The NASDAQ OMX Group and the Australian Securities Exchange Group (ASX:ASX) have announced a commitment for the delivery of ASX's next generation trading system - ASX Trade powered by NASDAQ OMX's Genium INET trading platform. ASX Trade will replace their current integrated equities and derivatives trading platform, and with the new system aims to enable significant latency and transaction capacity advantages.
The Genium INET platform has an average latency of 250 microseconds, and will allow ASX Trade to increase the trading capacity to exceed 5 million trades and 500 million order book changes per day. It will also retain the core functionality of the existing system, including the ability to trade equities and derivatives on one platform. ASX Trade is scheduled for rollout in the second quarter of financial year 2011 (fourth quarter of this calendar year).
Jeff Olsson, ASX Group Executive Technology, said, "The Genium INET platform will underpin ASX's next generation equity trading system and continues the longstanding and successful relationship that ASX has with NASDAQ OMX. ASX Trade will provide a significant improvement in technology performance, which when coupled with ASX's co-location facilities, will offer market participants a trading experience as fast and efficient as anywhere in the world. This will strengthen the global competitiveness of the Australian capital market to the benefit of traders, companies and investors alike."
"ASX Trade is at the forefront of a suite of new ASX equity market innovations designed to provide tailored services to users with diverse trade execution needs. Similar infrastructure and access arrangements to ASX's existing system will minimise demand on the technology resources of participants and reduce the potential for connectivity disruption during the transition to the Genium INET-powered ASX Trade," said Mr. Olsson.
Lars Ottersgard, Senior Vice President NASDAQ OMX Market Technology, said, "ASX has always been at the forefront for technology adoption and innovation. Through our Genium INET platform ASX will be deploying one of the most advanced and sophisticated trading systems in the world, delivering speed, capacity, scalability and reliability comparable to services offered by the world's leading markets."