Field Programmable Gate Array

A field programmable gate array (FPGA) is a semiconductor device with an integrated circuit that can be configured and reprogrammed by its user to meet specific requirements, application needs, and functionalities. This feature makes them extremely versatile and widely used across fields and industries.

It is constructed using a matrix of configurable logic blocks (CLBs) grid and input-output pads with reprogrammable interconnects. Post-manufacturing, the FPGAs become reconfigurable to perform a specific function or application need. The logic blocks can carry out basic to complex computational operations. It is widely used in the fast-paced electronic trading and finance industry. Additionally, one-time programmable (OTP) FPGAs are available.

Field-programmable gate arrays (FPGAs) are processing chips made up of millions of logic blocks repeated throughout the silicon, which are a set of programmable interconnects. The main distinct feature of FPGAs is that they can be reprogrammed and reconfigured by designers by connecting blocks to perform simple logic operations to complex functions. Each of the logic blocks is a lookup table (LUT). To create an algorithm, lookup tables are connected in a particular order through configurable switches. Using a flexible system, they are adjusted to implement any algorithm.

Compared to a central processing unit, FPGAs do not have any additional hardware; hence, they have fewer barriers and perform swiftly and even process multiple tasks together. This single feature adds to its popularity across different sectors, such as medical engineering, security systems, aerospace, and finance. One of the core reasons it is a versatile chip is that if an FPGA is a component of any board or circuit card, it can be subsequently reconfigured to showcase modifications. Engineers use it to build specialized integrated circuits. Some of the alternate benefits include simple design, quicker market time, and potential respins. 

An FPGA has many functions in top-tier graphic cards, is affordable, and supports simultaneous streams with faster throughput. Today, FPGAs have mega-million gates to carry out large-scale designs and complex computational operations. Different types of FPGAs are used for different applications across industries.

The applications of field programmable gate array technology in finance industry are listed below: 

• In the finance industry, it is used by investment banks, hedge funds, and institutional investors to reduce the time needed to analyze market data. 
• FPGAs assist in the execution of real-time trading logic. 
• Field-programmable gate array chips are employed for performance-sensitive workloads such as network I/O acceleration. 
• In the finance industry, it serves as a mainstream technology for market makers and stock price analysts. 
•  It helps in high-frequency trading, which involves input-output and a trading strategy based on live market data, trading orders, and trading algorithms.

The application of FPGAs in trading are - 

• FPGA is used to create specialized trading algorithms. 
• An FPGA allows traders and market participants to bypass non-essential software to develop algorithm applications. 
• FPGAs play a crucial role in electronic trading by processing new information from exchanges, such as price changes, orders, and other market activities, in nanoseconds. 
• It helps provide high bandwidth to match the demand, data speed, and volume required for buying and selling stocks and other securities. 
• Using technology based on field-programmable gate arrays, generic-purpose software can be eliminated from the algorithm process.
• It plays a crucial role in investors' pre-trade risk computation.

Below are two examples of FPGA to help you understand the concept better: 

Example #1

Suppose Howard, an investor, purchases an FPGA. He can now reconfigure its hardware to meet its specific needs for performing complex computational operations in the stock market. This chip will allow Howard to perform high-frequency trading, which is mostly about speed. The faster computer algorithms can analyze stock exchange data and price movement and execute trader orders, the higher the profit Howard can make from trading.

It is a highly competitive market with increasingly powerful solutions for trading securities, derivatives, and other financial instruments. Howard, with the right FPGA, can stay ahead with high-frequency trading, which is currently a revolutionary innovation in the field of electronic trading. 

Example #2

Lattice Semiconductor has pushed lowpower limitsin the FPGA market by focusing on low-power devices for tight-footprint applications.This willallow Latticeto expandits FPGA line. In its latest announcement, thecompany introduceda new logic-optimized LatticeCertus-NX FPGAwith the Certus-NX-28 andNX-09, whichcan achieve up to 4x lower power than other FPGAs in the market competition. 

In this competitive market, other renowned companies like AMD and Intel are looking to use every means possible to use applications that include a lower power portion of the market. AMD unveiled its low-power FPGAs. Lattice has seen its financial performance decline, with the first quarter of this year’s revenue decreasing by 23% compared to last year’s first quarter revenue.