ARTES Jupiter project - a gateway to Euronext
Fully electronic trading on the first pan-European virtual exchange for non-exchange-members is becoming a reality with the Jupiter system developed by a Dutch company with the support from ESA’s telecommunication multimedia programme.
The final trial phase was successfully completed last month when a leading United States broker traded directly and electronically on the Euronext exchange. The Dutch company Computer Tools & Services (CT&S) with their Jupiter system was classified in the highest category of companies providing software solutions to the pan-European Euronext exchange.
The system has been under way with both technical and economical support from ESA’s ARTES 3 multimedia programme since September 2000. It is now ready to go operational and provides an easy access for non-member brokers to the Euronext exchange, a merger of the exchanges in Amsterdam, Brussels and Paris. With optimal performance and non-stop connection Jupiter makes fully electronic trading possible to non-member brokers at the virtual exchange-trading floor.
Satellite link secures exchange trades
The project objective was to provide a fast, secure, reliable connection for brokers to an exchange, and to prove that speed is not related to high cost. In the broker community the availability, security and speed of connections is the key which allows brokers to lower their trading costs and increase their trading volume. For stock exchanges, which are now becoming commercial organisations, automation and therefore lower costs, are equally important. The pilot testing just completed shows that the objectives have been met.
Jupiter is implemented using a two-way connection over satellite with the required speed and security for financial and settlement services at low cost. Distribution of market data via satellite ensures that all recipients receive the data simultaneously, thus adhering to the “fairness of trade” rule.
Cees Krijnen, CEO of CT&S, outlined the advantages of Jupiter over existing trading exchange systems, "This concept is extremely fast and very competitive. For US brokers, no costly hired telephone lines over the Atlantic, as the system is based instead upon a high speed shared satellite backbone. During the test period with brokers in the US the system has performed extremely well and we have had no performance loss at the interface or gateways during the pilot phase, even at trading peaks."
Last November the system was tested with five US brokers and service providers after which certification was granted by Euronext to use Jupiter in a live trading environment. In January 2002 a two-month pilot operation was successfully completed during which one of the leading New York brokers provided their traders with direct electronic access to the Euronext exchange. All aspects of the system and its performance were verified as well as getting price quotes and concluding live trades on the Euronext exchange.
"We are proud to announce that Jupiter is now commercially up and running. The next step is to market the product more widely. We have already attracted interest from a number of US brokers and have established a representative in New York City."
ARTES: ESA's telecommunication multimedia initiative for small enterprises
CT&S gained assistance with the development of Jupiter from ESA's multimedia division of the ARTES (Advanced Research in Telecommunication Systems) programme, which has the objective to encourage and help new entrants into the telecommunications sector.
"We want through our ARTES programme to provide opportunities to European and Canadian industries to launch innovations in the field of satellite telecommunication. The CT&S project opened new perspectives in trading on exchanges by using communication via satellite for fast and safe data distribution," says Francesco Feliciani, responsible for ESA's ARTES Multimedia Applications Line. "Often innovative ideas such as this one have a tough time to get off the ground due to limited resources, specially when launched by small companies and start-up entrepreneurs. With ARTES we are glad to be able to help innovators to develop their ideas into commercially viable business opportunities."
ARTES has already played a role in more than 40 projects in the field of Multimedia Applications with European and Canadian companies. For more information on the ARTES programmes and business opportunities, please visit http://telecom.esa.int/artes