Compute-Communicate Continuum for Interconnectivity of Multiple Stock Exchanges
The objective of this paper is to build an integrated real-time exchange connectivity solution for national securities markets linking Toronto Stock Exchange (TSX) and Hong Kong Stock Exchange (HKEX) via CCC Technology’sExtreme Low Latency & High Throughput Connectivity Technology. In rapid order, financial markets participants have developed an insatiable thirst for network connectivity of their trading venues and the exchanges. Trading firms are constantly demanding more and more bandwidth to more and more geographies, asset classes, trading venues and trading partners. For the architects of trading data networks, the result is both highly complex and challenging. CCC Technology is uniquely positioned to provide such global solution as its ―Fabric as System Technology‖ is built on ―Compute-Communicate Continuum‖ technology. The proposed CCC Technology’s solution enables investors in each country to trade on these exchanges via their respective local brokers. The proposed CCC Technology’s solution also brings a range of benefits to participating markets. It will make both TSX and HKEX exchanges more visible and accessible to foreign investors providing global players with a single point of access to the different markets through TSX and HKEX. It will diversify the range of investment products available to investors in both countries by providing a simple, low-cost channel through which they can buy and sell securities listed on both exchanges trading platforms outside of their home markets. Also, for issuers, this will extend the constituency of investors that can purchase the company’s securities via their local stock exchange, while obviating the need for issuers to meet demanding and costly cross-listing requirements in order to extend their securities out to investors in both the countries markets. The crosslinking of these exchanges will also help them to overcome the structural constraints that tend to limit their growth. The paper discusses the proposed solution in four parts:
1. Business Solution.
2. Technical Solution.
3. Compliance Solution.