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Algo Technologies Goes Live With Colo to LSE Markets

This enables the high frequency and algo trading community via the LSE Group data center, to access Turquoise and eventually the other LSE markets on the MillenniumIT platform.

The Algo Group said it went live as a provider of connectivity and colocation services to the London Stock Exchange Group’s new low-latency trading platform, Millennium Exchange.

This will enable firms in the high frequency, latency sensitive and algo trading community to colocate and place orders on the LSE Group markets, which include the London Stock Exchange, Turquoise, Borsa Italiana and EDX. While order execution times for the LSE’s main market are not yet confirmed, since it is the second market to go live on the system, trades conducted on Turquoise over the past several months on the MillenniumIT platform, showed an average order entry latency of around 125 microseconds, according to Algo Technologies.

Through colocation, trading firms and brokers physically locate their computer servers in the exchange data center to substantially reduce the time taken for exchange data and orders to buy or sell to be transmitted over telecoms networks to the exchange’s matching engines.

AlgoSpan will use its high-speed international fiber optic trading network to make the LSE Group markets accessible to its global trading customers and hosted client community at the LSE Group data center. Additionally, AlgoSpan links to other financial liquidity centers in U.K. hosting facilities, namely, CME, Liffe, NYSE Arca and NYSE Euronext, BATS Europe and Chi-X, respectively, so that traders/brokers using Algo’s facilities can design and trade multi-exchange, multi-asset trading algorithms with certainty of order transmission times and shortest path connectivity, according to the company in its release.

In a statement, Hirander Misra, Algo Technologies CEO and director of AlgoSpan, said “High 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 Group’s 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.”

Ivy is Editor-at-Large for Advanced Trading and Wall Street & Technology. Ivy is responsible for writing in-depth feature articles, daily blogs and news articles with a focus on automated trading in the capital markets. As an industry expert, Ivy has reported on a myriad ... View Full Bio

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