Credit Suisse is pushing to cut network latency, a year after it implemented a speed monitoring and management system.
The news comes as the investment bank, whose UK headquarters are in London's Canary Wharf, said it was more than doubling the size of its offshore outsourcing centre in Mumbai to 350 staff by next year, Reuters reported.
Today the bank said it was set to implement “accelerated trading and market data technology”, from specialist UK-based supplier Celoxica, in order to tackle high-volume and algorithmic trading. It will also work with the supplier to develop new technology to help further with speed.
Many financial institutions are targeting latency reduction because even delays of microseconds can have a negative impact on trading. The London Stock Exchange, which experienced serious network problems last week, is moving to a new open source platform in a bid to cut messaging times to below a millisecond.
In 2008, Credit Suisse implemented a latency management application from Corvil, in a bid to reduce delays to traffic on its network. The CorvilNet latency management system is running in its local and wide area networks around the world, to help with traffic monitoring, analysis and optimisation.
The software was implemented by BT, which has an ongoing deal to work alongside Swisscom in providing Credit Suisse with network services.
It uses the system to set a latency target and then measures its performance against that benchmark. If the target is missed, the software produces a warning message and then investigates the problem, producing a report on how to best improve the network.
The bank is also able to measure the extra capacity available on its network in case of a surge in the markets.