Brokers now can connect to the National Stock Exchange at near co-location speeds without co-locating their servers at an NSX facility. Instead, they can keep them in-house and connect over NSX’s new Exchange in a Box for roughly a quarter of the price of co-location.
Exchange in a Box is a network NSX built with fiber-optic-based systems provider Sidera Networks. The network connects brokers to NSX at microsecond speeds through any of the major data centers in the New York metro area used by the exchanges, such as Nasdaq OMX’s in Carteret, N.J.
But instead of paying charges for connectivity, a port and the sessions to reach an exchange through co-location, brokers pay just a low monthly cost, said Saro Jahani, chief information officer for NSX. At its fastest, co-location at NSX can reach sub-100-microsecond speeds, Jahani said. By comparison, Exchange in a Box clocks in at speeds of under 300 microseconds.
Brokers also can choose to pay for NSX’s co-lo services. "But you spend big dollars for that," Jahani said. "In this case, you’re going to be a couple hundred microseconds away at little cost."
Co-location connectivity can also take six months to get up and running, Jahani said. With Exchange in a Box, users can come on board in as little as a few days.
The network has already found supporters, according to NSX. Since it was announced in early November, NSX has several clients who have enrolled and two firms that have already started connecting.
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