The London Stock Exchange is offering its major customers 100Mbyte lines to connect to its market data service from today (9 June) to enable them to take advantage in real-time of the increasing volume of data that is available.
The lines, known as Performance Channels, have already been taken on by 40 of the exchange's customers, with more in the pipeline, and will enable them to receive data within one millisecond if they are based in London's financial district.
The exchange has introduced the new service, at a fee, in response to the massive increase in data volumes resulting from an 82% increase in average daily trading volumes.
Real-time information about the trading activity going on in the market is vital to investment firms, given the regular fluctuations, as they strive to buy stock at the right price. This data is available from the exchange's Infolect system.
"The Performance Channels service gives member firms using algorithmic trading models greater visibility of the spikes and events that occur during periods of high-trading activity. The immediate delivery of price data during these peaks creates additional trading opportunities," said London stock Exchange CIO David Lester.
The importance of reducing the time taken to complete share trades as well as the need for real time market information are at the heart of trading industry IT activities.
The London Stock Exchange recently announced that it would host customer servers in its own data centre to reduce the time taken to send a message to its trading platform.