Global exchange group Nasdaq OMX is to supply Australian Securities Exchange (ASX) with a new trading system – ASX Trade – scheduled for launch in Q2 2011.
ASX Trade will be based on Nasdaq OMX’s Genium INET technology and replace the ASX’s current integrated equities and derivatives platform, CLICK XT, also supplied by Nasdaq OMX, which was implemented in October 2006.
According to Nasdaq OMX, the Genium INET platform has an average latency of 250 microseconds and will increase the ASX’s current capacity to exceed 5 million trades and 500 million order book changes per day.
“ASX Trade will provide a significant improvement in technology performance, which when coupled with ASX’s co-location facilities, will offer market participants a trading experience as fast and efficient as anywhere in the world,” said Jeff Olsen, ASX group executive, technology, in a statement. “ASX Trade is at the forefront of a suite of new ASX equity market innovations designed to provide tailored services to users with diverse trade execution needs.”
Olsen added that ASX Trade will offer similar infrastructure and access arrangements to the existing system, which will minimise the demand on participants’ technology resources and minimise potential for connectivity disruption during the transition.
Last week, the ASX made a number of recommendations to the Australian Securities and Investment Commission (ASIC) to deal with the impact of increased algorithmic trading on the Australian equities market, following a review.
ASIC is also widely expected to allow competitor trading platforms to the ASX to set up in Australia from Q3 this year following its assumption of equity market supervisory powers from ASX.