The agreement means AlgoSpan, its fibre optic network, can add access to the Chicago Mercantile Exchange and Intercontinental Exchange to its low latency trading and connectivity and proximity hosting community.

Telx’s FBX customers can use AlgoSpan’s ‘shortest path’ access to other major liquidity venues across Europe and the US, while Algo Technologies can offer its low latency market data feeds to trading firms in Chicago.

Hirander Misra, chief executive of Algo Group, told FOW: “Telx’s FBX can offer trading firms a competitive advantage through low latency network connectivity and what we believe is the best low latency data service on the market today.”

A source close to the situation said: “The main significance is that it marks a coming together, via Algo Span, of a cash equities and derivatives colocation service. At present the HFT and algo trading communities tend to be siloed into equities or derivatives. This development marks the beginning of a service provision which joins these two markets together over the AlgoSpan fibre optic network, with a fully distributed data model.”