Stock exchanges must meet clients’ demand for faster execution speeds to remain competitive. Colocation offers clients several advantages, including improved trading speeds and market data updates, which allow for enhanced response times to market movements, the deployment of new trading strategies and reduced bandwidth costs.

The JSE’s Colocation facility provides the lowest-latency connection to JSE markets, allowing clients to host their trading infrastructure in the same vicinity as the JSE’s market infrastructure. This enables low-latency trading strategies through high-speed trading and market data access.

The Colocation facility is a data centre housed at the JSE where clients lease a rack for their server and other computing hardware in a secure environment next to the JSE’s trading engine. The facility provides the structure, cooling, power, bandwidth and physical security, while clients provide servers and storage within the facility.

The centre alleviates the administrative burden of managing an on-site data centre while allowing clients full access to their server in the data centre.