Posted By Rich Miller On June 11, 2010 @ 8:45 am In colocation,Low Latency | 1 Comment
The Commodity Futures Trading Commission is considering new rules governing colocation services supporting high-frequency trading, according to Finextra . The CFTC says its proposed rule would ensure market participants would “have equal access to co-location and/or proximity hosting services without artificial barriers that act to exclude some market participants from accessing these services.”
The proposed rules would reportedly include both exchange-operated colocation services and third-party vendors, and include oversight of fees to ensure equal access for all participants. (Note: We’ve searched the CFTC web site but are having trouble locating the proposed rule changes. If any readers have it, please share in the comments).
Low latency trading has become a big business for a number of players in the data center space, prompting an arms race between financial data centers in northern New Jersey , where the leading stock exchanges are increasingly competing with commercial colocation and hosting specialists like Equinix, Savvis and Switch & Data. NYSE Euronext is also building a large data center in New Jersey  to expand its colocation space for traders.
For more on this topic, check out our High Frequency Trading Channel  or see these resources:
Article printed from Data Center Knowledge: http://www.datacenterknowledge.com
URL to article: http://www.datacenterknowledge.com/archives/2010/06/11/cftc-eyes-rules-for-low-latency-colo/
URLs in this post:
 Finextra: http://www.finextra.com/news/fullstory.aspx?newsitemid=21486
 northern New Jersey: http://www.datacenterknowledge.com../archives/category/new-york/
 data center in New Jersey: http://www.datacenterknowledge.com../archives/2009/11/24/nyse-reports-active-leasing-in-nj/
 High Frequency Trading Channel: http://www.datacenterknowledge.com../archives/category/low-latency/
 Can High Frequency Colo Support Many Players?: http://www.datacenterknowledge.com../archives/2009/11/24/can-high-frequency-colo-support-many-players/
 NASDAQ OMX Group Expands Colo Deal with Verizon: http://www.datacenterknowledge.com../archives/2009/12/16/nasdaq-expands-colo-deal-with-verizon/
 Equinix Plugs Into Even Lower Latency : http://www.datacenterknowledge.com../archives/2009/11/04/equinix-plugs-into-even-lower-latency/
 Rich Miller: http://www.datacenterknowledge.com/archives/author/richm/
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