NYSE Technologies added a new Secure Financial Transaction Infrastructure (SFTI) low-latency link direct from its Basildon data center to Frankfurt, enabling trading in the markets based at the Equinix FR2 Data Centre and Basildon 'at the lowest-latency currently possible.'

SFTI is a network backbone operated by NYSE Technologies which connects  NYSE Euronext's markets around the globe. It also allows data centers to connect to other markets including those located in Basildon with other European trading venues and with  markets in Japan, Hong Kong and Singapore.

In a separate announcement today Equinix said that NYSE Technologies extended the  SFTI network into its International Business Exchange (IBX) data centers in Hong Kong and Tokyo. 
It means Equinix data centers in seven markets now have direct access to SFTI. These are New York, Chicago, Singapore, Frankfurt, London, Hong Kong and Tokyo.

Ian Jack, Global Head of the SFTI at NYSE Technologies, said: "We are very pleased to extend the SFTI backbone into Equinix's data center in Hong Kong and provide direct metro access in Tokyo, both key financial hubs in Asia. Our SFTI Access Centers in Equinix's data centers in Hong Kong, Tokyo and Singapore allow customers to connect to regional and global exchanges and markets."

In an interview with DatacenterDynamics, he said: “The network and data center go hand in hand, and the data center is a network-ready service. We are not just enabling customers to get low latency access to matching engines, but we believe we have an efficient infrastructure that operates based on an open model and methodology.”

“NYSE Technologies has optimised the fiber routes between Frankfurt and Basildon and this reduced latency brings with it opportunities for arbitrage between markets in those locations. We delivered this by going out to the carriers to find the shortest route between markets as it is not often that a new route like this gets built with access to two major venues. We have also recently put in access centers in Singapore, Tokyo and HK and have invested in networks that provide firms with connectivity between them.”

SFTI is NYSE Euronext’s network platform over which market participants can trade. It sits on a fibre backbone that accesses 60 venues across the world.

“By upgrading the fiber path we are offering a lower cost of access and a faster route. Traditionally the trade off has been between cost and speed. The new fibre service is not as fast as using radio frequency (microwave), although microwave has bandwidth and availability limitations. There is also a significant cost difference. If you look at trends around low latency trading, “high frequency” volume is less than it was several years ago, but it is still significant and the requirement exists for firms to take out milliseconds. With the new route over the networks we are taking out 2 milliseconds on one way latency.”

“For existing customers the offering is a faster service at the existing cost. We’ve had a good amount of interest from those who do not currently use the backbone and  we are starting to see a lot of firms in Frankfurt who already trade on both NYSE Liffe and Deutsche Borse’s Eurex markets.”

“Our strategy is to be as open as possible with our technology if there is an opportunity to take friction out of the market on behalf of clients we will.” 

David Wilkinson, senior director, Financial Services, Equinix Asia-Pacific, said: "NYSE Technologies' continual expansion with Equinix is a strong testimony to our unparalleled global footprint. With the deployment of NYSE Technologies' SFTI Access Centers in Hong Kong and connectivity in Tokyo our financial ecosystem becomes even stronger and more valuable for both new and current financial participants accessing financial markets."
Today also saw euNetworks plug in to NYSE's Basildon data center. Last week Varghese Thomas was appointed as VP and global head of infrastructure solutions.