Optimising Exchange Connectivity for Tier 1 Bank
A Global Tier 1 bank approached Synechron to review its exchange connectivity infrastructure, which supported both US and European trading operations. In the US, the review was taking place in tandem with a large-scale data centre migration project. The bank was moving many of its core systems to a purpose-built facility in New Jersey, which was optimally located between the NYSE and Nasdaq co-location facilities.
The bank had been operating two separate hub-and-spoke network architectures, one of which supported its latency-sensitive trading and market making functions, with another supporting all other realtime enterprise applications. Furthermore, a number of its existing agreements with network providers had been negotiated several years ago, so the cost of its exchange connectivity infrastructure was far higher than necessary.
Synechron began by conducting a thorough evaluation of the bank’s current network architecture, along with a review of the costs it was incurring operating the connectivity infrastructure. Our consultants quickly ascertained that the bank was paying too much, and went about designing a new connectivity architecture that would offer a significant improvement in terms of cost, performance and resilience.
The new architecture was based on a mesh network that would consolidate all the bank’s exchange connectivity, rather than maintaining two disparate hub and spoke networks. In order to cater for its most latency-sensitive trading applications, the bank decided to create a separate cage within its proprietary data centre, which would lie outside of its enterprise firewall, thus enabling faster connectivity. Synechron supported every aspect of the migration, from design and sourcing through to implementation. The result was a faster, more resilient connectivity infrastructure that cost less.
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