Investment firms can cut the time taken to complete stock trades by having their IT systems hosted close to the...
London Stock Exchange and connecting via a high-speed network.
Firms can put their equipment in the docklands datacentre of IT infrastructure service provider Savvis and connect to the stock exchange through a high-speed network known as Extranex.
This will reduce the time taken to complete trades and receive market information.
Every millisecond that can be cut from the time taken to complete a stock trade the better for investment firms. They want to buy at the price quoted at the time and must complete trades before this changes.
Having trading systems hosted near the venue where trades are completed saves milliseconds and requires no research and development unlike increasing the speeds of the actual systems.
The London Stock Exchange itself is offering customers the opportunity to put their trading systems in its data centre, alongside its core trading platform Tradelect to speed trading up. The combination of its Dockland data centre and network from Savvis will offer an alternative to this with similar benefits. Every kilometer a message travel costs time and complete trades from order to execution only take milliseconds.
Wendy Morgan, head of real-time data at the London Stock Exchange, said, "As trading volumes grow and latency becomes more crucial, it is essential that our customers have a wide variety of options when choosing to connect to the London Stock Exchange's markets."