BME announced today it will offer co-location services to all its Members, after expanding its communication infrastructure and IT systems in its Data Processing Centre, in Madrid.
In addition, BME will provide high-tech facilities to house Member's automatic trading systems. The goal of this service is to improve the speed of access to the Spanish market, in this way enhancing liquidity and improving price formation.
Through this new service, which will be available in the fourth quarter, the Market Members' IT systems will be placed just a few meters away from BME's Cash and Derivatives trading platforms. This closeness will significantly reduce the communication times between both systems, as a result of which Members will enjoy greater operational capacity. The whole infrastructure of the service will be managed by specialised BME staff, in this way ensuring fairness in terms of access and a secure system.
In order to meet operational needs within the stock markets, the real time prices supplied by BME Market Data will also be accessible from the same facilities.
BME's co-location service will supplement the current proximity offering, which has been provided since 2009 and hosts numerous firms. Together with the London hubs and the new SIBE trading platform, which started operations in April, these services will make the Spanish stock exchange one of the most accessible in the world keeping its security and reliability levels.
According to Jorge Yzaguirre, Director of the Equity Unit, BME: "the new service will improve the access for Members of the Spanish stock market, in this way facilitating trading on our equities and derivatives platforms based on an infrastructure that ensures minimum latency and the highest operational capacity while at the same time maintaining a level-playing field for all investors in terms of access and the Spanish stock exchange's current levels of robustness and security".