NxCore OPRA Direct

FOR IMMEDIATE RELEASE

Nanex Compression Reduces Option Bandwidth by 95%
Astonishing Speed Redefines Latency -- Faster than Direct
Option Traders Avoid Costly Network Upgrade

Chicago, IL -- November 14, 2006 -- Nanex, LLC today announced it has successfully applied it's proven compression technology called nanex, to a real-time OPRA (Option Price Reporting Authority) datafeed, allowing customers to avoid costly network upgrades and tens of thousands of dollars in monthly recurring communications charges required to meet OPRA's projected increase in quote message traffic. A direct OPRA datafeed distributed by SIAC via an OC-3 circuit (155Mbps) will be out of capacity when quote traffic exceeds 240,000 messages per second which is expected to occur in January 2007 with the launch of the first pilot project for penny option quotes.

Nanex compression not only achieves an astonishing 95% reduction in message size, but it does so at such incredible speed that compressed packets can reach their destination faster than uncompressed packets. This phenomenon occurs because the average compression time of 12 microseconds (millionths of a second) is less than the additional serialization cost incurred by larger uncompressed packets when processed by network serialization devices: routers, store and forward switches, and network interface cards. On an OC-3 circuit, the serialization cost to send a typical OPRA packet of 991 bytes is 55 microseconds per network serialization device. Nanex compression reduces that packet to approximately 50 bytes and incurs a serialization cost of just 3 microseconds: a reduction of 52 microseconds per device.

Although real-world systems are more complicated and have additional timing considerations, it is a general prinicpal and common sense that computer systems run more efficiently when processing less data -- especially 95% less data. Many years of experience with nanex compression in a production environment under real-world conditions, bears this out.

Nanex compression is currently used by NxCore (pronounced N'Core), a real-time streaming datafeed product launched to paying subscribers in October 2004. To date, NxCore has flawlessly compressed and delivered nearly 500 billion real-time updates from a wide variety of trading instruments -- Options, Equities, Indexes, Futures, Futures Options, Depth of Book, Spreads and Foreign Exchange.

The maximum sustained compression rate on an inexpensive 3.2 GHz Xeon server is 1.2 million messages per second which is 6 times higher than today's peak message rates for OPRA data. The compression rate rises linearly with CPU speed: a CPU that is 50% faster will compress at a 50% higher compression rate or 1.8 million messages per second.

Nanex, LLC provides several turnkey solutions which wrap and interface the nanex compression technology so that existing software already processing a direct OPRA feed can run without modification.

About Nanex
Nanex LLC, was founded in 2000 by software developer Eric Scott Hunsader, an expert in streaming financial software with over 20 years of hands-on development experience.

Press Contact
Technical:
Eric Scott Hunsader
847-501-4787
pr@nanex.net
www.nanex.net

General:
Jerry Chandler
800-652-2291
402-255-8229

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