BATS Fixes Mispricing Problem
January 25, 2013
Nasdaq OMX: The exchange has been selected as the technology partner for the new East Africa Exchange. Nasdaq OMX will deliver its widely deployed X-stream technology to power trading and clearing for the nascent exchange.
Through private sector led investment and under the terms of an agreement signed with the Government of Rwanda, the East Africa Exchange aims to increase regional market efficiency and liquidity as well as giving the region's population of 130 million, especially smallholder farmers, better access to markets. The exchange will initially focus on establishing an auction facility and spot trading for agriculture and non-agriculture commodities, but will also develop futures trading across the East Africa Community region.
Nasdaq OMX's X-stream technology will handle trading and clearing of equities and derivatives securities and is scheduled to roll out during the third quarter of 2013. Nasdaq OMX was selected in competition with a number of global exchange technology providers.
Fixnetix: The U.K.-based low-latency data and trading infrastructure provider is offering clients of its managed market data services and hardware-accelerated risk management services access to an ultra-low-latency microwave network for data transmission between London and Frankfurt being built by Custom Connect, a Netherlands-based specialist designer and builder of custom fiber networks for clients.
Designed to provide European derivatives traders with ultra-low-latency data connectivity between NYSE Euronext’s Liffe derivatives market in the exchange’s Basildon, UK datacenter and the co-location site for Deutsche Börse’s Eurex futures market at Equinix’s FR2 IBX datacenter in Frankfurt, the microwave link will provide one-way latency of 2.375 milliseconds and roundtrip times of 4.7 milliseconds, compared to the fastest fiber routes currently available of just under 8.3 milliseconds, says Olav van Doorn, executive director and co-founder of Custom Connect and its microwave-dedicated spinoff Custom Connect MW.
Van Doorn says the vendor is currently finalizing the installation of microwave antennae on 12 telecom masts with line-of-sight to one another—but never more than 95 kilometers apart to ensure the signal remains strong—along the route between Basildon and Frankfurt, which should be ready to go live in a matter of days.