MarketFactory announced today the launch of Sherpa Connect providing ultra-low latency exchange and ECN connectivity architected specifically for the foreign exchange market. The third-party adapters currently available to connect clients with exchanges and ECNs often fail to take account of the unique data and market structures of foreign exchange. This leads to pre and post-trade information being misinterpreted or dropped, slippage and lost profits.
Sherpa Connect is high-performance software code that enables connection to ECNs for market data receipt and order submission. It provides full and correct interpretation of the data, translation into a flexible trading API and optional connection to third-party middleware to ease integration into existing trading infrastructure. It recognizes that the problem being solved requires not only superior technology but also strong market knowledge.
Dr. Ed Howorka, CTO of MarketFactory, said “Correct interpretation of apparently similar fields that actually have very different meanings across ECNs and exchanges is critical. There is a high opportunity cost if valuable data is ignored or not understood. Even when an exchange uses FIX, throughput and latency considerations are necessary but not sufficient. Foreign exchange has distinctly different characteristics from equities, fixed income and other markets in terms of its global nature and microstructure.”
Sherpa Connect can be deployed also with MarketFactory’s Whisperer product. Whisperer provides quantifiable means for banks and funds to improve execution on a worldwide basis, increasing fill ratios, enabling models to be scaled and increasing the frequency of trading signals.
Sherpa Connect is being progressively rolled out over the third quarter 2009 at banks and funds. MarketFactory accepts challenges from banks and funds to find market data misinterpretations in their existing adapters.