The business success in the capital market depends on the speed at which your data is transmitted from one location to another and that is why there has been a spurt in the demand for automated trading platforms. But it demands high-speed interconnected network as high latency may cost you millions of dollars rendering your entire trading business unviable.
A data center platform like Equinix solves this major pain point by providing reliable connectivity and minimizing downtime and delays. It is able to achieve this by providing servers closer to exchanges. It minimizes time delay by reducing the time of data transmission from one end to other.
This perfectly makes sense when capital markets across the globe are competing to save microseconds and nano seconds from transactions. The sheer scale at which automated high-frequency trading works is mindboggling. From exchanges, brokers to developers, they all have just one mission i.e. improving technology to eliminate latency completely, though that is an elusive goal considering it would require transmitting data even faster than the speed of light.
Traditional Methods Have Limitations
Technology has helped reduce latency by improving CPU cycles and the input-output speed of devices, thereby increasing the computation speed of software and optimizing the bandwidth of networks. However, this helps minimize latency only to a certain extent. The latency induced by the fiber optic network is another big headache for those at the helm of managing large trading funds.
This is where the role of data centers like Equinix comes into the picture as they help process financial data and trades at an unimaginable speed by offering colocation services. It helps you leverage the power of global liquidity of different financial assets within an ultra-short period of time.
Consolidation of Core Electronic Trading Infrastructure
Stock Exchanges, banks, large stock brokers, and liquidity services providers are fast opting for colocating their servers within exchange’s data center. The London Stock Exchange has already announced such services. Financial markets are moving toward the consolidation of core electronic trading infrastructure.
How Equinix is Solving a Major Problem
Equinix’s Ethernet data center platform solves this major pain point. Headquartered in Redwood City, California, Equinix, Inc. is an American multinational company leading the global colocation data center market share, with around 200 data centers located across the world. It mainly serves large banks, liquidity providers, and brokers.
The company facilitates colocation services for foreign exchange service providers, forex trading firms, equities, liquidity service providers, and other stakeholders. It facilitates collaboration between individual market systems around the world and converges them into the global ecosystem of network- rich data centers that helps pump liquidity from one market system to another. When market participants are clustered to data centers near exchange server locations, latency is reduced and money is saved.
This gives birth to a new market ecosystem comprising exchanges, clearing houses, financial institutions, proprietary traders, forex brokers, and market data vendors. This has increased the speed of electronic order execution. It is now possible to transmit data quicker than the blink of an eye. News, analytics, and trade execution can be done in a matter of a few milliseconds whether the trade location is in Frankfurt, Singapore, Hong Kong, or Chicago.
In a scenario where big data and technology are changing the technology field, Equinix has created a whole new playing field. More than 700 prominent financial brands have stationed their mission-critical infrastructure with Equinix. With exchanges located all across the world, from New York to the one recently acquisitioned in Amsterdam, it is certain that Equinix helps global liquidity flow on a global scale.
Inside the campuses of Equinix, dozens of exchanges and trading platforms interconnect in a thriving ecosystem. These campuses help various members of the ecosystem fine-tune latency and execute complex trading strategies and harness the ever-increasing jet streams of data. New connections go live in a matter of hours, enabling you to market yourself with agility. Numerous exchanges connect member firms and service providers with an array of companies providing liquidity that flows through Equinix data center campuses. You can choose the best of the breed inside Equinix.
Equinix exchange platform has revolutionized the distribution of market data, ushering in a new level of efficiency, barreling down costs and opening up new revenue opportunities.How Equinix is Solving a Major Problem Click To Tweet