Colocation and the art of rapid trade execution trading
By John Barr
October 2009
The desirability of a residential property is said to be determined by three issues: location, location and location. As the push to ever-lower latency for market data and trading continues to grow, it has been suggested that the three most important issues for the delivery of a financial service are colocation, colocation and colocation. In this report, we explore the reality behind this proposition.
If there were no requirement for low latency in financial markets, there would be no colocation opportunity. This report explains why latency is an issue, why colocation is an opportunity, and who colocates where. It examines wholesale and retail colocation and proximity datacenters that support the major financial markets in the New York metro area, Chicago, London, Paris and Frankfurt.
The report covers financial exchanges, datacenter providers and connectivity vendors, as well as a cross-section of value-added technology and financial services companies – all in the context of colocation. It identifies the major datacenter facilities at the heart of financial markets, consolidates and explains the limited amount of latency information available, and provides maps that aid in understanding where a critical mass of financial activity is building in different geographies.
(The above text is the snapshot from this analyst report in which Correlix is profiled.)
For more information on this analyst report, please click here.