Data Centre and Capital Markets

The Data Centre Remains the Focal Point of the Capital Markets Battleground

The financial-services sector is increasingly being seen as a battleground as data centre operators vie to provide financial companies with data-support. This is because the financial sector is poised to evolve in revolutionary fashion. In many cases, the trader needs to be a tech-guy to take advantage of the different software and hosting packages offered by a data centre.

The players include companies like Equinix, Savvis (now Centurylink Technology Services) and Interxion (in Europe), which viewed FSI as a strategic market. Meanwhile, in Europe, the London Stock Exchange and BATS Chi-X are vying to become Europe’s largest exchange. The data centres supporting these exchanges are key for their operations. In the U.S., dedicated commercial data centres also play key-roles for the NYSE.

The financial services sector increasingly uses sophisticated buy-side and sell-side tactics, and the number of ISVs who play in sector is growing. They have huge connectivity requirements, and need data centres which can give them multiple connectivity options. There are comprehensive, demand-side requirements, including cost-efficiency, understanding risk management, and related regulations. Being able to deliver these provides a competitive edge to those who can do it.

The most successful data centres are able to simultaneously host multiple investment players. Their success is based on their execution, and having experience is key to attracting the right players and bringing in liquidity. Balance needs to be sought between what can be outsourced to third-parties and what needs to be kept in-house.

Out West. In the U.S., the infrastructure-as-a-service business model reigns. Data centres offer co-location and managed hosting and can scale-up to meet demand and scale-out for outsourcing. The trading infrastructure must be built for peak load (about 40 times the normal volumes), decreasing profit-opportunities. Being able to offer large-scale services mitigates the profit-loss potential. Again, balance needs to be sought between what can be outsourced to third-parties, but the high-cost of data centres makes it difficult to profitably run commoditised infrastructure in a single location.

Options. There are options galore for financial services players. The ever-changing financial-services industry keeps bringing-on disruptive entrants (such as over-the–counter derivatives), and these new classes of offerings create opportunities for new pricing models.
Both established and innovative new data centre suppliers are pushing the message that they have the necessary robust infrastructure and the required scale to provide service security and access to liquidity.

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hasigirl

6 Comments

  1. hasigirl April 17, 2014 at 9:16 am #
    Hello, Thank you for your comment. Whilst we cannot disclose any private information about which banks currently use data centres, please be aware that the majority of medium sized and large financial enterprises currently use data centres for their colocation and hosting. By "outsourcing" their IT hardware they reduce costs, free up additional space and allow the experts to safely and securely manage their IT requirements.
  2. hasigirl April 17, 2014 at 9:13 am #
    Our site is being constantly updated with more information about data hosting, and data centres in Switzerland. Please see our other pages. Additionally, we are happy to personally assist you - please contact us through the Contact Us page and we will assist you in any way we can. Regards, Hasi
  3. hasigirl April 17, 2014 at 9:11 am #
    You are correct. With every changing data laws across the globe, and government bodies spying on data, Switzerland is looking like a more tasty option every day

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