The Hedge Funds Weblog
Speeding Up DMA For Hedge Funds
Instinet Chi-X Limited announced today that it's new system MiFID, has a roundtrip latency more than 10 times faster than average DMA order routing speed of the European stock exchanges. It has been measured at 10 milliseconds, or 1/100th of a second, after a series of latency and throughput tests performed by TransactTools.
This technology is said to provide market participants with a fully electronic alternative at a significantly cheaper cost than the traditional European exchanges. Instinet Chi-X Limited is the first pan-European equity alternative trading system "We believe Chi-X is set to change the face of equity trading in Europe" said Peter Randall, Director of Instinet Chi-X Limited.
DMA, or Direct Market Access, is a way of automating the acceptance process, providing the buyer with the ability to reach the market floor for near instant execution. Most advocates for DMA are in the hedge fund community because of their active trading style and the need to capitalize on shifts in market conditions. MiFID goes into effect in November.
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