IRESS Launches Low-Latency Trading Eco-system in Australia
Australian financial market participants will have an ultra fast, low maintenance, highly connected trading ecosystem to connect them with execution venues in Australia, thanks to the following initiatives announced by IRESS Market Technology (IRESS):
• The IRESS Optical Network (ION) – a national, ultra low-latency, high-bandwidth network connecting all Australian IRESS client sites via dark fibre, delivering market data and trading connectivity
• IRESS to be foundation customer of ASX co-location facility
• Chi-X and IRESS to co-locate in Sydney
IRESS Managing Director, Andrew Walsh, said ION, with connectivity to Australian execution venues, will deliver to clients, industry-leading, direct low-latency access to market data and order routing.
“The launch of ION demonstrates our deep understanding that low-latency high-bandwidth trading infrastructure is essential for the anticipated increase in message volumes and latency demands, as experienced in other countries with multiple execution venues,” Mr Walsh said. “Our low-latency multi-market product range which includes IOS+ and FIX+, coupled with our integrated high-speed best market router (BMR) and ION, give IRESS clients continued access to a premier connectivity platform and the confidence of fast, reliable and flexible trading infrastructure in a multi-market world.”
ION will replace the existing IRESS managed network, which connects the majority of trading participants in Australia, and will deliver all existing IRESS services. Rollout, which involves installing over 200 dark fibre connections to clients and between IRESS data centres nationwide, will begin in December 2010 and is due for completion in early 2011.
The key features of ION include:
• Fully managed network by IRESS
• Ultra low-latency and jitter
• High bandwidth (1Gbps/10GBPS per site)
• Low latency high-capacity inter-capital links (1Gbps+)
• No common path for over 95% of clients
ION will be the connectivity platform for additional IRESS services and those anticipated with multi-venue trading, such as consolidated market data feeds, high-speed smart routing, and connectivity for third party services.
“IRESS clients using third-party or proprietary trading solutions will also be able to leverage ION for their connectivity alongside IRESS services,” Mr Walsh said.
This technology leap is being made available to Australian participants cost-effectively, thanks to IRESS’ unique scale and ongoing investment.
IRESS AND CHI-X TO CO-LOCATE
Earlier this week, IRESS and the Australian Securities Exchange (ASX) announced they are working together to offer integrated trading to ASX VolumeMatch and PureMatch, and as part of this will be a foundation customer of the new ASX co-location facility.
IRESS and Chi-X Australia have also agreed to co-locate together. This location will have direct connectivity on ION, and will act as one of the Sydney-based nodes for IRESS’ dual hot/hot data centre design offering clients immediate and fully functional failover protection.
“In combination, IRESS’ highly connected low-latency trading environment connecting venues and participants, represents a unique ecosystem in Australia,” Mr Walsh said. “It means that all connected participants will have seamless cost-effective access to Chi-X and other markets to which IRESS connects, as they come online.”
Further to co-location, Chi-X has been working closely with IRESS at a technical level to ensure that clients within the facility benefit from unconstrained throughput to the primary Chi-X matching engine, via dedicated fibre 10Gbps cross-connects.
Chief Operating Officer of Chi-X Australia, Peter Fowler, said, “We see this as recognition by IRESS of the opportunity Chi-X Australia presents as a new participant in the Australian capital markets. We look forward to providing IRESS clients with a new level of market connectivity and functionality.”
Mr. Fowler said it is an important aspect of the Chi-X global value proposition that markets provide superior and equitable access to all participants and that this access is provided at a low cost. “The ION initiative by IRESS complements and extends these principles to all IRESS clients across Australia.” Mr Walsh said IRESS is excited by the changing landscape and is working closely with the ASX and alternative venues such as Chi-X to offer new solutions for Australia.
“In light of some new challenges brought about by multi-markets in relation to compliance, execution complexity, message rates and fragmentation, IRESS’ technology capability and ongoing investment in trading systems and networks helps to ease the transition and cost to multi-venue execution for Australian participants,” he said. “The opportunity and efficiencies captured by ION and the resulting highly connected trading ecosystem are unique in an Australian context, and only strengthened by our venue and broker-independent role.”