Speed and low latency are essential in financial markets, where split-second decisions can significantly impact trading outcomes. By utilising extremely fast data centres, clients can access real-time data, execute trades quicker and streamline their operations, enhancing competitiveness. Fast data centres also support the scalability and reliability of cloud-based infrastructure, ensuring that large volumes of transactions can be processed efficiently without downtime. Moreover, they improve data security by allowing rapid response to cyberthreats, helping protect sensitive financial information. Overall, fast data centres play a pivotal role in delivering the performance, security and reliability that financial institutions and businesses demand.

Ten years ago the JSE launched its colocation data centre, which allowed clients to place their trading equipment in the JSE’s data centre to enable faster access to the markets, and less than a year ago it introduced Colo 2.0 – an advanced managed infrastructure as a service (IaaS) solution that will provide JSE clients with cloud-based colocation services.

Behind Colo 2.0 is an international tech collaboration, according to Nasheen Sharma, the JSE’s Technical Account Manager. He says the JSE has partnered with IPC and Beeks, which are both international vendors in the connectivity and infrastructure space. ‘Combined, they have access to over 150 data centres globally. This collaboration opens up further opportunities to onboard new international clients and unlock geographical regions from a new client perspective.’

Sharma says clients can now access all JSE services via the Colo 2.0 service whereas previously they had to access both the JSE’s client access network and colo network for different services.

Colo 2.0 has also facilitated greater access to the JSE’s trading platforms for both local and international participants. ‘Lower cost as well as shorter time to market has assisted both local and international firms. The introduction of secure VPN and internet connectivity has assisted in onboarding clients from geographical regions who would have found it very costly to connect to our exchange. The internet connectivity is free for those clients who sign up for the Colo 2.0 product. In less than 12 months, we have grown the solution from two to four racks, thus providing clients with more infrastructure on demand, which is a key feature of the solution.’

He says the JSE ensures that Colo 2.0 remains competitive with similar offerings from other global exchanges and financial services providers.

‘Firstly, our core focus is to ensure that the support and proactive problem identification is of the highest standard and always better than the other SLAs [service-level agreements] offered. Secondly, there’s the stability and security of the solution, while, thirdly, we have focused on adding in access to global data centres to further enhance the solution.’

Strict security measures are in place to protect client data and systems within the Colo 2.0 infrastructure, he adds. ‘Proactive security screening is part and parcel of the offering to prevent any cybersecurity attacks. The solution is fully SOC2 and ISO compliant.

Sharma says additional features and capabilities will be introduced in future phases of Colo 2.0. ‘Over and above expanding into our secondary solution, which will offer clients further redundant connectivity, we are continuously working on improving the automation of the portal by introducing both new proactive alerts as well efficiencies that further automate the product and thus improve the overall client experience.’

The JSE is also exploring how to integrate emerging technologies such as AI into Colo 2.0 to enhance its capabilities and service offerings. ‘At this stage, this area is in a research and exploratory phase. However, one opportunity is to focus on the automation of the onboarding experience and overall service offering.’

Plans are also under way for next year to investigate rolling out the offering to other African countries, and says Sharma, ‘we’re looking forward to working together on this journey’.

By Patrick Farrell
Image: Gallo/Getty Images