Avelacom, SGX, Broaden Partnership

Singapore Exchange (SGX) and connectivity solutions provider Avelacom have broadened their partnership with Avelacom becoming SGX’s colocation provider.

The new initiative is aimed at global proprietary trading firms and relative value funds who benefit from market volatility and need the fastest access to SGX’s trading platforms, the firm say. Avelacom’s new server rack will be situated next to SGX’s core securities and derivatives matching facility, providing less than 20 microseconds round-trip network latency to SGX’s trading and market data engines.

Avelacom has partnered with SGX since 2016, including connectivity routes between SGX and CME, Hong Kong, Shanghai, Tokyo and Sydney. With its new colocation services, Avelacom will provide enhanced infrastructure capabilities for trading on SGX, split into single-unit offerings to create a starting point for investors who are new to the Singapore markets.

“SGX is the leading multi-asset exchange in Asia, generating a constantly growing demand among international financial institutions,” says Aleksey Larichev, CEO of Avelacom. “In addition, SGX products are becoming ever-more popular for arbitrage trading strategies, which require ultra-low latency and robust IT infrastructure that deliver good value. Our expanded range of services meets all these needs, and make SGX’s securities and derivatives markets increasingly attractive for arbitrage opportunities.”

Ng Kin Yee, managing director, head of data, connectivity and indices at SGX, adds, “This partnership will enhance the connectivity options for our clients with the one-stop offering of both low-latency international connectivity and hosting infrastructure in SGX co-location.”