Colt Technology Services provides connectivity to Cboe Europe Derivatives

By Joy Dumasia

Colt Technology Services, a provider of high bandwidth connectivity solutions, announced it would provide connectivity to Cboe Europe Derivatives (CEDX) via Colt’s financial extranet, Colt PrizmNet. Colt will offer connectivity to the new pan-European equity derivatives market from its launch in September 2021.

Colt PrizmNet’s deterministic, low latency network and superior SLA guarantees mean connectivity to CEDX can be turned on quickly and efficiently for existing and new PrizmNet customers. Colt connectivity will accelerate time to market and reduce the risk of slippage and lost trades for customers looking to access the new exchange.

CEDX will allow customers to trade various European and pan-European equity index futures and options at a single exchange, harmonised contract specifications, and cleared at EuroCCP, Cboe’s pan-European clearinghouse. In addition, it is designed to create new opportunities and efficiencies for market participants to express their views and manage their equity exposure.

Matthew Reinholds, Colt’s Segment Sales Director, Global Capital Markets & Asia Enterprise, said: “We’re excited to become one of the first connectivity partners to provide customers access to CEDX. This new market will disrupt the way European equity derivates are traded, driving greater on-screen liquidity, better price improvement and a more holistic market structure.”

IBS Intelligence reported that The European Central Bank had selected SIA along with Colt Technology Services in a bid to provide the ECB with connectivity services to the payments (TARGET2 and TIPS) and securities (TARGET2-Securities) settlement platforms and the ECMS via a single access interface –the Eurosystem Single Market Infrastructure Gateway (ESMIG).