The Taiwan Monthly

Jan. 2018

Global Connection

TWSE to launch co-location services

To enhance securities market services, the Taiwan Stock Exchange (TWSE) launched co-location services on December 25, 2017. This is a major move, and will satisfy securities firms’ need for efficient network transmission and make IT services in the securities market faster and more advanced.

The list of users who have applied for co-location services include 17 securities firms and market information users, such as Da-Din, KGI, President, Capital, Yuanta, Dah Chang, Ta Ching, Concord, Fubon, Yuanta Futures, and SinoPac Holdings. Seven users will participate in the first stage launch on December 25, followed by the other ten in the near future. TWSE and TPEx would like to remind securities firms who have not signed up for the service that the early bird offer will expire at the end of March 2018.

Making the co-location services available in the securities market is consistent with the direction of progress in other securities markets. The services will not only satisfy the demand for fast trading, but mark an important step forward in implementing international standards in Taiwan's securities market. With the support of the competent authority, the services can be expected to facilitate progress in the securities markets and better compliance with international standards. The service will also increase visibility of Taiwan's securities market, and mark an important step forward in establishing its global influence.

The data center to provide the co-location services is equipped with 200-year flood proof and Level 7 earthquake-resistant (532 gal) server infrastructures as well as doubly-fed power systems. Computer servers of the service users are housed in the same room and connected directly to the TWSE trading system mainframes without passing through a wide area network (WAN) to receive trading orders and market information. The result is faster network transmission and low latency. The system meets the securities firms' demand for a reliable, stable, and secure operating environment that delivers high performance and the need for greater network speed. All service users are connected to the trading system mainframes by identical distance to ensure consistent, equal network conditions for all users.