 Service Provider News ReportNetwork World's Service Provider News Report Newsletter, 07/11/07When milliseconds matter: London Stock Exchange chooses YipesBy Carolyn Duffy MarsanWhen it comes to network latency, nobody cares more than the financial services industry because even the tiniest slowdown in network performance can translate into millions of dollars in lost revenue. That’s why it’s a big deal when a leading stock exchange chooses a service provider for its network. The London Stock Exchange in June announced that it had approved Yipes Enterprise Services as its first Ethernet service provider. Yipes offers FinancialConnect!, a secure Ethernet-based extranet for electronic trading. The London Stock Exchange’s 300-plus corporate customers can choose to access its Infolect real-time trading and share pricing information directly through its own IP network or through an approved service provider such as Yipes.
The London Stock Exchange is the world’s third largest stock exchange. Infolect is one of the fastest real-time information delivery systems in the world, with company pricing information delivered within two milliseconds. "Electronic trading volume is growing rapidly, and providing our member firms with fast access to our platform is critical to our competitive edge. We needed a network service partner with an infrastructure that provides extremely low latency and that is trusted by the financial community," Wendy Morgan, head of real-time data of the London Stock Exchange, said in a statement. "In addition, we needed a provider with a reach that extends throughout the U.S. and around the world," Morgan added. "Yipes' Extranet service gives us everything we were looking for to maintain our leadership position, and gives our customers the option of choosing a provider that offers the lowest latency available today." The London Stock Exchange was in discussion with Yipes for a year before signing an agreement with the carrier. Yipes had to prove that it can provide secure, reliable, low-latency communications to the London Stock Exchange, which hasn’t had an outage for seven years. "We had to make sure they had a very reliable service," Morgan said in an interview. "We had to choose a partner that can achieve our high record of reliability." The London Stock Exchange previously approved BT Radiant and SAVVIS as service providers for its Infolect market data service. London Stock Exchange officials hope the deal with Yipes will help them increase sales of Infolect in the United States, where Yipes is an up-and-coming service provider. "We currently own our own IP network infrastructure, which connects all of our vendors who want to receive London Stock Exchange information," Morgan explained. "What we wanted to do is work with more global players who can provide connectivity to our clients. This is in response to demand for our data outside the immediate London area and metropolitan Europe. There’s a lot of demand for growth in North America." Choosing Yipes is the London Stock Exchange’s latest effort to speed up the responsiveness of its IT systems and networks. The exchange has completely re-engineered its central systems and cut response time on its trading matching and processing from 100 milliseconds down to 10 milliseconds. "We’re working very closely with our network providers to make sure they can supply low latency," Morgan says. "The benefit of having low latency is that the information the trader gets is more likely to reflect orders that are still available. The faster you can get the data out, the more likelihood it is accurate. And then your order-to-trade ratio increases." Morgan says that for the London Stock Exchange, a low latency network is a competitive advantage. With Yipes on board, U.S. brokerage firms should be able to receive faster and timelier data from the London Stock Exchange. "They can access London Stock Exchange data directly from us via the Yipes network," says James Baugh, manager of vendor alliances with the London Stock Exchange. "Getting the information to those guys in a timely manner is really key to those guys being able to make trades on it."
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| Contact the author: Carolyn Duffy Marsan is a senior editor with Network World and covers emerging Internet technologies and standards. Reach her at cmarsan@nww.com ARCHIVEArchive of the Service Provider News Report Newsletter. BONUS FEATUREIT PRODUCT RESEARCH AT YOUR FINGERTIPS Get detailed information on thousands of products, conduct side-by-side comparisons and read product test and review results with Network World’s IT Buyer’s Guides. Find the best solution faster than ever with over 100 distinct categories across the security, storage, management, wireless, infrastructure and convergence markets. Click here for details. PRINT SUBSCRIPTIONS AVAILABLE International subscribers, click here. SUBSCRIPTION SERVICESTo subscribe or unsubscribe to any Network World newsletter, change your e-mail address or contact us, click here. This message was sent to: networking.world@gmail.com. Please use this address when modifying your subscription. Advertising information: Write to Associate Publisher Online Susan Cardoza Network World, Inc., 118 Turnpike Road, Southborough, MA 01772 Copyright Network World, Inc., 2007 |
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