.jpg)
LDA Technologies (LDA), the innovation leader in advanced ultra-low latency FPGA and network solutions for capital markets, is launching a unique product that solves one of the most difficult challenges in electronic trading: fairness of market data distribution. LDA's new multicast distribution system synchronizes exchange-provided customer ports to within 50 picoseconds (ps), a 98% improvement over existing Layer 1 switches, even more when using conventional Layer 3 switches, ensuring that an exchange can provide users with fair and equal access to market data.
Exchanges strive to deliver market data to all customers simultaneously, but some of the switches in their infrastructure often have three to five nanoseconds (ns) of jitter between switch ports. Furthermore, cabling between switches and customers adds an additional five nanoseconds per meter. In an exchange's effort towards improved fairness, they often adjust cabling lengths, but with LDA's multicast distribution system, the root issue is now resolved and it makes all transitional remedies unnecessary.
Vahan Sardaryan, co-founder and CEO, said: "The LDA team has achieved something thought to be impossible in the past: we can now deliver a solution that brings fair and equal access to exchange market data. Our fair multicast distribution system handles synchronization at the network endpoints. This results in jitter as low as 50 ps between customer ports, being able to even compensate for cable length differences between them. As we all know, exchanges are increasingly looking for ways to provide a uniform level of service to clients, and now they can deliver on that promise."
Additionally, unlike conventional Layer 1 switches, which deliver the entire data stream to every client, LDA's revolutionary multicast distribution system further reduces unnecessary system latency by providing only specific market data matching a client's subscription. This function is typically handled by Layer 3 switches, which contribute substantial additional latency, often measured in microseconds, within the exchange's infrastructure. LDA’s multicast distribution system delivers revolutionary low jitter while supporting traditional multicast packet handling.
LDA's fair exchange product will enable exchanges to ensure that access to market data is fair for all participants and the integrity of the market is preserved. Furthermore, it will allow them to offer an enhanced service to clients while going above and beyond regulatory compliance guidelines.
