Chi-X has signed an agreement with IBM to install its high speed messaging technology. This move is part of a larger race among liquidity providers to increase the speed of their services.
Chi-X, the multilateral trading facility, plans to install the IBM WebSphere MQ Low Latency Messaging platform in order to provide even faster high speed messaging to its dealers.
The deal was signed with Chi-X Global Technology, the technology services unit of Chi-X Global. The IBM platform will be embedded into the MTF's exchange and market centre trading technology platform and will run on Linux.
IBM's WebSphere MQ Low Latency Messaging is a high speed messaging transport for high volume, low-latency trading.
This is not the first exchange to adopt IBM's low latency technology. Last month, the Deutsche Börse selected messaging technology from Big Blue as part of a project to bring its Eurex, ISE and Xetra exchanges onto a common IT infrastructure.
Just this week, the London Stock Exchange confirmed it will buy Sri Lanka's MilleniumIT for around £18 million and use the vendor's technology to replace its TradElect platform.
Industry observers comment that the influx of new technology to support faster messages at MTFs and exchanges is part of an overall race to provide even greater low latency services to the competitive European dealer market.