Frances Maguire
Frances Maguire

Exchange connectivity: considering your choice of access

When it comes to exchange connectivity it really is a case of horses for courses as there are a myriad connectivity options available to traders, depending on their type of business and how much they are prepared to invest to lower latency.

Exchange connectivity is big business with both the exchanges and IT providers building solutions that ensure faster and more robust connectivity. For the exchanges, the key importance is distribution of their products and access to the exchanges is often provided through third party tie-ups, enabling co-location for traders that are trying to manage access to more than one exchange, and in conjunction with other trading venues. The advancement in the technology and network provision means that how they connect can give traders a competitive edge.John Knuff, director of business development, financial markets, at Equinix says the exchanges are looking for a neutral meeting place where they can locate their technology for their gateways.He says: “They are trying to co-locate where their clients can put servers and an electronic trading infrastructure. Many firms will not put their electronic trading systems in a data centre operated by a single exchange or trading platform, simply because there are so...continued

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