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Foreign Exchange

DealHub ventures into proximity hosting

DealHub, the trading software vendor owned by Options Computers, has launched what it believes are some of fastest proximity hosting services available at co-location centres in London and New York.

The software vendor, which provides software to eight of the top 10 FX banks and more than 40 FX institutions, said the impetus for the move into proximity hosting came from demand from customers to increase exposure to new trading venues while maintaining the lowest possible latency in their trading products. “The proliferation of trading venues that some of DealHub’s largest customers are trying to port poses a challenge to connect to new liquidity sources as they pop up or as new venues become important to existing clients,” says Chris Leaver, chief operating officer at DealHub, in an interview with EuromoneyFXnews.

Leaver said customers had two things to consider: “One is the performance of our trading software. The other is network latency, which is a factor of physics and speed of light, the reason why proximity hosting is so important.”

After working on improvements over a number of years, the technology company is confident in its ability to offer some of the fastest trading solutions available, measuring the latency of their trading software in low microseconds compared to many of their competitors, whose products are measured in milliseconds.

Furthermore, DealHub claims it has the ability not only to provide some of the fastest connectivity available to any one of the 40 exchanges with which it provides trading solutions, but also in a fast turnaround time of four to six weeks.

In addition to opening up the proximity-hosting opportunities to new entrants, the company said that even some of the largest banks, which have a co-location presence in many data centres, have requested DealHub’s services to improve performance and connectivity to keep pace in the highly competitive business of e-trading.

One large bank is using the technology, while a number are beta testing the service. The company said it expects several new contracts to be signed in coming weeks.

Founded in the 1990s, DealHub offers a range of pre- and post-trade services in FX. These include straight-through processing, real-time business intelligence and analysis, and high performance trade execution solutions, which will now be hosted in Equinix data centres in London and New York, and co-located with many of the FX industry’s execution venues.

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