Credit Suisse has signed a deal to locate servers at four European data centres operated by Fixnetix, a provider of low-latency market data and trading connectivity services.
Locating servers next to those of European exchanges and multilateral trading facilities (MTFs) will reduce trading latency for Credit Suisse and its clients.
The agreement will also provide Credit Suisse’s clients with fast access to market data and the ability to gain access to any new market on demand.
The main reason for the move is to allow high-frequency, latency-sensitive clients of Credit Suisse’s Advanced Execution Services (AES) division fast access to Europe’s execution venues, according to Rob Maher, head of AES sales in Europe. “We can now offer
an outsourced hosting service from front to back including market data, risk management and execution all in one place,” he told theTRADEnews.com.
Maher said that there was “significant” demand for the offering, mostly from statistical arbitrage or high-frequency hedge funds.
Although hedge funds could in theory use Fixnetix’s hosting facilities directly, many prefer to act through a broker, according to Maher. “Very frequently, the client will want its execution, clearing and prime brokerage all in one place, and will be happy to outsource to us,” he said.
Credit Suisse approached Fixnetix because of its low-latency market data offering. “That is not a core competency of Credit Suisse,” said Maher. “They were also able to provide the front-to-back service, which was the attractive part for us.”