Algo-Logic Systems: "Time is money"

Gateware Defined Networking
Algo-Logic has carved a niche for itself in the market. It specializes in mapping network algorithms into FPGA logic. It has developed a set of Intellectual Property (IP) cores to decode market data, maintain order books, trigger on events, modify fields, and send orders to the market with deterministic latency. The crux of Algo-Logic’s technology is called Gateware Defined Networking (GDN).
Since its inception in 2009, Algo-Logic Systems, Inc. has evolved from first developing discrete IP cores, into next integrating these IP cores to GDN sub-systems, and now to providing complete trading solutions that include all of these technologies. Algo-Logic’s T2T system leverages pre-built GDN that enables trading without the large expense, delays, and overhead of increased staffing or consulting fees.

Algo-Logic’s flagship Tick to Trade (T2T) product is used on the Chicago Mercantile Exchange (CME) to accelerate trading of futures and options of equity indices, energy, bonds, and bitcoin. The T2T system is divided into three major blocks: the market data processing for the “tick”, the strategy with triggers, and the order processing block for the trade. Algo-Logic has embedded all three of these blocks in logic that runs on a single FPGA logic device.

Deploying the System
FPGA logic fits in a device that resides on standard expansion card that fits inside a rackmount server. AlgoLogic partners with multiple vendors to provide preconfigured Linux servers that can be drop-shipped to co-located trading centers. As market data arrives from an exchange, Algo-Logic’s gateware in the FPGA card responds by sending orders to the market within well under one millionth of a second. “The responses are sent directly from FPGA logic without having a CPU act as an intermediary, and that’s why the latency of the system in unbeatable by software,”.

Trading firms on the Chicago Mercantile Exchange (CME) approach Algo-Logic because they need help reducing their latency in their trading system. Once they realize that existing software-only trading approaches are no match for the firms already using FPGAs, they seek help migrating parts of their trading algorithms to logic. Algo-Logic’s pre-built gateware components make it easy for these firms to deploy FPGA-accelerated systems without the cost and trouble of building an army of FPGA developers. Market makers work with Algo-Logic to deploy spreaders in FPGA logic. Starting with the pre-built T2T system that has already been verified, synthesized, and tested, these market makers are able to deploy ultra-lowlatency quoting systems without increasing the size of their team, training new employees to develop FPGA logic, or paying consulting fees.

The Future is Fast and Furious
Describing the company’s expansion plans, the CEO divulges that they are leveraging gateware in domains beyond trading. In the datacenter, Algo-Logic’s IP cores reduce the energy required to perform search functions, lower the latency of processing Ethernet packets, and completely offload the termination of TCP/IP without the overhead of software. Algo-Logic’s Key Value Store (KVS) implements the function of a basic networkattached, in-memory database while being implemented entirely in FPGA logic.

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