The London Stock Exchange has invited suppliers of market data into its datacentre, where it already hosts the systems of trading firms, to increase the choice of high-speed information sources.
The London Stock Exchange launched the Exchange Hosting Service hosting service in September 2008 in an effort to give its trading clients direct access to its systems. This reduces the time taken to make trades, which is critical in the trading sector, where prices of shares can change in milliseconds.
Messages will no longer have to travel over communications networks to get to the stock exchange. It takes about one millisecond for every 200km travelled on fibre. The exchange also allowed clients to put the systems of their market data suppliers in their own server cabinets.
But now it is allowing suppliers of market data to put their own systems in their own cabinets in the datacentre. This will mean existing clients can quickly link up to new sources of market data and suppliers can get access to trading firms.
The London Stock Exchange said it is about creating a trading community.
Antoine Shagoury, CIO at the London Stock Exchange Group, said, "This is another significant step forward in our efforts to enhance the Exchange Hosting service. Our ever expanding community of trading customers will directly benefit from this vendor diversification and the innovative, value added services and products these new non-trading participants will bring to our co-location environment."