OMX launches low latency proximity service
23 May 2007 | 10440 views | 0
The OMX Nordic Exchange is introducing a 'proximity service' that facilitates algorithmic trading by allowing its customers to house order management applications within its trading and market data infrastructure.
OMX says the new service will enable high speed market data and trade execution by reducing network latency levels to less than one millisecond.
Jukka Ruuska, president of Nordic marketplaces at OMX, says the introduction of the proximity service follows "the increase in algorithmic trading and the requirements for best execution within MiFID".
"Requirements for trading in financial products are rapidly moving from a pure ability to send orders for execution and receive information, towards a need of higher and higher end-to-end efficiency – with demands to reduce latency in all aspects," adds Ruuska.
OMX says service will be offered in a number of different packages, with different scope and service levels, but all with the same low network latency.
Earlier this year German market operator Deutsche Börse said it was working with telecomms firm Colt to provide a proximity service. Under the agreement, Colt provides data centre hosting services that enable customers to house servers closer to the Börse's trading infrastructure and across different data centres, building up split installations and backup locations.
The German exchange also joined forces with data centre specialist IXEurope in August 2006 to provide low latency access to execution venues and market data streams.