McKay Hits 8.3 Milliseconds Roundtrip to Chicago
February 7, 2013
McKay Networks offer 8.3 millisecond roundtrips between Chicago and New York area market centers. Interactive Data Corporation agrees to provide a full suite of technology services to swaps exchange trueEX. Enyx extends service to Asia. OpenLink debuts EMIR data cube.
McKay Brothers: The specialty telecommunications company has announced that its microwave network now offers 8.27 millisecond round trips between Aurora, IL and Secaucus, NJ and 8.23 milliseconds round trip times between Aurora, Ill., and 165 Halsey St. in Newark. "I'm confident we had the lowest latency network before this upgrade," says Bob Meade, co-founder of McKay Brothers, "but this significantly raises the bar for the competition."
McKay claims its network only was down 1% of the time during trading hours in December and January. McKay is in the middle of a number of projects to improve the reliability of its network, one of which is the installation of new high performance radios provided by Aviat Networks. The company said transmission power will increase by a factor of six as a result on most of McKay's microwave links.
Among its customers, Quincy Data, LLC, for example, utilizes McKay Brothers' network to provide extremely low latency market data.
Interactive Data Corporation: The global provider of managed high-speed services for electronic trading, today announced an agreement to provide a full suite of technology services to trueEX. TrueEX is the first interest rate swaps exchange approved by the Commodity Futures Trading Commission (CFTC) as a Designated Contract Market (DCM).
Interactive Data is providing trueEX with low-latency hosted services through its 7ticks platform. These services will include monitoring and support for the trueEX matching engine and network architecture, along with connectivity to leading global exchanges such as the CME and the ICE via the 7ticks network for post trade clearing. trueEX market participants will be able to access financial exchange matching engines from anywhere on the 7ticks global network.
Interest rate swaps were previously traded mainly by phone and lacked regulatory oversight. As part of the Dodd-Frank Wall Street Reform and Consumer Protection Act, OTC derivatives trading is now mandated to be electronically executed and cleared in order to provide greater market transparency and efficiency while also reducing systematic risk. In response to this mandate, trueEX founded the first DCM that will serve the $300 trillion global interest rate swaps market when it begins operations in early 2013.
Enyx: The high-speed market data provider is expanding commercial coverage into Asia. Connectivity to Tokyo Stock Exchange (TSE Arrowhead) is now available with KRX (Korean Options and Futures), HKex Orion (HK Equities and Derivatives) and ASX Itch (Australian Equities and Options) in development for delivery to clients during 2013.
“Asia is a key trading hub with high performance trading continuing its growth as Exchanges update their infrastructure to take advantage of low latency trading” says Arnaud Derasse, CEO at Enyx.
Nicolas Karonis has been recruited as managing director for the region. Initially based in Sydney, Karonis will be responsible for the growth of the business and the establishment of the Asian operations team to cover client support and project management during trading hours in the Asian time zone.
OpenLink: The supplier of Transaction Lifecycle Management (TLM) software announced today the launch of its European Market Infrastructure Regulation (EMIR) business intelligence product. An extension of OpenLink's CubeIntelligence portfolio, the EMIR Cube is being unveiled at E-world this week.
The new online analytical processing (OLAP) based “cube” offering provides an array of data understood in multiple dimensions. The technique provides financial institutions, energy firms and market participants a speedy and cost-effective way to comply with clearing and reporting requirements.
The OpenLink EMIR Cube offers firms the ability to:
• Generate the regulatory reports that firms must provide daily to trade repositories, including the 30-day moving average
• Calculate and record the sum of the absolute values of the notional outstanding portions of current sales
• View the EMIR values for the entire firm and also drill down, by internal firm structure (book), product, trade type and other categories into trade level detail if required
• Specify which trades, books or products are in scope of the regulations so users can filter on these criteria to calculate the EMIR values for the in-scope trades only
• Run “what ifs?” scenarios to see how the EMIR values would change in certain circumstances
“Using the sophisticated OLAP approach, the new cube provides industry-leading support for our clients for the EMIR rules,” commented David Priestley, founder of CubeLogic and Managing Director at OpenLink. “The new cube allows firms trading OTC derivatives in Europe to manage risk while remaining compliant and producing all the mandated reports and complex calculations in a timely and efficient manner.”