SAVVIS, Inc, the global networking company based in St. Louis, will provide direct-access to the International Securities Exchange (ISE) Depth of Market Feed via its low-latency, high capacity Ethernet connectivity, according to today's announcement.
The new offering is geared to firms whose trading applications require sub-millisecond access to ISE's data feed, while expanding the number of venues to which SAVVIS provides direct connectivity for trading and market data.
"We have different product sets based on latency," says Varghese Thomas, VP and general manager of financial services at SAVVIS. Most clients that are collocating applications in SAVVIS' data center can take a direct connection to the ISE for trading or market data. "If you're not in the data center, we have Exchange Express, an Ethernet product," which is a high capacity, low latency network in the metro-New York area, explains Thomas.
ISE's Depth of Market feed provides aggregated volume of all quotes and orders available at each of the top five price levels for options that trade on the ISE. There is demand for a direct connection to the ISE Depth of Market feed, says Thomas. Member subscribers that are collocated in the SAVVIS data center are looking to get a direct connection from the ISE, he says.
Clients of SAVVIS Proximity Hosting that are located in the company's New York data centers will have direct access to the ISE market depth feed, while clients located outside the New York area will access the ISE depth feed via SAVVIS' Community of Interest Network (COIN). This is a global private network service that allows firms to take the ISE feed from anywhere in the globe. While some customers can get their data from the OPRA feed, which consolidates all the equity options exchanges into one feed, "Here you can take direct connectivity to each of those options markets," he says. "Really the differentiator is the low-latency delivery access method using Ethernet," emphasizes Thomas. Customers can take the ISE feed into a trading application or market data application that takes direct feeds. "Since we're providing the transport it can go to any of those platforms," says Thomas. Usually the direct exchange feeds are for automated applications or electronic trading as opposed to eyeballs, says Thomas. When ISE first announced the Depth of Market feed in October of 2007 distribution was available through BT Radianz's Radianz Shared Market Infrastructure and NYSE TransactTools' (now NYSE Euronext Advanced Trading Solutions) SFTI (Secure Financial Transaction Infrastructure) Network. In addition, the feed was available through ISE's PrecISE front-end trading application and ISE anticipated making the feed available accessible via additional connectivity providers. "There's a handful that carry it but not many carry it in the low-latency delivery with Ethernet high capacity," says Thomas. As market data rates grow in the options markets firms will need to have enough capacity, he says. Looking ahead, SAVVIS is continuing to add other exchange feeds for direct-low latency delivery. In New Jersey SAVVIS hosts five exchanges and ECNs in its data center, including BATS, Philadelphia Stock Exchange, the American Stock Exchange, which is being acquired by NYSE Euronext, and two others which it can't disclose. In Chicago it hosts two exchanges including the IntercontinentalExchange and a couple in the United Kingdom. "We're looking to add more additional feeds focusing on Europe," says Thomas. "You have all the MTFs (multilateral trading facilities) that are coming onboard. We'll be offering their market data as well," says Thomas. In addition, SAVVIS has a roadmap to add several more in the states as well as the United Kingdom. At the same time, it's scheduled to open up a second U.K. data center in Slough, Berkshire, in October.
Ivy is Editor-at-Large for Advanced Trading and Wall Street & Technology. Ivy is responsible for writing in-depth feature articles, daily blogs and news articles with a focus on automated trading in the capital markets. As an industry expert, Ivy has reported on a myriad ... View Full Bio