Radianz says the Chicago Board of Trade (CBOT)has selected the firm to provide the Internet Protocol (IP)-based networking needed to distribute real-time financial information from its new market data feed to approximately 60 market data vendor connections throughout the world.
Under the three-year contract, which names Radianz as the carrier for the CBOT’s Quote Vendor Network, Radianz will provide an IP-multicast solution using Radianz’s proven multicast technology in its global financial extranet, RadianzNet. IP multicast will enable the CBOT’s market data to be distributed simultaneously to all recipients.
Radianz also will enable the CBOT to establish connectivity faster and more efficiently because the majority of financial institutions worldwide, including most of the market data vendors that plan to receive information from the CBOT’s new feed, are already connected to RadianzNet. This means the CBOT will be able to leverage RadianzNet’s existing connectivity, instead of having to endure the wait and cost associated with the installation of multiple point-to-point network connections.
“The continued increase in trading activity at the CBOT and the expected growth in volume of market data that will be generated with the implementation of the LIFFE CONNECT platform required the exchange to seek a better solution for our Quote Vendor Network,” says Steve Dickey, vice president of Market Data Products for the CBOT. “Radianz’s fully managed IP networking will facilitate the rapid communication of trade data, increase our operational efficiency by reducing the lead time to establish connectivity, and minimize our network management responsibilities. By working with Radianz, we will derive savings not only through minimizing the network management component, but also through the reduction in direct infrastructure expense, as well as the replacement of more costly point-to-point connections that would otherwise be required.”
Chris Church, Radianz’s executive vice president and head of Global Sales and Marketing added: “Today’s announcement marks a significant milestone in Radianz’s history: Radianz can now offer financial institutions worldwide secure network access to 100 providers of market data and financial applications across the straight-through processing chain. The CBOT’s selection of Radianz also further positions RadianzNet as the global standard for financial communication. Radianz has achieved this status because it can provide institutions a more efficient networking solution, whether they need to access or connect customers to various sources of content and trading applications, and because Radianz can provide advanced features such as IP multicast that are well suited to financial applications.”
Prior to today’s announcement, the CBOT has been using RadianzNet to access several of the applications that institutions are distributing to their customers via RadianzNet. Using existing RadianzNet connectivity to access multiple destinations and/or distribute services to customers is a term Radianz likes to call ‘meshing.’ The contract also adds the premier venue for trading futures and options to the list of financial institutions worldwide that rely on Radianz for IP-multicast network solutions.