FPGA-Based Low-Latency Packet Deduplication System for Cross-Exchange Arbitrage

Overview

This project implemented a high-performance system leveraging low-level C code and the Open Onload interface to minimize latency in cross-exchange arbitrage. Designed for financial markets, the system utilized FPGA NIC interfaces to mirror commodity and equity futures and options over multiple physical routes, such as fiber optics and microwave links, while ensuring packet deduplication at the destination.

Objectives

• Minimize Latency: Provide ultra-low latency to support cross-exchange arbitrage in competitive financial markets.
• Packet Deduplication: Ensure efficient deduplication of redundant data packets at the destination to avoid processing overhead.
• Multi-Route Support: Enable packet mirroring over diverse physical routes, ensuring redundancy and optimized data delivery.

Key Features

1. FPGA NIC Integration:

   • High-speed data transmission and processing using FPGA NICs.
   • Support for packet mirroring across multiple physical routes.

2. Open Onload Interface:

   • Utilized Open Onload for accelerated networking performance and ultra-low latency packet processing.

3. Packet Deduplication Algorithm:

   • Implemented efficient deduplication logic to filter redundant packets at the destination.
   • Optimized packet flow for consistent data delivery and reduced computational overhead.

4. Physical Route Diversity:

   • Simultaneous packet transmission via fiber optic and microwave links.
   • Ensured data integrity and minimized latency disparities between routes.

5. Low-Level C Code:

   • Core functionality written in C to maximize performance and hardware interaction.
   • High degree of customization to optimize system behavior for financial use cases.

Applications

This system was designed specifically for financial institutions engaged in high-frequency trading (HFT) and cross-exchange arbitrage, where minimizing latency is critical for competitive trading strategies.

Benefits

• Ultra-Low Latency: Significant reduction in round-trip times for packet delivery across exchanges.
• Reliability: Redundant packet transmission ensured data integrity across routes.
• Scalability: Adaptable to a wide range of physical infrastructures and financial instruments.

Conclusion

By integrating advanced FPGA hardware with optimized low-level programming, this project successfully developed a cutting-edge system for low-latency arbitrage. The innovative use of multi-route packet mirroring and deduplication highlights its potential to transform financial data processing in competitive environments.