Monday, January 26, 2009

CRG West Positioned to Host Derivatives Hub

This should be in direct competition with Equinix FX Exchange. From Data Center Knowledge:

>>When CRG West bought 427 South LaSalle last May, the building’s focus was primarily telecom. The company has invested $20 million in infrastructure upgrades to make the building more attractive to web hosting and financial companies, which are keen on its extraordinary proximity to the exchanges. One of its new customers could position the site as a key exchange for financial derivatives trading.


CRG West’s makeover of 427 LaSalle has gotten off to a strong start. The building has numerous telecom tenants (15 carriers offer service), and CRG West is converting all unleased space into raised-floor data centers. The company has filled about 70 percent of its first phase, with tenants including Layered Technologies’ FastServers unit and SkyCreek Corp., which provides automated customer support for enterprise customers.

CRG West recently announced a deal providing a beachhead in the lucrative financial hosting market. The International Derivatives Clearing Group (IDCG) has chosen 427 South LaSalle for a new electronic marketplace to make it easier to price and trade derivatives.


CRG is hopeful the new tenant will become the focal point for an active financial ecosystem. “We’ve talked to folks at NASDAQ and IDCG, and they believe about half of their tenants will need to take space,” said David Dunn, Senior Vice President of CR West. “We’re also talking with three other exchanges who are in a position where they can’t expand their business.”

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