Corvil has announced CorvilClear to enable inter-party latency transparency - "precise and unambiguous visibility" into latency performance across all parties participating in the trading loop. The offering has been developed based on user feedback, with the company citing Credit Suisse and Turquoise for their specific contributions. Turquoise is already providing CorvilClear latency transparency to its members.
CorvilClear is a peer to peer (P2P) based technology for the secure exchange of latency and quality metrics between co-operating parties, and acts as a catalyst for trading parties to leverage existing business relationships for their collective benefit without the need to divulge sensitive or proprietary information. Specifically, a trading organisation with a trusted set of venue and provider relationships can use CorvilClear to achieve latency transparency across the full trading infrastructure.
This is a complex challenge because of the inherent competitive and collaborative dynamics that simultaneously exist within and between the various parties:
* Market centres know that high-speed execution is important to their members but offering microsecond visibility provided by Corvil’s solution may expose latency problems that could raise concerns with their customers.
* Trading organisations compete intensely with each other and do not want to share information relating to how fast they can receive market data or the speed at which they can execute an order.
* Service providers are often caught in the middle. Unfortunately, many service providers are defenceless when accused of being the latency culprit and concerned that they may add fuel to the fire by providing precision latency measurement.