The Australian Securities Exchange (ASX) has today announced a new co-location hosting service for its market participants and their customers that will facilitate direct market access (DMA) and algorithmic trading strategies, as well as minimise overall latency.
Co-location hosting will allow ASX participants to place their trading equipment and assigned ITS gateways in the same physical data centre as ASX’s ITS primary matching (or trading) engine. The co-location will enable high speed market data and trade execution with near zero network latency between participant systems and ASX’s trading engine.
Mr Will Wilson, ASX General Manager Domestic Customer Management and Sales, said: “ASX has developed the new co-location hosting service to meet the growing demand from customers whose businesses depend on speed of access to the market.
“ASX participants utilising the service can expect sub-millisecond access to the ASX ITS trading engine. This is vital for DMA and algorithmic trading strategies where speed of access is crucial.
“The launch of this new co-location hosting service will improve ASX’s attractiveness to global investors and offshore trading groups as the exchange with the tightest bid-offer spreads in the Asia-Pacific.”
It is anticipated that the co-location hosting service will commence in the fourth quarter 2008. ASX will be promoting the service and its 12 foundation subscribers, which include Merrill Lynch, UBS, JP Morgan, Instinet Pacific, Fortis, Optiver, Tibra Trading, Liquid Capital and Timberhill, to its international customer base in a global marketing campaign over the next few weeks.
