BSO upgrades global connectivity to Dubai trading hub

The ultra-low latencies are welcome news for high frequency traders and electronic trading firms which will now take advantage of greater speeds.

In July this year, BSO launched a trio of ultra-low latency trading routes enhancing connectivity between Chicago and financial hubs in Moscow, Dubai and Mumbai. Four months later the latency level from CME Aurora in Chicago to the Dubai Gold & Commodities Exchange (DGCX) has gone from 180.95ms RTD to 164ms RTD, making it one of the lowest on the market..

Last month, Russian low-latency network operator Avelacom also entered into a partnership with DGCX. The operator added that the latency route to the derivative exchange in the Middle East from Chicago Aurora was 170.16ms.

“High frequency traders and algorithmic traders will benefit immensely from our new latencies,” says Michael Ourabah, CEO at BSO. “Dubai and DGCX are extremely popular marketplaces for the international financial community and we are constantly refining our network to ensure our customers are always one step ahead of competitors.”

The news further supports what Ourabah told Capacity about its backbone investments in an interview earlier this year: "We are really focusing on emerging markets, and being the telco that can bring enterprises from the established North American and European markets to emerging markets across Middle East, Africa, Asia and Latin America.

“As well as the established financial hubs of London, Paris, New York, Frankfurt and Milan, BSO also has added PoPs in the likes of Stockholm, Moscow, Chicago, Toronto, Sao Paulo, Dubai, Budapest and Warsaw.”

DGCX continues to grow as a globally strategic trading location, with the exchange reporting growth of 43% during its most recent company statement. Many of DGCX’s products are in high demand due to volatility in global markets and a resurgence of gold as an investment safe haven.

Today, DGCX accounts for 36% of the global exchange traded market share in the Indian rupee. The exchange recently entered into an agreement with the Shanghai Gold Exchange to list Shanghai Gold Futures on its exchange. It will be the first yuan-denominated gold future product to be offered outside of China and it will use the Shanghai Gold Benchmark Price as its pricing mechanism.