Euronext Securities Copenhagen today announced that BNY has signed an agreement to become a direct participant in the Danish Market.

Henrik Ohlsen, Head of Sales at Euronext Securities, commented:

 “We are pleased to partner with BNY, a leading global financial services company, to provide them with direct access to the Danish market.  BNY joins a growing number of Euronext Securities customers choosing to access our markets directly and capitalise on the benefits of that approach, such as lowering operational risk and accessing the market infrastructure directly.   We believe this trend of market optimisation, with market infrastructures linking together, not only benefits our international clients, but also helps connect European economies to global capital markets. Concretely, international investors now have more direct and efficient access to the €1.5 trillion of assets issued in the Danish capital market.”

Strengthening ties to the Danish and Nordic markets

For BNY, having a direct interface to the Danish market through local CSD connectivity will help the financial institution further support its customers in Denmark and the Nordic region, as well as internationally. 

Søren Eberhard, Copenhagen Branch Manager at BNY commented: 

“Following the establishment of our branch office in Copenhagen (2020) and Depositary Bank (2021), we are excited to take yet another step in our international growth strategy and expand our commitment to the Danish and Nordic markets. BNY provides clients with local expertise powered by global capabilities including technological resources, resiliency, and scale needed to meet the increasing regulatory requirements of institutional investors and their growing investments needs.”

The financial industry relies heavily on the speed and reliability of data transmission to execute trades and manage orders. In the fast-paced environment of stock exchanges, where milliseconds can translate to significant financial gains or losses, the method by which order data is transmitted is crucial. Wireless microwave networks have emerged as a critical technology for order transmission, offering numerous advantages over traditional methods.

How stock exchanges use wireless microwave networks 

Wireless microwave networks transmit data using high-frequency radio waves, providing a direct line of communication between stock exchanges and trading firms. This method bypasses the latency issues associated with fibre optic cables, which often take longer, more circuitous routes. 

In practice, microwave networks are used to create more direct connections between trading venues and firms’ data centres, significantly reducing the physical distance that data needs to travel. These networks are engineered to ensure the shortest possible path, often spanning hundreds of miles with minimal signal degradation.

Euronext Wireless Network EWiN

Euronext recently launched its own wireless network (EWiN) that uses microwave technology. This service is set to significantly enhance the speed of order transmission between London and the exchange’s data centre in Bergamo, offering unparallelled improvements in latency for Euronext’s London-based members that will choose EWiN.

By leveraging the faster transmission speeds of microwave technology, EWiN provides a direct and highly efficient communication pathway that significantly reduces the time it takes to send orders to Euronext’s single liquidity pool, powered by the single technology platform Optiq^®.

Euronext is the first exchange in Europe to offer a Plug & Play solution for trading via microwave technology, which has roughly half the latency of the fastest fibre routes available (less than 4ms one way, compared to 6-8ms one way through fibre).

Banks and brokers will benefit from reduced latency and greater market efficiency, enhancing execution quality for investors. Euronext members can request tailor-made bandwidth based on the order entry capacity they want to allocate to this service.

This new service is provided in collaboration with McKay Brothers, the largest independent microwave network provider in Europe.

The future of data transmission

The transmission of stock exchange order data via wireless microwave networks offers significant advantages in terms of speed, reliability, and cost-effectiveness. In the competitive world of high-frequency trading, the ultra-low latency provided by these networks can be the difference between profit and loss. 

With the continuous advancements in microwave technology, these networks are set to play an increasingly vital role in the financial sector, ensuring fast, secure, and efficient data transmission. 

As trading continues to evolve and the demand for speed intensifies, wireless microwave networks will remain a cornerstone of modern trading infrastructure, enabling market participants to stay ahead in the race for speed and efficiency.

Learn more about Euronext Wireless Network (EWiN)