>   Sponsored Market Access (SMA)
Sponsored Market Access (SMA)

Sponsored Market Access (SMA) is a model in which algorithmic trading applications are hosted by service providers and made accessible to trading members over a network. Under this arrangement, rack space is allocated free of cost by India INX to SMA service providers for installing their algo trading application servers within the Exchange’s Co-location facility.

Trading members are permitted to connect to these SMA algo servers via the Internet. From the member’s front-end application, algo strategy parameters are triggered and transmitted to the SMA server located at Co-location. Based on these parameters, orders are generated by the corresponding algos and routed to the India INX trading system through the high-speed Co-location network, ensuring minimum latency.

Importantly, members are enabled to execute trades over the Co-location network without the need to install any infrastructure at the Co-location site.

Advantages for Members

Trading members are provided with a cost-effective solution for accessing high-speed trading infrastructure. No capital expenditure is required for setting up infrastructure at Co-location, as connectivity is facilitated through the SMA server hosted by the service provider.

Algo orders are generated at Co-location and transmitted to the India INX trading system via the 10G high-speed Co-location network. This setup ensures minimal latency, faster execution, and improved trading efficiency, all without the need for physical presence or hardware installation at the Co-location facility.

Advantages for Vendors

SMA service providers are allocated rack space at Co-location free of cost by India INX, allowing them to host their centralized algo trading servers. This enables vendors to serve multiple clients from a single location, significantly reducing operational and maintenance costs.

By centralizing their infrastructure, vendors are able to streamline support, enhance performance monitoring, and offer scalable solutions to their clients, all while benefiting from the low-latency environment of the Co-location network.