According to FT’s Philip Stafford, NYSE Euronext has opened up its key European data centre near London to allow third-party co-location service providers to conduct trades without passing through the exchanges operator’s network.
The move, affecting its Basildon data centre, comes as exchanges look for ways to attract and retain high-frequency trading companies, which account for the majority of daily trading on equity markets, amid soft trading on equity markets.
Co-location services have grown in popularity as they allow electronic traders to place their computers as close as possible to the exchange’s own trading systems. The proximity – often just a matter of metres – helps shave microseconds off the time it takes for trades to be done.
In a notice to clients two weeks ago, NYSE Euronext said it would allow customers using its co-location services to connect to clients directly – via telecoms fibre – without passing through the exchange’s high-performance telecoms network, which is known as SFTI. The move will allow members of NYSE Euronext to shave a further 41 microseconds off the times to execute trades.