Avelacom's New PoP Reduces London-Tokyo Latency to 145.3ms

Avelacom, a provider of connectivity and infrastructure ‎solutions, announced this Thursday that it has launched a new point of presence (PoP) in Equinix’s Tokyo (TY3) International Business Exchange Data Center Data Center A data center is a building or network used to house computer systems and associated components, such as telecommunications and storage systems.This generally includes redundant or backup power supplies, redundant data communications connections, environmental controls, and various security devices. Large data centers are industrial scale operations using as much electricity as a small town.Over the past decade, data center space has been growing at an incredible rate. This has increased as more and more businesses are moving toward cloud computing.In addition to the demand, the overall amount of data that is stored is also at levels that would have been unheard of not so long ago, which has resulted in increasingly large data centers.Why are Data Centers Important?Technology operations are a crucial aspect of most corporate businesses and institutions. The prime concerns are business continuity; companies rely on their information systems to run their operations. If a system becomes unavailable, company operations may be impaired or stopped altogether. It is necessary to have a dependable infrastructure for IT operations to minimize any chance of disruption. Information security is also a concern, and for this reason, a data center provides a secure environment that minimizes the chances of a security breach. A data center must, therefore, keep high standards for assuring the integrity and functionality of its hosted computer environment. Data centers are extremely valuable constructs within the financial services industry. For example, banks and financial institutions safeguard customer information in both cloud and on-premise data centers, as well as on trading floors and in branch operations. Data centers and critical infrastructure must be reliable, secure and available to successfully deliver internal IT services and digital banking services. A data center is a building or network used to house computer systems and associated components, such as telecommunications and storage systems.This generally includes redundant or backup power supplies, redundant data communications connections, environmental controls, and various security devices. Large data centers are industrial scale operations using as much electricity as a small town.Over the past decade, data center space has been growing at an incredible rate. This has increased as more and more businesses are moving toward cloud computing.In addition to the demand, the overall amount of data that is stored is also at levels that would have been unheard of not so long ago, which has resulted in increasingly large data centers.Why are Data Centers Important?Technology operations are a crucial aspect of most corporate businesses and institutions. The prime concerns are business continuity; companies rely on their information systems to run their operations. If a system becomes unavailable, company operations may be impaired or stopped altogether. It is necessary to have a dependable infrastructure for IT operations to minimize any chance of disruption. Information security is also a concern, and for this reason, a data center provides a secure environment that minimizes the chances of a security breach. A data center must, therefore, keep high standards for assuring the integrity and functionality of its hosted computer environment. Data centers are extremely valuable constructs within the financial services industry. For example, banks and financial institutions safeguard customer information in both cloud and on-premise data centers, as well as on trading floors and in branch operations. Data centers and critical infrastructure must be reliable, secure and available to successfully deliver internal IT services and digital banking services. Read this Term.

Now, trading firms have access to faster and sturdier connectivity between TY3 and Equinix’s London (LD4/5) data center facilities. According to the statement released by Avelacom, this new route between London and Tokyo delivers the lowest latency in the market, with a round trip taking 145.3 milliseconds.

London and Tokyo are both key foreign exchange (FX) markets. However, due to the significant geographical distance between the two cities, the route between the two has often been plagued with latency and redundancy issues. The decrease in milliseconds is particularly ‎important to banks, high-frequency trading (HFT) firms, ‎FX related applications, and other financial organizations.

According to Aleksey Larichev, the Managing Director at Avelacom, the average round-trip latency for this route is around 156 milliseconds. If market participants switch to the Avelacom network, they can take more than ten milliseconds off this time.

"Connectivity is one of the key drivers for success in the electronic trading environment, and our London – Tokyo ultra-low latency offerings give companies a true competitive edge,” Larichev said.

Equinix has more than 200 data centers around the world which host above 1,800 network providers. The Avelacom network offers trading firms access to Colocation Colocation Colocation concerns the practice of accessing prices a split second faster through direct feeds.This differs from the congregation of data that is generally transferred between two exchanges then displayed on a trader’s computer, mobile device, or tablet. Popularized out of the wake of high-frequency trading, colocation is becoming more sought after as speed continues to prove paramount within the day trading arena and algo trading is on the rise. What Are the Benefits of Colocation?The core advantage that stems from colocation includes lower latency. This helps traders to secure the best price while shaving vital milliseconds off the time it takes to execute trades. Networks continue to grow in complexity and speed continues to play a paramount role in trading. There are also in turn, more chances of a system failure or potential outages which can prove especially hazardous for high-frequency traders (HFT). For traders who reside near the servers used for the matching engines, colocation may not be required due to a decreased network latency between hosted data centers.In the United States, Nasdaq offers customers the ability to colocate its services and equipment within the Nasdaq Data Center, which provides the liquidity and speed needed for all U.S. markets but this opportunity comes with a fee. For trading firms that colocate their services, their computers are almost always among the first orders executed on any single trade, and given the technology utilized far less oversight is required on the exchange itself. As HFT and algo-trading continue to grow in popularity, so will the practice of colocation as a means to level the dynamic trading field. Colocation concerns the practice of accessing prices a split second faster through direct feeds.This differs from the congregation of data that is generally transferred between two exchanges then displayed on a trader’s computer, mobile device, or tablet. Popularized out of the wake of high-frequency trading, colocation is becoming more sought after as speed continues to prove paramount within the day trading arena and algo trading is on the rise. What Are the Benefits of Colocation?The core advantage that stems from colocation includes lower latency. This helps traders to secure the best price while shaving vital milliseconds off the time it takes to execute trades. Networks continue to grow in complexity and speed continues to play a paramount role in trading. There are also in turn, more chances of a system failure or potential outages which can prove especially hazardous for high-frequency traders (HFT). For traders who reside near the servers used for the matching engines, colocation may not be required due to a decreased network latency between hosted data centers.In the United States, Nasdaq offers customers the ability to colocate its services and equipment within the Nasdaq Data Center, which provides the liquidity and speed needed for all U.S. markets but this opportunity comes with a fee. For trading firms that colocate their services, their computers are almost always among the first orders executed on any single trade, and given the technology utilized far less oversight is required on the exchange itself. As HFT and algo-trading continue to grow in popularity, so will the practice of colocation as a means to level the dynamic trading field. Read this Term facilities that are close to the largest financial exchanges and ECNs in the industry, via a cross-connect inside Equinix’s data centers.

Commenting on the announcement, Russell Poole, the Managing Director of Equinix UK added: "Platform Equinix is home to the world's largest multi-asset trading venues and provides interconnection between ecosystem participants to accelerate business performance.

“Avelacom’s new PoP offers increased opportunities for FX market players, as latency sensitive traders access the London-Tokyo route.”