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

Options Completes Expansion of Velocity IaaS to Mahwah Data Centre

Subscribe to our newsletter

Options has completed the expansion of its Velocity infrastructure-as-a-service (IaaS) trading platform to the NYSE colocation facility in Mahwah, New Jersey. With this development, Options’ clients will not only benefit from exchange colocation to access a wide variety of dark and lit markets across the US, but also from low-latency trading strategies that could improve their competitive advantage.

Ken Barnes, senior vice president of corporate development at Options, says that given the difficulties of operating in today’s markets, this is an important development for both Options and its clients. Starting with a single client, he suggests access at the colocation site will grow quickly over the next few quarters as firms find it increasingly necessary to access new territory while keeping costs manageable.

Types of clients expected to use the colocated service include market making firms, both within and outside typical bank and broker dealer functions, that will see the broad appeal of the access, although Barnes notes that quant shops might also be good candidates for this type of offering. Depending on specific performance requirements, quant firms might find it desirable to either run their entire platform out of one site or spread out and move algorithms to individual distribution centres.

Considering the cost of using the colocation service, Barnes explains that large firms appreciate the agility of such setups as they can be adapted as markets evolve. He says: “When a firm needs to make changes such as expanding into new sites, we can open up a site like this in four to six weeks from getting a contract. Typically, that can’t be done by a bank.”

In terms of smaller firms, Barnes says budget is often a primary motivation for using IaaS as significant capital savings can be made by operating two to five servers at a site rather than investing in dedicated infrastructure.

Looking forward, Barnes highlights ongoing challenges, including fluctuating trading volumes, that are leading firms to re-examine their platforms and consider the viability of colocated services. As a result, he expects service providers will be pushed to focus more on silo support and a stable solution than pure speed. He concludes: “The low hanging fruit has been taken and firms want to work on differentiating the performance of their systems. They are now looking for service providers to up their game in terms of the tools they use, the tools they give to customers and the quality of service they provide.”

Subscribe to our newsletter

Related content

WEBINAR

Upcoming Webinar: Unlocking value: Harnessing modern data platforms for data integration, advanced investment analytics, visualisation and reporting

4 September 2025 10:00am ET | 3:00pm London | 4:00pm CET Duration: 50 Minutes Modern data platforms are bringing efficiencies, scalability and powerful new capabilities to institutions and their data pipelines. They are enabling the use of new automation and analytical technologies that are also helping firms to derive more value from their data and...

BLOG

XTX Markets Commits €1 Billion to Finnish Data Centre Complex

XTX, the London-based algorithmic trading firm, has announced plans to invest over €1 billion in a major data centre complex in Kajaani, Finland. The project represents one of the most significant data infrastructure investments in the Nordic region to date. The development, spanning 478 acres, will begin with a 15,000-square-metre facility designed to support 22.5MW...

EVENT

AI in Capital Markets Summit New York

The AI in Capital Markets Summit will explore current and emerging trends in AI, the potential of Generative AI and LLMs and how AI can be applied for efficiencies and business value across a number of use cases, in the front and back office of financial institutions. The agenda will explore the risks and challenges of adopting AI and the foundational technologies and data management capabilities that underpin successful deployment.

GUIDE

RegTech Suppliers Guide 2020/2021

Welcome to the second edition of A-Team Group’s RegTech Suppliers Guide, an essential aid for financial institutions sourcing innovative solutions to improve their regulatory response, and a showcase for encumbent and new RegTech vendors with offerings designed to match market demand. Available free of charge and based on an industry-wide survey, the guide provides a...