Which term refers to the participant's connection to trading via infrastructure provided by a third-party service?

Which term refers to the participant's connection to trading via infrastructure provided by a third-party service?

• A. Co-Location
• B. Application Service Provider
• C. OUCH Trading Interface (OTI)
• D. Shares, rights, options, CHF bonds, Investment funds

Answer: (B)

The main idea here is outsourcing the trading infrastructure to a third-party service provider. An Application Service Provider delivers the trading applications and the connectivity over a network, so the participant can access the trading system without owning or maintaining the underlying hardware and software. This delivery model focuses on how the trading environment is provided and consumed, not on where the servers sit. This differs from co-location, which is about placing your own or your provider’s servers inside the exchange’s data center to reduce latency. OUCH Trading Interface is simply the actual trading interface used, not a description of the service model. The last option lists instrument types, not a way of connecting to trading. So the term that fits best is Application Service Provider.

The main idea here is outsourcing the trading infrastructure to a third-party service provider. An Application Service Provider delivers the trading applications and the connectivity over a network, so the participant can access the trading system without owning or maintaining the underlying hardware and software. This delivery model focuses on how the trading environment is provided and consumed, not on where the servers sit.

This differs from co-location, which is about placing your own or your provider’s servers inside the exchange’s data center to reduce latency. OUCH Trading Interface is simply the actual trading interface used, not a description of the service model. The last option lists instrument types, not a way of connecting to trading. So the term that fits best is Application Service Provider.