AlgoEngineering Launches Tech Startup

Low-latency execution provider AlgoEngineering recently launched a new venture, Algo Technologies, which will turn the vendor's proprietary infrastructure into products and services for third parties.

AlgoEngineering officials have tapped Hirander Misra, former COO of pan-European multilateral trading facility (MTF) Chi-X Europe, to be CEO of the new venture.

"We have taken AlgoEngineering's technology and intellectual property into Algo Technologies, and they have now become one of our clients," says Misra.

Algo Technologies officials expect to leverage AlgoEngineering's deployed dark fiber rings that are connected to the major markets in New York and London. At press time, the vendor was planning to connect the two rings with transatlantic links.

Misra says a key selling point will be that the vendor plans to leverage a joint venture with an undisclosed UK-based telecom and networking provider to cut the cost of market data delivery by lowering bandwidth costs. "We are looking to establish a link into Stockholm, and for what we would have been charged by other providers for a 100 Mbps link, we can get a 10 Gbps link," he says.

Algo Technologies' initial data offerings will include raw, normalized and consolidated "superbook" feeds, sourced from markets connected to AlgoEngineering's existing dark fiber network rings covering London and New York.

The vendor plans to roll out other products and services in the coming months, including a direct market access (DMA) and order routing service, as well as an open-source smart order router delivered as software-as-a-service (SaaS) or as a client-hosted offering. In the next six to eight months, the vendor also plans to release an exchange matching engine, says Misra.

-Rob Daly -->