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Global proprietary trading firm strengthens regulatory compliance

Case Study

Challenge

As a global proprietary trading firm was looking to integrate a new risk management system, they needed a flexible turnkey solution, enabling them to quickly export captured data to a wide variety of workflows without compromising on performance.

Solution

MayStreet partnered with Napatech to develop a plug-and-play solution that allowed the firm to capture, retain and monitor all data for a variety of use cases without having to replace their existing systems.

Benefits

  • Greatly strengthened regulatory compliance
  • Easy integration into existing workflows enabling reduced time-to-deployment by a factor 5
  • Substantial cost savings, cutting the TCO to 1/3

Industry pain points

As data proliferates in every business, more and more applications are being rolled out across enterprises to support commercial and regulatory needs. This growing diversity of applications is spurring a much more flexible way of working, enabling capital markets participants to mix and match software as needed. But many electronic trading organizations are still struggling to abandon their siloed, opaque and antiquated infrastructures dedicated solely to certain types of applications and data.

Challenge

This was the challenge faced by a global proprietary trading firm as they were looking to integrate a new risk management system. With the colossal volumes of market data and orders flowing through their network, they needed a flexible and fully reliable high-precision capture solution to give them complete visibility of all exchange communication. As a participant in the fiercely competitive capital markets environment, the ability to address numerous challenging requirements quickly and cost-efficiently was imperative.

To that end, the firm wanted to free themselves of their existing risk and compliance infrastructure where both departments had their own silo of bundled software and restricted hardware to capture and process the market data. What they needed was a modular, holistic and plug-and-play solution, providing a way to quickly export captured data to a wide variety of workflows.

Solution

To address these challenges, leading software provider MayStreet chose Napatech’s lossless, high-precision FPGA SmartNICs and Pandion 20Gbps capture-to-disk recoding software to develop a flexible turnkey solution.

“The way we’ve envisioned our joint solution is similar to Linux command line tools: highly flexible and modular, but with a well-defined way of collaborating. This allows customers to assemble powerful solutions easily.”

Patrick Flannery

CEO of MayStreet

Napatech’s products were easily deployed in a standard, open server platform from Dell, dramatically altering the costs compared to alternative solutions based on siloed hardware systems.

This was further integrated with MayStreet’s high-precision data monitoring solution, which contributed the needed intelligence to decipher and interpret all trade-related data distributed by the exchanges.

The tightly integrated solution provided the global proprietary trading firm with enhanced capabilities to capture, retain and monitor all market data with nanosecond timestamp resolution. This allowed numerous departments access to both real-time and time-series data for a variety of use cases, including market data, order entry monitoring, latency measurement, regulatory compliance and research and cybersecurity.

The solution’s tight, low-level integration made it possible effectively, at run time, to receive and replicate high-precision market data without dropping any network packets, and then taking the captured data and mapping it to a series of formats and workflows to match the needs of capital markets businesses e.g. for risk, P&L or compliance purposes.

“As opposed to a monolithic solution, our technology offers flexibility and transparency – which in many instances makes it a lot easier to address the actual problems firms have.”

Patrick Flannery

CEO of MayStreet

Benefits

Due to the high flexibility of the joint solution, the trading firm could easily integrate the new monitoring and analytics functionalities, avoiding the cost and complexity of having to replace their existing systems.

With this solution in place, the firm was afforded the needed monitoring capabilities to quickly and seamlessly attain real-time risk metrics, enabling improved compliance reporting and decision making and ultimately helping them to consolidate and enhance their business.

Key value adds include:

  • Easy integration into existing workflows
  • Substantial resource and cost savings, cutting the TCO to 1/3 of an in-house developed solution
  • Reduced time to application deployment by a factor 5
  • Greatly enhanced competitive strength for added capital markets opportunities

MayStreet in brief

MayStreet is the next generation capital markets platform delivering low-latency connectivity, high-precision data and sophisticated analytics to banks, broker dealers, investment managers and exchanges.

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