As the speed of access to markets remains paramount for brokerages, as well as their end users, oneZero Financial Systems (oneZero) announced today its presence at Equinix LD4 data-center, which provides co-located connectivity to London – the largest marketplace for Foreign Exchange.
The move of technology into Equinix LD4 allows oneZero to provide clients throughout Europe and the Middle East with reduced latency as many of the world’s largest dealers with presence in the UK have their servers located in such data centers like Equinix’s, and thus can speed the time to access fleeting rates before such prices quickly become stale.
Equinix has four data centers throughout the U.K. around London, with as many as 400 companies occupying the often hard-to-lease space as firms compete to be close to the price action.
The advantages of locating within a close proximity to where rates are disseminated has been part of the focal point of how certain high-frequency trading (HFT) strategies that are latency driven, or that have an unfair advantage from receiving data before the rest of the public, could pose an unfair advantage to participants, as covered by Forex Magnates recently surrounding related developments.
Proximity Hosting at the Heart of Market Speed
In Forex Magnates’ opinion, the positive and fair benefits of co-location far exceed the exploits of the few that could be using their proximity to the source unfairly -as is being debated now with regards to HFT and the U.S. stock markets for example. In foreign exchange, this latency only driven approach could be considered an evolved form of scalping or arbitrage, although best execution is also being reviewed in wake of asymmetrical slippage related cases.
The good side for online retail and institutional traders, as well as for brokerages, is that execution is aided when latency between two or more connections is reduced, and this enables better risk management and more time for all to manage in between prices while rates are still as fresh as possible. To counter the negative side of this extreme, such as in the above mentioned challenge posed by HFT, some platforms have started to implement a randomized pause to hinder any chance that a latency only driven strategy could exploit.
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For oneZero, it provides order routing and risk management technology for FX and CFDs, including MetaTrader4 bridge development and related solutions, and serves a growing number of brokerages, according to Forex Magnates’ research. The addition of the LD4 data center presence outside of London adds to the firm’s operations centers in Cambridge, MA and London, UK.
The new setup will complement its existing presence at Equinix NY4, located in New Jersey, where oneZero can now offer its Liquidity Bridge, oneZero Hub, and oneZero hosted MT4 offerings cross-connected and co-located with Liquidity Providers in the Equinix LD4 location.
Andrew Ralich, oneZero Financial CEO, said in the official press release regarding the announcement, “oneZero was among the first of retail focused 3rd party technology providers to invest in the numerous benefits of cross-connected, direct bank liquidity and the top tier data center services provided by Equinix in their NY4 location. Based on feedback from our clients, and a trend towards expanded points-of-presence for Liquidity Providers, matching engines and brokers, we have seen an increasing demand for on-site hosting of our order routing solutions in the UK.”
Around time of publication, Mr. Ralich explained to Forex Magnates reporters that his firm has been co-located at Equinix NY4 for nearly three years already, and is focusing now on adding further Equinix sites, such as the one announced today.
oneZero Hub Focuses on Institutional, as China, Japan, and Far East in Sight
In addition to its focus on retail brokerages and catering to the MT4 related needs that firms often have with regards to back-office and bridge development, oneZero has also been gaining significant traction in the expansion of their software into the institutional space, according to its press release today, and now features order routing, aggregation and risk management extensions via its new OMS product, the oneZero Hub.
Mr. Ralich concluded with regards to future expansion, “New solutions are becoming available for on-shore or PoP liquidity access out of data center locations in Japan, China and other areas of the Far East. We are excited to continue to expand our presence to meet growing client demand in those markets.”
The news follows after oneZero had announced a synergy with Currenex to deliver a liquidity bridge solution, as covered by Forex Magnates earlier this year.