Ethernet, cloud and hosting provider, BSO, has added Singapore and Hong Kong to its FX circuit, citing growing demand for fast and reliable access to trade currency derivatives in emerging markets as the reason for the expansion.
The new routes, built on top of BSO’s London-New York-Tokyo circuit, will enable market makers using the BSO network to trade currency derivatives up to 10 milliseconds faster than before.
The new circuit includes improved latency and more diverse paths between London and Singapore, as well as a new trans-Pacific route for firms looking to trade between New York and Hong Kong. BSO says that it has also optimised its London-Tokyo link to the lowest latency available on the market.
“Emerging regions have witnessed a boom in OTC FX derivatives trading, with turnover rising more than 40% since 2010, according to the Bank for International Settlements (BIS). Singapore and Hong Kong have seen particularly strong trading activity in FX interest rates, with both regions accounting for half of the growth in OTC trading across emerging markets, which totals 33%,” BSO says in a statement.
Commenting on the extended circuit, Emmanuel Pellé, COO of BSO, says: “With a growing appetite to trade emerging market currencies internationally, traders will need a reliable low-latency network to seamlessly reach new destinations. The inclusion of Singapore and Hong Kong provides derivative hungry market makers with unrivaled access to one of the most popular FX circuits in the world.”