Capital markets firms operate in a high-stakes environment that's in constant flux. They need a colocation and proximity hosting provider who isn't. Equinix's data center platform houses the world's largest multi-asset class electronic trading ecosystem. It's an interconnected marketplace that includes the most important foreign exchange, equities, fixed income and derivatives execution venues and trading platforms; as well as buy- and sell-side firms, market data vendors, service providers and major carrier networks. This electronic trading infrastructure environment has prospered since its inception, and it's poised to keep growing.
Regulation is set to move more markets on exchange—making more markets electronic in nature, enhancing transparency and keeping liquidity mobile through a standardization that's opening the markets to new players and geographic regions. It makes sense for these new entrants and growing firms to continue to converge inside Equinix, because the majority of capital markets participants are already here. Being inside Equinix allows you to connect to or develop new products and services, lowering your operating costs and opening new revenue streams, while enabling you to trade smarter and faster.
Equinix’s global IBX data centers interconnect the capital markets in all of the world’s leading financial centers. Accessing a colocation and proximity hosting platform, market participants are offered a neutral foundation from which to compete and collaborate within the world’s largest multi-asset class electronic trading ecosystem.
As electronic trading matures, markets become highly competitive and global. Liquidity too becomes more mobile, shifting intraday from one venue to another. ‘Risk-on’ or ‘risk-off’ sentiments then drive global flows of funds to raise or lower prices across entire markets. Understanding where liquidity comes from has become a key success factor in today’s global financial markets.
This whitepaper, the first in a three-part series commissioned by Equinix, provides a guide to the evolving clearing landscape for OTC derivatives.