NEW YORK CITY — November 17, 2008 — Building on its position as a leading provider of low latency IT infrastructure services for financial markets, Savvis, Inc. (NASDAQ: SVVS) today announced new connectivity options with major financial exchanges, electronic communications networks (ECNs) and liquidity venues spanning the U.S., Europe and Asia.
The new connectivity options expand Savvis’ portfolio of secure, high-availability, low latency connectivity to hundreds of exchange feeds around the world from major exchange companies such as NYSE Euronext®, NASDAQ OMX Group, Inc., BATS, CME Group and the London Stock Exchange. “Savvis is a leader in the provision of market data and trading connectivity,” said Randall Hopkins, Vice President, NASDAQ OMX Global Data Products.
“Savvis’ continued service expansion demonstrates their commitment to providing low latency, fully managed connectivity to key pools of liquidity around the world.”
The expansion is in response to growing customer demand for low latency connectivity solutions and demonstrates Savvis’ commitment to investing in financial IT infrastructure that can deliver a wide variety of low latency connectivity to the world’s leading exchanges.
Low latency Metro Ethernet network and Proximity Hosting solutions may provide a key competitive advantage for financial market participants with algorithmic trading requirements. TABB Group, the financial markets research and consulting firm, estimates that if a broker’s electronic trading platform is five milliseconds behind the competition, it could lose up to one percent of its flow - that is approximately $4 million (£2.3m) lost in revenues in milliseconds1.
“Through multiple platforms and unique order types, Direct Edge matches complementary forms of liquidity based on sensitivity to transaction cost, fill rate, fill speed, and contra-side sophistication while maintaining high execution quality,” said Bryan Harkins, Direct Edge Head of Sales and Strategy. “Savvis’ IT infrastructure and low latency network access helps facilitate our model of creating opportunities for the trading community unlike any other market center.”
Savvis provides three levels of low latency connectivity to major financial exchanges and liquidity venues. These are fully integrated with Savvis’ global IT infrastructure featuring high performance managed network, servers, storage and security.
•Savvis Community of Interest Network (COIN) – low latency exchange connectivity via Savvis’ private, managed global financial network.
•Savvis Exchange Express (SEE) – lower latency exchange connectivity via Savvis’ private, managed global financial network with direct connections to each exchange via Metro Ethernet.
•Savvis Proximity Hosting (SPH) – lowest latency connectivity between exchanges and their customers’ automated trading systems, via colocation of both sets of infrastructure typically within a Savvis data center.
Today’s announcement outlines Savvis’ new connectivity options for the following:
•BATS Exchange, which already provides low latency connectivity to the fast-growing BATS trading platform via Savvis Proximity Hosting and Exchange Express, has added a disaster recovery location featuring connectivity via Savvis Exchange Express and Savvis COIN.
•CME Group’s FIX Adapted for Streaming (FAST) is a new protocol being adopted by many Exchanges to optimize bandwidth and further reduce latency. CME Group, which already provides low latency access via Savvis Proximity Hosting, will now add FAST on SAVVIS’ COIN making it available globally. In addition to feeds for CME and CBOT products, Savvis’ CME Group feed features new connections to the New York Mercantile Exchange (NYMEX), the Kansas City Board of Trade (KCBOT) and the Minneapolis Grain Exchange (MGEX).
•Direct Edge, both Direct Edge platforms (EDGX and EDGA) can now be accessed in the New York metro area via SAVVIS Exchange Express and globally via Savvis COIN.
•NASDAQ OMX is now available via SAVVIS Exchange Express from one of Savvis’ New York metropolitan area data centers. NASDAQ Global Index ServicesSM will soon be available via SAVVIS Exchange Express from one of Savvis’ New York metropolitan area data centers.
•BATS Europe, which already provides low latency connectivity via Savvis Proximity Hosting and Exchange Express from data centers in London, is now available globally via Savvis COIN.
•Chi-X Europe will soon be available in the London metro area via Savvis Exchange Express and globally via Savvis COIN.
•London Stock Exchange (LSE) Performance Channels are high speed delivery mechanisms that increase the rate at which data can be sent out to the market. Performance Channels are of particular benefit to customers who need to have the lowest latency connectivity to the Exchange during peak trading periods. The service offers a reduced latency, high speed delivery mechanism, which increases the throttles that are necessary on Service Channels to provide a managed service. It is now available in London via Savvis Exchange Express and globally via Savvis COIN.
•NASDAQ OMX Europe is NASDAQ’s new Multilateral Trading Facility (MTF) in London. It will soon be available in London via Savvis Exchange Express and globally via Savvis COIN
•Singapore Exchange (SGX), which already provides low latency direct access via Savvis Proximity Hosting, is now available in Singapore via Savvis Exchange Express. “We are focused on understanding our customers existing and evolving IT infrastructure and market data needs particularly in today’s volatile marketplace,” said Varghese Thomas, Savvis Vice President, Financial Services Business Unit.
“We are committed to delivering a broad portfolio of cost effective, scalable, and managed financial offerings that optimize bandwidth and reduce latency and ultimately enhance the investment strategies of our customers.”
To see the complete list of Savvis low latency connectivity options to more that 200 exchanges and feeds, visit: www.savvis.net, http://financial.savvis.net/ or /NR/rdonlyres/4A0B69ED-13B3-4B40-90DC-6AEE1D6BA4B0/0/FinancialFeedsMatrix.pdf
Savvis, Inc. (NASDAQ: SVVS) is a global leader in IT infrastructure services for business applications. With an IT services platform spanning North America, Europe, and Asia, Savvis is an industry leader in delivering secure, reliable, and scalable hosting, network, and application services. These solutions enable customers to focus on their core business while Savvis ensures the quality of their IT systems and operations. Savvis’ strategic approach combines virtualization technology, a global network and multiple data centers, and automated management and provisioning systems. For more information about Savvis, visit: Savvis
This document may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from Savvis’ expectations. Certain factors that could affect actual results are set forth as risk factors in Savvis’ SEC reports and filings, including its annual report on Form 10-K and all subsequent filings as well as the risk that potential product cost and performance benefits may not be realized for any particular customer. Savvis assumes no obligation to update or supplement forward-looking statements.
1. The Value of a Millisecond: Finding the Optimal Speed of a Trading Infrastructure – TABB Group, April 2008
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