Deutsche Börse is teaming with telecomms firm Colt to provide customers with low latency access to execution venues and market data streams.
The exchange is working with Colt to provide a proximity services geared for algorithmic and program trading by allowing financial trading firms to place order management systems as close as possible to the exchange's trading infrastructure.
Under the agreement, Colt will provide data centre hosting services that will enable customers to house their servers closer to the trading infrastructure and across different data centres, building up split installations and backup locations. Customers will be able to update their systems and trading strategies remotely from their office.
Deutsche Börse and Colt will offer a range of services, including connection to the exchange's execution venues and market data streams, housing and remote system management.
Colt is the second firm that Deutsche Börse has teamed with to deliver proximity services. In August last year the German exchange joined forces with data centre specialist IXEurope to provide low latency access.
Commenting on the latest partnership, Michael Kuhn, CIO of Deutsche Börse Group, says: "Together with Colt we are now able to offer our Proximity solution in different data centres, as a split installation or backup solution for additional redundancy."
Colt says it is seeing growing demand for its data centre services across Europe from both buy- and sell-side institutions seeking to improve the speed of order execution.