How Laser Sends Its Quotes
The current quote data volume sent out by the ECNs and the exchanges has increased tremendously due the REG NMS and hybrid model changes. For example, the NYSE quote data has more than tripled compare to a few months ago. This is true of other exchanges and ECNs as well.
We have optimized our quote servers and everyone should see much better performance. We see 0 dropped packets out of close to 30 million packets a day in our data center. Traders on the dedicated lines are seeing clean and consistent quotes as well. We are investing quite a bit in additional technology and coding advanced algorithms to handle the massive amounts of data.
Today we have benchmarked Laser vs 2 major other platforms during Fed numbers release and Laser quotes were exceptionally clean, much more so than the others.
This is a quick explanation on how Laser is sending quotes:
To ensure the correct quotes, we are sending the quotes using the TCP protocol. The TCP protocol is like sending data via registered mail. Laser will make sure the trader gets the quote. However, if a trader has a slow connection or a slow computer and is pulling a large amount of quotes, the quotes may not be processed in time. The quote data will be queued up in the quote server and the quote server will try to resend. During this time, the quote server may be slowed down. If the data in the queue is excessive, Laser will disconnect the trader with
the slow connection or computer to free up quote server and to protect other trader who is on the same quote server. Genesis sends the quote data and ALL orders via the TCP protocol.
Another way to send quotes is thru the UDP protocol. UDP is like regular mail. Delivery is not guaranteed. There will be lots of dropped packets and bad quotes. Trader will experience major problems. Genesis does not send data via UDP on the Internet.
Some handy tips if you connect remotely:
Make sure you have a decent computer – fast CPU, 1 to 2 G of RAM.
Turn off unnecessary L2 windows as this slows your CPU down. You can tell the amount of data being pulled in kilobytes on bottom right-hand corner of laser window. Turn off unnecessary L1 data such as Boardview if you do not need it. You can see how much L1 data you pull in single digits (1 is 1 set of data, 2 is 2, etc.) on bottom right-hand corner. A reasonable amount is 2-3 L2 windows and 60 L1 symbols.
Turn off firewalls and anti-virus as that eats CPU resources and also sometimes interferes with data transmission.
Enable Auto-Correction (green checkmark to the right of printer icon).
If you see stuck quotes, it can be ECNs that are having data problems – you can temporarily hide bad order books via Settings by right clicking on L2 – Hidden MM tab.
You can temporarily remove bad quotes on the L2 by highlighting them with mouse and pressing the delete key.
Keep a close eye on your CPU utilization.
A direct line is always best – trading over internet depends on many hops between you and us – the more hops there are the more variables can affect your connectivity.