Trading in Financial Markets: BSO’s Market-Leading Routes & Ultra Low Latency

In today’s interconnected world, reliable and performant network connectivity is of the utmost importance for businesses worldwide. This is particularly key for companies trading in global financial markets, as low latency network connectivity is vital to successful business outcomes. This is where the need for a market-leading network infrastructure provider with dependable solutions comes in.

In this blog, we explore the importance of partnering with a low latency network provider for businesses involved in the financial trading network, what makes BSO a market leader in the space, and which financial markets BSO’s ultra low latency network covers.

The importance of low latency network connectivity when trading in global financial markets

In the context of global connectivity, ultra low latency is of paramount importance, particularly for activities such as financial trading. Seamless and high-speed connections are crucial for trading in global financial markets due to the highly competitive and time-sensitive nature of the industry. Financial institutions, including banks, hedge funds, and trading firms, rely on near-instantaneous data transmission to execute trades, monitor market conditions, and capitalise on market opportunities.

Ultra low latency connections enable traders to receive real-time market data, execute trades quickly, and respond promptly to market fluctuations. Even a fraction of a second delay can significantly impact trading outcomes and potentially result in missed opportunities or financial losses. Therefore, market leaders in global connectivity understand the importance of minimising latency and ensuring reliable connections to meet the demanding requirements of the financial industry.

BSO’s market-leading ultra low latency network

Market leaders in global connectivity are leading providers of high-quality, reliable, and efficient connectivity solutions on a global scale. This includes offering seamless and high-speed connections that facilitate fast and secure communication across various locations around the world. Achieving market leadership at this level involves providing superior products or services, maintaining a competitive edge, and effectively meeting the evolving needs and expectations of customers – all things which we at BSO do particularly well.

Market-leading connectivity providers like ourselves invest in advanced infrastructure, such as undersea fibre-optic cables, satellite networks, and data centres strategically located across the globe. These infrastructure investments help reduce latency by minimising the distance and number of network hops between trading centres and financial exchanges. A such, providers like BSO play a crucial role in facilitating the interconnectedness of financial markets and supporting the flow of both capital and information worldwide. 

It’s for this reason that BSO’s unparalleled global network comprises state-of-the-art infrastructure that encompasses over 240 data centres across 33 countries, more than 50 cloud on-ramps, and connects to over 30 stock exchanges. This global network footprint enables financial institutions to access global markets seamlessly, execute trades efficiently, and stay competitive in the rapidly evolving landscape of global financial trading. 

Below, we explore 5 prominent financial trading routes our ultra low latency infrastructure supports.

London to Tokyo

Connecting two financial powerhouses, the London to Tokyo financial trading route serves as another vital link between Europe and Asia, facilitating international investments, driving economic cooperation, and supporting the growth and efficiency of markets in both regions.

London, renowned for its strong financial markets, including the London Stock Exchange – one of the world's largest stock exchanges, and Tokyo, hosting the largest stock exchange in Japan, are both key financial hubs in their regions, making the route a critical channel for financial transactions, investments, and trading activities, especially in foreign exchange.

London is recognised as the largest forex trading centre globally, while the Japanese Yen remains one of the most actively traded currencies. The trading route, therefore, is a particularly important one in facilitating the exchange of currencies, liquidity provision, and price discovery, supporting the functioning of the forex market overall.

London and Tokyo also have a significant time zone difference that creates overlapping trading hours, allowing market participants to conduct trading activities across multiple time zones. This facilitates the continuity of trading and enables market participants to react to global market developments and news quickly, ensuring round-the-clock access to liquidity and trading opportunities.

Despite both cities having access to robust technological infrastructure, achieving fast connectivity between London and Tokyo has long been a challenge for telco providers. However, ultra low latency connections are crucial for high-frequency trading strategies and continuous, real-time market monitoring, especially in these two popular global markets. 

Following a surge of investment in Japanese capital, we have optimised our existing low-latency trading route and we continue to make ongoing improvements to the route as we cement our market-leading position of providing ultra low latency connectivity between Asian financial hubs and the rest of the world. 

Frankfurt to Istanbul

Serving as a vital link between Europe and the Middle East, the Frankfurt to Istanbul financial trading route holds significance due to its strategic location, economic importance, cross-border investment opportunities, cultural ties, and the infrastructure that supports seamless connectivity. Frankfurt is a prominent financial hub that serves as the central location for the European Union's financial activities. Istanbul, on the other hand, acts as a bridge between Europe and Asia, positioning itself as a gateway to the Middle East and beyond.

The financial significance of these cities makes the Frankfurt to Istanbul trading route a crucial channel for investors, traders, and financial institutions looking for cross-border investment opportunities between Europe and the Middle East. Investors can capitalise on the diverse range of investment options available in both regions, including stocks, bonds, commodities, real estate, and more.

Additionally, infrastructure developments play a crucial role in enabling the Frankfurt to Istanbul trading route. Investments in high-speed, low latency connectivity help ensure the seamless transmission of financial data, real-time market information, and fast execution of trades. And as the demand for trading between Frankfurt and Istanbul continues to grow post-Brexit, market leaders like BSO are upgrading their direct connectivity routes between the locations, ensuring the trading community has continuous and stable access to these profitable and attractive markets as they look to stay one step ahead of their competition.

BSO’s ultra low latency Frankfurt to Istanbul route caters specifically to banks, especially heads of trading and market infrastructure chiefs, as well as derivatives brokers and electronic market makers. Find out more about our Frankfurt to Istanbul financial trade route and how we’re helping trading firms in the region seize opportunities as and when they arise.

London to Riyadh

Another prominent route connecting the United Kingdom and the Middle East is the London to Riyadh trading route. Both cities are recognised as key financial hubs in their respective regions, with London boasting some of the most prominent global financial institutions, and Riyadh playing a crucial role in the Middle East’s economic activities at large. As such, the trading route enables vital financial transactions, investments, and trading activities between these two significant economic powerhouses.

The London to Riyadh trading route enables capital market infrastructure between Europe and the Middle East, providing investors and businesses with opportunities to access and participate in the capital markets of both regions. Investors from London can invest in Saudi Arabian companies and markets, while investors from Riyadh can access European financial products and securities. This integration contributes to diversification, increased liquidity, and the growth of the financial markets in both cities.

Additionally, Saudi Arabia, with its Vision 2030 plan, has been actively promoting economic diversification and attracting foreign investments with investment opportunities across sectors like energy, infrastructure, real estate, technology, and tourism. London, as a global financial centre, provides a gateway for investors to access these opportunities and contribute to the development of the Saudi Arabian economy. In line with this, London’s well-known expertise in financial services (including investment management, risk management, financial regulation and Islamic finance) means that the London to Riyadh trading route allows for the transfer of financial services as well as expertise between the two cities.

Similarly, while the trading route enables Riyadh to access London’s financial services and expertise, it also facilitates the trading of oil and energy-related financial instruments, as Saudi Arabia is one of the world’s largest producers and exporters of oil. The trading route provides a platform for market participants to hedge, speculate, and trade energy-related commodities, such as crude oil futures and energy derivatives, thus enhancing the efficiency and liquidity of oil markets, benefiting both producers and consumers worldwide.

Following the successful listing of Saudi Aramco on the Saudi Stock Exchange in December 2019, the exchange has seen a steady flow of listings, contributing to its growth as well as the growing demand for access from investors. With an already well-established range of connectivity services in the UAE, BSO’s market-leading presence in the Middle East is primed to support the financial community’s demand for direct, ultra low latency, high-performance connectivity into key Middle Eastern stock exchanges, including Riyadh. We’re also constantly optimising these network routes for the benefit of clients, ensuring they remain at the forefront of the trading sector.

New York to São Paolo

Shifting focus to the other side of the Atlantic, it’s important to highlight another vital route for trading in global financial markets,  the New York to São Paulo financial trading route. Similarly to London, New York is a global financial centre housing the New York Stock Exchange and numerous international financial institutions, and as the financial capital of Brazil, São Paulo is a key hub for banking, investments, and capital markets in Latin America.

The New York to São Paulo trading route enables integration between the capital markets of North America and Latin America, providing investors and businesses across the Americas with key investment opportunities in both regions. The trading route also plays a crucial role in facilitating foreign direct investment (FDI) flows between the United States and Brazil, as both countries attract significant FDI due to their large economies, diversified industries, and market opportunities, thus fostering economic cooperation, technology transfer, and cross-sector business growth in both regions.

Additionally, the route plays an important role in commodity trading as Brazil is a major producer and exporter of various commodities, including agricultural products, metals, and energy resources. The New York to São Paulo trading route facilitates the trading of commodity futures, derivatives, and options, enabling market participants in both cities to access and benefit from Brazil's commodity markets.

Similarly, the route also benefits from cultural and trade links between the United States and Brazil, as both countries have significant trade relationships, with trade agreements and historical ties that foster economic cooperation. The trading route thus supports bilateral trade activities, promotes cross-border investments, and strengthens the economic and commercial relationships between New York and São Paulo.

BSO is the lowest latency network connectivity vendor registered with São Paulo’s B3 exchange, and our presence in Brazil, as well as Mexico, gives our trading customers the widest access to the Latin American region, with faster, more cost-effective, and reliable connectivity than what’s previously been possible in these emerging markets. 

Singapore to Mumbai

Connecting two of Asia’s prominent economic powerhouses, the Singapore to Mumbai trading route holds significant importance for fostering economic growth, cross-border investments, and collaboration between Southeast Asia and India, facilitating the flow of capital and expertise between the two regions. Singapore serves as a global financial hub known for its robust financial markets, strong regulatory framework, and advanced infrastructure, and Mumbai, the financial capital of India, is a key hub for banking, capital markets, and corporate headquarters. 

Both serve as prominent gateways to Asian financial markets, with Singapore providing access to Southeast Asia, while Mumbai provides access to the vast Indian market and its growing economy. The trading route allows investors in Singapore to tap into the Indian market and vice versa, thus giving them access to diverse industries, sectors, and investment opportunities in both regions, allowing them to diversify their portfolios and benefit from the growth potential of these emerging markets.

The trading route also plays a crucial role in facilitating FDI flows between Singapore and India, as both countries offer favourable business environments, investor-friendly policies, and strategic locations that attract significant FDI. The trading route provides a channel for investors to explore investment opportunities, engage in mergers and acquisitions, and foster economic cooperation and collaboration between Singapore and Mumbai.

Both Singapore and Mumbai are centres for technology and innovation in their respective regions. Singapore is known for its advanced technology infrastructure, innovation ecosystem, and investments in areas such as fintech, biotech, and digital services. Mumbai, on the other hand, hosts a thriving technology and startup ecosystem, particularly in sectors like e-commerce, software development, and IT services. The trading route thus facilitates the exchange of technological expertise, investment in innovation, and collaboration in the technology sector, over and above other investment opportunities.

The trading route also enables the exchange of banking and financial services between these two cities, as Singapore-based financial institutions can provide expertise in areas such as wealth management, private banking, and asset allocation to clients in Mumbai. Similarly, Mumbai-based institutions can access Singapore's financial services, including capital market expertise, risk management, and fintech solutions.

After successfully enhancing our trading network between Singapore and Mumbai, BSO’s cable system network offers traders the fastest trading route and lowest latency available on the market. Furthermore, our Mumbai Connect service offers ultra fast, ultra low latency connectivity in and out of India to other major global markets, supporting the growing demand for HFT, and is backed by our distinctive, client-led approach to support, led by a multi-lingual, multi-cultural team that understands the unique intricacies of the Mumbai market.  

Summary

Trading in global financial markets offers investors and businesses alike ample opportunity to tap into and harness a myriad of investment opportunities across financial markets. This not only enables investment portfolio diversification on an individual level but encourages global economic growth, cooperation and stimulation that benefits a number of economies and market participants. 

Successfully trading in global markets, however, requires robust and dependable ultra low latency connectivity that can keep up with the demands of trading on a global scale. This means that the expertise and infrastructure provided by a market-leading connectivity partner cannot be overlooked, as without their solutions, fast and efficient global connections that enable global trading aren’t possible. 

BSO holds an unrivalled, market-leading position in the trading routes connecting Frankfurt to Istanbul, London to Tokyo, London to Riyadh, New York to São Paolo, and Singapore to Mumbai. Investors and businesses exploring investment and trade opportunities in these regions would benefit greatly from our ultra low latency, ultra-fast network connectivity infrastructure in these regions. Additionally, our commitment to innovation, reliability and customer satisfaction ensures that no matter your network connectivity or global trading needs, BSO can provide the right solutions and support, always. 

Discover how our solutions can give you a competitive edge in your operations as you trade in the global financial markets, or get in touch with our expert team to learn more about our global network footprint and how it can help you achieve global trading success.