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.
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.
"The day I became a winning trader was the day it became boring. Daily losses no longer bother me and daily wins no longer excited me. Took years of pain and busting a few accounts before finally got my mind right. I survived the darkness within and now just chillax and let my black box do the work."
Last edited by liquidcci; May 14th, 2012 at 01:11 PM.
The following 5 users say Thank You to liquidcci for this post:
Many people don't know that ICE's Brent & Gasoil matching engines are in Chicago and not London!
The "pit" closes at the end of the year. So from that point onwards it will be Globex matching engine in Chicago only.
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.
The following 3 users say Thank You to SMCJB for this post:
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.
Usually in trading, those who know don't talk, and those who talk don't know. (Al Brooks)
success requires no deodorant! (Sun Tzu)
The following user says Thank You to sam028 for this post: