Providing low-latency connections between Asian traders and global exchanges has become a key area of focus for technology providers CQG and RTS Realtime Systems Group as customers in the region look increasingly to new markets for growth opportunities.
CQG, an order execution, charting and analytics provider, on 29 November announced that it has established a point-of-presence (POP) in Shanghai, connecting its global network to mainland China.
Leighton Andrew, CQG’s head of sales, Asia-Pacific, said, “The firewall in China restricts content delivery and that’s been the issue with most Chinese traders who are trading external markets. So we have put in a POP which will provide a more effective way to access market data for our users though this POP. It doesn’t mean we deliver data through that POP, but it allows them to receive data over our network that comes through our central data point which in Asia is Singapore.”
Through the Shanghai server farm, authorised Chinese traders and partner futures commission merchants (FCMs) are able to connect from China to CQG’s network, including the company’s order routing gateways for low-latency trade execution. This allows traders to access over 40 global exchanges for order routing as well as market data from more than one hundred sources worldwide. CQG offers this solution through an ASP model, eliminating the costly need for hardware installation at customer sites. For non-clearing Chinese FCMs, CQG offers omnibus accounts to provide access to CQG’s FCM partners for clearing services.?
CQG’s front-end platforms include CQG Integrated Client and CQG Trader. The flagship CQG Integrated Client combines professional charting and analytical tools with reliable market data and multiple order routing interfaces. CQG Trader provides order routing functionality together with news, market data, and account management in a streamlined package featuring support for non-English-speaking traders, including a Chinese language version. The CQG Trader API is also available for traders seeking to develop custom solutions using CQG’s data feed and trade routing functionality.?
Some 300-500 traders are connected to CQG’s Shanghai POP and the number is growing, Andrew noted. “We ran a beta testing phase where we had a number of local users connected and we tested a few locations in China to see what the performance was like compared to the local internet. There was a pretty good indication that our POP significantly improved connectivity,” he added.
Also on 29 November, trading solutions provider RTS launched data centre hubs in Singapore and Mumbai to support low-latency trading through Asia Pacific. The new hubs will serve as the RTS gateway from and into the region and will be linked to the firm’s global network, which already provides proximity hosting and direct market access to exchanges globally. Clients in and outside of Asia use the RTS network for high-speed, low latency access to multiple asset classes in fully managed environments.
Christophe Rilinger, RTS head of marketing & communications, said, “Traders just need to connect to one hub in Singapore or Mumbai or any other hub in our global network and they can access 135 exchanges without the need to put in place their own lines and infrastructure. Ultimately, this means the ability to connect quickly to new markets and profit from new trading opportunities before others do.”
The RTS global network includes hubs in Chicago, Frankfurt, London and New York. The Singapore hub is located in the Tata Communications Data Centre within the Global Switch Singapore building in one of Singapore’s principal technology parks. “Many large brokers and prop shops are also using our offering to outsource the management of their servers and focus on their core business,” Rilinger added.
Andy Woodhouse, RTS managing director, Asia Pacific, said demand for hosting services was continuing to increase across the region. “Customers are demanding more efficient access to both the mature and developing Asian markets as well as increased global connectivity.
By using our hosting services, our customers continue to find new opportunities across markets and asset classes. “