Exponential-e, the UK's most established Next-Generation-Network service provider, announced today that Chi-X Europe's trading data and Extranet services will be available via its "Financial Exchange Service Creation Platform (FX-SCP)".
Exponential-e hosts more than 150 financial institutions from its VPLS-enabled next-generation network and FX-SCP. Under the terms of the deal, these customers will be able to access Chi-X Europe's market data and trading platform services as an additional "plug and play" feature within the FX-SCP offering. Speed of execution, low-latency and scalability will be a key feature. The service will be available from next month.
Chi-X Europe is the first live, pan-European equity multilateral trading facility (MTF). The alternative execution venue provides trading services for component stocks of ten of Europe's top indices and was established in response to clients' demands for a faster, cheaper and higher-capacity alternative to trading on traditional stock exchanges. Trades in these stocks are cleared through Fortis' European Multilateral Clearing Facility (EMCF) and settled in the local Central Securities Depositaries for these stocks. All trades on Chi-X are fully fungible with trades transacted on the primary market.
Exponential-e's community of financial customers includes hedge funds, investment banks, brokers, dealers and asset managers. These customers need only ask Exponential-e for a simple software configuration to benefit from the new service.
For other financial institutions, not yet Exponential-e customers, connectivity into the FX-SCP - including the Chi-X Europe service - is available via an ultra low- latency Ethernet connection into any one of Exponential-e's numerous points-of- presence on its 10Gigabit Ethernet Next-Generation Network. Sub-millisecond round-trip performance is backed up with tight service-level agreements, 24/7 support from an in-house network operations centre and built-in network resiliency and redundancy.
Exponential-e supported the new deal by "proximity hosting" in the Equinix Data Centres where Chi-X Europe is present. By locating its core-switching infrastructure in these locations, customersrs are always one network-hop away from the Chi-X Europe MTF service, supporting Chi-X Europe's reputation for low-latency execution.
Commenting on the deal, Mark Cooper, Business Development, Exponential-e said:"This deal is all about added value for our customers. MiFID's best execution rules need not be a headache. Getting access to multiple sources of liquidity need only involve one connection - one pipe into the Exponential network".
"Through our streamlined business model, institutional investors are able to trade a wide range of European equities and achieve low-cost, high-speed trade execution, as well as potential price improvement," said Hirander Misra, Chief Operating Officer of Chi-X Europe. "We are pleased to welcome the diverse customer base of Exponential-e to our growing list of participants."