• publish

Ecosystems for Success

A special report on the importance of connectivity in capital market ecosystems.

Report overview and panel discussion

Electronic trading in the 1980s introduced a new era of high frequency trading (HFT) whereby firms tried to get as close as possible to an exchange’s matching engine. By the 2000s, the exchanges were moving their matching engines into colocation data centres, where they were joined by the HFTs and their service providers.

It was not long before exchanges realised the benefits of this ecosystem and the exchange colo was born.

ASX are proud to sponsor this forward-looking report from Kapronasia on the evolution of capital market ecosystems and the importance of market connectivity.

 

Watch Kapronasia's panel discussion and read more in the report

Key highlights of the report

"Ecosystems for Success" discusses the emergence of exchange colocation facilities and the value they offer for market participants, taking a closer look at open versus closed operating models. Researchers have gathered insights on connectivity in the global financial services industry and report on these findings using  expert opinion, illustrations and casestudies. 

 

Evolution of data centers: trends to watch

1

cloud icon

The shift to the cloud

2

icon of six circles connected by lines to represent a network

Connectivity via high quality networks

3

icon of two lines crossing paths inside a circle

Interconnectedness between exchange ecosystems

4

footprint icon

Consolidation of data centre footprint

Featured case studies

ASX Australian Liquidity Centre (ALC)

 

In 2012, the ASX finished construction and opened the doors of the ALC, a 500 cabinet, tier-3 designed facility just outside the Sydney CBD. It has been specifically built for financial market ecosystem participants. The ALC has also invested in ensuring equal length connectivity into trading platforms. That means that no matter where a customer’s cabinet is located on the colo floor they will have the same latency in and out of the market.

 

 

“It was important for us to build a fair, equal, and transparent platform which market participants could come and operate their business within. Clarity, transparency, trust, and respect are something we pride ourselves on.”

- Adam Bradley, General Manager, Head Of Sales, Trading Services at ASX

 

 

Download the report to learn more about ALC's financial market ecosystem.

ASX's Australian Liquidity Centre building

Other insights

Generic data centres vs exchange colos

What are the unique benefits in collocating with an exchange

The Exchange Consolidation Model

Learn how it works and explore the many benifits

A look into the future

As exchange-operated data centres, their ecosystems, and their markets evolve, what changes are on the horizon?

ASX acknowledges the Traditional Owners of Country throughout Australia. We pay our respects to Elders past and present.


Artwork by: Lee Anne Hall, My Country, My People

acknowledgement-of-country