Trading networks, hosting and infrastructure – investment in low latency FX propositions gathers pace across Asia

The growth of Asian FX markets is seeing more interest from international FX providers in third party services to connect to these markets. Nicholas Pratt looks at the issues involved.

Investment in low latency FX propositions is gathering pace as the electronic trading of FX continues to grow internationally. This growth is especially strong in Asia prompting many FX brokers and liquidity aggregators to consider how best to ensure connectivity to these lucrative markets. Similarly there has been major investment from the leading network, infrastructure and hosting providers to make colocation and hosting services available within the Asian markets. For the FX brokers and liquidity aggregators, there are three choices to make – firstly to remain in London or New York and access the Asian investor base from there; or to move their infrastructure to a Tokyo datacentre and set up their own servers; or rely on a third party to provide all that connectivity on your behalf.  A growing array of networking firms offering hosting and connectivity services to FX brokers, liquidity providers and trading firms have established Asia-focused services on the presumption that more firms are...continued

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