Fixnetix, a provider of European low latency market data, and the London Stock Exchange yesterday announced a distribution deal under which the exchange’s Infolect data will be delivered to customers outside its existing network via Fixnetix’ iX-Direct low-latency data service.
Infolect is the exchange’s real-time market data delivery system, and is a key component of its four-year technology roadmap programme to deliver next-generation trading technology. Infolect carries over 15 million messages a day to customers’ terminals at speeds of two milliseconds from broadcast to delivery, the firm says.
The use of Fixnetix’ iX-Direct data service will enable latency-sensitive financial institutions to connect their trading applications to data from the London Stock Exchange, without the delays associated with routed or managed networks using shared market infrastructures outside the existing Infolect network.
“The London Stock Exchange is committed to delivering the lowest latency data metrics of any exchange in Europe and Fixnetix has provided our data to a number of our customers with some very impressive latency statistics,” says Wendy Morgan, head of real-time data, London Stock Exchange.
“We have worked hard to engineer the optimal delivery mechanism for London Stock Exchange data as banks and hedge funds are no longer prepared to accept latency and outages associated with legacy architectures. Our customers have benchmarked us against other low latency offerings, including their own exchange gateways, and have chosen us purely on performance and reliability,” adds Hugh Hughes, CEO, Fixnetix. “The demand for low latency data is increasing exponentially due to the growth in algorithmic trading and having the second best solution is no longer an option,” he comments.