This will enable the high frequency, latency sensitive and algo trading community to co-locate and place orders on the LSE Group markets, which comprise the London Stock Exchange, Turquoise, Borsa Italiana and EDX. Order execution times have yet to be confirmed for LSEâs Main Market, the second market to go live on the new system, though trades conducted on Turquoise on the MillenniumIT platform, which has been running for several months, showed an average order entry latency of around 125 microseconds.
Colocation is where trading firms and brokers physically locate their computer servers in the exchange data centre, substantially reducing the time taken for exchange data and orders to buy or sell to be transmitted over telecoms networks to the exchangeâs matching engines. In recent years, algo, low latency and high frequency trading have been a major source of volume growth on exchanges worldwide.
Via its super-fast international fibre optic trading network, AlgoSpan will make LSE Group markets accessible to its global trading customers and hosted client community thanks to its colocation facilities at the LSE Group data centre. Additionally, because AlgoSpan links other financial liquidity centres, traders/brokers using Algoâs facilities will be able to access other markets by this network enabling them to design and trade multi-exchange, multi asset trading algorithms with the certainty of super fast and efficient order transmission times using its point-to-point shortest path connectivity. Algo Technologies has also added LSE and Turquoise market data to its AlgoData ultra-fast raw, normalised and consolidated European and US market data feeds offering. AlgoData is available to customers located in the LSE data centre as well as those located elsewhere over the AlgoSpan network.
The Algo Group, which celebrates its first year since its UK launch in March 2010, has come to this market with a coordinated offering of its own super fast matching engine (AlgoM2), its own ultra low latency market data services (AlgoData) and its own fully managed high speed fibre optic network which links all the main European and North American financial centres (AlgoSpan, a joint venture between Algo Technologies and UK Telco licence holder FibreSpan).
Hirander Misra, Algo Technologies CEO & Director of AlgoSpan, said âHigh frequency, high speed algo trading has been a feature of stock markets for some years and is here to stay. No exchange can see its growth impeded by traditional architecture. We are very pleased that The Algo Groupâs ultra modern colocation services, data feeds technology and ultra-low latency market access over its fibre networks will play a part in helping to facilitate fast and easy access to LSE Group markets.â