Stockbrokers that trade onChi-X
Europe, a pan-European equity multilateral trading
exchange (MTF) will in future have responses to matched buy and
sell orders in less than a millisecond.
The move comes from the exchange's upgrade to its existing use
of BT's specialised financial network,
Radianz, to "ultra access" low latency. This offers high-speed,
fully-resilient networking between investment banks, brokers and
investment managers and the exchanges and MTFs on which they
trade.
Chi-X Europe's chief operating officer Hirander Misra said the
MTF's matching engine matched trades with an average internal
latency of 350 microseconds. "To take advantage of this it is vital
that our participants have the lowest-latency inbound connectivity
possible while also having sufficient spare capacity to deal with
daily peaks in trading activity," he said.
Super-fast trading, where brokers do high-speed deals for a
fraction of a penny per share, is a controversial but increasingly
competitive aspect of financial trading.