US equity trading platform operator Direct Edge has implemented a low-latency market data solution from technology firm Exegy to improve its onward routing speed.
The solution, Exchange Connect, is an exchange-specific variant of the Exegy Ticker Plant, a hardware-accelerated market-data system typically used by high-frequency trading firms for viewing stock market quotes.
Under Rule 611 of Regulation NMS, US trading venues are required to route orders to market centres that display the best price on an “immediately and automatically accessible” basis.
Exegy’s Exchange Connect appliance will feed the Direct Edge smart order router with prices, constantly providing the best bids and offers from all US venues at low latency. The move closely follows Direct Edge’s migration to the Equinix NY4 data centre in Secaucus, New Jersey, which also distributes data for the new Chicago Board Options Exchange C2 platform, IntercontinentalExchange, International Securities Exchange and the Boston Options Exchange.
“Customers who send orders to Direct Edge want the best price as fast as possible. That means we must focus not only on being the fastest we can be through our own order matching engine, but also providing the best possible routing solution for customers,” said Steven Bonanno, chief technology officer, Direct Edge, in a statement. “One of the keys to good routing is having the best view of the ‘away’ markets – through Exegy, we have that.”