Burgundy Adds Fixnetix to Low-Latency Access to Connectivity Options

Nordic multilateral trading facility (MTF) Burgundy's addition of Fixnetix to its lineup of connectivity suppliers brings the number of connectivity options to five, including Verizon, BT, TNS and IP-Only.

Burgundy says the UK operations of four investment firms are trading on the platform – Credit Suisse, Nomura, Sanford Bernstein and UBS – alongside the 14 Nordic banks and securities trading houses that own the MTF and one additional local broker. The MTF says trading volumes are picking up, and hopes that ongoing discussion with a further 25 to 30 investment firms across Europe will result in more members and increasing trade volumes.

None of the firms trading on Burgundy has yet signed up for Fixnetix connectivity. But Erik Ellqvist, head of marketing operations at Burgundy, is talking to some about adding Fixnetix’s low-latency trading access and direct market data feed towards the end of the first quarter or in early Q2.

“Connectivity is an important issue in remaining competitive, but our biggest advantage is being different to other alternative venues and exchanges by offering only Nordic equities and equity-related products,” he says.

While that may be true, connectivity is important if Burgundy is to remain competitive. Says Bob Fuller, non-executive director at Fixnetix: “Burgundy may be swimming in blue water where no-one will eat its lunch, but all MTFs need to offer traders high-volume trade flows, fast access, ease of connectivity and speed to market.

“Fixnetix’s technology, collocation and proximity services, and a focus on trading environments, mean we have symbiotic relationships with MTFs such as Burgundy.”

Fuller acknowledges that premium services using the company’s 10Gb point-to-point high-speed fibre backbone network carry premium price tags. But he says large traders seeking ultra low-latency are prepared to pay for reliable, high bandwidth connectivity.

He adds: “If a trading firm is already a Fixnetix customer we can add connectivity to an MTF such as Burgundy very quickly by adding to our agreement and simply turning the network on. If a customer is new to Fixnetix, we take care of all the details, making procurement faster and getting the trader on to the market sooner.”

As well as offering high-volume, low-latency connectivity to Burgundy, Fixnetix covers other MTFs including Chi-X Europe, Bats Europe and Equiduct, and expects to follow their lead when they diversify beyond equity trading into other products.