Achieving New Heights in Algotrading Efficiency and Profitability
Client is a technologically driven trading firm, dedicated to excellence in financial market research, edging on its fast, low latency and resilient trading infrastructure.
The Challenge
Algorithmic trading, with its ability to generate profits at speeds and frequencies impossible for human traders, has become central to financial markets. Client had already deployed a high-frequency trading (HFT) application automatically executing trades based on algorithms. However, the computing speed needed to capture targeted trade prices was lacking, resulting in inaccurate transactions and unaccounted losses. Worried about financial and reputational losses, the client approached us for a technology solution.
Our Approach
Recognizing the paramount importance of speed and accuracy, Esconet also prioritized delivering highly cost-effective solutions, to provide a comprehensive benefit for the client. We leveraged our exclusive Hexadata servers and tested new generation processors to achieve more gigahertz per server, although improvements were not significant. Exploring other processors, we experimented with settings to attain the highest possible performance levels. Understanding the interconnected nature of technology stacks, we also delivered the client low-latency network solutions. Blending these two solutions successfully met the client’s needs. Our innovative approach included transitioning to a single processor from the previous two or more in certain cases. To mitigate the increased heat generation from over-clocked servers operating at higher CPU frequencies, we introduced state-of-the-art German liquid cooling solutions.
Client Outcomes
The transformative IT systems deployed resulted in several positive business outcomes for the client:
Reduced Server Cost
Our innovative solutions, including deploying a single processor, led to significant cost reductions. This encompassed lower power consumption, reduced colocation rentals at the data center, and other optimizations.
Higher Uptime
Our proactive maintenance and 24/7 accessibility to the Client’s IT Team minimized downtime, ensuring smooth business operations. Esconet’s unique solutions, such as the use of hot-pluggable components to swiftly replace the faulty ones and out-of-band-management of servers greatly enhanced the Client’s business performance.
Higher Trust & Credibility
In the competitive stock trading arena, the client distinguished itself by delivering exemplary services, earning trust, and reinforcing its position for a sustainable business model.
Business Expansion
The client achieved absolutely accurate transactions, capturing the right price at precise moments. This accuracy resulted in a consistent upswing in business revenues, facilitating further expansion.
By addressing the challenge with a strategic and comprehensive approach, the Client experienced tangible benefits, reinforcing its position as a leader in the fast-paced world of algorithmic trading.
