CME Group is opening a hub inside Equinix’s London data center campus in Slough, just west of London.
The firm operates diverse derivatives marketplace and is establishing a
European CME Globex hub inside the LD4/LD5 data center campus.
It will open up the derivatives marketplace to potential customers already located inside Equinix International Business Exchange data centers.
William Knottenbelt, managing director EMEA, CME Group: "We continue to see growing demand from our customers based throughout Europe for our product offerings, which means that we also need to focus on building our infrastructure and technology capabilities in the region. By opening this new hub with Equinix, we are helping our customers achieve better cost and technology management efficiencies with the added benefit of accelerated access to our markets."
CME Groups says 25 percent of its electronic trading volume comes from outside the United States, primarily from the EMEA region.
Locating the CME Globex hub at Equinix's places its business within close proximity to Europe's trading platforms and electronic trading customers.
In a statement Equinix said “new market regulations across Europe are driving the movement of derivatives to trade on exchanges resulting in trade processing through central clearing houses and data being reported and housed in trade repositories.”
The company said it has built an infrastructure base for the expected algo trading in FX and derivatives.
CME Group exchanges offer products across asset classes, including futures and options based on interest rates, equity indexes, foreign exchange, energy, agricultural commodities, metals, weather and real estate. To connect with CME Globex hub customers need to either acquire space in Equinix's LD4/LD5 campus and cross-connect to the platform or lease a line.
Stewart Orrell, managing director of Global Financial Services, Equinix, said: "In today's evolving market, exchanges want to reach the largest trading community with the lowest infrastructure costs, using data centers already well-populated with their target customers. CME Group will be a uniquely powerful addition to the thriving financial ecosystem inside Equinix."