CFN Expands Alpha Network in Europe

US-based network and managed connectivity platform provider CFN Services is expanding the number of European market centers to which it can offer connectivity via its Alpha Platform, and is now rolling out access to on-demand services from its two existing European locations in London and Frankfurt.

The vendor is extending its network—which utilizes underlying fiber routes from multiple third-party providers to ensure the lowest latency—with presences in Madrid, Zurich, Milan, Stockholm and Moscow to provide proximity and connectivity to data and trading from exchanges and potential counterparties in those market centers, says Mark Casey, president and chief executive of CFN. “Expanding the Alpha Platform enables core customers to grow faster with us [than they could otherwise], and to expand their trading reach to new markets and asset classes,” he adds.

Casey says the initial locations were selected based on client demand, though the vendor ultimately plans to roll out on-demand capabilities—which will enable clients to deploy services on virtual machines, rather than having to design, order and install their own infrastructures in each location, and increase or decrease their presence as needed via CFN’s portal—in all these locations.

“Our sales presence is in North America, so most of this is being driven by US firms wanting to expand [in Europe]. But we believe there is untapped demand, so we will also be dialing up our sales in London,” Casey says, adding that the vendor has hired one sales executive who will be based locally—who he declines to name—and will hire more staff based on demand in the region. “We think we’re going to find that most of the success with European firms will come from them wanting to use the core Alpha Platform to trade on North American markets. Alpha Platform On-Demand in London and Frankfurt is not aimed so much at those clients, but more at smaller US firms that don’t have the wherewithal to install dedicated infrastructure in Europe. The main opportunity for that will be showing European firms what we’ve built in the US… and that will open up opportunities to sell on-demand capabilities in Europe,” he adds.

Though the expanded connectivity is designed to appeal most to trading firms seeking access to direct exchange datafeeds and direct market access, Casey says the service should also appeal to service providers wanting to target potential clients in the region by configuring a service centrally and on-boarding clients in different locations using virtual machines. “The on-demand piece is a way to deliver improvements in service and cost. We’ve created a technology that has the ability to ease administration and economics, but which can also improve performance,” he says.