The London Stock Exchange Group said that vendors, service providers and other "non-trading market participants" can place their technology in the same facility where it hosts exchange operations.

The "non-market participants" can place their own computing cabinets under the same roof as trading firms at a data center that provides access to securities markets operated by the LSE.

The LSE's "community of trading customers will directly benefit from this vendor diversification and the innovative, value added services and products these new non-trading participants will bring to our co-location environment,'' said Antoine Shagoury, chief information officer of the London Stock Exchange Group.

The LSE formally launched its Exchange Hosting service in September 2009, to allow trading firms to physically locate their servers as close as possible to the Exchange's matching engines. This was aimed primarily at high-frequency algorithmically-driven trading firms.

In the same month, NYSE Euronext openly invited competing markets operators, such as Direct Edge and the Nasdaq OMX Group, to place their technology next to its own matching engines in the new data center it was building in Mahwah, N.J. That center is now open, but competing markets have not taken space.

To accommodate the expansion of the Exchange Hosting service to non-trading participants, the London exchange group will release additional cabinet space in its central London data center at the end of November.

"Non-trading participants" will be able to use the Exchange Hosting space to offer:

  • Centrally redistributed market data
  • Managed computing services
  • Centrally provided software and services
  • Connections to trading services

Fixnetix also said it will allow banks, hedge funds and proprietary grading groups to use its private network to access more than 50 other markets worldwide, from the data center.


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