With the successful roll-out of its optional interface "Enhanced Transaction Solution" (ETS) on 14 April 2008, Eurex has achieved another key milestone on the Eurex Technology Roadmap launched at the end of 2006. Since the interface was launched, average roundtrip times of future orders for users of this access option have been reduced to five milliseconds, halving the times previously achieved via the traditional MISS interface. The minimum latency time achieved by the Eurex system for single order transactions – when using the Proximity Services – is as low as around one millisecond.
"ETS is primarily aimed at customers with transaction-intensive and algorithmic trading strategies. The new interface is limited to the management and maintenance of order and quotes," says Jürg Spillmann, deputy ceo of Eurex. According to Spillmann, ETS does not require any special hardware and can be easily integrated into customers’ existing IT infrastructure. At present, up to 30 percent of the daily order volume for benchmark products such as DJ Euro STOXX 50® futures and DAX® futures is entered via the new interface.
Jürg Spillmann explains that Eurex’s Technology Roadmap is not only a response to current trends in electronic derivatives trading – it also promotes them. New trading strategies such as algorithmic trading and new products have led to a considerable increase in daily transaction volumes, resulting in a greater demand for more order book depth and additional market information.
The next milestone is the planned implementation of the Real-time Risk Management function in the final quarter of 2008. This will allow participants to obtain a permanent evaluation of their risks throughout the trading day based on current market conditions.
