The demands of the future trading environment are being addressed by Deutsche Börse Systems who is installing a new ultra low latency infrastructure connecting the financial centres of London and Frankfurt to cater for algo trading, and Bayerische Börse AG, the operator of the Munich Stock Exchange, who is launching a new pan-European Carbon Emissions Exchange (CEE), which will trade in EU Allowances and Certified Emission Reduction (CER) units

The new 'green' CEE venue will launch in October 2009, with clearing and settlement provided by Deutsche Bank, and will use Trayport's exchange trading system platform as its technology base. Bayerische Börse has so far operated as an equity market, offering the ability to trade more than 11,000 securities from across 60 countries, but like many it believes growth will come from CERs and the new carbon markets.

"Having a flexible trading platform that allows us to grow as we need to is an essential requirement. It is one that we know Trayport's system will provide," says Christine Bortenlänger, a board member at Bayerische Börse. "This will allow us to expand our offering into new asset classes, while supporting our existing clients, and remove any constraints found in our current system. It is also a real advantage for us to be able to access Trayport's Trading Gateway community of energy traders."

The new upgraded telecommunication network linking London to Frankfurt, providing access to Deutsche Börse's Eurex and Xetra trading systems, as well as catering for external customers and partners, will reduce network latency to below five milliseconds. It will comprise four links of 10 Gbit/s capacity each, provided by project partners and network providers Level 3 Communications, Interoute and COLT. The connectivity combines new routing paths across the shortest geographical distance with diverse routing options and the latest optical transmission technology.

"The new connectivity brings Frankfurt and London closer together than ever," says Matthias Kluber, executive vice president and head of networks and infrastructure at Deutsche Börse Systems. "The step emphasises Deutsche Börse's leading position in ultra low latency trading."

According to Dr Adelino Santos, head of the major enterprise division of COLT in Germany, one of the contractors, the financial sector is dependent on connectivity solutions that are both fast and reliable, perhaps more so than any other industry. "The contract with Deutsche Börse Systems demonstrates that leading financial providers can rely on our infrastructure and extensive expertise in this sector."

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