How Does Co-Location or Proximity Hosting Reduce Latency for Market Data?

Co-location places the RFQ provider's servers directly within or extremely close to the exchange's data center. This physical proximity drastically reduces the distance data must travel, lowering network latency.

The use of direct cross-connects within the same data center further minimizes hops and external network congestion. This infrastructure setup provides a critical millisecond advantage in trade execution and quoting speed.