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

‘The solution provides clients with the ability of leasing pre-built equipment with a choice of physical and/or virtual machines and an optional network analytics server. We will be further enhancing our offering with a secondary solution at an alternate site,’ says Nasheen Sharma, Technical Account Manager at the JSE.

‘This service is available in the JSE colocation centre to take advantage of the low-latency connectivity. The solution is in addition to the current colocation rack space and power-only offering – which remains available to those clients who prefer to have their own equipment.

‘Clients can now access all JSE services via the Colo 2.0 service whereas previously they had to access both our client access network and colo network for different services. We have also allowed internet connectivity into this solution and thus clients can now save on both physical line costs and infrastructure costs by making use of this service.’

Sharma says measures are in place to ensure seamless integration and interoperability between Colo 2.0 and existing systems and technologies utilised by JSE clients.

‘The true benefit of Colo 2.0 is the ease of access to onboard a client. At the inception of the service, both the JSE and its provider went through a rigorous two-month exercise to test the service to ensure all services are enabled, as per our service promise to our clients.

‘What this means is that all services were enabled on day one and thus when onboarding a client it is just a matter of an application enablement that is required. This has helped us achieve a turnaround time for onboarding of 24 hours end-to-end for a client to access their required services.’

Behind Colo 2.0 is an international tech collaboration, he says. ‘We’ve 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.’

Clients can also rest assured the JSE has taken steps to address potential regulatory and compliance considerations associated with the adoption of Colo 2.0, particularly regarding data security and privacy.

‘The Colo 2.0 solution is both SOC2- and ISO-compliant as out-of-the-box features,’ says Sharma. ‘This was a requirement from the JSE, which we undertook when choosing a provider. There are automated system checks that run and monitor the service for potential cybersecurity threats, 24 hours a day.’

The launch of Colo 2.0 aligns with the JSE’s broader strategy to position itself as a leading hub for innovation within international financial markets.

‘Colo 2.0 is built on three of our strategic objectives,’ according to Sharma. ‘Delivering new annuity revenue; defending and growing the core business; and transforming our business. Further to these main objectives, we aim to address other goals, namely providing lower all-in costs to clients; achieving service excellence; addressing liquidity/fragmentation challenges; and providing services that are venue agnostic.’

He adds that the exchange is exploring options that could see Colo 2.0 playing a role in providing financial market infrastructure further afield on the continent. ‘This is an area we are busy fleshing out. However, it is our intention to extend this solution to our African counterparts.’

By Patrick Farrell
Image: iStock