The deal, which has been signed by Deutsche Börse Systems and IXEurope, will enable customers to place their trading equipment adjacent to matching engines and data dissemination systems.

The service facilitates algorithmic and program trading by reducing the latency delay. Deutsche Börse says the service will provide customers with immediate ultra low latency access from their trading location.

Michael Kuhn, CIO of Deutsche Börse, says "By offering Proximity Services, we are responding to the growing market demand for low latency access to our execution venues and our market data streams."

BT Radianz launched a proximity service in Europe in January which provides scalable, low latency connectivity to major market data and execution centres.