Deutsche Börse Systems, which operates the exchange group’s German data centres, has announced further reductions in network latency for derivatives market participants.
The unit has implemented a new dedicated backbone infrastructure to cut latency for unencrypted Enhanced Transaction Solution connectivity in its proximity services data centres.
The Enhanced Transaction Solution offers high-speed access to Eurex, Deutsche Börse’s derivatives trading platform, for core trading activities, including order and quote maintenance functions.
The new backbone infrastructure combines “state-of-the-art” network equipment, 10 Gbps (gigabits per second) fibre optic network connectivity and additional gateways.
Earlier this year, latency for Enhanced Transaction Solution connectivity was reduced by the introduction of physical security measures into the exchange’s proximity services data centres, which allow encryption to be turned off by customer request.
The new measures reduce Eurex Enhanced Transaction Solution network roundtrip times by up to 500 microseconds, resulting in peak roundtrip times of one millisecond, including host processing time and network latency from the customer edge router.
The same low-latency infrastructure will support the Xetra Enhanced Transaction Solution, which is due to be rolled out in June 2009.
“By offering proximity services, we have responded to the growing market demand for low-latency access to our execution venues and our market data streams”, said Michael Kuhn, CIO of Deutsche Börse and CEO of Deutsche Börse Systems. “With the further reduction of network latency we have achieved the next milestone of our technology roadmap.”