The Chicago Merchantile Exchange (CME) is to deliver low-latency access to its Globex platform by enabling customer firms to connect colocated trading servers directly to the electronic trading infrastructure.
The exchange is teaming with Equinix, a provider of network-neutral data centres and Internet exchange services, and Digital Realty Trust, which manages corporate data centres and Internet gateways, to enable its customers to connect directly to Globex through high performance, high availability fiber links.
CME says these redundant server connections are expected to decrease network latency times for order entry to Globex to less than one millisecond.
Rick Redding, MD, products and services, CME, says the colocation alternative is being offered in response to customers' requests.
"Speed and reliability are two of the most critical components of electronic trading in our business and our technology investments continue to focus on these core components," he adds.
The new connection option is called CME Local Network (CME LNet) and will be launched in the fourth quarter.