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STEP THREE: Spend Green, Go Green, Save Green
July 6, 2009
The message is clear:
When discussing cost cutting, energy efficiency cannot be left out of the conversation.
In fact, financial firms can save 99 percent of the heating, air conditioning and power consumption costs involved in sending and receiving market data messages, according to Tervela, a New York-based provider of messaging middleware.
Tervela builds circuitry into its data switches that accelerates communications, while using less energy.
"The software-based messaging middleware solutions are like the gas guzzlers of the seventies," said J. Barry Thompson, CEO of Tervela, which competes with 29West, a provider of low-latency messaging software.
On June 23, Tervela launched its TMX-500 Message Switch, a third-generation messaging platform, at the Securities Industry and Financial Markets Association Technology Conference.
Separately, Direct Edge, an electronic communications network which now handles about 12 percent of U.S. equities trades, on June 19 picked 29West's Ultra Messaging family of products as the basis of its high-speed messaging (see "Time Is Money," page 12).
Thompson noted that the new TMX-500 can process 16,000 messages per second per watt and work with 1,500 connections to different computer programs. The previous version - TMX-1000 - could process 2,857 messages per second per watt with 500 connections.
By comparison, software-based approaches rely on multiple servers and can't increase the volume of messages they handle, effectively, he contends.
Thompson said one firm using the TMX-500 spent $219 on power for one year compared to the $35,040 they would have spent with a previous server-based messaging system. In heating and air conditioning, the company spent $109 with Tervela compared to $17,520 before.
When deploying the TMX-500, the only challenges users might face depend on the complexities of their own applications, Thompson said.
