Trading hub to grow by a third
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.