Cross-connect fees

A cross-connect is a physical link that facilitates low-latency communication between systems, often for direct connection between trading firms or with exchanges. Cross-connect fees are specific to connections made within colocation facilities, where trading firms, market participants, or market data providers set up their servers close to the exchange’s infrastructure and matching engine. These physical connections bypass public networks and are ideal for firms engaged in high-frequency trading. Cross-connect fees cover both the initial setup and the maintenance of this dedicated connectivity.

While port fees are charged for physical access to the exchange’s network to receive market data or execute trades, cross-connect fees are specific to connecting multiple systems within the same data center, often used for facilitating communication between various networks for faster execution.