Rewriting the Rules for Financial Trading Infrastructure: Enabling The Next Generation

John Knuff

 

By John Knuff (Part 8 in an 8-part series)

 

New Rules

  • The ever accelerating pace, scale and diversity of markets
  • Agility demands non-stop adaptation
  • Clustering creates choices
  • Deconstruct to reconstruct
  • Longer but faster end-to-end supply chains
  • Leveraging network neutral ubiquitous connectivity
  • Right time processing of alpha and risk
  • Pay-as-you-grow finance
  • Competitive component outsourcing
  • Community = know how + resources

M2M 2.0 is still evolving. We continue to learn the new rules for distributed trading in a global market and discover new benefits.

The old paradigm of centralized processes protected by the proprietary fortress data center of each firm has been blown apart by the torrent of market data and the speed and scale of global M2M e-commerce.

Supply chain processes are now data driven, distributed and collaborative. There is no going back.

Equinix has grown with the rise of algorithmic trading and M2M 2.0.

We have seen first hand and in many cases led the transformation of the data center from back office administrative factories and cost centers to front office profit enablers.

As each generation of market participant arrived, Equinix expanded, reconfigured its machine accommodation and tightened its physical security and technical supervision.

Now the best places for meeting customers, component service providers and other market stakeholders are the network neutral data centers expanding around the global financial hubs. That is simply where everyone is building and investing.

Since everyone shares the same operating environments only a cross-connect away, it is easy to meet, transact and interoperate. Yet competition is intense and firms will need to rethink their go-to-market strategies as well to position themselves in the global markets.

The shift to network-neutral data centers has encouraged both competition and innovation in the financial marketplace.

They facilitate easy clustering of markets and ecosystem services, whereby each vendor can retain their preferred network partners while the network effects of sharing a common hub reduce costs and increase choice for the whole community, both local and global.

They guarantee best service quality delivery from vendors and allow customers to gain the best prices for services and network access across the entire supply chain, controlling costs and developing opportunities for all.

Distributed trading is changing global markets and rewriting the rulebooks for financial market infrastructure for all participants.

It has also firmly established the network neutral data center as the platform of choice to take advantage of the growing global opportunities while navigating the turbulent post crisis world.

About Equinix in the Global Financial Markets

Equinix, Inc. (NASDAQ: EQIX) provides global data center services that ensure the vitality of machine-to-machine e-commerce. Some 400+ buy- and sell-side firms have come to value the agility that our network-rich International Business Exchange™ (IBX®) data centers now provide by operating across 38 markets in 12 countries on five continents, including all of the world’s top financial centers. From New York to London or from São Paulo to Singapore, Platform Equinix contains the world’s most robust and mature financial ecosystem with 99.9999% uptime.
Our community includes 60+ innovative trading platforms like Chi-X, EBS, SIX Swiss Exchange, Deutsche Börse and Bloomberg, 150+ financial e-services providers and 680+ networks. These networks in turn link through to thousands of other firms or markets to form a global ecosystem offering fast scalability and customized service across today’s diverse and uncertain global financial system.

 

Learn more at: www.equinix.com/industries/financial-exchange/