Algo Technologies is pleased to announce it has been contracted to install two major replacement systems and upgrades at PLUS Markets Group, the UK Recognised Investment Exchange (RIE). The sale of a third technology upgrade – AlgoM2, the fastest matching engine in the world – to PLUS is also in the pipeline subject to certain financing contingencies being in place.
In competitive tenders Algo Technologies has been contracted to provide AlgoData to PLUS. AlgoData is an in-house developed, fully distributed extremely low latency market data service – offering what is thought to be the industry’s fastest, easiest to implement and best supported market data service. AlgoData will replace Reuters Data services and it will equip PLUS to offer a new range of products to the latency sensitive trading community.
PLUS has also signed up for AlgoSpan, replacing British Telecom’s Radianz network connectivity to interconnect both its data centres and other financial locations. AlgoSpan is a fibre optic network which provides true ‘fibre-to-the-trading-desktop’ point-to-point connectivity between traders and exchanges with near-zero data latency. AlgoSpan offers direct “shortest path” access to UK, European and US exchanges with colocation facilities, and it will position PLUS as having one of the lowest latency network backbones of any exchange globally.
Both these services are expected to be implemented during the current quarter, as part of PLUS’s replacement of its existing core technology offering with an in-house built quote and trade reporting facility, scheduled to go live during the fourth quarter 2010.
In addition Algo Technologies confirms it has signed Heads of Terms with PLUS Markets Group to provide a new lit book supported by AlgoM2, launched earlier this year as the fastest matching engine with an independently verified 16 microsecond roundtrip transaction time. PLUS is planning to launch this platform in 2011 subject to the completion of the Special Purpose Vehicle financing arrangement proposed by PLUS as part of its new market development plan. It is this platform which will be used for the development of new exchange-traded multi asset class electronic trading products for PLUS.
Hirander Misra, CEO of Algo Technologies & Co-Founding Director of AlgoSpan, said “PLUS Markets has carved out a useful place in UK equities, noticeably in the UK small/mid-cap primary market and retail trading sector, during a post-MiFID period of fierce competition for market share. Its RIE status, licensing agreement with FTSE Indices and re-invigorated management are now steering it toward product innovation and a new strategic development. We are particularly pleased that PLUS is the first exchange to recognise the modern, fully integrated nature of the Algo offering of a superfast connectivity network, matching engine and data service. We are delighted to be able to offer them 21st century technology for their development programme, which will help position them as one of the technically most advanced and innovative exchanges globally.”
Cyril Theret, CEO of Plus Markets Group, added “PLUS has recently completed a strategic review and we are extending our product offering, forging new partnerships, developing new products and building new markets. ALGO’s highly advanced technology will enable us to leapfrog established MTFs and Exchanges and provide the foundations for growth.”