MEMO: Nomura’s New Co-Lo Facility Goes Live

Firm: Nomura

What: Nomura has completed the build out of a new co-location site in Secaucus, New Jersey, and is routing orders through it. This new site complements its existing ones in Carteret, Mahwah and Weehawken, N.J.

Date: Second week of July 

Background/Why: The new facility provides risk filtered access to the markets for high frequency traders. This helps HFTs and others who need risk checks comply with the Securities and Exchange’s market access rule, 15c: 3-5, that goes into effect July 14.

Prospects/Expectations: According to Sanjoy Choudhury, head of Americas Electronic Product Management, the firm is looking to get more high frequency trading business as well as reduce latency for clients. Also, by establishing a co-lo facility in Secaucus, N.J.,  Nomura hopes to attract clients from its other facilities who might not have access to NXT Direct.

How Works: The new center gives high frequency traders access to the company’s NXT Direct platform. NXT Direct provides risk-filtered direct connectivity in 1.8 microseconds for fixed-length exchange protocols and 2.8 microseconds for FIX protocols measured wire-to-wire.