The leading knowledge platform for the financial technology industry
The leading knowledge platform for the financial technology industry

A-Team Insight Blogs

Nomura Launches Collocation Facility Using Colt’s Network Infrastructure

Nomura has selected Colt to provide network infrastructure for its new European connectivity and collocation service. The Nomura initiative comes as the Japanese firm seeks to build on the strong European equities position of Lehman Brothers, whose European and Asian operations it took over a year ago. Nomura calls its new infrastructure a “next-generation ultra-low-latency trading service.” The offering will allow clients to make use of collocation facilities at data centres hosting Europe’s major exchanges and multilateral trading facilities. Colt provides dark fibre connectivity throughout the London area.

The Nomura set-up will also make use of a dedicated fibre-optic network connecting three major European cities to ensure fast market access for clients. According to Nomura, “The low latency network has been designed by Nomura’s technology and product teams utilizing the expertise of Colt, [which] will provide the network infrastructure for this solution.” Nomura’s co-location service is supported by a specialist infrastructure team, which will provide clients with a dedicated end to end service.

Nomura says the platform has also been designed to deliver a high level of security and seamless integration with its Prime Services products. Jeff Zorek, global co-head of prime product management at Nomura, says the firm has “combined leading networking and trading expertise with significant investments to achieve these goals.” Nomura plans to continue to work with Colt on future enhancements to the platform. Tanuja Randery, head of Colt’s Global Business Division, reckons the Nomura implementation “pushes the boundaries of latency.” He says the deployment makes use of Colt’s Next Generation Platform. Colt offers a wholly managed network and data centres in 13 countries, and provides last-mile fibre to 15,000 buildings.

Until now, its most visible claim to fame in the fast infrastructure space was the Turquoise contract, although it hosts seven of the top 20 global exchanges at its data centres. Just over a year ago, the company launched its Next Generation Network, based on IP and Ethernet transport, session control through an advanced Softswitch and an application layer for handling new services.

The NGN’s so-called Multi-Service Platform was initially launched for clients in London, Paris and Frankfurt, offering clients Colt Ethernet, Colt IP VPN and Colt IP Access services. The Carrier Ethernet-based MSP aims to offer high bandwidth services with lower latency, lower jitter and improved resilience. The system is based technology supplied by Nokia Siemens Networks, and uses a single box capable of delivering up to 16 services at speeds of up to 1 Gigabit/second. Colt reckons this saves space and power at customer premises and allows clients to add services or upgrade without the need for hardware changes.

Since it took over the European operations of Lehman Brothers, Nomura has climbed the ranks of London Stock Exchange (LSE) brokers by volume, reaching and retaining the number 1 spot in July, August and September 2009. The company believes the new collocation facility will aid future growth. “The launch of Nomura’s co-location network will help expand our market share across all European equities, and will assist us in becoming a top-five global trading house,” says Zorek. Nomura earlier this year adapted the former Lehman Brothers LMX suite of trading algorithms to form its ModelEx range, which has been launched for the Asian, European and U.S. markets.

Related content

WEBINAR

Recorded Webinar: Opportunities of new approaches to electronic trading

Challenged by legacy systems, less than ideal workflows and high costs, front-office trading teams lack the ability to adapt to clients’ evolving needs around integration, speed and multi-asset capabilities. They are also challenged by a capital markets environment characterised by legacy systems, shrinking margins and increased regulatory scrutiny. While these problems cause considerable friction in...

BLOG

Nasdaq Partners with AWS to Build Cloud-Enabled Capital Markets Infrastructure

US exchange operator Nasdaq plans to move its North American markets to the cloud, starting with its Nasdaq MRX options market, under a multi-year partnership with Amazon Web Services (AWS) with the intention of building what it calls the next generation of cloud-enabled infrastructure for financial markets. Nasdaq’s partnership with AWS follows last year’s launch...

EVENT

Data Management Summit London

Now in its 12th year, the Data Management Summit (DMS) in London brings together the European capital markets enterprise data management community, to explore the evolution of data strategy and how to leverage data to drive compliance and business insight.

GUIDE

Regulatory Data Handbook 2021/2022 – Ninth Edition

Welcome to the ninth edition of A-Team Group’s Regulatory Data Handbook, a publication dedicated to helping you gain a full understanding of regulations related to your organisation from the details of requirements to best practice implementation. This edition of the handbook includes a focus on regulations being rolled out to bring order and standardisation to...