FOCUS SINGAPORE SGX
Issue 12, Oct/Nov
THE RACE TO ZERO: ASIA
Singapore SGX has commited US$250m to its low latency cause, as algo trading spurs investment in data center infrastructure around the world. SGX details its reach and NASDAQ tells us how it all began. Ambrose McNevin reports.
“just how physically close can you get me to the trading platform”.
O
In London, with its multiple exchanges, the issue is around staying inside its M25 ring road. Go any further than that trading platform and the milliseconds start to build up and you find yourself stuck in the slow lane.
In New York, the answer is not to be any further than North New Jersey where there is a large concentration of data centers including the Verizon site that hosts NASDAQ and the Mahwah data center built and owned by NYSE Euronext.
In Singapore, there are no such worries about far-flung locations. Being on an island measuring just 10km x 40km means that wherever you locate you can never be that far away from the trading engine.
For the Singapore Stock Exchange (SGX), its US$250m investment in an ultra-low- latency trading platform called Reach is about
ne of the key topics of concern for brokers and traders wishing to have high-speed access to trading engines is location – or
locating in an ultra modern data center with super-fast connectivity to Tokyo, Chicago, New York and London.
Bob Caisley, CIO at the Singapore Stock Exchange, says he believes he is building the fastest trading engine in the world. “Reach is about having the fastest trading engine in the world, at the best data center in Asia with the best colocation facilities,” he says.
That said, despite the short distances, even in such a highly densely occupied city such as Singapore, the location of the data center was influenced by the availability of separate power and connectivity.
AND SPEED IS STILL KING. Like all
trading engines, Caisley
acknowledges there may be other trading platforms which will outpace his, but for now, his will be the fastest with an order response time of 90 microseconds.
This quest for speed is behind the exchange’s US$250m investment in Tier IV data center infrastructure which is scheduled for commission at the end of Q1 2011. The fit out is currently underway and SGX believes
it can attract algo traders not only for its international derivatives business but its cash equities business which it sees as having huge growth potential for high frequency trading and making Singapore “the exchange gateway to Asia”.
The Reach Project will run on NASDAQ OMX’s Genium INET platform which is scheduled to begin operating in Q3 next year. Having NASDAQ as a partner has helped SGX benefit from their experience as a colocation client and provider through its New York data center, experience Caisley and his team have been happy to tap into.
Caisley points out that SGX already offers brokers proximity trading facilities – or “a concentration of market players with a fast pipe” – at its existing facility but at its new site it will concentrate on building its colocation business. Something which Caisley accepts is a departure for the company.
“We want to attract algo traders and colocation is certainly a new business line for us and we’ve worked closely with and taken on board the experiences of NASDAQ OMX, a key partner,” Caisley says.
SGX will present at DatacenterDynamics Singapore conference which takes place at the Marina Bay Sands Hotel (above). For details see page 88 56
www.datacenterdynamics.com
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92 |
Page 93 |
Page 94 |
Page 95 |
Page 96