The Bombay Stock Exchange (BSE) has revealed plans to introduce co-location facilities in a bid to attract more automated trading to its platform.
The service will be provided in partnership with Netmagic, an India-based managed IT service provider, and will be extended to the BSE’s broker members and their customers.
Co-location allows members of an exchange to host their servers near to the trading venue’s matching engine, reducing the physical distance data and other information needs to travel.
“[The co-location service] will be exchange-neutral and since the facility is extended by one of the best service providers in the industry, members will experience a world-class facility at a very competitive cost that can be additionally used for placing orders on multiple exchanges,” said Madhu Kannan, managing director and CEO, Bombay Stock Exchange, in a statement.
The Bombay Stock Exchange is India’s second-largest bourse by volume after the National Stock Exchange. Its shareholders include Deutsche Börse and the Singapore Exchange.