By Julian Goldsmith, 2 September 2008 12:29
NEWS
The London Stock Exchange has launched a hosting service that will help high frequency algorithmic trading firms complete their trades even faster.
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The new service, Exchange Hosting, will connect these firms to the exchange's electronic trading and information platforms, TradElect and Infolect.
In order to cut latency, companies will be allowed to put their servers within the exchange's own data centre. The move will mean roundtrip trade execution and market data transmission times will be cut by 1.5 milliseconds, provided the businesses are connected to the exchange by 100Mbps lines.
According to the exchange, the reduction in existing trade times will be even larger for firms with slower networks or which are located outside central London.
The service will be introduced in two phases starting with an initial release of cabinets in September, followed by a second release in February when the exchange will also launch a number of support services for hosted customers.
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