The London Stock Exchange Group (LSEG) plans to introduce new connectivity services which will offer members a series of new options for directly accessing its markets.
The new Customer Managed Connectivity service lets members trade on LSEG markets through a number of accredited connectivity partners certified by the UK exchange group.
The partners, which are due to be confirmed later this week, will be able to offer market access via an optimised network infrastructure provided by the exchange that has been specifically designed for low-latency trading.
According to Nigel Harold, head of technology business development, LSEG, the new service stems from a review of the bourse’s connectivity and access models.
“We already have a wide range of access models but wanted to ensure we are meeting client needs,” Harold told theTRADEnews.com. “The Customer Managed Connectivity service will increase choice for members by allowing them to manage their own connectivity and use the providers of their choice.”
By choosing their own connectivity partners, brokers and trading firms will be able to pick the options that best suit their specific needs. High-frequency trading firms may opt for vendors with lower latency, while brokers could aim to rationalise technology costs by using the same providers with which they have agreements in other jurisdictions.
In October 2010, LSEG opened the doors of its hosting facility to third-party software vendors, letting them offer services such as low-latency market data dissemination and risk management tools. The hosting facility offers high-frequency trading firms and other latency-sensitive traders the benefits of microsecond access to LSEG markets.