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China Orders HFT Servers Out of Exchange Data Centers

Regulators move to blunt ultra‑low‑latency edges to steady trading after recent rallies.

Overview

  • The Shanghai Futures Exchange told brokers to remove equipment for high-speed clients by the end of next month and to clear remaining client servers by April 30.
  • Futures venues in Shanghai and Guangzhou have instructed brokers to relocate client hardware out of bourse-run facilities under regulator direction.
  • Several exchanges are planning a fixed two-millisecond delay for connections routed through third-party data centers, according to people familiar with the matter.
  • The report flipped the CSI 300 from gains to losses and pressured copper, zinc, and aluminum prices in China and London as traders reassessed hedging and arbitrage flows.
  • The curbs will affect domestic quantitative funds and global firms such as Citadel Securities, Jane Street, and Jump Trading as part of a broader push alongside tighter margin rules and ETF scrutiny.