A new high-speed delivery mechanism for the London Stock Exchange’s (LSE) Infolect data has gone live.
The LSE believes that the new service will give clients using algorithmic trading models clearer information during periods of high activity.
The service, called Performance Channels, is delivered over 100-megabyte lines and will deliver trading activity market data at high speeds.
Performance Channels has been introduced in response to the increase of trading capacity and market data volumes expected following the introduction of the LSE’s new electronic trading platform, TradElect.
In May, CEO Clara Furse outlined plans to double capacity on TradElect to 10,000 continuous messages per second with further room for increasing capacity thereafter. She also stated that average end-to-end execution latency on the platform would be halved to 3 milliseconds in October.
“The introduction 12 months ago of the TradElect electronic trading system has facilitated record volume growth on our markets,” commented David Lester, chief information officer, LSE, in a statement. “The Performance Channels service gives member firms using algorithmic trading models greater visibility of the spikes and events that occur during periods of high trading activity. The immediate delivery of price data during these peaks creates additional trading opportunities.”
So far, 40 clients – including market data vendors, hedge funds and member firms –have signed up, with more orders in the pipeline. The 100-megabyte Extranext lines cut the average round trip network latency within the City (London’s financial district) to sub-millisecond levels.