TWSE to provide co-location services to securities firms

Taipei--The Taiwan Stock Exchange (TWSE) is planning to provide co-location services to securities firms by the end of this year in a bid to strengthen trading data transmissions under the common facility.

Co-location services refers to a type of data center where equipment, space, and bandwidth are available to many entities through the data center owner.

The TWSE said that it has secured approval from financial authorities here to provide such services.

According to the TWSE, which operates the local main board, the exchange will provide co-location services in its data center in Banqiao, while securities firms and information service providers will be allowed to place their computer systems there to directly link to the exchange's mainframe computer.

Due to the link to the TWSE's computer system, data transmissions by securities houses and information providers will be processed directly through the exchange, instead of a wide area network (WAN), a telecommunications network or computer network which extends over a large geographical distance.

The co-location services are expected to result in low latency in data transmissions, which will raise efficiency in trading information delivery for securities companies and information services providers by cutting the lag time in transmissions, the TWSE said.

It added that co-location services have been widely used in the major stock exchanges in the United States and Europe, such as the Chicago Mercantile Exchange, the Deutsche Boerse, and the London Stock Exchange.

In Asia, the TWSE said, co-location services have been offered by several stock exchanges, including the Tokyo Stock Exchange, the Singapore Exchange, the Shanghai Stock Exchange, the Shenzhen Stock Exchange and the Hong Kong Exchanges and Clearing.

In addition, several emerging markets, such as the National Stock Exchange of India and the BM&F BOVESPA, which is a stock exchange located in Sao Paulo, Brazil, have similar services, the TWSE said.

In the Banqiao data center, the TWSE will introduce the most reliable transmission equipment, TIA-942, from the U.S.-based Telecommunications Industry Association (TIA).

The Banqiao data center, which has an advanced power supply system, has been equipped with anti-flooding and fire facilities. Its construction structure is also able to take on an earthquake that has an intensity of up to seven, the TWSE said.

Taiwan's 0-7 intensity scale measures the degree to which the earth shakes at a particular location.

It added that it expects the co-location services to help Taiwan's equity market raise its services to international standards.

Source: Focus Taiwan News Channel