Trad­ing hub to grow by a third

The Sunday Telegraph - Money & Business - - Business - By James Tit­comb

BRI­TAIN’S big­gest high-fre­quency trad­ing hub is set for a multi-mil­lion pound ex­pan­sion amid boom­ing de­mand for ul­tra-fast con­nec­tions.

Equinix, the US data cen­tre pro- vider that paid £2.35bn to ac­quire Bri­tain’s Telecity in 2015, plans to in­crease the size of the unit in Slough that pow­ers much of the City’s al­go­rith­mic trad­ing.

The new build­ing will in­crease the ca­pac­ity of the ex­ist­ing “LD4” data cen­tre by around a third, with the po­ten­tial for it to dou­ble in size.

Al­though the City of Lon­don and Ca­nary Wharf are seen as the fi­nan­cial cen­tres of the UK, a sig­nif­i­cant amount of high-fre­quency trad­ing takes place in the LD4 build­ing in Slough, which was built in 2007.

Rus­sell Poole, Equinix’s UK boss, said the data cen­tre was the world’s big­gest sin­gle hub for high-speed fi­nan­cial ser­vices trad­ing.

More than 1,000 busi­nesses in­clud­ing al­go­rith­mic traders, mar­ket ex­changes, data providers, dark pools and hedge funds all take up com­puter server space in the cen­tre.

This means that in­stead of trades hav­ing to pass be­tween dif­fer­ent banks and ex­changes, they can travel be­tween com­puter sys­tems over the short­est pos­si­ble phys­i­cal dis­tance.

The cen­tre also has high-speed con­nec­tions to New York and Frank­furt, which can be reached in 30 mil­lisec­onds and four mil­lisec­onds re­spec­tively.

The new LD4 II fa­cil­ity, which will be built next door, will cost $39m (£29m) and will open to­wards the end of the year.

Equinix is one of the world’s big­gest data cen­tre com­pa­nies.

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