Leading datacenter solutions provider
) recently announced that its Hong Kong data center has been
selected by Frankfurt-based hosting and co-location services
provider RTS Realtime Systems Group. Financial terms of the deal
were not disclosed.
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Founded in 1992, RTS develops, designs and hosts multi-asset
electronic trading software. Its customer groups include exchanges,
investment banks, clearing firms, brokers, introducing brokers,
proprietary trading firms, hedge funds, commodity trading houses
and supply chain management firms. RTS offers low latency (the time
that elapses between a stimulus and the response to it) access to a
number of equities, options and futures markets across the world
via its global datacenters in the U.S., Europe and Asia.
The latest RTS datacenter will be based at Equinix's International
Business Exchange (IBX) in Hong Kong. It will offer local users
quick access to the Hong Kong Mercantile Exchange and the Hong Kong
Exchange for trading purposes.
RTS shares a long-standing relationship with Equinix. In 2005, RTS
linked its datacenter operations to Equinix's Chicago IBX. In 2008,
the company expanded operations through Equinix's Chicago-3 IBX
datacenter in Elk Grove Village, Illinois and the New York-4 IBX in
Secaucus, New Jersey. In 2011, RTS opted for Equinix' Frankfurt
datacenter to provide its customers better access to Eurex and
Xetra exchange and trading systems.
Leveraging Equinix's state-of-the-art IBX datacenters, RTS has
managed to enhance the speed, performance and reliability of its
services by directly connecting to network service providers and
financial trading companies operating within the center.
The growing need for big data exchanges call for greater usage of
datacenters. To meet this global need, Equinix is expanding its IBX
datacenter footprint globally and increasingly becoming popular
among major players in the tech industry that are looking for data
management. The company's worldwide presence has resulted in high
network density with a vertically focused approach, which will
continue to support demand.
The company has delivered decent second quarter 2012 results with
earnings per share (EPS) exceeding the company's expectation.
Moreover, revenue improved substantially on a year-over-year basis
on improved colocation, interconnection and managed infrastructure
services. Guidance for the third quarter and fiscal 2012 were
We are also optimistic about the company's recurring revenue model
and current expansion plans. Despite all the positives, competitive
threats from the likes of
) raise our apprehension. European exposure and industry
consolidation are also causes for concern.
Equinix has a Zacks #3 Rank, implying a short-term Hold rating.