FPGAs are leading the new technology advances of high frequency trading

FPGAs – Field Programmable Gate Arrays – are leading the new technology advances of high frequency trading. FPGA technology allows engineers to program in the field after manufacture. Therefore, computer users can now specifically tailor microprocessors to meet their own individual needs.

JP Morgan Chase benefited greatly from deploying FPGA-based supercomputer. Its application-led, High Performance Computing (HPC) system running on Field-Programmable Gate Array (FPGA) technology won an award, and helped the firm reduce the time it took to run an end-of-day risk calculation from eight hours down to just 238 seconds.

FPGA is able to achieve this because it reorganizes calculations. FPGAs work on a massively parallel basis, and by using FPGAs, you don’t compete with your OS or applications and don’t have any protocol stack communication delays.

Traders can benefit from exploring FPGAs because those chips can compute thousands of operations per clock cycle and be programmed to process market data using a technique known as pipelining. Pipelining allows for a message to begin being processed before the previous ones have been fully dealt with. Particularly for high frequency traders, such computing power is essential for achieving the low-latency required by their strategies.

Published by: Steven Reichard
June 19, 2018


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