AboveNet, a low-latency connectivity provider, has teamed up with Interxion, a pan-European data centre provider, to simplify and reduce the latency of connecting to London-based trading venues.
AboveNet has placed a point of presence in Interxion’s data centre in central London, enabling clients to connect to trading venues via AboveNet’s connectivity network without having to route to the firm’s Docklands service centre first.
The new service is expected to appeal to high-frequency trading firms because it will reduce the distance data needs to travel to reach multilateral trading facilities and exchanges in London, thus cutting latency.
“This investment in our network is good news for organisations looking for lower latency, cost effective and more secure connectivity for bandwidth-heavy applications,” said John Donaldson, managing director at AboveNet UK.
Anthony Foy, group managing director at Interxion UK, added, “As one of the City’s only data centre providers to be in close proximity to five of the largest liquidity markets we are well positioned to meet current and future co-location requirements of capital market participants.”
AboveNet’s presence in Interxion’s data centre will also enable institutions with multiple sites in London to link to each other using a single connection to the data centre.
The trading engines of the London Stock Exchange and multilateral trading facilities Chi-X Europe, Turquoise, BATS Europe, NYSE Arca Europe, Quote MTF and Nasdaq OMX Europe are located in London. NYSE Euronext plans to move the trading engine for its European bourses from France to London in 2010.