Options IT, a technology, infrastructure and connectivity provider, has added the Australian Securities Exchange (ASX) to the destinations that its hedge fund, prop trading and broker-dealer clients can access via its PIPE Velocity ultra-low-latency market connectivity service.
CEO Nigel Kneafsey told theTRADEnews.com that the firm is reacting to an upsurge in demand for direct connectivity to the ASX among high-frequency clients in Europe or the US, following the exchange's announcement of its plans to launch a low-latency trading platform in preparation for competition from alternative trading platform, such as Chi-X Global, a trading venue operator and exchange technology provider.
“Clients are interested both in the stat-arb opportunities that will arise from exchange competition as well as the broader appeal of trading in the Australian market,” said Kneafsey.
The ASX is due to launch a new low-latency, high-capacity network connectivity solution, ASX Net, in the next couple of months and will introduce PureMatch, a high-frequency friendly order book, during Q1 2011. Subject to regulatory approval, Chi-X Australia will be launch a low-latency, low-cost displayed liquidity trading platform before the end of the year.
OptionsIT is now connected to more than 30 markets across North America, Europe and Asia. A spokesman said the firm expected to make further announcements relating to its connectivity network and collocation services.