Financial markets infrastructure provider, Beeks Financial Cloud, is continuing its diversification efforts. The company started to take on clients in fixed income back in February as it deployed a connectivity solution for trading the South African bond market with AxeTrading. Today the firm is venturing into one of the most lucrative spaces for the trading industry.
Beeks Financial Cloud is entering into the Equities automated trading market by launching access to New York-based U.S. Stock Exchange IEX. The launch is a testament to the diversification efforts which technology companies are undertaking in preparing for the new EU regulatory framework for the FX and CFDs industry.
Diversifying into Stocks
Beeks Financial Cloud has become an approved extranet service provider for the IEX market data. The infrastructure of the company in the Equinix NY4 datacentre enables clients of the connectivity and cloud hosting provider to source U.S. Equities data straight from the exchange.
Following the implementation of the solution, Beeks can now provide Infrastructure as a Service (IaaS) and connectivity in all three of the major financial asset classes: forex, futures and equities.
Commenting on the move, the CEO of Beeks Financial Cloud, Gordon McArthur, said: “Having established Beeks as a leading Infrastructure-as-a-service and connectivity provider to the Financial Markets, we are delighted to now be able to expand into the equities market through this agreement with IEX.”
“The equities market represents a significant growth opportunity for Beeks and builds on our recent entry into Fixed Income and cryptocurrencies. We will continue to seek ways to expand our offering and better facilitate our clients,” Mr McArthur elaborated.
Popularity of IEX
The IEX has gathered popularity in the aftermath of the publication of best-selling book by Michael Lewis, “Flash Boys”. The book put the US exchange as one of the main contenders for securing a trading environment which is not dominated by high-frequency trading firms.
The founder of the IEX, Brad Katsuyama started the effort as a dark pool venue for trading stocks in 2013. In 2016, the SEC approved the IEX to be an official exchange, later that year, the IEX hired Sara Furber to lead its listing effort.
The firm expects to begin listings in 2018, focusing on lower fees when compared to NASDAQ and the NYSE. The IEX has been marketing its listing service as a free alternative to the hefty fees of established players for the first five years. Companies are only started to get charged an annual flat rate of $50,000 after the initial period lapses.