Leading stock exchange BSE has decided to offer free rack space for brokers to access co-location facilities at the India International Exchange (India INX) at Gift City in Gujarat.
Through co-location facility, brokers can locate their trading system at the exchange premises, which helps them in faster trading.
As per BSE, the co-location services at India INX, will be one of the fastest with round trip network latency expected to be less than 10 microseconds.
“India INX plans to offer free rack space to members who have applied to Sebi for membership approval at India International Exchange and have sought co-location services,” BSE said in a statement.
The rack space will be provided on a first come first serve basis. BSE, the Asia’s oldest stock exchange, was one of the first to announce establishing the country’s first international exchange at the international financial services centre (IFSC).
The exchange has already received an in-principle approval from Securities and Exchange Board of India (Sebi) to set up India INX, and proposes to offer a diversified portfolio of products and technology services at a cost which is far more competitive to Indian exchanges as well as other global exchanges like those in Dubai, London and Singapore.
“The technology offerings at India INX would facilitate co-location of members in its own Data Centre at GIFT IFSC as well as provide high frequency trading,” BSE said.
Besides, BSE would also place the ‘T7’ trading platform which the fastest system in world at the India INX.
The exchange said that the technical facilities would enable a comprehensive single segment access for currency, commodities, equities and fixed income derivatives.
“The exchange will ensure equitable distribution of market data to all members by usage of same length cables for all members and would also offer full order book (EOBI) multicast to all co-location members at zero cost,” it added. Network connectivity at India INX is being provided by Tata Communication and Airtel.