18 Dec 2020

BSO develops bespoke ultra low latency cloud connectivity solution for CryptoStruct’s cryptocurrency trading platform

CryptoStruct enables professional trading companies, market makers, banks, and investment funds across the world to develop, test, and run automated trading strategies for cryptocurrencies and derivatives.

Cryptocurrency trading is a fragmented industry and CryptoStruct converts the sector’s many protocols, APIs, and closed systems to a normalised format in real-time through a unified interface. This unrivalled insight enables professional and institutional traders to react to market trends in real time, conduct historical analysis, and trade faster and safer.

CryptoStruct’s team has years of experience in algorithmic stock exchange trading and has built a comprehensive solution for trading, analysis, controlling, documentation, and compliance.

Hamburg-based start-up CryptoStruct is a subsidiary of SSW Holding GmbH and a group member of SSW Trading, one of Europe’s largest HFT firms and market makers.

Overview


CryptoStruct serves institutional traders across the world and this professional client base understands that speed is everything in cryptocurrency trading. Even one second’s delay can significantly impact a strategy’s performance.

With this expectation in mind, CryptoStruct knew it needed robust ultra low latency global connectivity to meet client expectations. Prior to launching its professional market data platform, CryptoStruct searched for a network provider with the appropriate network performance, scale and financial services experience. Equally important was the ability to react promptly to market changes.

CryptoStruct first outlined its requirements to an enterprise telecoms operator, believing that a large-scale provider could leverage its resources to meet CryptoStruct’s needs. This company proved slow to respond and demonstrated an unwillingness to innovate.

CryptoStruct then turned to nimbler providers willing to design a bespoke service instead.

Thomas Schmeling, Chief Executive Officer at CryptoStruct, said:
“We engaged BSO because of its international reach, reputation for ultra low latency connectivity, and experience in highly regulated financial markets. These qualities have proven true; however, it is BSO’s pace and flexibility that have stood out to us again and again.”

Challenges


Most cryptocurrency exchanges are hosted with cloud providers distributed across the world. These cloud endpoints can often change with little warning, as Thomas Schmeling explained: “Exchanges often move their cloud hosting without warning and it is critical our clients remain unaffected by this sudden disruption. Overcoming this challenge was crucial and it was clear that we needed a connectivity service that didn’t even exist in the market.”

Designing a completely new, fully tailored service was not the only challenge. Other challenges included:

  • Having ultra-low latency assets that can be combined with the most advanced cloud connect configurations

  • Delivering global ultra-low latency connectivity and consistent bandwidth 24/7

  • Engineering a resilient service that could scale quickly and cost-effectively

  • Possessing a deep knowledge of both cloud connectivity and the cryptocurrency industry

  • Meeting the strict service and compliance requirements of institutional investors

Solution


BSO built a bespoke cloud-to-cloud connectivity service for CryptoStruct. This entirely unique offering connects CryptoStruct to virtually hosted exchanges in Dublin, Tokyo and Singapore, using BSO low latency network backbone while also providing CryptoStruct with the necessary global reach to onboard new exchanges as soon as they come online.

Thomas Schmeling said: “BSO has delivered a pioneering service that our clients can rely on. The team has been responsive, open to change and proactive. We have already had situations where exchanges have moved their cloud endpoints at short notice. The BSO team took these in their stride, switched our network routes rapidly, and ensured a consistent service throughout.”

CryptoStruct now has:

  • A world-first ultra low latency network capable of secure cloud-to-cloud connectivity

  • A uniquely scalable solution that flexes and adapts to market changes

  • A high-trust, robust solution built on incomparable infrastructure

  • Accessible engineers specialised in difficult-to-access emerging markets

  • Always-available support personnel who are experienced in financial services

Results and next steps

Underpinned by BSO’s global network, CryptoStruct can deliver its mission of simplifying how professional traders connect to, analyse and trade on cryptocurrency markets.

Whenever new exchanges emerge, CryptoStruct can seamlessly connect these to its platform wherever in the world they are located, and BSO’s strict service level agreement guarantees ultra low latency connectivity at all times.

Thomas Schmeling concluded: “BSO was the only provider capable of keeping pace with our industry and delivering on our specific needs. The future is bright for CryptoStruct thanks to our collaborative relationship.”

Michael Ourabah, Chief Executive Officer at BSO remarked:
“Innovation runs through BSO’s DNA and our heritage of empowering market makers is once again on show with this exciting partnership. I am proud of how our team rose to the challenge and delivered a world-first, industry-beating service for CryptoStruct.”

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