The International Securities Exchange (NYSE: ISE) today announced a new colocation service offering ultra low-latency connectivity to its options and stock exchanges. The colo service allows ISE member firms to place their trading hardware in the same building as ISE's data center, providing network transit times of less than 200 microseconds.
Low latency trading is a growing business for Wall Street firms, which use computerized algorithm-based trading systems to execute trades in milliseconds and even microseconds (one-millionth of a second). Ultra-low latency trading, also known as proximity trading, allows traders faster connections by placing their equipment as close as possible to the servers of the exchange executing the trade.
"This latest service underscores our ongoing commitment to ensure that our members have a range of customized alternatives to support their specific connectivity requirements," said Daniel Friel, ISE's Chief Information Officer.
Quality Technology Services (QualityTech), which manages ISE's data center, is offering the colocation service in conjunction with ISE. The location of the data center was not identified, but ISE is based in New York and QualityTech operates a data center in Jersey City, New Jersey. QualityTech will connect members to the ISE servers located in the same building via a secure and certified cross-connect.
International Securities Exchange Holdings, Inc. operates a family of innovative securities markets. ISE developed a unique market structure for advanced screen-based trading systems and in May 2000 launched the first fully electronic US options exchange. Currently, ISE operates the world's largest equity options exchange.