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Why get dedicated servers near CME if they trade CL, yet CL's exchange is is NYMEX?
Started:May 14th, 2012 (12:09 PM) by jpollei Views / Replies:2,064 / 9
Last Reply:October 9th, 2016 (07:00 AM) Attachments:0

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Why get dedicated servers near CME if they trade CL, yet CL's exchange is is NYMEX?

Old May 14th, 2012, 12:09 PM   #1 (permalink)
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Why get dedicated servers near CME if they trade CL, yet CL's exchange is is NYMEX?

Why do people look for dedicated servers near the CME if they trade CL, yet CL's exchange is is NYMEX? Wouldn't it be better to have one's hosting in NY? Please forgive me if this is a stupid question... I am a newbie.

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Old May 14th, 2012, 12:09 PM   #2 (permalink)
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Old May 14th, 2012, 01:02 PM   #3 (permalink)
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CME bought NYMEX in 2008. I am not sure what NYMEX products orders are still routed and matched in New York. But CL electronic orders are routed and matched in Chicago through CME Globex.

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Last edited by liquidcci; May 14th, 2012 at 01:11 PM.
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Old May 14th, 2012, 01:02 PM   #4 (permalink)
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sounds like a trick question...

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Old May 14th, 2012, 08:07 PM   #5 (permalink)
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Thanks, liquidcci!

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Thanks for your response.

I also learned that Nymex CL is part of the CME exchange complex.

The CME datacenter is located in Chicago, so Nymex is trading on the Chicago exchange - and the floor "pit" market is still in New York.

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Old May 22nd, 2012, 11:04 AM   #6 (permalink)
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jpollei View Post
I also learned that Nymex CL is part of the CME exchange complex.

The CME datacenter is located in Chicago, so Nymex is trading on the Chicago exchange - and the floor "pit" market is still in New York.

Thanks for the clarification on this. I am glad to now know this difference.

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Old October 8th, 2016, 01:18 PM   #7 (permalink)
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Colocating in Chicago to trade NYMEX product?

To be clear, if I have some autotrading strategies trading CL (NYMEX), I should colocate my VPS in Chicago (Aurora), not New York (NJ)?

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Old October 8th, 2016, 02:10 PM   #8 (permalink)
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To be clear, if I have some autotrading strategies trading CL (NYMEX), I should colocate my VPS in Chicago (Aurora), not New York (NJ)?

If your strategy is VERY latency sensitive then choose Aurora, for most Chicago (Cermak) would be fine.

https://www.speedytradingservers.com/ is very good and Sam provides good. We were his customers for many years.

If you need Aurora, PM me, and I will take care of you. But, that is if you really need subpar millisecond and the service is more expensive that Cermak.

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Old October 8th, 2016, 10:24 PM   #9 (permalink)
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liquidcci View Post
CME bought NYMEX in 2008. I am not sure what NYMEX products orders are still routed and matched in New York. But CL electronic orders are routed and matched in Chicago through CME Globex.

Many people don't know that ICE's Brent & Gasoil matching engines are in Chicago and not London!


jpollei View Post
The CME datacenter is located in Chicago, so Nymex is trading on the Chicago exchange - and the floor "pit" market is still in New York.

The "pit" closes at the end of the year. So from that point onwards it will be Globex matching engine in Chicago only.


Silent warrior View Post
To be clear, if I have some autotrading strategies trading CL (NYMEX), I should colocate my VPS in Chicago (Aurora), not New York (NJ)?

Well that depends how your order is routed. As already pointed out the Globex matching engine is in Chicago but if your broker's order servers/credit check or anything pre-trade is in New Jersey, New York or Connecticut etc, then being collocated in Chicago doesn't help you because your order has to go to NJ/NY/CT/etc first and then back to Chicago. If on the other hand your brokers order severs are in Chicago then yes it will be faster. As @mattz says though, Cermak (Huge datacenter in downtown Chicago, where ICE's matching engines are and where CME used to be), is a lot cheaper than Aurora (25 miles W of downtown Chicago, and home to the new CME data center) and the connectivity between the two is amazing.

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Old October 9th, 2016, 07:00 AM   #10 (permalink)
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...
Well that depends how your order is routed. As already pointed out the Globex matching engine is in Chicago but if your broker's order servers/credit check or anything pre-trade is in New Jersey, New York or Connecticut etc,...

I'll add Florida (for TradeStation) and Nebraska (for DTN).

Being hosted in Aurora makes sense if everything is done locally (data, orders, risk management), with DMA and FPGA based boxes. Using a "normal" Linux or Windows server won't be able to play in the Ás field anyway.

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