Accelerated Algorithmic Trading on Alveo X3522PV: The Ultimate HFT Solution

In the fast-paced world of high-frequency trading (HFT), every microsecond matters. The Alveo X3522PV, a cutting-edge FPGA accelerator, is here to transform how trading systems operate by delivering sub-microsecond latency and unparalleled performance. Whether you're a trader seeking to maximize efficiency or a technology enthusiast exploring innovations, this is the solution you've been waiting for.

This article dives deep into the capabilities of the Alveo X3522PV, exploring why FPGA technology is the future of HFT. Discover the advantages of hardware-based trading, the comparison with traditional NIC solutions, and a live demo of our customized AAT solution that showcases real-time trading efficiency.

What is High Frequency Trading?

Firstly, let's get to know the nature of high-frequency trading, or HFT.

HFT is an automated form of trading where advanced algorithms make rapid decisions to execute thousands—or even millions—of transactions per second. It’s designed for short-term investment horizons, capturing small price changes in milliseconds or less.

Since every fraction of a second matters, HFT relies on ultra-responsive, low-latency hardware to maintain a competitive edge and drive profitability.

HFT solution

For the mainstream HFT solution, the NIC card is the widespread hardware for offloading network tasks from software level, empowering the CPU to mainly focus on trading engine. These approaches face some huge latency since they rely on OS kernel and software stack.

Traditional NIC achieves around 20 microseconds for the response time, while kernel bypass brings latency down to 5 microseconds — it is better, but not ideal for HFT.

The state-of-the-art solution, like FPGA-based, deploys entire trading system into Hardware card, This minimizes the latency to be 1 microsecond or less.

Specifications

With unmatched sub-microsecond latency of the FPGA technology. Design Gateway introduces AMD Alveo X3522PV, the cutting-edge FPGA accelerator, offering the powerful UltraScale+ FPGA with 1 million LUTs, four Ethernet ports for 10 to 25 Gigabit speed, and 8-lane PCIe Gen4 interface.

Alveo X3522PV vs Alveo U50

Comparing the Alveo X3 to the well-known Alveo U50, both cards are in the same price range, but The Alveo X3 offers 18% more resources along with 8% lower latency. Making the Alveo X3 the premier choice to empower your trading system.

Acceleration Algorithmic Trading (AAT)

Now, let's move to the X3 live demo, illustrated on customized AAT from Design Gateway.

Accelerated Algorithmic Trading or AAT demo originated from AMD/Xilinx to demonstrate the HFT environment with the Alveo card.

At first, the target system acts as the stock market will send UDP market data to the Alveo card. The AAT system on the Alveo captures and processes the market data, then returns the TCP trading order back to the target system.

This demo is re-engineered by Design Gateway, called AAT QDMA demo, developing on the Vivado platform and integrating DG LL10G Ethernet MAC IP to minimize this demo latency.

AAT QDMA: Connect ethernet cable

To run the AAT QDMA demo, First, connect the Ethernet cable between the X3 card and the target system.

AAT QDMA: Initialize Host System

Next, initialing the host system via binding the X3 card with the DPDK driver. Then, launch the AAT application on the host system.

AAT QDMA: Establish Connection

After that, create the Ethernet connection between the host and the target. Starting from the target side, command the target in the listen mode. You should see on the console that the target is listening on port 12345.

Now, switch to the host system and call a configuration file to set the demo parameter and establish the connection. Once complete, the target will report the connection success on the console.

AAT QDMA: Send Market Data

Now, it is time to run the trading. Open another console on the target system and enter the command to send market data. You will see the status while the market data is streaming out to the host.

On the host system, you can view a real-time update of the order book refreshed during market data processing. Once the trading action is decided, the Alveo card will return the trade-order back to the target.

The content of received order will be displayed on the 1st console of the target system. This completes the AAT QDMA demo, showcasing the X3522PV in a live trading environment.

Stay ahead in the fast-paced world of trading

Ready to enhance your trading system? Explore the full potential of FPGA technology now and take your trading to the next level. Learn more about our innovative solutions, visit our website.