CME Offers Customers Collocation Trading Server Connections

Discussion in 'Order Execution' started by EdgeHunter, Oct 7, 2006.

  1. *****************************
    CME to Offer Customers Colocated Electronic Trading

    By Ivy Schmerken, Wall Street & Technology

    CME will begin offering collocation services for customers' firms that execute electronic trades on CME Globex in the fourth quarter of 2006.

    For the first time, CME will offer customers the opportunity to connect their collocated trading servers to the CME over high-speed fiber optic connections. These redundant server connections are expected to decrease network latency times for order entry to CME Globex to less than one millisecond. The new network connection option is called CME Local Network (CME LNET).

    The CME selected Equinix Inc., a leading provider of network-neutral data centers and Internet exchange services, and Digital Realty Trust Inc., a leading owner and manager of corporate data centers and Internet gateways, to enable customers to connect to CME Globex through high-speed, high-availability fiber links.

    another link on this too is...





    If You Have The Vision We Have The Code
  2. While the release does not make it explicit, but this type of colo setup is clearly targetted at automated trading systems, which will benefit the most from reduced latency. This is also a way to gain additional revenue for CME, as the LocalNet are priced at $6,000 / month / port (direct fiber), which woulc probably be only be affordable to the serious ATS entities.

    My personal opinion is that is will put an end to *any* broker talk about them having the "fastest connection to CME Globex", since it is impossible to get any faster than having a server under LocalNet sitting in the same physical building as the Globex Data Center, and having a direct fiber connect dropped to it. It does goes to show how important ATS are to Globex, in terms of volume and revenue, these days.
  3. This is a good move....I am impressed that the CME is offering this capability.

    Maybe the CME can now start their own reality TV show called, "Bot Wars" :D