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NYSE Reduces Order Execution Time to Five Milliseconds, From 105 Milliseconds

2010-10-25 12:41:06

Replaces SuperDot with NYSE Super Display Book to drive latency into the single

digits.

By Ivy Schmerken July 02, 2009

Tags: New York Stock Exchange, SuperDOT, NYSE Super Display Book, NYSE SDBK,

NYSE Latency, Louis Pastina

The New York Stock Exchange (NYSE) said it has reduced the time it takes to

execute an order to five milliseconds from 105 milliseconds, with the

implementation of the new NYSE Super Display Book system (SDBK) for processing

orders.

As a result, NYSE customers are receiving trade executions and reports within

five milliseconds, as well as order and cancellation acknowledgments in just

two milliseconds, according to the release. To clarify the measurement further,

an exchange spokesman said, "The five milliseconds are measured from the time

the order hits our gateway through the time it sends the execution confirmation

back to the customer. If it's a cancellation or an acknowledgment, that takes

two milliseconds."

NYSE SDBK replaces the well-known SuperDOT order delivery and processing

systems, which has been in place for 33 years and was synonymous with

electronic trading as well as the Post Support System, which routed orders to

the trading floor. NYSE SDBK is a server-based system based on NYSE Arca's

industry leading trading engine, which provides increased throughput,

flexibility and scalability as well as lower operating costs compared with the

mainframe platform that supported SuperDOT.

"We have improved system latency to the single digits today from 350

milliseconds in 2007," stated Louis Pastina, EVP, NYSE Operations. "NYSE

customers can now access our market with greater speed and assurance, and their

orders will be delivered and executed more efficiently than ever," stated

Pastina in the release. "For the first time on NYSE, customers can employ the

benefits of competitive speed and automation in addition to our longstanding

value of high-touch price discovery on the only U.S. exchange equities trading

floor," Pastina further stated.

The NYSE SDBK rollout took three months and completes an ambitious systems

re-architecture project that NYSE initiated just 18 months ago, according to

the release. During this time, NYSE has completely replaced its order entry,

order database and routing systems, market data systems and components of its

post-trade system. To accomplish this infrastructure overhaul, the NYSE has

leveraged leading technologies it gained from recent acquisitions and mergers,

including systems from NYSE Arca, Wombat (now part of NYSE Technologies) and

Euronext.

Additionally, NYSE Amex cash equities will complete their move to NYSE SDBK in

August. Later this year, NYSE Euronext's Universal Trading Platform will be

rolled out to NYSE and NYSE Amex as well as NYSE Arca, bringing additional

gains to transaction speed, the release noted.