SGX invest $250m in 'world's fastest' trading engine

SGX invest $250m in 'world's fastest' trading engine

The Singapore Exchange (SGX) has outlined plans to spend $250 million and tap technology from Nasdaq OMX to build what it claims will be the world's fastest trading engine.

The initiative, called Reach, will be rolled out from the first quarter, with the engine delivered through Nasdaq OMX's Genium INET platform, Voltaire's InfiniBand and HP technology.

SGX says benchmark tests carried out last month at HP's Singapore capacity planning centre established an average order response time of 90 micro-seconds "door-to-door".

Meanwhile, a new SGX data centre - a purpose-built state-of-the-art facility at Keppel Digihub - will house the exchange's trading, market data and clearing infrastructure and offer co-location facilities.

The Reach initiative also includes establishing a presence at key data centres in Chicago, London, New York and Tokyo to "radically" lower cross-border connectivity costs to SGX and drive participation in Asia's markets by a larger number of global trading firms.

Magnus Bocker, CEO, SGX and a former Nasdaq OMX president, says: "With Reach, Singapore will become even more accessible to greater numbers of investors including international traders seeking the next generation of growth opportunities. The investment also reaffirms SGX's commitment to provide global reach for Asian issuers."

Gan Seow Ann, head, markets, SGX adds: "Customers which co-locate their trading applications with SGX's trading engines will be able to capitalise on new trading opportunities. We are delighted that 40% of our broking members have already signed up as the first batch of subscribers."

Nasdaq OMX and SGX inked a migration study agreement to look into a move to Genium last March. The pair have been working together since 2004, covering cash trading, derivatives clearing, commodities trading & clearing, and market data.

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