03.01.2012

Data Providers Cater to HFTs

03.01.2012
Terry Flanagan

Smorgasbord of offerings include DMA and co-location.

High frequency trading is driving a demand for low latency trading solutions.

The trend for co-location services, particularly in the U.S., has increased significantly in recent years due to the growth of low latency trading internationally.

“In order to participate in the HFT area you need to be technologically prepared with low latency market data, a low latency sensitive infrastructure –proximity hosting, co-location and ultra-fast networks–and an automated trading platform,” Pierre-Francois Filet, CEO and co-founder at QuantHouse, told Markets Media.

QuantHouse, a provider of next-generation trading solutions, has launched co-location and DMA services within the recently opened CME Group co-location facility in Aurora.

“This will allow systematic trading firms to benefit from close proximity to the CME Globex match engine, reduced latency and direct access to the exchange’s liquidity center,” said Filet.

QuantHouse has an eclectic mix of customers, made up of broker dealers (e.g. Newedge, CM CIC Securities), buy and sell side (e.g. market makers, black box traders, high-frequency quants, prop Desks) and exchanges and MTFs (e.g. EDX London, BATS, Turquoise, London Stock Exchange).

For QuantHouse, CME Group’s data center offering was the next logical step in providing enhanced market data and the lowest latency possible when accessing the U.S. market and therefore addressing client demand from around the globe.

“By locating our technical structures to capture and standardize market data within Aurora, we can provide our clients with the ability to leverage the data and remain one step ahead of their competitors, in what is a very competitive market,” said Filet.

The company’s core products include QuantFEED (ultra low latency market data), QuantFACTORY (automated trading platform), and QuantLINK (low latency trading infrastructure: proximity hosting and co-location, global fiber optic network, market data and order routing connectivity).

“Our value proposition is that we are able to provide an end to end solution to a hedge fund that wants to start trading,” Filet said. “In addition, they will be up and running in less than 3 months.”

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