Deutsche Bourse Systems has teamed up with telecommunications provider COLT to offer so-called ‘Proximity Services’ to members of Deutsche Bourse’s trading platforms.
The exchange says the new offering will enable traders to place their order management systems as close as possible to Deutsche Bourse’s trading infrastructure, so that they can exchange data and process orders with minimal latency delay.
The improvements offered by Proximity Services will be particularly important for financial trading organisations using algorithmic trading, says Deutsche Bourse, since it depends heavily on execution speed and market data availability for success, with even a millisecond’s delay potentially impacting margins and profitability.
COLT, Deutsche Bourse’s second partner for Proximity Services, will provide data centre hosting services enabling customers to host their servers closer to the trading infrastructure and across different data centres, building up split installations and backup locations. Customers will be able to update their systems and trading strategies remotely from their office.
Deutsche Bourse Systems and COLT will offer a full range of services: from connection to Deutsche Bourse Group’s execution venues and market data streams, housing, remote system management and management link to supplying hardware and maintenance. In addition, Deutsche Bourse Systems now offers a “one stop shop” solution, in which the housing contract is also concluded. The sophisticated network architecture of the Group offers optimized network infrastructure with overall connection availabilities of more than 99.999 percent.
“COLT’s data centres and managed services provide the resilience and high availability that financial institutions such as Deutsche Bourse require to support their services”, says Detlef Spang, Managing Director, COLT in Germany. “We are seeing growing demand for our data centre services across Europe from both buy- and sell-side institutions seeking to improve the speed of their order execution.”
“Together with COLT we are now able to offer our Proximity solution in different data centres, as a split installation or backup solution for additional redundancy,” adds Michael Kuhn, CIO of Deutsche Bourse Group and CEO of Deutsche Bourse Systems.