16 Jun 2017

TALKING DERIVATIVES CLEARING AND FX TRADING AT FIA IDX 2017

6th-7th June | The Brewery, London

We have just come off the back of the 10th annual FIA IDX conference in London and are pleased to say that it was another successful event.

This year, we exhibited alongside our partner NetXpress. Together, we offer fully managed trading solutions for the financial community covering ultra low-latency connectivity across the globe in over 91 data centres through to the worlds’ fastest access to order routing and market data in key financial exchanges.

In his opening remarks, President and CEO of FIA Walt Lukken reflected on the recent terror attacks in the UK, “Today we gather as a community with the full weight upon us of the sober and tragic events of the last few days and weeks.

We all stand in solidarity with the citizens of the UK as we search for answers and understanding. […] the British people have a long history of resiliency and calm in the face of crisis.

And within the tradition of keeping calm and carrying on, we will carry on with our industry’s work.” – a humbling and poignant tribute.

Lukken proceeded to discuss the subject of moving clearing of euro-dominated derivatives from London, announcing that FIA has expressed “grave concerns that forced relocation of euro clearing would fragment markets, raise costs for EU end users, and weaken the stability of the financial system.”

BSO’s chief revenue officer, Fraser Bell, recently expressed similar concerns in a recent article with City A.M.: “Take the underlying network connectivity that has become an integral part of clearing.

The settlement of exchange-traded derivatives, where gains and losses on every contract are calculated and reported on a daily basis, would be severely affected by a sudden shift in operations.”

Only time will tell how the future of clearing will shape up in the coming months as the UK commences the Brexit negotiations.

Clearing was just one of the many topics covered at the show, with regulation being at the forefront as ever with the impending MiFID II deadline approaching.

We were also pleased to present our Reaction Time Challenge interactive game at our booth. The game has now endured two FIA events – in both Chicago and London – and we hope everyone enjoyed playing.

The gamers weren’t the only ones doing the talking, as the media was also talking about the launch of our newly optimised FX Ultra-Low circuit, which now includes budding FX trading venues Singapore and Hong Kong in Asia.

The optimisation was implemented following the recent boom in OTC FX derivatives trading in emerging markets – with turnover rising more than 40% since 2010 according to the Bank of International Settlement (BIS).

Singapore and Hong Kong have seen particularly strong trading activity in FX interest rates, with both regions accounting for half of the growth in OTC trading across emerging markets, which totals 33%.

All in all, FIA’s 10th IDX event was a successful one, and it was a pleasure to meet new people as well as spend time with many familiar faces.

If you would like to discuss how BSO and NetXpress’s connectivity, colocation and market data services can underpin your trading strategies, please:

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ABOUT BSO

The company was founded in 2004 and serves the world’s largest financial institutions. BSO is a global pioneering infrastructure and connectivity provider, helping over 600 data-intensive businesses across diverse markets, including financial services, technology, energy, e-commerce, media and others. BSO owns and provides mission-critical infrastructure, including network connectivity, cloud solutions, managed services and hosting, that are specific and dedicated to each customer served.

The company’s network comprises 240+ PoPs across 33 markets, 40+ cloud on-ramps, is integrated with all major public cloud providers and connects to 75+ on-net internet exchanges and 30+ stock exchanges. The team of experts works closely with customers in order to create solutions that meet the detailed and specific needs of their business, providing the latency, resilience and security they need regardless of location.

BSO is headquartered in Ireland, and has 11 offices across the globe, including London, New York, Paris, Dubai, Hong Kong and Singapore. Access our website and find out more information: www.bso.co