Transforming Financial Connectivity: Introducing Megaport Financial Services Exchange (FSX)

By Paul McGuinness, Head of Solutions Europe

Financial institutions can now deploy direct, on-demand, and secure connections to a vast ecosystem of financial services.

Over the past six years at Megaport, I’ve witnessed a growing desire for change in the Financial Services (FS) industry, particularly regarding application and data mobility within organizations and with third-party partners. Initially, many in FS approached cloud adoption tentatively, waiting until it was fully matured and trusted across the industry. Today, however, the FS sector is one of the largest users of cloud services globally.

We’ve also seen significant advancements in next-generation networking and firewall technologies, which have facilitated this shift away from traditional data center-based applications. By leveraging the cloud, applications and data can now be accessed globally and positioned closer to users.

Additionally, the underlying communication networks have undergone major enhancements to handle massive data sets, meet low latency requirements, and address growing security concerns. After all, these private networks underpin most operations for FS organizations’ internal and external communications. This evolution is driven by the changing corporate landscape and the need to meet users’ performance expectations.

FS has always been a significant consumer of private networking due to security, compliance, and threat mitigation needs, as well as large data transfer requirements. Private networking remains crucial for a successful enterprise, whether connecting locations, cloud services, or partners. However, the rise of Network as a Service (NaaS) providers is revolutionizing this space, giving customers real-time control over global, private, low-latency connectivity.

The 450+ financial institutions that already use Megaport are seeking better ways to access critical data and applications. We’ve observed an increase in service providers offering productized private network access to their services, indicating a growing demand for private connectivity in the financial landscape.

In this example, our customer ICE provides diverse global coverage with their IGN Cloud Connect product, using Megaport’s Software Defined Network.

With such a large existing footprint in the finance sector already utilizing Megaport’s connectivity services, it made perfect sense for us to create an enhanced, private ecosystem to expand the range of accessible services. Financial institutions, trading firms, and market participants require seamless access to global markets, data providers, and financial services to stay competitive.

To support this, we’re proud to launch Megaport Financial Services Exchange (FSX), a new platform designed to enhance connectivity and service offerings for financial institutions.

What is FSX?

FSX is an innovative connectivity platform tailored specifically for the FS industry. FSX leverages Megaport’s robust Software Defined Network (SDN) to provide direct, on-demand, and secure connections to a vast ecosystem of financial services including exchanges, market data vendors, clearinghouses, and more.

What are the traditional alternatives?

Traditional networking alternatives to FSX typically involve the use of dedicated physical circuits, such as leased lines or MPLS (Multiprotocol Label Switching) networks.

These methods, while reliable, often require significant time and financial investments to set up and maintain, including lengthy installation processes and high costs for hardware and bandwidth. Additionally, traditional networks may lack the flexibility and scalability needed to adapt to rapidly changing business demands, as well as the ability to seamlessly integrate with multiple Cloud Service Providers (CSPs).

The complexity of managing multiple connections and ensuring redundancy can also be a challenge, leading to potential inefficiencies and vulnerabilities in the network infrastructure. In contrast to the automated, intuitive, and instant connectivity offered by FSX, traditional networks can be cumbersome and less agile in responding to the dynamic needs of modern financial institutions.

Why choose FSX instead?

With FSX, financial institutions can securely access critical services with unparalleled speed, reliability, and flexibility with full automation. Connect to essential services and partners without delay, ensuring your operations run smoothly and efficiently. Our private network also empowers you to safeguard your data, reducing the risk of breaches and ensuring compliance with stringent financial regulations.

FSX is a game-changer for financial institutions seeking robust, reliable, and secure private connectivity solutions. By choosing FSX, you are investing in:

• Superior performance: Experience the benefits of low-latency connections and high-speed data transfers.
• Enhanced security: Protect your sensitive financial data with our private, secure network infrastructure.
• Unmatched reliability: Rely on our diverse and path-protected network for continuous, uninterrupted service.
• Simplified operations: Enjoy ease of integration and connectivity with our intuitive platform which supports modern automation techniques.
• Cost efficiency: FSX offers a cost-effective solution through real-time flexible provisioning, allowing institutions to pay only for the connectivity they need, optimizing resource allocation.

Access to a vibrant ecosystem

FSX makes it easier for financial institutions to connect and transact in a diverse ecosystem of service providers, including exchanges, market data vendors, and brokerage and financial application providers (ISVs). This ecosystem fosters collaboration and innovation, creating new opportunities for growth and development across our robust SDN to deliver direct, on-demand connections that meet the critical needs of the financial sector.

Over 450 organizations across the finance industry, spanning both enterprise and service providers alike, use Megaport’s private interconnection platform today. One important point to note is that your ecosystem does not have to be uniform. It can be any mix of cloud and data center scenarios including connecting your cloud to a partner’s cloud infrastructure.

Secure and private connections

Security and privacy are at the forefront of FSX. The platform enables you to securely connect to marketplace providers or individual entities within the Megaport network. Whether you need to link up with a trading partner, a financial service, or a compliance authority, FSX ensures:

• Secure connections: All connections are established over our private network, minimizing exposure to potential threats.
• Data encryption: Deploy security functions from the firewall vendor of your choice on our edge to encrypt your data for secure ecosystem transactions between partners and to the cloud.
• Flexible integrations: Easily connect with a wide range of providers, simplifying the integration process and reducing setup time.

Built-in redundancy, low latency, and global reach

One of the key features of the exchange is its ability to build redundancy and low latency into your connectivity with ease. FSX is available across global financial hubs which allows remote connectivity without having a local presence in that remote location. With diverse connectivity options and a network core which is inherently diverse and path-protected, you can trust in the continuous availability of your connections.

Streamlined cloud connectivity

In the modern financial landscape, cloud services are indispensable. The FSX provides private connections to major CSPs, abstracting complexity and streamlining your cloud interactions.

With FSX, you can:

• Privately connect to clouds: Bypass the public internet and connect directly to CSPs, ensuring higher performance and security.
• Simplify cloud integration: Our platform handles the intricate details of cloud connectivity, allowing you to focus on your core business.

How do I connect to the exchange?

Integrating with FSX is straightforward, thanks to Megaport’s SDN capabilities. Financial institutions can quickly and easily self-provision connections, internally and externally to partners and customers, reducing the time and complexity associated with traditional network setups. This streamlined integration process allows firms to focus on their core business activities.

Join the future of financial connectivity

The launch of FSX marks a significant milestone in the evolution of financial connectivity. It revolutionizes the way financial institutions connect and operate by providing secure, low-latency, and flexible connections to a global ecosystem of financial services, empowering financial institutions to thrive in an increasingly competitive environment.

Whether you’re a trading firm looking to improve execution speeds, a bank seeking secure data transfer, or a financial technology company aiming to expand your reach, FSX offers the connectivity solutions you need to succeed.

Ready to enhance your connectivity with FSX? Contact us today to learn more about how FSX can benefit your business and to schedule a demo of our cutting-edge platform.