The ASX will light up Pipe Network’s dark fibre to offer the financial services market one high-capacity connection for all its products and services.
Called ASX Net, the network will become operational from September this year and will replace the existing copper-based ASX NiPPA network.
In a statement, ASX trade execution and information services general manager, David Raper, said the network would provide low latency and multiple connectivity options.
“In an environment with escalating capacity demands and a need for latency minimisation to remain competitive, ASX Net provides an access solution for Australian financial market participants for today and into the future,” Raper said.
The network delivery will be administered by Pipe’s fibre operation and provisioning team with a final cut over expected to occur in October. It will also be used to support a new trading system ASX Trade with “third-party services made available progressively thereafter”.
While the value of the deal between the ASX and Pipe was not revealed the telco's chief operating officer, Jason Sinclair, said it was the most significant win for the telco since it was acquired by TPG Telecom earlier this year.
Pipe has an extensive dark fibre network between the eastern states of Australia, including the Pipe Pacific Cable link between Sydney and Guam. The ASX Net will cover Melbourne, Sydney, Perth, Adelaide and Brisbane.
"If they are running fibre in they are going to be able to support speeds of 100Mbps, 1Gbps, 10Gpbs, potentially up to 40 and 100Gbps in the future," Sinclair said. "I would assume they would be operating around the gig speeds."
Trading that occurs on top of the ASX Net will also be monitored by the Australian Securities and Investments Commission (ASIC) after the Federal Government's decision in August 2009 to allow the watchdog to assume monitoring of the ASX.
In March, ASIC picked a SMARTS Market Surveillance solution to monitor equities and derivatives markets in a $4 million deal.
SMARTS' integrated market surveillance system will allow ASIC to monitor real time trading of domestic licensed markets such as the ASX.