Deutsche Börse Systems and COLT collaborate to offer ‘Proximity Services’

21 February 2007

New services enable market participants to trade with lowest latency – enhancement for algorithmic trading

Deutsche Börse Systems and COLT, a leading European provider of business communications, announced today an agreement to provide ‘Proximity Services’ to members of Deutsche Börse’s trading platforms. The new offering enables financial trading organisations to place their order management systems as close as possible to Deutsche Börse’s trading infrastructure, so that they can exchange data and process orders with minimal latency delay.

The improvements offered by Proximity Services will be particularly important for financial trading organisations using algorithmic trading, which depends heavily on execution speed and market data availability for success, with even a millisecond’s delay potentially impacting margins and profitability.

COLT, Deutsche Börse’s second partner for Proximity Services, will provide data centre hosting services enabling customers to host their servers closer to the trading infrastructure and across different data centres, building up split installations and backup locations. Customers will be able to update their systems and trading strategies remotely from their office.

Deutsche Börse Systems and COLT will offer a full range of services: from connection to Deutsche Börse Group’s execution venues and market data streams, housing, remote system management and management link to supplying hardware and maintenance. In addition, Deutsche Börse Systems now offers a “one stop shop” solution, in which the housing contract is also concluded. The sophisticated network architecture of the Group offers optimized network infrastructure with overall connection availabilities of more than 99.999 percent.

“COLT’s data centres and managed services provide the resilience and high availability that financial institutions such as Deutsche Börse require to support their services”, said Detlef Spang, Managing Director, COLT in Germany. “We are seeing growing demand for our data centre services across Europe from both buy- and sell-side institutions seeking to improve the speed of their order execution.”

“Together with COLT we are now able to offer our Proximity solution in different data centres, as a split installation or backup solution for additional redundancy”, said Michael Kuhn, CIO of Deutsche Börse Group and CEO of Deutsche Börse Systems. The Proximity solution further enhances Deutsche Börse Systems’ capability to offer market participants a scalable and customized ultra low latency access to the trading platforms of Deutsche Börse Group.

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