Deutsche Börse’s Eurex and Xetra trading systems have been granted a performance boost thanks to a network upgrade. The firm believes this could be of particular interest to users of algorithms and high-frequency trading strategies.
Over the past five months, Deutsche Börse Systems has upgraded what it describes as its ‘backbone’ telecommunications network. The upgrade is designed to meet the growing demand for high data throughput and ultra-low latency, which the group says is of particular relevance to algorithmic trading.
The exchange adds that upgraded network provides Eurex and Xetra – as well as external customers and partners – with a new, unparalleled level of performance. Based on the enhanced network, Eurex will offer a new service, Eurex Transaction Service, in April. This is a faster, streamlined access to the Eurex trading system for high-frequency trading strategies.
During the upgrade Deutsche Börse Systems has focused on updating the links between major European and US financial centres. The minimum capacity was quadrupled and is now set at 1.25 Gbit/s for New York, Chicago, Paris, Amsterdam, Milan and Dublin. For London-based customers the capacity has increased to 5 Gbit/s. Deutsche Börse says this enables transmission of the entire content of an audio CD in one second.
The new network uses design principles such as exclusive redundant links, different telecommunication carriers and no single point of failure. The design also encompasses diverse geographical routing, including optimisation of submarine fibre optical network usage. The company claims the result is unsurpassed low latency, resiliency, and availability.
As an example, the company says that recently, Deutsche Börse Systems’ network was able to cope with multiple sea cable fibre cuts to the Middle East and South East Asia, enabling Deutsche Börse Group customers in these regions to continue their business unaffected.