European Traders Deploy Technology to Address Best Execution Challenge Head On

European Traders Deploy Technology to Address Best Execution Challenge Head On

June 22nd, 2020 - Financial, Global Connectivity

By Jeff Mezger, Director of Product Management, TNS

When article 27 of MiFID II introduced more complex best execution requirements in 2018, a shockwave emanated throughout financial institutions across the European Union. Even though most had anticipated that the bar set by the original MiFID legislation would be moved, the extent to which it was threw many strategic plans into disarray.

Now, over two years later, we see myriad measures that firms are using to aid compliance, with no single solution or approach coming to the fore. That is, until now.

Recognizing the issues faced by European equities traders, Transaction Network Services (TNS) set about expanding its managed infrastructure and connectivity reach to address traders’ initial priority of establishing efficient access to all of Europe’s equities exchanges. This Summer, with the addition of SIX Swiss, CBOE Europe and Borsa Italiana, TNS has now made this ambition a reality and completed its European equities exchange portfolio.

European equities traders can work with TNS and leverage a single supplier relationship to make their trading infrastructure more streamlined and cost efficient, while critically helping to meet their best execution obligations more effectively by connecting to all the destinations needed.

TNS’ ability to offer access to all of the major European equities exchanges is a significant development. More importantly, TNS wanted to augment this with ultra-low latency to enable traders to not just address pre- and post-trade transparency practices but to excel in them. This led to the introduction of TNSXpress Layer 1 in Europe with launches at the LSE, Euronext and Xetra most recently completed. Previously the domain of US high-frequency traders, this unique technology uses a single hop architecture that is up to 10 times faster than traditional Layer 3 architectures. TNSXpress Layer 1 typically delivers speeds of 5-85 nanoseconds, giving traders a strong competitive edge.

Combining the rollout of TNSXpress Layer 1 with extensive exchange coverage across Europe, as well as the US and Asia Pacific regions, enables TNS to help traders address the best execution challenge head on while delivering a wealth of additional business benefits.

To find out more about TNS’ extensive European exchange coverage and TNSXpress Layer 1 visit www.tnsxpress.com

Jeff Mezger is Director of Product Management at TNS with responsibility for its managed services for the financial industry. He oversees product development and strategy for market data, online and data center services.

 

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