Q&A

Co-Location Service Description:
Application method, process and use restriction:
Racks related description:
Trading and market data lines related description:
Point-to-point dedicated lines related description:
Power and monitoring related description:
Maintenance related description:
1. What are the hours during which a user may enter the Co-Location data center and perform maintenance?
Other Service related description:
Cross market connection related description:
Fairness related description:
1. How does TWSE confirm the fairness of internal connections?

Co-Location service description:
1. What is Co-Location?
  
  Servers of Co-Location service users and TWSE matching engine and trading information systems are placed in the same location. Both are connected directly to high speed local area network (LAN) passing through a wide area network (WAN). The result is lower latency and improved transmission efficiency for the trading system. Furthermore, all servers of Co-Location service users are connected to the trading system mainframes by identical distance to ensure equal conditions for all users.
2. Who is eligible to apply for the TWSE Co-Location Service?
  
  All securities firms (head office) and Information Vendors who have signed the "Supply and Use of Trading Information Contract" with TWSE to access market data through direct connection are eligible to apply for the service.
3. What is included in the TWSE Co-Location Service?
  TWSE provides space in the data center, including power facilities, fire safety equipment, air conditioned environment, racks, lines, and secure access control, for users to store servers and network equipment necessary to establish direct connections to TWSE matching engine and trading information systems:
  - Basic package:
    1. 100Mbps Standard rack (two types of data center environments with a maximum 4KW or 5KW per rack power supply) and one 100Mbps line for trading and one for market data transmission (with one free 100Mbps backup line each to satisfy the need for trading or market data transmission backup before 2021/01/01).
    2. 1 Gbps Standard rack (two types of data center environments with a maximum 4KW or 5KW per rack power supply) and one 1 Gbps line for trading and one for market data transmission.
    3. Users are also welcome to apply for non-standard racks.
    4. Basic service: This service is available only to users who lease only one rack to connect to TWSE and TPEx at the same time in the Co-Location data center. The package includes a 4KW or 5KW standard rack plus one 100Mbps line for trading on TWSE or TPEx and one for market data transmission (a total of 4 100Mbps lines for the two markets).
  - Value-added services: rack relocation, rack reservation, additional trading or market data lines, links between Co-Location racks and user's dedicated lines with telecommunications company, and application for emergency maintenance access.
Application method, process and use restriction:
1. What is the procedure for applying for the Co-Location service? Where to get an application form?
  
  All applications for the service are to be made electronically. An application has to enter into a service contract with TWSE and obtain an account number before making an application in the User Services System.
2. Is there a minimum period for the Co-Location service?
  
  Yes, the minimum period for access to the services is 3 months.
3. Are securities dealers eligible to use the Co-Location service?
  
  All securities firms are eligible to apply for the service through their head offices. Those operating both proprietary trading and brokerage services should ensure fair treatment for investors so that use of the service for the brokerage services shall not be subordinate to that for proprietary transactions, except for proprietary traders performing quoting obligations.
Racks related description:
1. To keep consecutive racks, is it possible to reserve racks for potential future use?
  
  TWSE provides rack reservation as a value-added service for users to make plans for future development. Furthermore, to protect other users, reservation is subject to a maximum period of 6 months starting on the day when TWSE agrees to the reservation.
2. If more than one rack is in use, will there be handholes between the racks for cables to run through? Or will other cross connects be required to establish connection?
  
  Affiliated enterprises on neighboring racks may have connections installed via handholes on the sides of their own racks (except when an affiliated enterprise is an information vendor). Cross connections are not permitted.
3. Are cross connections allowed between non-affiliated enterprises in business relationship?
  
  Cross connections are not permitted between non-affiliated enterprises.
4. TWSE provides 42U standard rack. Will a user be able to use all 42U of rackable space? Will it be necessary to deduct space A/C vents and cable holes?
  
  Space reserved for A/C vents does not have to be deducted, but panels and cable managers take up 1U each. The actual space available is 40U.
5. Is there a rack setup fee for a Co-Location applicant?
  
  TWSE offers an early bird plan that waives the rack setup fee for the first rack, but starts charging the regular setup fee on the second rack.
6. How many racks will be made available in the first phase of TWSE Co-Location implementation? How will racks be distributed if the number of racks requested by the applicants exceed the number of racks available?
  
  TWSE will install 78 racks in early phases of the service.
  Assuming 78 securities firms apply for Co-Location at the beginning, TWSE, in the interest of fairness, will provide only one rack to each securities firm, and make more available to those interested when all racks in the second phase are installed.
  If more than one large securities firm is interested in leasing multiple racks, TWSE will allocate the remaining racks at the time on a pro rata basis.
Trading and market data lines related description:
1. What type of 100M cable is provided for market data and trading systems? UTP or optic fiber? Also, is it still necessary for Co-Location servers to connect to TWSE via firewalls?
  
  The 100M lines are Cat6 UTP and not optical fiber lines. The regulations require connections to TWSE go through firewalls.
2. Is it permitted for a user to lease additional trading or market data lines? What is the limit on additional lines?
  
  TWSE will make best efforts to make additional lines available for lease.
3. Users who have signed contracts with TWSE to establish direct connections and receive trading information do not require trading lines. Is it possible to exchange them for market data lines? Or for a lower service charge?
  
  The basic package comes with one 100Mbps line for trading and one for market data transmission included in the application. The lines cannot be replaced all by market data lines, and different service charges cannot be provided.
4. At present, a securities firm may apply for only two TMP trade report lines. Will a user be able to apply for a third trade report line on the day when its system enters the Co-Location premise so to ensure no trade report on the day will be missed?
  
  At present, a securities firm may apply for only two TMP trade report lines. A user with risk concerns may consider sharing trade settlement files to combine settlement data from two offices. Both offices can receive the same trade report, effectively achieving line and data backup.
5. At present, a securities firm receives market data from TWSE through two or more market data lines, and has to pay a direct connection fee per month for each additional line. Will this extra charge apply to the market data line that comes with each rack in the Co-Location service?
  
  TWSE follows the existing fee schedule to charge for the market data lines for securities firms provided by the Co-Location service.
6. Is it possible for TWSE to provide over 100Mbps or optical fiber lines?
  
  We have completed the planning and construction, and will launch the services in the future.
7. How many FIX Sessions could TWSE provide for each securities firm?
  
  The upper limited for each securities firm are 100 FIX Sessions currently.
Point-to-point dedicated lines related description:
1. How many point-to-point dedicated lines are available to establish links to a user's back office operation?
  
  4 lines are currently available. Additional lines may be negotiated as needed (no more than 8 lines per rack). A user may decide the fixed network provider (Chunghwa, FarEasTone, or TFN) and the bandwidth.
2. Is it still necessary for a user's Co-Location server to connect to user’s office via firewalls?
  
  Given the importance of information security, TWSE recommends links to a user's office go through firewalls. Users are advised to consider the importance of information security at their discretion.
3. How does a user establish a link with TDCC?
  
  Users may use the Co-Location racks to connect their own dedicated lines and back to TDCC via the 4-in-1 securities trading network.
4. There is no backup for the Co-Location service. How is it included in the offsite backup system?
  
  Users may use the Co-Location racks to connect their own dedicated lines to perform backup testing.
Power and monitoring related description:
1. What is the power intensity per rack? What to do when the maximum is exceeded? Is it possible to pay for additional power?
  
  Two types of racks with a 4KW or 5KW power intensity are provided as needed. When a user exceeds the maximum, TWSE will notify the user to apply for an additional rack. Paid additional power is not available. Neither is a single rack lease.
2. Does TWSE provide in-rack PDU? If so, how many rack units have to be deducted? Is a user allowed to use its own PDU?
  
  There are rack PDUs in the racks. They are vertical and not horizontal or taking up space. Users are not allowed to use their own PDUs for safety reasons.
3. The rack PDU provides twenty four 5-20R outlets and six L6-20R outlets. Are they for one PDU or two?
  
  The data center is equipped with 2N power supply. The numbers above are for one PDU, one on each side of a 4KW rack.
4. Does TWSE provide real time rack temperature and humidity monitoring information?
  
  TWSE doesn't provide those data.
Maintenance related description:
1. What are the hours during which a user may enter the Co-Location data center and perform maintenance?
  
  The Co-Location data center is open for users to perform maintenance between 2pm on a trading day and 5am on the following day. It is open for maintenance 24 hours on a non-trading day but an appointment must be made by the user in advance and approved by TWSE before the work may proceed.
Other services related description:
1. Is time calibration available? Is PTP available?
  
  NTP is provided for free. PTP is not currently available, but may be provided as needed based on market demand.
2. Where magnetic tape on a user's server requires replacement, will TWSE provide the service?
  
  The service is currently not provided.
3. Is it permitted for a user to sublease a rack?
  
  The rules do not permit sublease or transfer of any rack space to a third party.
Cross market connection related description:
1. Is it possible for TWSE, TPEx, and TAIFX to share a rack and provide services simultaneously? Will there be additional charges?
  
  While racks can technically be shared, but additional negotiation will be required. The service hours for different markets will be determined by the competent authorities, and the fee schedules will be established by the exchanges.
2. Are the trading and market data lines that a user applies from TWSE to be used strictly for trading and receives on TWSE? Will it be necessary to apply for more lines from TPEx to trade on TPEx?
  
  Racks may be shared between TWSE and TPEx. However, a user's line with the TPEx Co-Location service is not restricted to trading on Over-the-counter market (OTC) only, but can be used to trade emerging stocks and bonds. In other words, all transactions involving TPEx in the future will go through the same line. In addition, in the interest of market segregation and security, TWSE has made plans for separate lines to be used for different markets.
3. When TAIFEX provides Co-Location, how does a user establish technically links between racks leased by members of the same group?
  
  TWSE provides rack reservation as a value-added service for users to make plans for future development. Furthermore, to protect other users, reservation is subject to a maximum period of 6 months starting on the day when TWSE agrees to the reservation.
4. TAIFEX has not specified a launch date, which makes it difficult for securities firms to assign racks. Would TAIFEX consider not launching the service until all 78 racks are available at the end of the second phase of TWSE Co-Location implementation?
  
  TAIFEX received the competent authority's approval for the service on August 21, 2017. TAIFX has sent out questionnaires to the futures firms, and hopes to receive replies soon so it may give the numbers to TWSE.
  The TAIPEX trading system is scheduled to be relocated to the TWSE First Data Center in Q1 2018. Co-location will be open to futures firms after the trading system is relocated.
Fairness related description:
1. How does TWSE confirm the fairness of internal connections?
  
  We use the same quality standards to build all the internal connection lines. Otherwise, we promise all the lines between Co-Location racks and TWSE matching engine have the same length to meet the principle of fairness.