About a-team Marketing Services
The knowledge platform for the financial technology industry
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: Navigating the Build vs Buy Dilemma: Cloud Strategies for Accelerating Quantitative Research

For many quantitative trading firms and asset managers, building a self-provisioned historical market data environment remains one of the most time-consuming and resource-intensive steps in establishing a new research capability. Sourcing data, normalising symbologies, handling corporate actions and maintaining infrastructure can take months and absorb significant budget before a single model is tested. At the...

BLOG

Why the Buy Side’s Real Agility Problem is its Operating Model

Most buy-side firms know how to find an opportunity. What an increasing number are discovering is that the gap between identifying one and acting on it has become a structural weakness. And that the weakness sits not in the front office but in the operating model underneath it. That was the recurring argument of a...

EVENT

TradingTech Summit New York

Our TradingTech Summit in New York is aimed at senior-level decision makers in trading technology, electronic execution, trading architecture and offers a day packed with insight from practitioners and from innovative suppliers happy to share their experiences in dealing with the enterprise challenges facing our marketplace.

GUIDE

MiFID II Handbook

As the 3 January 2018 compliance deadline for Markets in Financial Instruments Directive II (MiFID II) approaches, A-Team Group has pulled together everything you need to know about the regulation in a precise and concise handbook. The MiFID II Handbook, commissioned by Thomson Reuters, provides a guide to aspects of the regulation that will have...