Equinix FX Trading Claims to Close Millisecond Lag

Equinix FX Trading Claims to Close Millisecond Lag

March 13, 2020

In line with MAS’s move to expand Singapore’s overall FX trading industry, Equinix South Asia MD Yee May Leong says its playing a crucial role in supporting the financial services industry by closing the millisecond gap between Singapore and its foreign counterparts.

Equinix, Inc. announces that foreign exchange brands including Euronext FX, Jump Trading, Lucera, Orient Futures and Spark Systems, as well as major banks with FX trading operations in Singapore, have joined Equinix’s FX ecosystem in Singapore.

Equinix hosts a FX trading ecosystem within its International Business Exchange data center in Singapore and claims its advancing the ongoing efforts by the Monetary Authority of Singapore to make Singapore a regional e-trading hub for FX in the global USD 6.6 trillion-a-day foreign exchange market.

Ranked as the third largest FX center in the world since 2013 – with a 7.6 percent share of global FX volume in April 2019, the Singapore FX market continues to increase FX trading volumes.

According to Equinix South Asia Managing Director Yee May Leong, this is driving an increasing demand for reliable, low-latency interconnection solutions that will provide instant and direct access to key financial markets in the Asia Pacific region.

“Singapore is one of the largest FX centers in the world, generating high volumes of data as trade volume continues to soar. With more demand for low-latency solutions in FX and bond markets, we are confident that Equinix’s mature FX ecosystem in the country will create more opportunities for major banks, financial services institutes and retail FX brokers both regionally and globally to interconnect on a fast, secure and reliable platform, bringing Singapore’s FX industry to the next frontier,” says Leong.

In line with MAS’s move to expand Singapore’s overall FX trading industry, Equinix says its playing a crucial role in supporting the thriving financial services industry by executing trades more efficiently, closing the millisecond gap between Singapore and its foreign counterparts where investors exchange USD 640 billion of average daily trading volume.

Equinix says it aims to strengthen FX e-trading capabilities and build a robust market infrastructure for Singapore to cement its position as one of the key epicenters for FX worldwide.

Platform Equinix houses the world’s largest multi-asset class electronic-trading (e-trading) ecosystem.

It is an interconnected marketplace that includes foreign exchange, equities, fixed income and derivatives service providers and execution venues and trading platforms. It also includes buy- and sell-side firms, market data vendors, service providers and major carrier networks and capital markets firms.

Equinix claims it has the most network dense data centers in Singapore. Its three facilities are interconnected via low-latency dark fiber links, hosting more than 205 network carriers and offers choices of regional and global vendors and network routes.

With Equinix’s FX ecosystem in Singapore, market participants in the region can take advantage of close proximity to the broadest choice of networks over 1,800 globally, enabling them to reduce network latency and enhance trading performance for their customers.

According to the latest Global Interconnection Index (GXI), Singapore’s interconnection bandwidth capacity – a measurement of direct and private data exchange between businesses – is expected to expand at 47 percent CAGR from 2018 to 2022, as data increases in volume and complexity. Among industries, securities and trading in Asia-Pacific is expected to lead the growth (66 percent CAGR) in all regions worldwide.

Following MAS’s announcement of Singapore’s Financial Services Industry Transformation Map in 2017, Equinix Vice President of Global Financial Services John Knuff claims major banks and companies such as Euronext FX, Jump Trading, Lucera, Orient Futures and Spark Systems have expressed confidence to trade and benefit from the regional FX market ecosystem due to the enhanced trading infrastructure.

“As Singapore pushes forward with its plans to further grow its FX industry, the demand for interconnection continues to rise. Equinix has always ensured the high performance, ultra-low latency and scale required by the country’s enterprises, including the many financial services firms that make up our customer portfolio. Equinix’s FX ecosystem in Singapore will enhance the city’s FX e-trading capabilities by providing greater levels of performance and operational efficiency,” says Knuff.

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