Swiss Exchange Jumps Head First Into High Frequency

The Six Swiss Exchange announced it will offer co-location services – allowing for the shortest connection between its trading platform and the trading systems of its participants – in the first half of next year.

HFT Leaders Forum

According to CNBC’s Carolin Schober, The so-called “co-location” system allows trades to be processed in under 100 micro seconds – a fraction of the time traditional trading systems take.

Under the co-location concept, the exchange server and the client’s trading systems are located in the same room and can thus transmit orders more quickly.

High-frequency traders typically make profits by exploiting price inefficiencies by entering a string of small orders at very high speed and exiting the trades within seconds.

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