HFT Data Centers and Co-location Services
High-frequency trading (HFT) requires deploying servers in data centers near exchanges to achieve minimum latency. This article introduces co-location services at major exchanges and communication service providers.
Major Service Providers
| Provider | Services | Features |
|---|---|---|
| Equinix | Co-location, bare metal rental, dedicated lines | Most comprehensive coverage, HFT standard |
| Hudson Fiber Network | Dedicated fiber | Low-latency routes to US East Coast exchanges |
| McKay Brothers | Microwave communication | Extreme low latency, cross-continental routes (e.g., London-Chicago) |
| Colt | Asia-Pacific high-speed fiber | Tokyo, Hong Kong, Singapore data centers |
| Dedicated Low-Latency Fiber Providers | Dedicated fiber (e.g., Chicago to New York) | ~13ms latency (e.g., Jump Trading's network) |
United States
| Exchange | Co-location Data Center | Notes |
|---|---|---|
| NASDAQ | Carteret, NJ (Primary Matching Engine) | NASDAQ-owned data center, supports co-location |
| Multi-Exchange Hub | Equinix NY4/NY5 (Secaucus, NJ) | Neutral data center connecting multiple exchanges |
| NYSE/ARCA | Mahwah, NJ | Direct co-location only, no third-party hosting |
| CME | Aurora, IL | Major US futures HFT hub |
| BATS / CBOE | Equinix NY5 (Secaucus, NJ) | Shared data center with multiple exchanges |
Japan
| Exchange | Co-location Data Center |
|---|---|
| JPX (Tokyo Stock Exchange) | @Tokyo CC1/CC2 Data Center (Koto-ku, Tokyo) |
HFT traders must deploy here (JPX Arrowhead matching system)
United Kingdom
| Exchange | Data Center |
|---|---|
| LSE (London Stock Exchange) | Equinix LD4 (Slough) |
Summary
| Scenario | Recommended Deployment |
|---|---|
| US Stocks/Futures | Carteret (NASDAQ), Mahwah (NYSE), Aurora (CME) |
| Japanese Stocks | @Tokyo CC1 (JPX co-location) |
| Hong Kong Stocks | HKEX co-location service (Tseung Kwan O data center) |
| Communication Providers | McKay Brothers (microwave), Hudson Fiber, Colt, Equinix |