Avelacom enhances Middle East connectivity amid new market trends
Avelacom found that smaller markets in the region were not sufficiently covered by third-party vendors.
Avelacom has announced new optimized routes on its network to Istanbul (Bursa Istanbul), Riyadh (Saudi Stock Exchange, Tadawul) and Tel Aviv (Tel Aviv Stock Exchange, TASE).
The provider of low latency connectivity, IT infrastructure, and data solutions is doubling down on its Middle East operations to encourage global traders to accelerate their presence in the region for continuous hedging and repositioning.
Riyadh, Tel Aviv, Istanbul
Aleksey Larichev, Chief Executive Officer of Avelacom said: “As a connectivity provider for the financial services industry we need to identify new trends quickly. This allows us to connect to growing trading venues using our built-and-ready low latency infrastructure and established partnerships. This is how we see our leadership role: bringing the lowest latencies and network performance benchmarks to new markets.”
The new trends in financial markets mainly involve commodities and energy asset classes, which have been strong performers during 2022 amid the Russian invasion of Ukraine and the geopolitical response to it. Financial services firms are looking for new opportunities and new markets in which to trade these asset classes.
Avelacom found that smaller markets in the region were not sufficiently covered by third-party vendors that brought low latency solutions and tools to these markets.
This came as an opportunity for the connectivity provider act as a first-mover and optimize latency across the region in order to attract financial services firms that operate algorithmic trading and require ready-to-go low latency network infrastructure and managed services.
The new connectivity portfolio includes three flagship routes:
London <> Riyadh with less than 80ms*, round-trip delay,
New York <> Tel Aviv with less than 117ms*, round-trip delay,
Frankfurt <> Istanbul with less than 32ms*, round-trip delay.
Access to Japanese equities, commodities, derivatives
Earlier this year, Avelacom launched colocation and network services for Japan Exchange Group (JPX), thus enabling financial services institutions to directly access JPX’s exchanges and markets in cash equities, commodities, and derivatives.
The JPX’s infrastructure – comprising the Tokyo Stock Exchange (TSE), the Osaka Exchange (OSE), and the Tokyo Commodity Exchange (TOCOM) – is now an integral part of Alevacom’s proprietary, ultra-low latency network.
Avelacom considers Japan to be one of its most strategic markets and, for that reason, the connectivity solutions provider has increased its presence in Tokyo over the past four years.
The firm’s expansion in Japan included an authorization from Japan’s authorities to provide telecommunications services, the opening of a branch office in Tokyo to be able to serve clients in the Japanese language, the launch of more points-of-presence (PoPs) in several data centers in the country, as well as the metro network in Tokyo.