The appetite for low latency connections to financial markets is driving demand for co-location space within stock exchange data centers, a financial technology consultancy has said.
Speaking at the DatacentreDynamics conference in London on Tuesday, James Dow, chief technology officer for financial technology consultants CS Technology, said: "The world of the exchanges is changing. They are doing some interesting things and what they are doing is having an impact across the datacentre community... latency management is driving massive dislocation into the market today."
He explained that as more and more exchanges offer co-location space within their data center, like the London Stock Exchange, companies that place a premium on low latency, such as high-frequency trading firms (HFT), will be tempted out of their existing data centers.
Read more of "Stock exchange latency dictating datacentre market" at ZDNet UK.