The agreement includes hosting and supporting the global network and hardware infrastructure in data centers in the US, UK and Sweden. OMX has also delivered new enhancements to the platform, that it says will enrich response time and improve bandwidth efficiency for BrokerTec’s market data broadcasting component by 50%.
The new contract extends the existing one drawn up between BrokerTec and OMX in 1999, under which the former agreed to supply an electronic trading system. This agreement was renewed three years ago.
The landscape in US Treasury trading continues to evolve from the original implementation of the BrokerTec system. Increasing levels of broadcasts of market data information during economic releases continue to produce substantial throughput demands, noted Jay Spencer, global Chief Information Officer, Icap. These system upgrades clearly improve this component for each client and enhance network efficiency and response times for all of BrokerTec’s users.
The new contract is an improvement on BrokerTec’s recent dealings with other firms. eSpeed, a unit of trading company Cantor Fitzgerald, brought a lawsuit against BrokerTec claiming it had infringed upon its own electronic bond trading platform. A Delaware jury ruled last month that the company did not breach patent laws as eSpeed had failed to make clear the details of its patent request.
