Bolsa Mexicana de Valores Group (BOLSA), which owns BMV, the Mexican stock exchange, and MexDer, the Mexican derivatives exchange, announced today that it launched Co-location service on November 12th, which is offered to all the trading members.
Click here for detailed BMV_ Co Location and Transaction Services
The new service allows members to colocate trading equipment and proprietary algorithms next to the BOLSA Central Trading Engine, allowing members “to have electronic traders back in the trading floor”. This is a unique opportunity for high frequency traders and algo traders to execute derivatives and equity trades at the lowest latencies available in the market.
The BOLSA’s cross border indicators show an increase in the volume and number of trades executed through Sentra Capitales since 2004, indicating that the Mexican market is also following the trend of automated trading and order execution. As such, the Co-Location service meets the speed requirements for cross border trading, offering latencies below 1 millisecond.
The service envisions the installment of cross border servers for members of BMV, MexDer and real-time information distributors next to the BOLSA Central Trading Engine to increase transmission speed along with top-line service, ongoing monitoring to networks and redundancies at each point of service.
Members of the BMV and MexDer, as well as cross border information distributors, Bursatec and other technology suppliers attended the launching event.
In the financial industry, where trading execution speed is of the utmost importance, the service of Co-Location places you right next to your partner, in the same physical center, offering speed and reliability in their transactions. This project follows the trend to further adopt international standardization practices.
Source:Bolsa Mexicana de Valores Group, 19.11.2009
Press Feedback:
Grupo Bolsa in co-location push, FT 20.11.2009
The move is a further sign of the growing popularity of co-location – where brokerages physically place their servers as close as metres away from an exchange’s matching engine to help shave milliseconds off the time needed to execute trades.
The co-location service meets the speed requirements for cross-border trading, offering latencies – the speed of confirming the trade – below one millisecond, Grupo Bolsa said.
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