Press Coverage
NYSE Euronext Pushes Facilities for Networking Traders
By Tom Steinert-Threlkeld
NYSE Euronext, sitting in the middle of a takeover battle between Deutsche Borse and Nasdaq OMX Group, is pushing its data centers and secure links between them as the foundation for a global network of market participants, regardless of its ownership.
The "networked community of users" would be built around its $500-million-a-copy data centers in Mahwah, N.J., and Basildon, England, said NYSE Technologies chief executive Stanley Young, speaking at the 2011 High Performance Linux Financial Markets Show & Conference at the Roosevelt Hotel Monday. But it would also extend to the liquidity hubs – small facilities housed near market centers and other sources of liquidity – that NYSE Technologies is building around the globe.
These could act, in toto, as an ‘industry facility’ for market participants such as exchanges, dark pools and trading firms. In Basildon, for instance, NYSE Euronext is supervising the operation of the Sigma X dark pool for Goldman Sachs Group, he said.
This kind of facility, for instance, could act as a "dark pool consolidator,’’ he said.
NYSE Euronext would provide access to this "global fabric of liquidity pools" in three ways, according to Feargal O’Sullivan, vice president of platform development for NYSE Technologies.
First would be co-location, where a venue or trading firm installs its own hardware and software in cabinets housed in separate cages at one or more location.
Second would be "compute on demand" services, where a firm would pay a flat monthly fee for pre-provisioned services. The services could run on either the Linux or Windows operating systems.
Third would be a cloud computing service, where a user would be provided slices of storage, software and processing power, as requested. In this case, the user would provision the services as needed and buy service as used.
Users, in all cases, would get proximity to trading venues’ matching engines, high-speed market data, historical data, ‘transparent’ and reasonable costing, communications, rapid provisioning and strong security.
If Nasdaq OMX Group were to succeed in its $11.3 billion bid to buy NYSE Euronext, instead of original merger partner Deutsche Borse, the "networked community of users" likely would have to be moved to another network.
Last Friday, when Nasdaq announced its bid, executive vice president Eric Noll said in a letter to customers that NYSE Euronext's operations would be moved onto Nasdaq's existing INET technology and that one of the two big NYSE data centers in Mahwah and Basildon would be closed.
Article Courtesy of Securities Technology Monitor
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