RSJ Algorithmic Trading

Challenges

  • To analyze activity and performance within the company’s trading infrastructure and across external trading venues

Why Corvil?

  • Highly flexible and superior analytics.
  • Intuitive dashboards, excellent data presentation and live views.
  • Feature rich, satisfying the scalability requirements of the business
  • A dedicated Corvil team that appreciated the demands and timescale of RSJ’s business

Benefits

  • Corvil records, decodes and analyzes the IT operational performance of market data feeds, trading sessions, algorithmic servers and network connections in real-time.
  • Complete and accurate records of all trading activity for compliance and troubleshooting.
  • Alerts generated for any anomalous conditions detected at the network or application layers.
  • A comprehensive view of operational performance allowing RSJ to focus on continuous improvement
  • Allows the performance of new technologies to be rigorously tested and benchmarked before deploying in production

Analyzing Trading Performance Leads RSJ To Corvil

Based in the Czech Republic, RSJ is the leading trader on NYSE Liffe, the Chicago Mercantile Exchange (CME) and Eurex in Frankfurt, with a total yearly trading volume of over 200 million contracts. The company employs proprietary mathematical algorithms with servers hosted at each exchange, interconnected in a unique worldwide network with a sub-millisecond decision-making framework. As one of the world’s largest algorithmic traders, RSJ’s business relies largely on the performance of its trading systems for each of the exchanges on which it does business.

As part of its effort to constantly improve processes, RSJ was looking to analyze activity and performance both within its trading infrastructure and across external trading venues with the goal of optimizing its systems. To accomplish this RSJ evaluated Corvil against a competing solution, testing both solutions thoroughly before making a decision. Corvil was selected in favour of the competition due to its superior feature set and configurability. The team at RSJ also felt that the graphical user interface, analytics and data presentation was much stronger than the competition.

Corvil now also plays a key role within RSJ’s labs, assessing the performance of new network and server technologies as well as evaluating changes to trading application modules. Corvil has enriched and accelerated the test cycles enabling new technology to be introduced more efficiently.

When selecting Corvil, RSJ valued the solution’s thoughtful design, which has been developed over many years, incorporating a rich feature set across both the network and application layers. The company also recognized that it could initially deploy Corvil using a basic features and then increase the complexity as their business requirements evolved. Just as important, RSJ felt extremely confident with the Corvil team and their appreciation for the demands and timescale of their business.

Monitoring Application And Network Performance For Market Data Feeds And Trading Sessions

Corvil was deployed to non-intrusively monitor market data and trading traffic at every ingress and egress point within RSJ’s network. In addition, internal latencies were measured across switches, server NICs and feed handlers. From network data, Corvil extracts, decodes and analyzes the operational performance and health of market price discovery, order flow, algorithmic servers and network connections. The system provides complete and accurate records of trading activity and alerts on any detected anomalous conditions at the network or application levels. This comprehensive view of operational performance allows RSJ to focus upon the continuous improvement of its algorithmic strategies to maintaining its market leading position.

“Corvil’s application and network data analytics solution provides the logical next step in the maturation of RSJ’s trading process,” said Michal Sanak, CIO of RSJ. “With Corvil, we’re able to actively identify and address any issues at an individual server or feed level, giving us a complete view of our trading activity and performance. This enables us to pinpoint areas that we can strengthen in order to provide the best possible trading environment.”

Future Plans For Corvil

The visibility into RSJ’s trading system helped the company recognize areas for improvement. The company’s team said some findings were surprising and others confirmed known issues. Moving forward, RSJ intends to continually monitor activity and performance within its trading network and across external trading venues to establish benchmarks and find new ways to improve trading within NYSE Liffe, CME and Eurex. The company also intends to extend Corvil reach to other markets with a view to improving performance and ultimately generating more revenue.

About RSJ

RSJ a.s. (RSJ) is a fully licensed securities trader, headquartered in Prague, concentrating on asset management. In this capacity, RSJ mainly trades in financial derivatives. Since 2002 it has been using algorithmic trading technology, pursuing mostly market making strategies providing liquidity to the markets. RSJ has been named a designated market maker at the London derivatives exchange NYSE Liffe, with obligations to provide market making services almost the whole trading day. This function is also fulfilled at CME, Chicago. Additionally,
RSJ is a significant member of the Frankfurt-based derivatives exchange Eurex. For more information, visit rsj.com.