About a-team Marketing Services
The knowledge platform for the financial technology industry

A-Team Insight Blogs

NYSE Loosens Liquidity Centre Access

Subscribe to our newsletter

While there are no official statements being issued, inside word suggests that NYSE Euronext is loosening the restrictions previously in place on network access to its liquidity centres. Essentially, the exchange is now allowing remote access to its matching engines via networks other than its own SFTI.

Since flipping the on switch at its liquidity centres – aka data centres – in Mahwah, NJ and Basildon, UK in 2010, the NYSE has required trading firms to use the exchange’s own SFTI network – for Secure Financial Transaction Infrastructure – to gain remote access to them.  SFTI itself is accessed via a number of Points of Presence (PoPs) located at various telecom hubs and proximity centres in the New York City/NJ and London metro areas, and beyond. In London, NYSE also restricts connectivity into its PoPs to just three providers: Colt, euNetworks and Verizon.

Recently, though, it looks like that somewhat controversial policy has been relaxed, and that other network providers can now run their fibre connections directly into the data centres. This policy change follows on from a similar one at the end of last year regarding co-location eligibility, opening up the centres beyond member firms to the community of data and transaction network providers.

In London, some trading firms might look to take advantage of – or drive deployment of – new network routes, moving away from connecting via the current closest SFTI PoP, at Interxion’s east London proximity centre. Those firms will likely be those with fairly specific, latency-sensitive, trading strategies.  For others, Interxion’s combination of SFTI, connectivity to markets like Bats Europe and other community hub advantages will work well enough.

While exchange insiders say the policy change is just a case of responding to customer requirements, others point out that a more open access regime will likely find favor with European regulators, which are currently vetting the proposed NYSE/Deutsche Borse merger. That transaction could well see markets such as Eurex move from Frankfurt to Basildon.

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: Agility as Alpha: How Trading Infrastructure Determines Who Wins in Volatile Markets

Tariff shocks, geopolitical realignment and macroeconomic regime shifts are redrawing the investment landscape faster than most firms’ technology stacks can keep up. For hedge funds and asset managers, the ability to move quickly into new asset classes, geographies or strategies is no longer just an operational concern – it is a front-office differentiator and, increasingly,...

BLOG

The Industry Keeps Talking About 24/5 Trading, But Does It Actually Want It?

A panel convened to discuss the engineering of always-on markets spent most of its time on a more basic question: does anyone actually want them? The appetite for round-the-clock equity trading, it turned out, is far harder to find than the conversation about it would suggest. The session at A-Team Group’s ExchangeTech Summit London, entitled...

EVENT

Digital Assets & Tokenisation Summit, New York

A-Team Group’s Digital Assets & Tokenisation Summit spotlights how global financial leaders are rapidly embracing programmable tokenised assets and DLT networks to achieve real-time, 24/7 peer-to-peer transactions.

GUIDE

Regulation and Risk as Data Management Drivers

A-Team Group recently held a webinar on the topic of Regulation and Risk as Data Management Drivers. Fill in the form to get immediate access to the accompanying Special Report. Alongside death and taxes, perhaps the only other certainty in life is that regulation of the financial markets will increase in future years. How do...