CME Group has deployed a new latency management system, CorvilNet, supplied by Corvil, a Dublin-based IT firm.

“It’s a system that monitors the speed of trading and data in all our products across the whole trading system,” said a spokesperson for CME in London. “We put in what benchmark levels we want to achieve and then monitor it. And if we fail to reach them it will not only alert us to that, but will also capture a package of data that we can analyse to see what happened. And it recommends ways of optimising the performance of the system.”

The system will allow CME to measure levels of capacity available for market surges, traffic growth and the impact of new applications or customers on a network.

The new system will complement CME Group’s existing monitoring tools. “It adds functionality to that set of tools. It’s not replacing anything. It’s optimising what we have,” the spokesperson said.

Kevin Kometer, chief information officer at CME, said in a statement: “A key element of our business is to provide low latency trading and data services to our customers. CorvilNet’s real time monitoring capability and in-depth analytical tools enable us to optimise the performance of these core services.”

Corvil was founded in 2000 and operates from New York, London and Dublin. It has similar agreements with Deutsche Börse and Turquoise.

Research firm Tabb Group estimates that 56% of all exchange revenues are exposed to latency risk, up from 22% in 2003, because electronic trading has proliferated and players place more emphasis on speed of execution.