Technology

Technology plays a key role in the activities of RSJ. All our trading is executed electronically using with our proprietary automated systems.

We convert mathematical models into software – we create the so-called black-boxes which receive and process information from the exchanges. The black-box processes the information and decides, in an extremely short time, what operations must be carried out at the exchange, and immediately executes the actions .
This type of trading is referred to as “algorithmic trading”, sometimes also called “black-box trading”. Currently the algorithmic trading absolutely prevails over a classical trading performed by human at all major world exchanges.

Algorithmic trading involves a number of interesting advanced technological topics which must be challenged during the creation of the technological infrastructure. In particular, it is necessary to be able to respond to new information in an extremely fast manner (in milliseconds), and the software development and the selection of hardware is fully subordinated to this purpose. A must is the placement of all technologies as close as possible to the exchanges in order to minimize the latency in the data transmissions between the exchanges and the black boxes. We place our servers directly in the data centers of the exchanges and we connect to the exchange’s backbone networks, which reduces the communication latencies to below one millisecond. The systems are developed and continuously monitored from our headquarters in Prague.

The technological infrastructure must be able to cope with a high inbound data flow of several thousand’s messages per second. Our black-boxes process more than 100 million messages a day and generate hundreds of thousands order messages which are sent to the exchanges.

In order to perform even better, we interconnect our black-boxes located in various parts of the world. By doing so, we create a global trading infrastructure capable of reacting to the new information in milliseconds.

Analysis

The necessity to deal with the large volumes of data correctly and quickly is also reflects in the phase before the actual trading. During the preparation and calibration of the models, we use huge files of historical data which we collect, analyze and store in the highest quality in our databases.

At the end of the trading dozens of gigabytes of our activity logs are analyzed to verify our performance. We also clear and account all the trades carried out into our accounting and back-office systems.

Team

The development of the technological infrastructure is currently done by a team of experts. We develop all the software ourselves, and operate the network and telecommunication technologies in cooperation with our partners.