Colocation

A colocation is a data center facility in the exchange premises where the exchange’s servers are on the same network. It is used to rent space to trading firms to locate their servers and other computing hardware. Colocation facility provides the power, bandwidth, IP address and cooling systems. Space is generally rented in terms of racks and units.

Colocation helps in reducing the latency by minimizing the travel time between your server and the exchange’s matching engine.