April 23rd, 2020 - Financial, Global Connectivity
By Jeff Mezger, Director of Product Management, TNS
The Asian financial markets are experiencing speedy growth, with Hong Kong quickly becoming one of the world’s major financial centers. The country’s iconic securities market, the Hong Kong Exchanges and Clearing (HKEX), is one of the world’s largest stock exchanges with more than 2,300 listed companies and a range of equities and derivatives — and it’s not stopping there.
HKEX is taking significant steps to expand its market position further, with investments in schemes that allow foreign investors to trade on mainland Chinese exchanges via the HKEX infrastructure, and updated listing rules that have attracted major multinational companies and tech startups.
Along with the Tokyo Stock Exchange, HKEX now is a major global gateway to trading and market data in Asia, and represents a throughway to the Shanghai Stock Exchange — making it ripe pickings for the world’s trading firms, and a key opportunity for network infrastructure providers to connect customers across the world with this important market.
This led Transaction Network Services in October 2019 to sign an agreement for connectivity, managed hosting and market data access that will give financial market participants more choices in how to trade with the HKEX. The new agreement provides local and international low-latency connectivity to the exchange and between trading partners.
This means two important things for TNS customers:
1 — The TNSXpress Managed Hosting solution went live at the HKEX hosting data center in February 2020, allowing traders who need to gain speed and cost efficiencies to colocate their trading infrastructure close to the HKEX matching engine. Traders can use TNS for both local and international connectivity to the exchange and between trading partners, giving them the opportunity to take multiple services from a single vendor and simplify how they trade with HKEX.
Traders can sit in New York, London, Chicago or anywhere else in the world and allow TNS to manage their trading infrastructure in Hong Kong while they focus on their core business objectives. TNS finds, coordinates and procures facilities and server hardware, as well as handles the project management, system installation, testing and commissioning — giving traders boots-on-the-ground support in key markets without firms actually needing to put any of their own people there.
2 — In March 2020, TNS went live with real time HKEX derivatives and securities market data. TNS is offering its services via aggregated HKEX service network (HSN) connectivity to traders through a single HSN connection.
Under the agreement, TNS can provide market data feeds from the Stock Exchange of Hong Kong (SEHK) and the Hong Kong Futures Exchange (HKFE) to firms with a market data agreement in place with HKEX — and TNSXpress now covers the majority of the world’s most important markets and exchanges.
Hong Kong has the potential to unseat Japan and become the true gateway to Asia, and TNS’ timely agreement with HKEX means its customers will be well positioned to take advantage of the opportunities that previously have not been as accessible. Traders have been eagerly looking for ways to play in the HKEX, and now firms from all over the world can collocate their trading infrastructure with the exchange; leverage richer, real-time market data and lightning-fast order routing; and access a key financial market using a single, secure vendor with local onsite support.