Available Now: 2010 Trading Beyond the Horizon

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In 2010, financial markets participants will continue to expand their trading activities as liquidity increasingly becomes fragmented, seeking alpha in new markets, best execution in dark pools, arbitrage opportunities across the order book and by implementing high frequency and complex, multi-leg, cross asset class strategies.

The successful operations – whether they be the proprietary desks of traditional broker/dealers, specialist high frequency and algorithmic traders, or quantitative hedge funds –  will leverage a trading infrastructure that combines high performance analytical, algorithmic and order routing platforms with the lowest latency access to multiple, geographically dispersed execution venues.

Multi-market trading – leveraging a fragmented market landscape – introduces new challenges, even for trading firms that have mastered the complexities of low-latency execution using approaches such as co-location and proximity.  Those mechanisms, while still relevant, provide a less complete solution when trading across markets that are geographically dispersed.

New entrants into the market for connectivity and proximity services include organizations that are themselves market participants, such as sell-side firms offering sponsored access and DMA, and liquidity venues, which are now providing global order routing networks, in some cases channelling order flow to their competitors.

Those service providers join traditional players including telcos, hosting companies and value-added extranet vendors, who often bundle trading applications with connectivity.

The bottom line: For multi-market trading, optimization of long-haul and metro communications links, combined with smart use of co-location, is an imperative for achieving the lowest latency, and this requires an understanding of connectivity offerings at a deep, granular level.

This  industry briefing explains the drivers for fragmentation and multi-market trading, the evolving landscape of market access, and explores connectivity approaches to minimize latency.

TAMPA, Fla. – December 2, 2009 – Switch and Data (NASDAQ: SDXC), a leading provider of network-neutral data center and Internet exchange services, announced today that CFN Services, a leading ultra low-latency network and custom fiber optic network integrator in the financial industry, has joined Switch and Data’s GeoReach partnership program.  CFN will provide clients with turnkey or custom-designed, low latency interconnections to multiple regional exchanges from Switch and Data’s New York and Toronto Financial EcoCentersSM.  CFN FiberSource(r) Advisor provides professional services to assist financial firms in their regional or global network design, planning, and strategy to enhance their individual electronic trading strategies.

CFN Services, the low-latency leader, provides low-latency global exchange connectivity; offering specific ultra low-latency solutions for the trading areas in Toronto, Chicago, New York/ New Jersey Metro, Washington DC, Sao Paulo, London/London Metro, Frankfurt and Tokyo.   CFN is recognized as one of the only network providers to offer the Low Latency Guarantee along with a Latency Improvement Plan. The key to the integrated solution provided by CFN Services is the ability to identify metro fiber, long haul, and the collocation space to piece together the carrier networks onto one optimal path.   CFN sets itself apart from other transport vendors by offering carrier neutrality, professional services, fully managed services and the ability to design and implement custom fiber networks.

“We are proud to be part of Switch and Data’s new GeoReach program,” said David Conrad, Vice President of Finanical Market Sales, CFN Services. “CFN and Switch and Data can now deliver a complete low-latency solution in the most ideal market locations in New York and Toronto. Under this partnership, we can implement a competitive and comprehensive solution to the most demanding high frequency trading or latency-sensitive infrastructure.”

Switch and Data’s GeoReach partnership program is a select group of providers who have engineered their networks to meet the needs of the high frequency trading community. GeoReach partners have engineered optimum paths from Switch and Data’s EcoCenters to each of the regional liquidity providers that satisfy the requirements of the most latency-sensitive infrastructure. Firms can focus on their core and add each new ATS or Exchange using a low cost, minimal footprint while still maintaining ultra low latency communication across the markets.

“Adding CFN Services to our GeoReach partner program in our New York and Toronto Financial EcoCenters enhances our ability to offer customers ultra-low-latency connectivity to their desired exchanges,” said John Panzica, Vice President of Switch and Data’s Financial Services Practice.  “As more customers utilize trading strategies across the entire market landscape, a selection of optimized paths to the region’s liquidity providers becomes ever more crucial. CFN’s continual optimization creates a compelling story for firms seeking to stay ahead of the curve.”

GeoReach Partners are a critical element of Switch and Data’s Financial EcoCenters which provide mission-critical infrastructure to meet the security, volume and low-latency requirements of the electronic trading community.  These EcoCenters aggregate an ecosystem of the pre and post- trade service provider, buy-side and sell-side communities into Switch and Data sites located in the geographic center of the major liquidity providers in New York and Toronto.

About CFN Services

CFN Services, the Low Latency Leader, is a managed telecom infrastructure services company providing network services for the Enterprise, Public Sector and Carrier Markets, specializing in network design, planning, deployment, and managed services, including: Low Latency Global Exchange Connectivity, Global, Regional and metro network design and cost optimization and mobile backhaul optimization

CFN Services specializes in Data Center optimization ensuring the long haul network enhances the Enterprise distributed network strategy. CFN Services leverages FiberSource®, a global knowledge-based platform that can view all available dark and lit fiber, collocation, and lit buildings; providing the ability to quickly identify and design ultra low latency solutions. Learn how CFN Services can ensure you are Optimizing the Power of your Network www.cfnservices.com

About Switch and Data

Switch and Data is a premier provider of network-neutral data centers that house, power and interconnect the Internet. Leading content companies, enterprises and communications service providers rely on Switch and Data to connect to customers and exchange Internet traffic. Switch and Data has built a reputation for world-class service, delivered across the broadest colocation footprint and richest network of interconnections in North America. Switch and Data operates 34 sites in the U.S. and Canada, provides one of the highest customer satisfaction scores for technical and engineering support in the industry, and is home to PAIX® — the world’s first commercial Internet exchange.

Important information about Switch and Data is routinely posted to the investor relations section of the company’s website www.switchanddata.com. For copies of all Switch and Data press releases and SEC filings, please visit the website. To automatically receive Switch and Data financial news by email, please visit the website and subscribe to Email Alerts. Investors are encouraged to check Switch and Data’s website frequently to access the most up-to-date information.

Ensure you have all the facts before you make a choice between Dark and Lit Fiber.

CFN Services discusses the electronic trading space in reference to low latency networking. CFN Services is the leader in the low latency network space. CFN Services has changed the low latency market by introducing: Performance Level SLA, Latency Improvement Plans, Custom Fiber Network Solutions and FiberSource Advisor Professional Services. http://www.tmcnet.com/tmc/videos/default.aspx?vid=1243

What 7.99ms how is that possible?? By utilizing optimal spans from available carriers CFN Services is able to create the lowest latency solution from 350 Cermak to 1400 Federal. Not only does this low latency exist, it is guaranteed. Limited Availability so inquire immediately. www.cfnservices.com/electronic_trading.asp

Herndon, VA (PRWeb) June 25, 2009, 2009 No longer can a trader meet their low latency requirements by just collocating in the same facility as the exchanges. The exchanges are spread out now, and so is the market data essential to successful execution of trading strategies. Traders need to find the optimal combination of space and network configuration that is central to the market data feeds and the exchanges they are trading on. That is why CFN Services is extending FiberSource Advisor® to include a Financial Services specific practice. Working with CFN Services FiberSource Advisor® to help meet low latency requirements allows Trading Firms the ability to focus resources on the trading environment, platform, messaging, algorithms and other essential key areas.  FiberSource Advisor® provides the trading firm a roadmap to optimize their network; helping plan and configure the optimal collocation sites, lowest latency networking solutions, and peace of mind achieved with full disclosure of all options available.
CFN Services is a leading ultra low latency and custom fiber optic network integrator in the financial industry; offering specific Ultra Low Latency solutions for the trading areas in a growing number of financial centers globally including Toronto, Chicago, New York/New Jersey Metro, Washington, DC, London, and Frankfurt.  CFN Services sets themselves apart from other transport vendors by offering: carrier neutrality, FiberSource Advisor® professional services, fully managed services, and the ability to design custom fiber networks.
CFN Services specializes in designing, implementing and managing high performance, low latency fiber networks. CFN is a custom fiber network provider, not simply a supplier of circuits. This is a unique advantage to a trading firm, because CFN and their FiberSource Advisor® professional services, can assist in the overall plan and development of the financial network to ensure optimization based on each firm’s unique priorities for market data delivery, trade execution, clearing data, and internal IT operations. CFN Service’s FiberSource Advisor® offering provides sophisticated financial trading firms with multiple network configuration options that fully leverage their existing network investments while providing a growth path and simultaneously lowering latency.
As a spin off of CSX Corporation, CFN Services carries on a 20-year legacy in fiber network deployment and management. CFN Services’ proprietary FiberSource® knowledge-based platform delivers access to over 500 carrier networks globally including more than 100 submarine systems; providing direct visibility into all available dark and lit fiber options, collocation facilities, and metro fiber rings for optimal deployment to any global financial center worldwide. Through FiberSource Advisor® CFN Services’ combines its vast telecom knowledge base with extensive experience in lit and dark fiber network design and implementation to provide trading firms with an edge on all aspects of MAN and WAN network deployment. CFN’s engineers articulate and provide recommendations on optimal transport architectures across technologies including WDM, SONET, Ethernet, IP, and MPLS.  FiberSource Advisor® will help traders lower latency on their existing routes, while optimizing the overall transport network inclusive of future growth plans.
As David Conrad, VP of Sales at CFN Services has observed, “ Partnering with CFN Services and utilizing FiberSource Advisor® provides trading firms the confidence and assurance that they are getting the best network solutions to meet their unique needs. With a view to all available fiber, including that of Utilities, Carriers and Dark Fiber providers; we enable our clients to rapidly sift through a typically daunting array of network options and providers to get to the optimal solution based on their specific requirements. Working with CFN as an integrator ensures carrier neutrality and eliminates the typical network operator’s bias for their own, often sub-optimal, end-to-end solutions.”
For more information about CFN Services and FiberSource Advisor® www.cfnservices.com

About CFN Services
CFN Services is a managed telecom infrastructure services company providing network services for the Enterprise, Public Sector and Carrier Markets. Specializing in network planning, deployment, and managed services, including local access transport, low latency networking, and mobile backhaul optimization, CFN Services leverages the company’s flagship FiberSource® network planning and optimization platform. CFN Services has provided network planning and deployment services to some of the leading wireless and wireline network operators including Verizon, AT&T, Level 3 and Sprint.  For more information please see http://www.cfnservices.com.
Contact: Judy May  – 703-788-6633; Judy.May@cfnservices.com

June 23-25, 2009 – Hilton New York, New York City
This conference is the premier financial services technology event. The Conference addresses the rapidly-changing technology universe and how it can be better utilized to drive productivity, comply with regulatory requirements, and adapt to converging markets, products and investors. Three general sessions, 10 workshops, luncheon speaker and the Exhibit Hall have all been selected to provide information that is essential to managing technology in today’s challenging economic environment. Don’t Miss Out on the opportunity! Register Today at www.sifma.org/tmc2009

Offer Telx customers In New York and Chicago a complete, low-latency financial networking solution

Key Highlights:

• New relationship joins CFN Services’ low latency network with Telx’s proximity hosting advantages.

• CFN’s ultra low latency solution guarantees a round-trip connection between Telx’s NY metro and Chicago facilities that is at or below 16.6 milliseconds.

• Telx customers gain direct access to a leading network integrator and design firm serving the financial services industry.

• A common carrier-neutral stance provides CFN and Telx customers with optimal solutions.

NEW YORK and CHICAGO (May 27, 2009) –  Telx, one of the largest and fastest growing domestic interconnection and colocation data center operators, announced today that custom network provider CFN Services has added network nodes for its ultra low latency financial network in Telx facilities at 60 Hudson Street and 111 8th Avenue in New York City as well as in 600 South Federal Street in Chicago. These new nodes allow Telx Financial Exchange customers colocated in New York, New Jersey, and Chicago – including Telx customers colocated in the company’s facility at 350 East Cermak Street – access to CFN’s ultra low latency network, which guarantees speeds of 16.6 milliseconds or better.

The addition of CFN into Telx facilities helps Telx customers gain an optimized network configuration to ensure the ultra low latency for all pieces of the trading process from market data feeds, ticker plants, exchanges and other key trading platforms. These services can provide the competitive advantage that financial companies need to gain an edge in today’s market. CFN Services will also work to implement a customized plan to ensure that the network configurations are optimal based on each customer’s individual criteria.

“In the current market, financial services companies need every advantage available to thrive,” says Eric Shepcaro, CEO of Telx. “The suite of financial service providers and ultra low latency networks, such as those offered by CFN, are critical to our customers’ success. Telx remains committed to seeking out service providers who can help our customers realize their full business potential.”

In addition, the carrier-neutral stance adopted by both Telx and CFN provides added advantage for customers: by bringing a wide variety of service providers to the table to compete for your business, Telx helps customers get the lowest available service price with high-quality proximity hosting; while CFN creates custom networks utilizing optimal spans from available routes based on the customer requirements regarding latency, price, optimization, performance, and time to install.

“In addition to ultra low latency networking, CFN offers unique, performance-level SLAs that guarantee a specific latency today and network improvements that guarantee latency improvements over time,” said Wil Tirado Vice President of Engineering for CFN. “When obtained from within a Telx colocation facility, customers are assured a long-range business plan for growth that accommodates both current and future needs for decreased latency and increase space, power, and cooling over time.”

About Telx
Telx is a world-class leader in providing interconnectivity solutions through their network-neutral and network rich, colocation facilities.  With over a dozen facilities in North America, Telx offers cost effective networking solutions for customers to seamlessly access diverse global networks and exchange information in a secure and reliable environment.   Over 600 leading telecommunications carriers, ISPs, content providers and enterprises rely on Telx’s world-class team to support their mission-critical global infrastructure needs and to create a global connectivity marketplace to dramatically expand their business growth opportunities.  Telx is a privately held company headquartered in New York City with facilities in New York, Atlanta, Chicago, Dallas, Los Angeles, San Francisco, Santa Clara, Miami, Phoenix, Charlotte, as well as Weehawken and Clifton, N.J. For more information about Telx, visit www.telx.com.

About CFN Services
CFN Services is a managed telecom infrastructure services company providing network services for the Enterprise, Public Sector and Carrier Markets. Specializing in network planning, deployment, and managed services, including local access transport, low latency networking, and mobile backhaul optimization, CFN Services leverages the company’s flagship FiberSource® network planning and optimization platform. CFN Services has provided network planning and deployment services to some of the leading wireless and wireline network operators including Verizon, AT&T, Level 3 and Sprint.  For more information, visit www.cfnservices.com.

Proximity Hosting Can Only take you Half Way There

Zero latency is the optimal trading speed that all firms hope to achieve at some point. But until that can become a reality, there is a race to keep reducing latency from all aspects of the trading process. From the server to the messaging to the sending and receiving of data, each piece must be optimized to reach the goal of zero latency.  There are many avenues companies are looking at to reduce variables and risk to latency – one of those is proximity hosting.

There are data centers where the trader can actually collocate with the exchanges. For example, in Weehawken, NJ there is a data center that houses five major exchanges including: the American Stock Exchange, Philadelphia Stock Exchange, and BATS Trading. This is a way to ensure there is almost zero latency built into the trade to those exchanges. But it is not the complete puzzle. Even with proximity hosting to collocate within a data center that houses exchanges there are still external servers that play a role in the execution of the trade. These are the data feeds, the platforms, your proprietary content, and the messaging. Even the data centers that host the exchange as a simple cross connect, are rarely the only exchange a firm is trading on. So how do you close the gap?

While a firm may be trading a particular asset class and the majority of trades may be directed toward a single venue, the volumes and price-points on related exchanges play critical roles in execution decisions.  This means latency must be minimized from all data sources, not just the venue the majority of trades are placed on.  For instance, having the lowest latency on venue A, but being significantly behind the market on venue B or C could have disastrous impact on success of a trade decision.  It’s important then, to reach a delicate balance between the lowest latencies on all data sources and execution venues.

Where milliseconds and microseconds make a difference to the success of a trade strategy, the idea of Central Proximity hosting is to find locations that are central to most of the destination you need to access. There are a number of hosting locations within the NJ/NY trading area: Clifton, North Bergen, and Weehawken, NJ just to name a few that provide central proximity hosting. Central Proximity Hosting enables firms to locate within a few miles of all the locations and data a trade strategy needs for successful execution.  So that makes up half of the picture – how do you complete the race to speed-of-light transport?

The network provider does the rest. A Carrier is a good solution for the transport of data when latency and performance are important, but not critical. When latency reaches a level that’s critical to your success and your strategic advantage, you need a more agnostic approach to finding the best network. In working with each Carrier, they will provide you their “on net” best solutions between locations. This approach is not always the best solution for your specific needs. And it’s here that a network integrator offers you a measurable advantage comes into play.

The network provider that you partner with must be able to provide the lowest latency solutions for the metro ring and the longhaul. The network integrator you work with should be Carrier Agnostic, to ensure you are getting the optimal solution for your needs and not a solution based on the relationship an integrator has with a Carrier.   Some integrators, like CFN Services, can even go a step further. Beyond optimal solution recommendations for your specific strategy and requirements, they can also create new routes specific to your priorities. An integrator like CFN Services can actually utilize optimal spans of available fiber to create new fiber routes that do not exist along any single Carrier.

In the race to Alpha, the combination of Central Proximity Hosting coupled with the Low Latency Transport is key to your success.