In the fast-paced world of the most common trade, South Korea’s initiative to build a microchip that speeds up markets in a few microseconds will definitely be considered.
The company, Rebellions Inc., was founded six months ago in Seoul by Park Sunghyun, who had previously worked as a value engineer at Morgan Stanley in New York, and two of his colleagues. The chip they are developing aims to use the artificial intelligence more efficiently, which can reduce millions of precious moments per minute response times for automated trading machines.
That is a bold claim to the absence of a completed species, but it is worth a company called Rebellions because Park wants to disrupt an industry like the French Revolution that elevated the European country more than two centuries ago.
It can be a big deal too if it comes out. Such is the situation in the financial markets after traders spent the past decade slicing milliseconds – or thousands of seconds, permanently compared to the time the Rebellions did – to close their response times by building almost wireless networks covering continents and crossing oceans.
As those networks meet the limits of physics – nothing in the universe, even the wireless signals of traders, can go faster than the speed of light – the edges found elsewhere. That includes vendors trying to integrate their equipment to process data faster, so orders can be placed quickly.
“The AI chip can split the microseconds needed to make orders,” said Park, 37, Rebellions chief executive officer and Ph.D. from the Massachusetts Institute of Technology. “There are some companies that continue to stick to the technology we are used to – we want to change that.”
A revolutionary technology called Rebelion technology called application-specific integrated circuit, or ASIC – a chip designed to do one thing well, unlike the common intentions of microprocessors such as Intel Corp. made famous. This focus can help the Rebellions brand to run trader algorithms more efficiently than other alternatives.
That’s an idea, though.
The rebels are in the process of hiring “unlimited” recruits, aiming to quadruple their 20 employees by 2023, Park said. It has received 5.5 billion won ($ 4.9 million) in investment from firms including Kakao Ventures, which is part of the larger messages Kakao Corp., and Shinhan Capital Ltd., a subsidiary of Korea’s largest finance company.
The rebellions plan to have a modified model in the second half of the year. Taiwan Semiconductor Manufacturing Co., the world’s largest contracting company, has agreed to launch ASICs in 2022. Several investment banks and mass trading firms are in talks to use them, Park said. He declined to identify them.
“Anything that reduces coal and improves speed will be important and will be accepted by the industry,” said Richard Repetto, an analyst at Piper Sandler & Co. in New York. However, with the pace of trading already so fast, creating a faster chip “is not just an arm race that was before,” he added.
Major retailers in the past have taken steps to get microseconds faster. CME Group Inc. uses one of the world’s largest trading platforms from a data center in Aurora, Illinois, a city near Chicago. DRW Holdings LLC, a major foreign trader, nearly half a decade ago attached an antenna to a support pole next to the CME center, receiving something like a microsecond border for wireless competitors located in a remote tower.
Capture, another Chicago-based heavyweight, Jump Trading LLC, has spent $ 14 million to buy land across the street from a data center – setting up a new microsecond value bench in today’s markets.
Companies using Rebellions ASIC could see “P&L improvement” in accelerating each trade, said Park, referring to his experience as one of the staff behind Morgan Stanley’s two-year trading machines.
Speed trading is still the first of its kind in the country of the Rebels in South Korea. But, according to Larry Tabb, head of market building research at Bloomberg Intelligence, by 2021 accounted for up to 57% of the U.S. stock market volume, where high-volume traders Citadel Securities and Virtu Financial Inc. holding it there.
Park is facing competition from other ASIC-focused ASICs. Includes Google’s Tensor Processing Unit, a chip that supports power products such as Gmail and Google Translate, and Groq Inc., developed by former members of Google’s TPU team. Intel acquires Habana Labs Ltd. by 2019 to increase its AI-chip capabilities.
The park thinks great. After trading at high frequency, you next want to create chips that accelerate cloud services and enable autonomous driving.
“In-depth study is going to be a big habit, and we want to be ready before it comes,” said Park.