Avelacom recently upgraded its core network significantly to the point of optimizing its terrestrial path latencies by up to 8 milliseconds, said the provider of low latency connectivity, IT infrastructure, and data solutions for market making, arbitrage, and liquidity aggregation strategies.
The company reduced network latencies between European markets and major East Asian cities Tokyo, Shanghai, and Hong Kong, effectively benefitting key routes between Europe’s hubs (London, Frankfurt, Dublin, Zurich) and major East Asian hubs (Tokyo, Shanghai, and Hong Kong).
For example, the latency for the London <> Shanghai route is now less than 125 milliseconds (round-trip delay), compared to the previous industry benchmark of approximately 133 milliseconds.
Europe to East Asia routes are growing in demand, driven by increased FX and crypto electronic trading volumes, as well as increased participation from institutional traders.
London is the world’s largest currency trading hub, while Tokyo hosts tier 1 crypto venues, is a global price discovery hub for digital assets, as well as being a top tier FX trading destination.
The record speeds follow Avelacom’s recent upgrade of its backhaul network by shortening fiber optic path lengths by up to 140 kilometers. The move led to improved network latency for major capital markets across Turkey, the United Arab Emirates, Saudi Arabia, India, Israel, Thailand, Taipei, and Japan.
With a global network featuring a robust 100G DWDM backbone core, Avelacom offers direct access to over 80 trading venues across EMEA, APAC, and the Americas, ensuring sub-millisecond speed for market data and order flow across various asset classes, including equities, commodities, FX, crypto, and derivatives.
Key financial hubs in the Middle East and East Asia, including Borsa Istanbul, Dubai Gold and Commodity Exchange (DGCX), Saudi Exchange/Tadawul, Tel Aviv Stock Exchange, Thailand SET, Taipei Futures Exchange (TAIFEX), Japan Exchange Group (JSE), and various exchanges in India, are now directly connected through Avelacom’s optimized network. This network provides low latency exchange connectivity, colocation, managed hosting, real-time market data feeds, and order flow, interconnecting these exchanges with global FX, equities, commodities, and derivatives markets.
The optimization primarily occurred in the European network segment, crucial for shaping connectivity routes from European and US markets to those in the Middle East and Asia. The shorter and more direct fiber optic paths ensure faster, more reliable data transmission, enhancing overall market connectivity.
In June, Avelacom announced the completion of two new low-latency routes as part of its efforts to further expand connectivity in digital asset markets, this time facilitating the interconnection between Seoul, Hong Kong, and Singapore.
The low-latency solutions provider expanded options for crypto trading to/from Seoul <> Singapore, which complements its previously launched Seoul <> Tokyo route.
Avelacom’s point-of-presence (PoP) in Seoul is located at the KINX Gasan data center, specifically chosen to provide direct access to the AWS Northeast region, and consequently to South Korea’s biggest cloud-based crypto exchanges.
The company recently launched a proprietary low-latency Seoul <> Tokyo route in order to fully interconnect Seoul, Tokyo, Hong Kong, and Singapore. Additionally, these are linked to over 100 global Avelacom PoPs, providing direct access to all global crypto exchanges. This level of connectivity supports time-critical trading strategies, such as arbitrage and market-making trading algorithms, as well as capturing real-time market data feeds.
According to Avelacom, all new routes are ready for service with guaranteed latencies of up to microseconds and up to 99.9% network uptime.
