I’ve spoken quite a bit about latency metrics and latency transparency in the past few months including conversations with both Corvil and Correlix. It seems there is a race on between those providers to bring on as many exchanges as possible to enhance the value of their product offering. Corvil works with Deutsche Borse and NYSE while Correlix has been working with Nasdaq. This article talks about Correlix’s recent deal with DirectEdge – the most newly minted equity exchange in the US.
The market for the kind of tool Correlix offers has grown considerably over the last three years, according to Kevin McPartland, an analyst for Tabb. Another boost for the market may come if regulators insist on transparency in the area of latency, the time it takes for an order to travel to an exchange, be executed or canceled, and then for the confirmation to reach the source.
“There was a lot of talk on that a few months ago,” McPartland said. “This technology is creating more transparency on how markets work and interact with one another.”