Joe Morgan
Joe Morgan

Managed Fibre Networks - offering competitive advantages for high performance FX

As the firestorms engulfing financial markets continue to captivate participants and observers alike, the activities of managed network service providers remain, appropriately, largely in the dark. The work of companies specialising in network infrastructure beneath the ground and sea is not likely to make the headlines in the financial or popular press at the moment. But, as Joe Morgan reports in this article, these businesses are at the nexus of the forces driving the development of an increasingly interconnected global financial system, driven in part by the growth of high-speed trading. The fibre optic cabling which links trading hubs together is of vital importance in FX, a global market where traders follow the rising sun to trade on different venues throughout the day.

Hirander Misra, an independent managing consultant specialising in electronic trading in London, says: “The FX market is a 24-hour by five-and-a-half day market. There are pockets of liquidity everywhere across different time zones with platforms running in parallel and firms connecting to nodes at different platforms and they need network connectivity out to different regions. They might be co-located in each centre but they still need to know what the black box is doing or what local trading activity is doing in other centres. These all need to be interconnected over high-speed fibre.” Spearheaded by this inexorable demand for high-speed trading among financial market participants, FX trading firms are obtaining access to underground and undersea dark fibre connectivity offering increasingly faster roundtrip speeds. Hibernia Atlantic for example, a transatlantic submarine communications cable company, has built a 3,741-mile transatlantic fibre-optic cable between Halifax, Nova Scotia in...continued

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