Avelacom

Avelacom boosts low-latency financial trading between Sao Paulo and NY

11 August 2020 | Melanie Mingas

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A new, low latency route has been established between Sao Paulo, Brazil (pictured), and New York, USA, connecting the two country’s major financial exchanges.

Completed by Avelacom the route is designed to handle high data volumes generated by “algorithmic trading”, and provides the lowest latency required by institutional traders. It connects B3, Brazil’s stock exchange, with Nasdaq’s data centre in Carteret, New Jersey via Avelacom’s PoPs in both locations.

As a result, latency has improved to 103.5 milliseconds (round-trip delay), offering what Avelacom has said is the “fastest speed for the transmission of market data and trade execution between North American and Latin American major financial markets”.

Avelacom CEO Aleksey Larichev, said: “With this new Brazil–USA route we are extending our network presence and have new opportunities to expand our business and offer services to the growing number of clients who are seeking trading opportunities in these markets.

“We have a six-year experience in building shorter, new and unique paths using fibre optic technologies. Our connectivity solutions enable trading firms to get the most out of network and IT-infrastructure and improve trading performance.”

The route connects two Avelacom points-of-presence (PoPs): between B3’s colocation facilities and Carteret, New Jersey, the data centre for Nasdaq. Due to increased trading volumes and market volatility, Avelacom said this route “fits perfectly with the need to manage peak bandwidth requirements”.

The news followed Avelacom’s Brazilian debut earlier this month when it confirmed the B3 PoP. At the time, Avelacom said it would launch its low latency network, market data and Infrastructure-as-a-Service (IaaS) solutions for B3’s market participants.

Larichev said of the development: “With increased volatility, there is a new investor interest in Brazilian markets, and we are providing convenient solutions for clients as they explore these opportunities.”