valuable tool in the digital marketplace – so much so that organizations are employing high performance computing (HPC) capabilities to rapidly collect, share, and analyze endless streams of data. Read more…

IBM Accelerated Insights

Banks Boost Infrastructure to Tackle GDPR

As banks become more digital and data-driven, their IT managers are challenged with fast growing data volumes and lines-of-businesses’ (LoBs’) seemingly limitless appetite for analytics. Read more…

SDSC Researchers Use Machine Learning to More Accurately Model Water

June 13, 2018

Water – H2O – is a simple but fascinating (and useful) compound. San Diego Supercomputing Center researchers used machine learning techniques to develop models for simulations of water with “unprecedented accuracy. Read more…

By Staff

Sandia to Take Delivery of World’s Largest Arm System

June 18, 2018

While the enterprise remains circumspect on prospects for Arm servers in the datacenter, the leadership HPC community is taking a bolder, brighter view of the x86 server CPU alternative. Amongst current and planned Arm HPC installations – i.e., the innovative Mont-Blanc project, led by Bull/Atos, the 'Isambard’ Cray XC50 going into the University of Bristol, and commitments from both Japan and France among others -- HPE is announcing that it will be supply the United States National Nuclear Security Administration (NNSA) with a 2.3 petaflops peak Arm-based system, named Astra. Read more…

By Tiffany Trader

The Machine Learning Hype Cycle and HPC

June 14, 2018

Like many other HPC professionals I’m following the hype cycle around machine learning/deep learning with interest. I subscribe to the view that we’re probably approaching the ‘peak of inflated expectation’ but not quite yet starting the descent into the ‘trough of disillusionment. This still raises the probability that... Read more…

By Dairsie Latimer

Xiaoxiang Zhu Receives the 2018 PRACE Ada Lovelace Award for HPC

June 13, 2018

Xiaoxiang Zhu, who works for the German Aerospace Center (DLR) and Technical University of Munich (TUM), was awarded the 2018 PRACE Ada Lovelace Award for HPC for her outstanding contributions in the field of high performance computing (HPC) in Europe. Read more…

By Elizabeth Leake

U.S Considering Launch of National Quantum Initiative

June 11, 2018

Sometime this month the U.S. House Science Committee will introduce legislation to launch a 10-year National Quantum Initiative, according to a recent report by Read more…

By John Russell

ORNL Summit Supercomputer Is Officially Here

June 8, 2018

Oak Ridge National Laboratory (ORNL) together with IBM and Nvidia celebrated the official unveiling of the Department of Energy (DOE) Summit supercomputer toda Read more…

By Tiffany Trader

Exascale USA – Continuing to Move Forward

June 6, 2018

The end of May 2018, saw several important events that continue to advance the Department of Energy’s (DOE) Exascale Computing Initiative (ECI) for the United Read more…

By Alex R. Larzelere

Exascale for the Rest of Us: Exaflops Systems Capable for Industry

June 6, 2018

Enterprise advanced scale computing – or HPC in the enterprise – is an entity unto itself, situated between (and with characteristics of) conventional enter Read more…

By Doug Black

Fracas in Frankfurt: ISC18 Cluster Competition Teams Unveiled

June 6, 2018

The Student Cluster Competition season heats up with the seventh edition of the ISC Student Cluster Competition, slated to begin on June 25th in Frankfurt, Germ Read more…

By Dan Olds

MLPerf – Will New Machine Learning Benchmark Help Propel AI Forward?

May 2, 2018

Let the AI benchmarking wars begin. Today, a diverse group from academia and industry – Google, Baidu, Intel, AMD, Harvard, and Stanford among them – releas Read more…

By John Russell

How the Cloud Is Falling Short for HPC

March 15, 2018

The last couple of years have seen cloud computing gradually build some legitimacy within the HPC world, but still the HPC industry lies far behind enterprise I Read more…

By Chris Downing

US Plans $1.8 Billion Spend on DOE Exascale Supercomputing

April 11, 2018

On Monday, the United States Department of Energy announced its intention to procure up to three exascale supercomputers at a cost of up to $1.8 billion with th Read more…

By Tiffany Trader

Deep Learning at 15 PFlops Enables Training for Extreme Weather Identification at Scale

March 19, 2018

Petaflop per second deep learning training performance on the NERSC (National Energy Research Scientific Computing Center) Cori supercomputer has given climate Read more…

By Rob Farber

Lenovo Unveils Warm Water Cooled ThinkSystem SD650 in Rampup to LRZ Install

February 22, 2018

This week Lenovo took the wraps off the ThinkSystem SD650 high-density server with third-generation direct water cooling technology developed in tandem with par Read more…

By Tiffany Trader

Nvidia Responds to Google TPU Benchmarking

April 10, 2017

Nvidia highlights strengths of its newest GPU silicon in response to Google's report on the performance and energy advantages of its custom tensor processor. Read more…

By Tiffany Trader

ORNL Summit Supercomputer Is Officially Here

June 8, 2018

Oak Ridge National Laboratory (ORNL) together with IBM and Nvidia celebrated the official unveiling of the Department of Energy (DOE) Summit supercomputer toda Read more…

By Tiffany Trader

HPE Wins $57 Million DoD Supercomputing Contract

February 20, 2018

Hewlett Packard Enterprise (HPE) today revealed details of its massive $57 million HPC contract with the U.S. Department of Defense (DoD). The deal calls for HP Read more…

By Tiffany Trader

Leading Solution Providers

SC17 Booth Video Tours Playlist

Altair @ SC17

Altair

AMD @ SC17

AMD

ASRock Rack @ SC17

ASRock Rack

CEJN @ SC17

CEJN

DDN Storage @ SC17

DDN Storage

Huawei @ SC17

Huawei

IBM @ SC17

IBM

IBM Power Systems @ SC17

IBM Power Systems

Intel @ SC17

Intel

Lenovo @ SC17

Lenovo

Mellanox Technologies @ SC17

Mellanox Technologies

Microsoft @ SC17

Microsoft

Penguin Computing @ SC17

Penguin Computing

Pure Storage @ SC17

Pure Storage

Supericro @ SC17

Supericro

Tyan @ SC17

Tyan

Univa @ SC17

Univa

Hennessy & Patterson: A New Golden Age for Computer Architecture

April 17, 2018

On Monday June 4, 2018, 2017 A.M. Turing Award Winners John L. Hennessy and David A. Patterson will deliver the Turing Lecture at the 45th International Sympo Read more…

By Staff

Google Chases Quantum Supremacy with 72-Qubit Processor

March 7, 2018

Google pulled ahead of the pack this week in the race toward "quantum supremacy," with the introduction of a new 72-qubit quantum processor called Bristlecone. Read more…

By Tiffany Trader

Google I/O 2018: AI Everywhere; TPU 3.0 Delivers 100+ Petaflops but Requires Liquid Cooling

May 9, 2018

All things AI dominated discussion at yesterday’s opening of Google’s I/O 2018 developers meeting covering much of Google's near-term product roadmap. The e Read more…

By John Russell

Nvidia Ups Hardware Game with 16-GPU DGX-2 Server and 18-Port NVSwitch

March 27, 2018

Nvidia unveiled a raft of new products from its annual technology conference in San Jose today, and despite not offering up a new chip architecture, there were still a few surprises in store for HPC hardware aficionados. Read more…

By Tiffany Trader

Pattern Computer – Startup Claims Breakthrough in ‘Pattern Discovery’ Technology

May 23, 2018

If it weren’t for the heavy-hitter technology team behind start-up Pattern Computer, which emerged from stealth today in a live-streamed event from San Franci Read more…

By John Russell

Part One: Deep Dive into 2018 Trends in Life Sciences HPC

March 1, 2018

Life sciences is an interesting lens through which to see HPC. It is perhaps not an obvious choice, given life sciences’ relative newness as a heavy user of H Read more…

By John Russell

Intel Pledges First Commercial Nervana Product ‘Spring Crest’ in 2019

May 24, 2018

At its AI developer conference in San Francisco yesterday, Intel embraced a holistic approach to AI and showed off a broad AI portfolio that includes Xeon processors, Movidius technologies, FPGAs and Intel’s Nervana Neural Network Processors (NNPs), based on the technology it acquired in 2016. Read more…

By Tiffany Trader

Google Charts Two-Dimensional Quantum Course

April 26, 2018

Quantum error correction, essential for achieving universal fault-tolerant quantum computation, is one of the main challenges of the quantum computing field and it’s top of mind for Google’s John Martinis. At a presentation last week at the HPC User Forum in Tucson, Martinis, one of the world's foremost experts in quantum computing, emphasized... Read more…

By Tiffany Trader

  • arrow
  • Click Here for More Headlines
  • arrow
Do NOT follow this link or you will be banned from the site!
Share This