Managed Fibre Networks - offering competitive advantages for high performance FX >>>
London and have a co-location connection installed at a financial data centre can provider customers with connectivity in well under a week.
McConnell of Hibernia says it traditionally takes about 45 to 60 business days to activate new circuits in the marketplace, but Hibernia offers a five-day activation period for on-net fibre circuits, where infrastructure has already been installed at a financial data centre or trading venue. “Time to market is a huge advantage with us. We are a pioneer in this space. If we fail to deliver the lit circuit in five business days, the customer gets the first month free of charge,” says McConnell.
Differentiating with ancillary services
Misra says the “race-to-zero” battle among different managed network fibre providers has resulted in companies differentiating themselves by selling ancillary services such as market data to capture and maintain customers, rather than just offering dark fibre. For example, CFN Services delivers market data, trading applications and trade execution services to HFT firms over its Alpha Platform.
As evidence of the trend for fibre providers to focus on the delivery of ancillary services, Colt, a pan-European network operator and dark fibre provider, earlier this year purchased MarketPrizm, a trading infrastructure specialist offering services such as market data and market hosting. Meanwhile, TMX Group, the exchange operator based in Toronto, this summer acquired Atrium Network, forming TMX Atrium, a low-latency venue-neutral infrastructure for financial market participants in Europe and North America.
Prior to the acquisition, Atrium Network had built an ‘exchange ring’ of dark fibre connectivity between the main trading hubs in Europe. Meanwhile, TMX Group in August 2006 launched TMX - FX Foreign Exchange Data, which aggregates market data from BGCantor, Gain Capital, Hotspot FXi and UBS, providing banks with a reference point for the relative trading value of FX pairs. “TMX can pump market data over those networks [which Atrium Network has built] and potentially connect to other markets. So it creates a lot of cross-selling opportunity,” says Misra.
Triangulating between venues
Akass of BT, says the communications company is continually developing its services in response to the “emerging challenge” of meeting customer demand for low-latency solutions.“If we go back four or five years, the original latency challenge was liquidity fragmentation of different venues,” explains Akass.
To meet demands from trading firms executing strategies across different venues, BT Radianz launched its Ultra Access service, which provides market data and trade execution services to BT customers pursuing low-latency strategies utilizing direct market access trading. Te service offers connectivity between financial firms and local exchanges in major financial centers around the world with round-trip delays of less than one millisecond.
Mark Casey “Our dedicated bandwidth solutions built on high-
performance switching guarantees specified bandwidth at all times and this is particularly important when micro- bursts or sustained increases in volume occur.”
Akass says BT Radianz is now building a “next generation” of services, which build on technology such as Ultra Access. A venue interconnect service, for example, now serves customers seeking to “triangulate” trading strategies which are executed through a BT facility and various major trading venues.
“Tis service includes a connection between those venues so we can route more directly. Tis is where we are extending our routing fabric out into the venues.
january 2012 e-FOREX | 127
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