Johannesburg Stock Exchange (JSE) Selects Fixnetix as the UK point of presence and network provider
Emerging markets now offering high performance direct connectivity
Johannesburg and London, 15 December 2011 – The Johannesburg Stock Exchange (JSE) and Fixnetix announced today that the exchange has chosen Fixnetix as the provider of the JSE’s point of presence (PoP) in the UK, giving global investors easier access to the JSEs markets.
Initially, access to the JSE’s Equity Market Customer Testing Service and real time data services will be available via the JSE PoP provided by Fixnetix in the Equinix datacentre, LD4, in Slough. The UK PoP will be extended to include trading of JSE equities and this agreement could be expanded to include access to other JSE markets.
Currently, investor orders on the JSE equity market are placed in Johannesburg, routed via international links to the JSE TradElect platform hosted by the London Stock Exchange where the trade is matched, and results are rerouted back to South Africa. At initial launch in 2002, this system was viewed as innovative and a world-class solution. Changing investor needs have prompted a relook at JSE systems. The 2012 migration to a new equities trading system and the relocation of the new system to Johannesburg, now combined with the provision by Fixnetix of a PoP in London for offshore clients and a focus on latency reduction, enhances the exchange’s offering for investors worldwide.
With the addition of JSE, Fixnetix now offers 79 markets on an ultra-low latency framework to clients wanting trading, market data and risk control services. This relationship is significant and timely as it marks the predicted momentum for high performance direct connectivity to the emerging markets. Access to the JSE Test Services will start in early 2012 with live real time data available in production when the new system is implemented in the middle of next year.
“Fixnetix is pleased to be appointed provider of market access for data and trading in the UK for the Johannesburg Stock Exchange,” says Paul Ellis, Chief Operating Officer and co-founder of Fixnetix. “To be strategically chosen by the JSE is a direct endorsement of the operational capability and reliability of Fixnetix.”
The JSE is the only stock exchange in South Africa offering markets in equities, equity derivatives, commodity derivatives, currency derivatives and interest rate instruments.
“Ultimately, the agreement with Fixnetix and the new trading system will offer improved access to the JSE markets and may play a role in the JSE competing for trading volumes,” says Head of Equities Trading Leanne Parsons. “In future, the JSE may also offer clients the ability to connect to other networks and PoPs, making it even easier for offshore clients to trade on the JSE.”
As South Africa’s only full service securities exchange, the JSE connects buyers and sellers in equity, equity derivatives, currency derivatives, commodities derivatives and interest rate instrument markets. The JSE Ltd offers the investor a first world trading environment, with world class technology, surveillance and settlement in an emerging market context. It is amongst the top 20 largest equities exchanges in terms of market capitalisation in the world and is recognised as the world’s best regulated securities market for the second consecutive year in the World Economic Forum’s Global Competitiveness Survey.
Fixnetix, winner of the 2011 Deloitte Technology Fast50 UK, provides outsourced managed services across multiple asset classes to leading global banks, hedge funds and proprietary trading groups seeking ultra-low latency trading, market data, hosting, infrastructure connectivity and risk management solutions. The company is in 33 co-location and proximity hosting centres across Europe and the US and offers trading access to over 79+ markets. November 2011, Fixnetix won first place for the 2011 Deloitte UK Technology Fast 50, earned 2nd place in the Deloitte Technology 500 EMEA and placed fourth in the 11th annual Sunday Times Microsoft Tech Track 100 league table which ranks Britain’s one hundred privately-owned technology, media and telecoms (TMT) companies with the fastest-growing sales over the last three years.
Fixnetix is one of the first companies to offer FPGA. The company announced late November 2010 a real-time low latency filter, iX-eCute, an FPGA (Field Programmable Gate Array,) to solve the eternal industry conundrum of pre-trade risk, compliance and ultra-low latency execution. iX-eCute opens the marketplace to all participants with no detrimental impact on trading performance with the necessary risk controls. iX-eCute enforces pre-market risks at nanosecond time frames whilst preventing impact on latencies that historically have slowed down more traditional trading systems and models. Unlike other solutions, the iX-eCute microchip has near zero impact on latency for governing the required checks directed by the recent SEC Rule 15c3-5 and anticipated declarations from other regulatory governing bodies. The FPGA is available and being utilised for execution with nic to nic times as low as 740 nanoseconds.