Communications and connectivity solutions provider IPC recently announced a partnership with Kaiko, the cryptocurrency market data provider, to deliver enterprise-grade data to IPC’s Connexus Crypto ecosystem.
Launched last year, Connexus Crypto is IPC’s flagship solution for cryptocurrency trading, designed to support complex trading strategies. The solution enables users to implement cryptocurrency arbitrage, providing low latency connectivity and instant access to the liquidity of multiple global crypto exchanges. Connexus Crypto is underpinned by the Connexus Cloud platform, which connects more than 7,000 global market participants.
Following the integration with Kaiko, which aims to serve as a single source for market information from both centralised and decentralised digital asset marketplaces, IPC’s Connexus Crypto trading environment will offer real-time streaming data, including spot and derivative data, as well as aggregated quotes and rates. By combining Kaiko’s real-time cryptocurrency prices and Connexus Crypto’s inter-exchange connectivity, rapid execution, and service reliability, the goal is to enable users to execute efficient arbitrage and algorithmic trading strategies, as well as facilitate effective risk management, investing, monitoring, and regulatory compliance activities.Speaking with TradingTech Insight, Bob Santella, CEO of IPC, explains the background behind the partnership, and how he sees it benefitting the two company’s respective customers and the wider cryptocurrency trading community.
“As two leading brands in the marketplace, looking to facilitate customers to gain access and exposure to digital assets, the partnership was an obvious choice for us to successfully meet that requirement and align with the rapidly transforming crypto marketplace,” he says. “Overall benefits include IPC’s global ecosystem consisting of easily accessible ultra and low-latency networks. In combination with our total cost of ownership advantages and, of course, our 50 years of experience servicing capital markets. This makes for a very compelling offering for the cryptocurrency trading communities.”
With the cryptocurrency markets evolving so rapidly, the integration of Kaiko’s market data with IPC’s Connexus Crypto platform helps addresses many of the challenges that traders face, says Santella. “We leverage our position as a global network service provider to the capital markets with our low latency access to liquidity centres. The collaboration supports our customers’ arbitraging strategies through real time market data combined with our access to exchanges and execution venues.”
Ambre Soubiran, CEO of Kaiko, explains that IPC and Kaiko jointly recognised the growing need to address the surging demand for high-quality, reliable, and secure market data solutions in the digital asset space. “With the emergence of cryptocurrencies and other digital assets, institutional investors and traders are increasingly seeking to enter this market,” she says. “However, they require institutional-grade solutions that meet the same standards as traditional finance, including off-internet, low-latency connectivity for their market data operations. As data services exist at the intersection of both data products and data infrastructure, this collaboration allows for the combined solution to comply with institutional demand requirements.”
Soubiran continues: “IPC’s Connexus is deeply integrated into the IPC ecosystem of network and infrastructure. It enables trading operations to deploy their infrastructure in a ready environment, making it capital markets ready. A key part of achieving that is to have comprehensive market data that is ready to plug into your trading environment – and that’s where Kaiko comes in. Institutional players can rest assured that they will have compliant, licensed access to exchange data that is consolidated and normalised into customisable single-order books. Beyond the base layer, they will also access Kaiko’s proprietary data products within IPC’s environment, ranging from triangulation and best execution monitoring to market-wide implied volatility, regulated reference rates and indices, as well as streaming proprietary, patented Defi Market Data – all available for arbitrage, alpha, and asymmetrical information risk monitoring without the need to run any blockchain node.”
A key differentiator of the combined IPC-Kaiko offering is the fact that Kaiko is the only market data and information services player in the industry to be SOC2 Type 2 complaint, claims Soubiran. “This means that we undergo continuous auditing by a big4 (unlike the SOC2 Type 1 declarative model) on our operations, stack, security, and reliability – from cybersecurity to high availability, disaster recovery, incident management, and source code management. We operate 24/7 on a follow-the-sun model and manage our bare metal infrastructure. Only such a mature operating level – matching capital markets standards – is compatible with IPC Connexus’ level of service and the expectations of customers relying on IPC services,” she says.
“Our competitive edge comes from our ‘one stop shop’ style advantage as well as our capital markets specific expertise, optimized infrastructure-as-a-service capabilities and experience as a managed service provider,” adds Santella.
Although this is just the beginning of their partnership, the two companies are already discussing plans to expand and enhance their collaboration in the near future, stating that their joint goal is to provide their mutual clients with a competitive advantage by offering a comprehensive suite of products and services that meet their evolving needs.
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