What is the benefit of having proximity to the Bloomberg datacenter?

Question

I own and operate a datacenter adjacent to Bloombergs Datacenter in Orangeburg NY. We have had a couple of trading firms come to us due to our proximity to Bloomberg to receive "data" from them quicker. They then use direct microwave shots to send this information to NJ, as the microwave is faster than the fiber routes available.

I am trying to figure out what "data" they are getting from Bloomberg to be able to market this to a wider audience and what is the benefit. I understand previously that they wanted to be near the exchanges for low latency trading but now it seems all of the latency has been taken out of the trading portion and they rely on getting the "news/data" faster to make those trading decisions.

Any help would be appreciated, I am happy to share more info if it is needed but the two initial trading firms are pretty tight lipped on the applications they are purchasing from Bloomberg.

Answer 1

It is possible that they are getting "news", but what I feel these firms are doing is connecting to EMSX offered by Bloomberg which is an electronic trading platform. Which is why they would probably invest in sending microwave shots of data back to NJ. The data is : which broker offers which security at what rate. Earlier access to data implies that they can get a smaller spread ( from the going market rate) and the orders they place are higher on the list ( hence have more priority).