Scots Firm Takes Bite Out Of Big Apple To Become World’s Largest Low Latency Cloud Provider For Automated Trading

A Scotland-based company set up by an ex-IBM employee has bought a New York
rival to become the world’s largest low latency cloud provider for
algorithmic trading.

BeeksFX VPS – which helps both retail and institutional foreign exchange
(forex) traders run automated trades more quickly – has bought rival
company Gallant VPS for an undisclosed seven-figure sum.

The deal sees BeeksFX VPS become the world’s largest and leading low
latency cloud provider for automated traders.

Set up three years ago by Scots Gordon McArthur and Tony Doleman, BeeksFX
VPS has grown from a £60,000 turnover in year one to £2m today. And the
company plans to more than double revenue organically to £5m within three
years.

CEO Gordon McArthur said: “With the acquisition of Gallant VPS we now count
nine of the top-10 foreign exchange (FX) brokers worldwide among our
clients. This puts us in a strong position not only to grow the business
organically but also to pursue further acquisitions, particularly in the US
and Japan.

“When Tony and I set up the business in 2011 I don’t think even in our
wildest dreams we thought it would be this successful. We spotted a gap in
the market and went for it: faster trades with 100 per cent Virtual Private
Server (VPS) uptime and 24/7 global technical support. Today’s news is an
important stepping stone to future growth.”

BeeksFX VPS provides virtual private servers to algorithmic traders which –
due to their proximity to the broker placing an individual trade – shave
milliseconds off the time it takes between someone placing a trade and the
trade being executed. For high value transactions this can save substantial
amounts of money.

BeeksFX VPS servers are sited in New York and London next to all major
forex venues and liquidity providers. Some brokerage firms white-label*
BeeksFX VPS’s servers while others offer a BeeksFX VPS-branded product to
their clients. The company works with 50 FX brokerage firms including
CitiFX, Forex Club, FXCM, FXDD, FxPro, GAIN Capital, OANDA and Saxo.

The VPS specialist also has thousands of individual clients based in around
100 countries including Argentina, China, Japan, New Zealand and South
Africa.

McArthur explained: “We help individuals – whether it’s someone sitting in
their back bedroom in Kuala Lumpur or a money manager in London – make
trades quickly, levelling the playing field with institutional investors.

“That’s how it all started for Tony and I three years ago, bemoaning the
fact that we as individuals were at a disadvantage to large institutional
investors when placing trades. We initially thought of a solution to help
ourselves, the difference is now we’ve scaled it worldwide.”

He added: “We estimate around $300bn a year is now transacted via our cloud
platform…to put that in context that’s bigger than Scotland’s annual GDP.”

Date/time of issue: 09:30 BST 12 May 2014

NOTES FOR EDITORS

*A white-label product is one produced by one company (the producer) that
other companies rebrand to make it appear as if they made it.

BeeksFX VPS is headquartered in Inverclyde, Scotland. It also has offices
in New York and Surabaya, Indonesia. Established in 2011 it is owned by
Gordon McArthur (sales) and Tony Doleman (software). Find out more at
www.beeksfx.com

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Posted by: Gordon

Gordon McArthur established BeeksFX in 2011 after growing increasingly frustrated by the lack of low latency infrastructure offerings for retail traders. Gordon previously worked for IBM and IBM Business Partners for 19 years in various commercial roles within the IBM Software Business.

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