Thomson Reuters to provide low-latency market data to BATS Europe

Thomson Reuters has announced it will provide low-latency market data to pan-European multi-lateral trading facility (MTF) BATS Europe via its hosting facility, Thomson Reuters Elektron.

The agreement gives BATS Europe MTF a single network connection through which it can access ultra-low latency real-time pricing information from European execution venues.

BATS Europe, launched in October 2008, currently executes 8%-10% of the FTSE 100, 5%-6% of the FTSE 250, 7%-9% of the SMI, CAC 40, AEX and OMXH25. It executes over 5% of the European market overall.

Elektron customers can co-locate trading applications within the same data centre facility as BATS Europe.

Scott Kennedy, global business manager of direct feeds at Thomson Reuters, said co-location, which is hosting a client's server in the same data centre as the matching engine of the MTF, provided the lowest latency possible.

The service should be useful for hedge funds using high-frequency trading strategies, he said. This, according to Kennedy, is because "they wanted access to a high-performance, low-latency, cost-effective and broker/exchange neutral service access to the markets".

Kennedy said there had been a degree of fragmentation of the market in Europe. He attributed this to many factors including the European Union's markets in financial instruments (Mifd) directive.

"We have a diverse range of customers ranging from hedge funds to prime brokers. This service will provide a cost-effective solution. It will provide simple access and low-latency delivery to all the relevant markets," said Kennedy. Hedge fund customers would access Elektron directly and through broker dealers.

Kennedy said the platform would provide data on a broad range of equities and derivatives traded globally across 70 different markets. There are 10 hosting hubs worldwide.

Established in 2006, BATS Global Markets is a financial markets technology company based in Kansas City.