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June 14, 2010 11:04 am
The Swiss exchange on Monday became the latest bourse to improve access for algorithmic traders, upgrading the system that handles incoming orders, abolishing a charge levied to customers for using additional order-handling capacity and adding Equinix and Interxion as extra “proximity hosting” service providers.
SIX Swiss Exchange has for some time used Colt for proximity hosting, a process where trading groups place their servers not next to an exchange’s servers – as with “colocation” – but in a separate building usually not far from the exchange.
It is now adding US-based Equinix and Interxion of the Netherlands.
Christian Katz, chief executive of the exchange, said the provision of choice would appeal to “remote” exchange members – that is, members outside Switzerland – whether they be high-frequency trading groups, banks that use high-frequency strategies or others.
The Swiss exchange operates two “gateways” through which orders come: the “capacity trading interface” (CTI), generally used for large amounts of orders and typically used by groups using high-frequency trading strategies; and a standard gateway known as STI.
The exchange previously allocated extra capacity to members using the CTI, depending on their liquidity commitment levels, but charged them for that. The charge has been dropped.
Mr Katz said: “It basically allows members who need more capacity to have that available to them without paying additionally for it.”
The exchange said the developments marked “an important step in the exchange’s continuous roadmap to satisfy an ever-growing need for higher turnover and lower latency”.
“Further measures will include improvements to the trading interfaces to even better support automated trading and direct market access and will be made available in the second half,” the exchange added.
Last week the ASX exchange in Australia and SGX in Singapore made similar upgrades to their systems.
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