FX co-location - Articles and news items

Re-shaping the FX market

June 2012 / 12 June 2012 / Frances Maguire, Columnist, FX-MM

The FX market is using co-location to lower latency and improve execution strategies in a fragmented and OTC market. Frances Maguire talks to leading market participants about how this trend is re-shaping the FX market.

Cloud computing is rapidly lowering the cost of ownership and making FX firms re-examine their trading infrastructures, to the extent that faster execution times and lowering latency are now higher up on their agendas. With the lack of exchanges, the FX community is instead congregating to certain data centres where FX venues are located, a trend that is growing fast and which is no longer limited only to the larger players.

BT Radianz Venue, a newly launched service from BT, is able to supply managed hosting services in many of these centres and is now able to offer traders lower latency access between data centres where these FX venues are located. (more…)