SGX’s managed hosting and co-location offering provides major players with HFT platform
Customers are now able to house their technology in two Singapore data centres, with each connected to leading global exchanges and financial institutions. October 23, 2012 | Foo Boon PingThe Singapore Exchange (SGX) is further enhancing its managed hosting, co-location, and ultra-low latency connectivity offering by partnering Savvis, a provider of cloud infrastructure and hosted IT solutions for enterprises, to provide its financial services clients with its dual-site hosting services. Utilising data centres operated by Savvis and SGX in Singapore, the arrangement provides financial services clients with a single point of contact for a suite of Singapore-based IT infrastructure solutions that includes managed hosting, co-location and network services, as well as ultra-low latency connectivity to market services. Both sites have successfully undergone third-party threat and vulnerability risk assessments, ensuring the Savvis-SGX dual-site hosting solution will meet the security and resiliency requirements of financial institutions. SGX launched its managed hosting and co-location services in April 2011 to facilitate high frequency trading (HFT) and better connectivity to market participants. Technology driven algorithm trading is increasingly dominating volumes in the market, and exchanges have been forced to upgrade their infrastructure to cater to the new demand. Despite the incidents of “flash crashes” that have been blamed on such platforms, the trend seems inevitable as market participants’ desire for greater speed and connectivity to facilitate new trading strategies drive demand. HFT is still a growing phenomenon in Asia with the exception of Japan, where it is already established and makes up 30% of all volume on the $3.8 trillion Tokyo Stock Exchange. Stock exchanges in places such as Indonesia and Malaysia have only recently seen algorithmic trades, and are therefore not able to support full-fledged HFT. Of the Southeast Asian trading infrastructures, SGX stands out as it has invested heavily in the new trading engine that was launched in August 2011. It invested about $200 million in sett... Please login to read the complete article. If you already have an account, you can login now or subscribe/register.
Categories: Back & Middle Office, Exchanges, Markets & ExchangesBack & Middle Office,Exchanges,Markets Exchanges, Back & Middle Office,Exchanges,Markets & Exchanges, Keywords:SGX, Savvis, TSE, HFT SGX, Savvis, TSE, HFT
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