NYSE Technologies has pushed its SuperFeed real-time market data delivery service into Brazil through a local distributor arrangement between NYSE Euronext and Brazilian telco Universal Telecom (Unitelco). The companies believe the move will bring Brazil’s investment market a step closer to the maturity of the US market, adding low-latency direct market data delivery to existing intermediary services from Bloomberg and Thomson Reuters, and meeting the needs of growing numbers of hedge funds, algorithmic traders, high-frequency traders and arbitragers operating in Brazil.
SuperFeed will officially arrive in Brazil on April 27 and Luiz Kotek, Unitelco CEO, says he has already received an avalanche of requests for the service. The company is currently finalising implementation and potential customers can expect to wait about two weeks to be connected by fibre to the SuperFeed service, although Kotek suggests a wireless link can be created if customer need is more urgent.
SuperFeed provides on-demand access to consolidated and direct
market data from over 30 markets in the US, Canada, Europe and Asia. In Brazil, Unitelco has selected redundant, wide-band direct links from NYSE Technologies’ SFTI network in New York for direct installation into its data centres in Sao Paulo and Rio De Janeiro. SuperFeed has a measured transmission speed of 70 milliseconds across the 8,000kms between New York and Sao Paolo, although Kotek has seen measures as low as 57ms, knocking 30ms off its initial expectation and beating telco competitors routing into Brazil.
“The latency we can offer is a key client benefit, no-one has offered anything below 85ms before,” says Kotek. “It is also important for our customers that SuperFeed provides on-demand delivery of data that can be customised. SuperFeed doesn’t deliver bulk aggregated data, but just the data clients need. This approach of minimal data and low latency combine to increase performance tremendously.”
Antonio Goncalves, NYSE Technologies’ regional manager for Latin America, says that while SuperFeed is already available in the US, Canada, Mexico and Chile, as well as in some European and Asian markets, this is the first time that NYSE Technologies has configured a redistribution model for SuperFeed that allows users to customise their data selection. In SuperFeed’s other markets, clients typically want bulk aggregated data, but Goncalves says: “The difficulty in Brazil is the cost of the connection to New York, so here we are using a model that filters data and delivers it with low latency, giving clients good cost value.”
Data and delivery costs are dependent on the amount of data the client requests and NYSE Technologies acknowledges that despite the cost incentive in reducing the quantity of data delivered, clients are prepared to pay premium prices for low latency that generates increased performance. Improving latency and performance further, Unitelco has also added collocation services at the start of its fibre cable.
While NYSE Technologies follows its ambition of making SuperFeed a global service, Unitelco, which was founded in 1999, is pursuing its strategy of providing ground-breaking solutions to the Brazilian financial industry.
Kotek says: “This new service is part of an ambitious investment plan to expand our coverage and breadth of solutions for the financial industry in Brazil. Unitelco has spared no effort in building this advanced technology service, which no other provider will be able to match in Brazil. SuperFeed provides our customers with unparalleled service and performance that we believe represents a significant step forward in the availability of real-time trading information and global market data.”