Algo Technologies has added another node to its inter-exchange distributed network with the provision of proximity hosting services for SIX Swiss Exchange at Equinix’s ZH4 Zurich data centre. Algo claims to be among the first proximity hosting service providers to SIX Swiss at ZH4, along with Fixnetix, which also has facilities there.
Algo and SIX Swiss started talking back in April ahead of the exchange’s decision to open to proximity trading a couple of months ago. Algo went live early this month with the provision of data and network services based on its AlgoData distributed, low latency market data service and its AlgoSpan shortest distance inter-exchange fibre optic network.
The company says it chose to base its proximity services in the Equinix data centre, rather than at Colt or Interxion centres in Zurich, because it is closest to the SIX Swiss trading engines. Going forward, Algo will collocate at SIX Swiss if and when the exchange responds to algo and high frequency traders’ desires to get as close to the exchange’s matching engines as possible.
Chris Landis, managing director and head of operations at SIX Swiss, says: “These Algo Technologies services provide new ultra low latency market data and connectivity options for our customers, particularly those wishing to access the deep pool of liquidity available on SIX Swiss Exchange. By extending our proximity service offerings, we are responding to the needs of the large proportion of our customer base that is connecting to the exchange from remote trading locations and wants to improve trading performance without increasing risk.”
From Algo Technologies’ point of view, CEO Hirander Misra says the development will “cater to the latency sensitive trading community as it moves away from trading single locations to trading from multiple locations. Our distributed network is unique and offers the shortest path to trade multiple locations. Customers that proximity-host at SIX Swiss will be able to take pan-European market data there and trade over other markets.”
Algo says a number of proprietary trading firms are testing the AlgoData market data service at SIX Swiss with a lead time of three to four months before final contract decisions. It also claims eight customers are live on AlgoSpan, with about half accessing the Swiss market.
Algo’s arrival in Zurich adds to numerous proximity and collocation installations at data centres in London and Slough. These provide low latency access to exchanges and multi-lateral trading facilities including the London Stock Exchange, Borsa Italiana, Chi-X Europe, NYSE Liffe, NYSE Arca Europe, NYSE Euronext and Bats Europe. Proximity to the Chicago’s Mercantile Exchange (CME) – round trip time of 92 milliseconds – is provided from London, while the company is also collocated in Chicago for the CME and in Weehawken, New Jersey, for NYSE Arca and Bats US.
In Europe, Algo has Frankfurt covered for Xetra and Eurex, and Stockholm for Nasdaq OMX Europe. Over the next few months it plans to add proximity hosting services for other exchanges including Bolsa de Madrid.
Misra says Algo competes with the like of Quanthouse and Fixnetix in the data space. The company’s AlgoSpan joint venture with UK telco FibreSpan is unique, he reckons, in being able to build and buy fibre to grow the company’s network.
With only Plus Markets signed up for the company’s super speedy AlgoM2 matching engine – and that deal subject to fund raising before the exchange can fulfil plans to go live on an AlgoM2 based platform in the second quarter of 2011 – Misra says he is talking to other exchanges and expects to make further announcements in the first quarter of 2011.