Now, FPGAs are the perfect middle ground. They contain thousands or even millions of core logic blocks (CLBs). These blocks are configured and combined to process every task that a CPU solves. The FPGAs do not have the added burdens of hardware. This makes them quick and effective in carrying out multiple tasks simultaneously. Ultra-low latency is another benefit of FPGAs. As a result of their programmability and flexibility, they can be used to achieve ultra-low latency. In fact, many exchanges are choosing FPGAs as an alternative to ASICs (application specific integrated circuit) to reduce latency and improve performance.
How FPGAs are used in high performance financial applications?
Stocks and securities are bought and sold based on speed and versatility only. And, this is the time when electronic trading is ruling the world, and decisions are being made in the blink of an eye. When the prices and the orders change, new information is fed from the exchanges and other sources to the companies via high-speed networks. This information arrives at a very high speed, and the time is measured in nanoseconds. High bandwidth is required to process it because of the large volume and speed of data. Specialized trading algorithms are needed to make use of the new information and make trades. This is where FPGAs provide the perfect platform for these application developments. They can be used to revolutionize trading environments, such as improving latency and throughput. They also can create ultra-low latency trading systems, scale up the capacity of existing trading systems and process complex analytics in real-time.