TECH TICKER…
BATS Fixes Mispricing Problem
January 25, 2013
BATS Global Markets said it “deployed a permanent change” to its computer systems, that corrects an order handling problem that mispriced more than 400,000 transactions over the course of four years.Telstra Global offers HKEx-based financial services organizations access to EPL Express. Cross River Fiber completes dark fiber route between Weehawken and Secaucus, NJ. Nasdaq OMX to power new East Africa Exchange. Fixnetrix announced London to Frankfort microwave network.
BATS: BATS Global Markets said it “deployed a permanent change” to its computer systems, that corrects an order handling problem that mispriced more than 400,000 transactions over the course of four years.
In early January, BATS said its computers allowed trades that violated rules intended to ensure all investors get the best prices for equities over a period of four years.
Machines that match orders for two BATS equity exchanges and an options venue allowed some trades to occur at prices inferior to the best available bid or offer and enabled others to violate rules for short sales, or bearish bets, the company said in a notice published on its website yesterday. Customers lost $420,360, because of rule violations, according to BATS.
Tetstra Global: The supplier of managed network and hosting services, has announced the launch of a low latency connection to the Hong Kong Exchanges and Clearing Ltd.;s markets, making it one of the first network service providers present at a new hosting center at the stock exchange’s next generation data centre at Tseung Kwan O. Financial services organizations based in HKEx will have access to Telstra Global’s low latency service EPL Express, allowing fast and reliable connectivity into major financial capitals around the world.
EPL Express service eliminates the need for additional local access for connectivity. Telstra Global customers globally can also access the exchange by relying on EPL Express as a mission-critical operational backbone. With the EPL Express service Telstra is seeking to bring services hubs closer together, and by adding stock exchange connectivity in key centers such as Hong Kong, it further increases the proximity between the end-user and the exchange. Telstra Global’s EPL Express customers already have high speed connectivity supporting customers in the financial centers of Chicago, New York, Sydney, London, Frankfurt, Tokyo, Hong Kong, Seoul and Singapore.
Cross River Fiber: The New Jersey-based, boutique dark fiber optic and telecommunications solutions provider, announced the completion of construction on a direct end-to-end dark fiber route between Weehawken and Secaucus, New Jersey. The ultra-low latency route interconnects two key data center hubs servicing the New York metro financial services community. The 5.94 km distance attempts to achieve the lowest fiber latency between these two key data center hubs.
This network extension also provides access to Cross River Fiber's network, connecting nearly a dozen markets throughout New Jersey. The Secaucus to Weehawken route is currently available, and customers can be turned-up within 10 days.
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.
