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Quantitative Finance · Glossary

What is Colocation, proximity hosting?

Also known as: colocation · proximity hosting

Definition 9.1 Networks, Hardware and Trading Infrastructure · Chapter 9 — Colocation Products and How They Are Sold

Colocation is the rental of space, power and cooling for a customer’s equipment in the data centre that houses a trading venue’s matching engines, with connections to the venue’s network. Proximity hosting is the same service offered in a nearby data centre that the venue does not run, under an arrangement with the venue or with a third party.

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