Financial markets have evolved over the last thirty years and electronic trading has taken centre stage. As markets face sharp movements due to intense volatile conditions getting to a price first has been a priority for all trading members.
In this environment, co-location has become synonymous with faster Execution and HFT. Co-location is simply positioning oneself as close as possible to the counterparties one wants to trade, with the intention of ensuring market data and executions are received instantaneously. Those counterparties that everyone is snuggling near can be exchanges or OTC dealers.
In the fragmented world of OTC FX, co-location has been slower to take place. However, as the asset class gets further recognition, more players have begun to take part in the market which has created demand for co-location facilities similar to equities and futures.
Co-location has been part and parcel of the exchange trading environment since the last decade when banks and professional traders invested in automated trading solutions. The concept started in the equities markets where traders created algorithms to trade stocks since the 1980s but the trend took off in the 2000s as computer power became cheaper and more accessible.
Responding to the increase in automated trading and demand of low latency executions from HFT players, stock exchanges began to house trader servers in their own data centres. At the NYSE, servers are based in New Jersey where firms can co-locate next to the exchange server.
Current estimates are that algorithmic and high frequency trading account for 55-70% of global equity trade flow as firms have spent considerable amounts of capital to ensure theirsystems get the price and data first.
Role of Co-location
Co-location is a by-product of the need to reduce latency, or latency optimisation. The demand to execute with immediacy has been the driving force behind co-location. In essence a hedge fund situated in Frankfurt who wants to reduce any ‘additional factors’ when competing with a New York based hedge fund in regards to latency, can use co-location to increase the proximity of their servers, something previously unavailable.
Roji Oommen, Senior Director of Business Development in the Financial Services Division of Savvis, a leading provider of Managed Hosting Solutions, Co-location, Automated Management and Provisioning Systems, and Information Technology consulting across the globe believes co-location has come from growth in algorithmic trading strategies. He says “Co-location has generated interest for a number of reasons.
First and foremost, as the world becomes more electronic and digital, the computer infrastructure required to operate and support it has become much larger and even more critical”.
Financial markets have evolved over the last thirty years and electronic trading has taken centre stage. As markets face sharp movements due to intense volatile conditions getting to a price first has been a priority for all trading members.
In this environment, co-location has become synonymous with faster Execution and HFT. Co-location is simply positioning oneself as close as possible to the counterparties one wants to trade, with the intention of ensuring market data and executions are received instantaneously. Those counterparties that everyone is snuggling near can be exchanges or OTC dealers.
In the fragmented world of OTC FX, co-location has been slower to take place. However, as the asset class gets further recognition, more players have begun to take part in the market which has created demand for co-location facilities similar to equities and futures.
Co-location has been part and parcel of the exchange trading environment since the last decade when banks and professional traders invested in automated trading solutions. The concept started in the equities markets where traders created algorithms to trade stocks since the 1980s but the trend took off in the 2000s as computer power became cheaper and more accessible.
Responding to the increase in automated trading and demand of low latency executions from HFT players, stock exchanges began to house trader servers in their own data centres. At the NYSE, servers are based in New Jersey where firms can co-locate next to the exchange server.
Current estimates are that algorithmic and high frequency trading account for 55-70% of global equity trade flow as firms have spent considerable amounts of capital to ensure theirsystems get the price and data first.
Role of Co-location
Co-location is a by-product of the need to reduce latency, or latency optimisation. The demand to execute with immediacy has been the driving force behind co-location. In essence a hedge fund situated in Frankfurt who wants to reduce any ‘additional factors’ when competing with a New York based hedge fund in regards to latency, can use co-location to increase the proximity of their servers, something previously unavailable.
Roji Oommen, Senior Director of Business Development in the Financial Services Division of Savvis, a leading provider of Managed Hosting Solutions, Co-location, Automated Management and Provisioning Systems, and Information Technology consulting across the globe believes co-location has come from growth in algorithmic trading strategies. He says “Co-location has generated interest for a number of reasons.
First and foremost, as the world becomes more electronic and digital, the computer infrastructure required to operate and support it has become much larger and even more critical”.
Institutional FX Demand Continues to Climb in April
Network, Learn, Grow | FMAS:24
Network, Learn, Grow | FMAS:24
Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
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Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
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Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
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Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
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Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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