23 August 2017
visit www.avoka.com

ICE brings precise timing to UK data centre for MiFID II compliance

09 May 2017  |  5019 views  |  0 London - Big Ben

In a high-frequency trading world where every microsecond counts, Intercontinental Exchange has struck a deal with the UK's National Physical Laboratory to ensure co-location customers at its data centre in Basildon get precise timing.

The rise of HFT has increased the need for synchronisation of trading systems and traceability to Coordinated Universal Time (UTC). With this in mind, from next January, MiFID II will require financial organisations to achieve up to 100 microsecond level traceability of trading events.

To help firms meet the rules, ICE is tapping NPLTime, which pipes precise time (accurate to one second every 158 million years) by fibre, direct from the NPL, which maintains the UK’s atomic clocks and is responsible for the dissemination of time across the UK.

The service provides a certified precise time signal by fibre, directly traceable to UTC and independent of GPS, which is susceptible to vulnerabilities. Users at ICE’s datacentre get the underpinning timing capability for traceable timestamping, latency monitoring and synchronisation, in compliance with MiFID II requirements.

The precision of the time service also aids forensics and audit, subsequently improving the functioning of financial markets and strengthening investor protection, says ICE.

TMX Atrium has already tapped into NPL, with UBS the first big bank to switch over to the new clock, viewing it as a route to compliance with the MiFID II RTS 25 timing traceability requirement.

Leon Lobo, strategic business development manager, NPL, says: "In today’s markets, timing is everything. High frequency trading represents around 30% of UK trades and 50% in the US - precise timing offers competitive advantage.

"Current systems rely on GPS which is vulnerable to jamming and other interferences and uses equipment that can be inaccurate. Timing issues have led to trading irregularities with the potential to disrupt markets."

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Court upholds order telling ICE to sell Trayport

Court upholds order telling ICE to sell Trayport

06 March 2017  |  5066 views  |  0 comments | 2 tweets | 4 linkedin
UBS synchs trading infrastucture to NPL atomic clock

UBS synchs trading infrastucture to NPL atomic clock

04 August 2016  |  6237 views  |  0 comments | 6 tweets | 4 linkedin
European Commission confirms MiFID II delay

European Commission confirms MiFID II delay

10 February 2016  |  15962 views  |  1 comments | 22 tweets | 26 linkedin
ICE to buy Interactive Data for $5.2bn

ICE to buy Interactive Data for $5.2bn

26 October 2015  |  4871 views  |  0 comments | 10 tweets | 6 linkedin
ICE agrees $350m SuperDerivatives acquisition

ICE agrees $350m SuperDerivatives acquisition

05 September 2014  |  11375 views  |  0 comments | 3 tweets | 4 linkedin
Europe reaches agreement on MiFID reforms

Europe reaches agreement on MiFID reforms

15 January 2014  |  8399 views  |  1 comments | 6 tweets | 5 linkedin

Related company news


Related blogs

Create a blog about this story (membership required)
visit www.vasco.comdownload the paper nowvisit www.niceactimize.com

Top topics

Most viewed Most shared
Rabobank constructs physical model to understand IT architectureRabobank constructs physical model to unde...
17980 views comments | 42 tweets | 78 linkedin
Mobile contactless spending accelerating in UKMobile contactless spending accelerating i...
13190 views comments | 28 tweets | 23 linkedin
Barclays pairs banking data with third party apps for SmartBusiness DashboardBarclays pairs banking data with third par...
11822 views comments | 22 tweets | 34 linkedin
Australia regulates digital currenciesAustralia regulates digital currencies
11052 views comments | 21 tweets | 35 linkedin
RBS to bring Silicon Valley to EdinburghRBS to bring Silicon Valley to Edinburgh
10928 views comments | 10 tweets | 8 linkedin