Inside Market Data | 04 Nov 2013
Oakland, Calif.-based low-latency connectivity and market data
provider Quincy Data has established a point of presence in Savvis’ NJ2
datacenter in Weehawken, New Jersey to provide firms co-located in the facility
with ultra-low-latency futures data via its wireless network from CME Group’s
datacenter in Aurora, Illinois.
The Quincy Extreme Data (QED) service, which
leverages microwave connectivity from Quincy’s sister company McKay Brothers, can deliver market data from
Aurora to Weehawken in 4.14 milliseconds rack-to-rack, according to latency
figures from the vendor.
Due to the lower bandwidths associated with
microwave delivery, Quincy will deliver only a subset of the most in-demand
market data from CME Group exchanges, including equity,
treasury, energy, currency and metals futures, says Jim Considine, director of
business development and strategy at Quincy.
“The NJ2 facility hosts the BATS Exchange, so there are definitely firms
that have trading engines or their own servers located in Weehawken, and they
will likely be interested in getting CME equity futures data to support their
trading strategies,” Considine says.
Currently, Quincy supports one-way delivery of
CME data into the Savvis facility, but the vendor plans to add
BATS data to the service by the second quarter of next year. “Then we can send
[BATS data] westbound to Aurora and the 350 East Cermak Road datacenter in
Chicago, where IntercontinentalExchange is located,” he
adds.
Considine says the vendor is seeing consistent growth for its QED service
from firms across the board, but due to issues with microwave delivery—such as
outages from bad weather—most firms use microwaves as a complement to fiber
rather than a replacement.
The addition of the new PoP in NJ2 is the latest
in a string of network enhancements made by Quincy in the past 12 months to
support the vendor’s bid to cover the “big four” trading centers in the New
Jersey area. In December last year, the vendor established its first PoP in the
Aurora facility, after which it added connectivity to Verizon’s datacenter in
Carteret that houses Nasdaq OMX’s trading engines, and now
Weehawken. “We are currently engaged in ongoing dialogue to add Mahwah and by
the end of December, we also plan to distribute CME foreign exchange and futures
data to firms located in Savvis’ NJ3 datacenter in Piscataway who trade on
Comex,” Considine says.