The London Stock Exchange (LSE) has dedicated an entire floor of its central London data centre to clients of its Exchange Hosting co-location service, boosting capacity fivefold.
The LSE has also launched a range of new services to Exchange Hosting clients, including a QuantFEED low-latency data feed from data vendor QuantHouse. The feed will consist of data from key European, North American and Asian trading venues, including European multilateral trading facilities.
In addition, the LSE will offer clients low-latency access to other markets within the LSE group from the Exchange Hosting facility, including the LSE and Borsa Italiana cash equity markets, remote support services and a time synchronisation facility for microsecond-accurate time measurement.
“The introduction of QuantHouse’s high-speed data feed, and the raft of other value-added services we have announced today, underlines our commitment to
providing our most latency-sensitive clients with the tools they need to access London’s deep pool of liquidity as fast and efficiently as possible,” said David Lester, the LSE’s chief information officer, in a statement. “Take-up of our hosting services has been strong among both new and existing clients, reflecting the demand for Exchange Hosting from algorithmic traders.”
He added, “Our Exchange Hosting clients are now generating nearly a fifth of the total volume traded on the order book on a daily basis, increasing liquidity and encouraging market efficiency.”
The LSE’s co-location service, launched in September 2008, provides high frequency algorithmic trading firms with sub-millisecond access to any of the group’s markets, allowing firms to physically locate their servers as close as possible to the exchange’s matching engines.
According to the exchange, demand for hosting services is coming from both UK and global clients.