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

A-Team Insight Blogs

Smoke or Fire in Latency M&A?

Subscribe to our newsletter

It’s surprising how market downtime – that is to say the just-passed holiday period – continued to generate tittle-tattle, which of course we were able to monitor from the southern tip of Europe thanks to the modern marvel that is the iPhone.

Tittle-tattle it may be, but something is afoot in the low-latency connectivity space. Here’s the chronology:

Just before we skedaddled out of Heathrow on what might have been the last flight south before the great deluge we ran into an old friend at Royal Exchange. MarketPrizm – the low-latency market connectivity technology supplier formerly known as Chi-X Global Technologies or even Cicada – was close to securing a buyer. That the company has been on the sales block for most of the second half of 2010 was pretty much an open secret, compounded by the departure of Chi-Tech CEO Greg Smith midway through the campaign.

The Royal Exchange’s coffee cups were muttering the name of Colt. We duly – and dutifully – followed up through official channels. No dice. But unofficial ones suggested that two possible investors in MarketPrizm were close to making a move. The idea, these unofficial said, would be to expand the company’s low-latency connectivity capabilities in Asia.

With this we jetted off to our place in the sun, where the iPhone began rattling with new M&A talk. This time it was French low-latency connectivity provider QuantHouse’s turn to play acquiree. The interested party, according to the iPhone? SunGard. Again, we dutifully followed up through official channels. Again, no dice. But unofficial ones did suggest that QuantHouse is in fact in the midst of a funding round aimed at – you guessed it – raising cash to finance an expansion of its operation into Asia.

Fast forward to this morning. Colt announces it is providing a new proximity services capability for clients seeking fast connectivity to London Stock Exchange’s data centre in the City of London. The new capability is offered as a managed service by Colt and allow clients to link to other execution venues linked by Colt’s extensive fibre network.

Nothing untoward in that. But, would Colt welcome help from a connectivity specialist like MarketPrizm, or indeed QuantHouse, which already offers connectivity into LSE’s data centre? Very possibly. Does this explain the wintry gossip? Also very possibly.

We’re waiting for the penny to drop. In the meantime, any suggestions warmly received.

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: Leveraging cloud as part of your colocation or proximity hosting strategy

As firms assess which elements of the trading workflow can be profitably migrated to cloud environments, ensuring compatibility with colocation and proximity hosting facilities becomes paramount. Practitioners need to take into account data access and security, messaging latency and regulatory considerations around operational resilience and physical location of client data. This webinar will discuss best...

BLOG

Overbond Secures New Round of Funding from Fitch Ventures and Aims for International Expansion

Overbond, the API-based credit trading automation and execution service for the global capital markets, has secured funding from Fitch Ventures, the equity investment arm of Fitch Group, the financial information services provider. The capital will help Overbond grow its sales and marketing division as it plans to open an office in London and double its...

EVENT

TradingTech Summit London

Now in its 11th year the TradingTech Summit London brings together the European trading technology capital markets industry, to explore how trading firms are innovating in today’s cloud and digital based environment to create flexible, scalable trading platforms to support speed to market and business agility.

GUIDE

Trading Regulations Handbook 2022

Welcome to the third edition of A-Team Group’s Trading Regulations Handbook, a publication designed to help you gain a full understanding of regulations that have an impact on your trading operations, data and technology. The handbook provides details of each regulation and its requirements, as well as ‘at-a-glance’ summaries, regulatory timelines and compliance deadlines, and...