German exchange group Deutsche Börse’s technology division is developing a new high-speed infrastructure that will connect Frankfurt to Paris, Amsterdam, New York and Chicago.
Deutsche Börse Systems said the new network will enable the four markets to connect to Deutsche Börse and its the Eurex and Xetra trading systems for derivatives and equities as well as external clients and partners with ultra low latency.
Latencies under 3.3 milliseconds will be achieved for the Frankfurt-to-Amsterdam connection, under 4.5 milliseconds for Paris, under 40 milliseconds for New York, and under 49 milliseconds for Chicago.
The new links add to an existing connection between Frankfurt and London, which Deutsche Börse Systems started developing in August 2009, that has a latency of five milliseconds.
The connections combine the shortest geographic routing paths with different routing options and the latest optical transmission techniques, according to Deustche Börse Systems. It added that the network design guarantees maximum availability with no single point of failure while also offering the lowest latency possible.
“With the rapid expansion of its new ultra-low-latency network, Deutsche Börse is strengthening its position for latency-sensitive financial market connections,” said Michael Girg, director of networks support at Deutsche Börse Systems. “Feedback on our latency optimisation initiative from clients, existing and new, has been extremely positive thus far, confirming our view that such investment in new technology truly provides a benefit to our clients.”