LMAX becomes the latest addition to Equinix’s LD4/5 campus, which now hosts nearly 200 participants, all of whom will have direct access to LMAX. For Equinix, the news further strengthens the LD4/5 data centre as a hub for FX trading.
Meanwhile, its New York NT4 location has become the ‘go to’ co-location spot for equities.
“We moved to Equinix because they are well placed to provide us with more than just data centre services,” says Andrew Phillips, head of systems at LMAX Exchange. “There is a significant amount of FX activity taking place on Platform Equinix, not just in Slough, but worldwide. Locating our matching engine in one of the key centres of this community puts LMAX Exchange at the client’s fingertips.”
As a result of its rapid growth on both sides of the Atlantic, Equinix has been developing its cross-Atlantic network connectivity with round-trip speeds hitting 65.7 milliseconds from its providers.
It is expected that, as this speed moves closer to zero, the need for last-look pricing – in other words requiting, and as a result slippage – will become less prevalent.
LMAX is one of the few FX trading exchanges that use a no-last-look business model. The firm operates an open order book, where orders are matched to streamed limit orders, as is similar on exchanges such as the CME and LSE.
It was a good week for Equinix. Chicago Board Options Exchange (CBOE), the largest options exchange in the US, announced it will be moving its CBOE Command trading-engine platform to Equinix’s NY4 International Business Exchange data centre in Secaucus, New Jersey.
The move, which was completed on Monday, brings one of the fastest exchange platforms from Chicago to the New York area, eliminating distance latency, accelerating trading speed and allowing customers and partners inside the Equinix financial ecosystem in New York to connect directly to the CBOE Command platform.