March 10, 2020
Equinix FX Trading Ecosystem Gains Momentum in Singapore to Boost Connectivity and Spur Growth in Global Currency-Trading Industry
FX trading firms capitalize on interconnection via Platform Equinix®, solidifying Singapore’s position as a leading FX center in the world
Equinix, Inc. (Nasdaq: EQIX), the global interconnection and data center company, today announced that foreign exchange (FX) companies, including Euronext FX, Jump Trading, Lucera, Orient Futures and Spark Systems, as well as major banks with FX operations in Singapore, have joined Equinix’s FX ecosystem in Singapore. Equinix hosts a rich FX trading ecosystem within its International Business ExchangeTM (IBX®) data center campus in Singapore that is advancing the ongoing efforts by the Monetary Authority of Singapore (MAS) to make Singapore a regional e-trading hub for FX in the global US$6.6 trillion-a-day foreign exchange market1.
Ranked as the third largest FX center in the world since 2013 – with a 7.6 percent share of global FX volume in April 20191, the Singapore FX market continues to increase FX trading volumes. This is driving an increasing demand for reliable, low-latency interconnection solutions that will provide instant and direct access to key financial markets in the Asia Pacific region.
In line with MAS’ move to expand Singapore’s overall FX trading industry, Equinix’s enhanced FX ecosystem in the country will play a crucial role in supporting the thriving financial services industry by executing trades more efficiently, closing the millisecond gap between Singapore and its foreign counterparts where investors exchange US$640 billion of average daily trading volume.2 Equinix will also be able to strengthen FX e-trading capabilities and build a robust market infrastructure for Singapore to cement its position as one of the key epicenters for FX worldwide.
- Platform Equinix houses the world’s largest multi-asset class electronic-trading (e-trading) ecosystem. It is an interconnected marketplace that includes foreign exchange, equities, fixed income and derivatives service providers and execution venues and trading platforms. It also includes buy- and sell-side firms, market data vendors, service providers and major carrier networks and capital markets firms.
- Equinix has the most network dense data centers in Singapore. Its three facilities are interconnected via low-latency dark fiber links, hosting more than 205 network carriers and offering an unmatched choice of regional and global vendors and network routes. With Equinix’s FX ecosystem in Singapore, market participants in the region can take advantage of close proximity to the broadest choice of networks over 1,800 globally, enabling them to reduce network latency and enhance trading performance for their customers.
- According to the latest Global Interconnection Index (GXI), an annual market study published by Equinix, Singapore’s interconnection bandwidth capacity – a measurement of direct and private data exchange between businesses – is expected to expand at 47 percent Compound Annual Growth Rate (CAGR) from 2018 to 2022, as data increases in volume and complexity. Among industries, securities and trading in Asia-Pacific is expected to lead the growth (66 percent CAGR) in all regions worldwide.
- Following MAS’ announcement of Singapore’s Financial Services Industry Transformation Map in 2017, major banks and companies such as Euronext FX, Jump Trading, Lucera, Orient Futures and Spark Systems have expressed confidence to trade and benefit from the regional FX market ecosystem due to the enhanced trading infrastructure.
- Equinix IBX data centers in Singapore (SG1, SG2 and SG3) are interconnected through direct fiber connection between the sites, providing vibrant environments and offer companies the opportunity to create redundancy that ensures uninterrupted operations at all times.
- Globally, Equinix’s unrivaled financial services ecosystem consists of more than 1,250 financial services firms including over 175 exchanges and trading venue deployments inside its facilities. Equinix Cloud Exchange Fabric™ (ECX Fabric™) enables electronic trading exchanges to directly and securely connect to distributed infrastructures and digital ecosystems on Platform Equinix.
- John Knuff, Vice President, Business Development of Financial Services, Equinix
“As Singapore pushes forward with its plans to further grow its FX industry, the demand for interconnection continues to rise. Equinix has always ensured the high performance, ultra-low latency and scale required by the country's enterprises, including the many financial services firms that make up our customer portfolio. Equinix’s FX ecosystem in Singapore will enhance the city’s FX e-trading capabilities by providing greater levels of performance and operational efficiency”
- Yee May Leong, Managing Director, Equinix South Asia
"Singapore is one of the largest FX centers in the world, generating high volumes of data as trade volume continues to soar. With more demand for low-latency solutions in FX and bond markets, we are confident that Equinix’s mature FX ecosystem in the country will create more opportunities for major banks, financial services institutes and retail FX brokers both regionally and globally to interconnect on a fast, secure and reliable platform, bringing Singapore’s FX industry to the next frontier.”
Equinix, Inc. (Nasdaq: EQIX) connects the world's leading businesses to their customers, employees and partners inside the most interconnected data centers. On this global platform for digital business, companies come together across more than 50 markets on five continents to reach everywhere, interconnect everyone and integrate everything they need to create their digital futures. Equinix.sg
This press release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from expectations discussed in such forward-looking statements. Factors that might cause such differences include, but are not limited to, the challenges of acquiring, operating and constructing IBX data centers and developing, deploying and delivering Equinix services; unanticipated costs or difficulties relating to the integration of companies we have acquired or will acquire into Equinix; a failure to receive significant revenue from customers in recently built out or acquired data centers; failure to complete any financing arrangements contemplated from time to time; competition from existing and new competitors; the ability to generate sufficient cash flow or otherwise obtain funds to repay new or outstanding indebtedness; the loss or decline in business from our key customers; and other risks described from time to time in Equinix filings with the Securities and Exchange Commission. In particular, see recent Equinix quarterly and annual reports filed with the Securities and Exchange Commission, copies of which are available upon request from Equinix. Equinix does not assume any obligation to update the forward-looking information contained in this press release.
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1 Bank of International Settlements: 2019 Triennial Survey
2 Monetary Authority of Singapore: Singapore Retains Position as One of the Largest FX Centres Globally