Deutsche Börse Expands Data Connectivity with Dark Fiber

euNetworks, a Frankfurt-based supplier of fiber networks, will provide the exchange with an undisclosed quantity of dedicated "dark fiber," which will be used to connect trading firms in Frankfurt, London, Paris and Amsterdam to Deutsche Börse's access points, and can be segmented and apportioned based on individual client demands.

The deal was signed last week to help clients cope with ever-increasing data traffic, particularly in light of the exchange's decision to deliver un-throttled data (IMD, April 30), and both parties are now developing a full project plan for the implementation. The option of connecting to the exchange via a one-gigabit Ethernet line gives clients plenty of headroom to carry potential spikes in data at times of peak traffic, vendor officials say, with access to an almost infinite supply of bandwidth.

"In each of our pipes we can have 432 strands, and in each city we have an average of six pipes. In the cities we provide clients with dedicated fiber allowing them to run capacities only limited by their equipment," says Diane Hodnett, commercial director at euNetworks. For long-haul fiber, Hodnett says the vendor can provide 10 wavelengths of 40 gigabits each between cities across Europe using just two strands of fiber.

A number of Deutsche Börse clients—including large global banks, small brokerage companies and hedge funds—have already signed up for data connectivity via the new dark fiber networks, Hodnett says.

"Over the coming months we'll go out and connect to those clients," she says. "We'll have parallel rollouts in different countries. The first client will go live this year."

Although carrying data via dark fiber networks may appeal to many bandwidth-hungry institutions, the prospect doesn't immediately appeal to all exchanges.

Wendy Morgan, head of real-time data at the London Stock Exchange, says that the exchange is currently looking at the potential of dark fiber, but that "at the moment, we don't see the benefits compared to what we currently offer with Performance Channels and given we are physically located so close to our clients."