Wednesday, September 23, 2009

Two Exchanges to Move to Secaucus Next Year

from Securities Industry News:

>>The CBOE, aka the Chicago Board Options Exchange , expects to launch its startup all-electronic exchange in the Secaucus data center of Equinix in the first quarter of 2010, according to David Gray, head of its business development in the New York area.

The CBOE’s C2 exchange, as it will be known, will be joined there by the Boston Options Exchange, which expects to move to the Equinix center in Secaucus in the first quarter of 2010, according to Todd Rich, BOX’ vice president of sales and marketing.

The C2 and BOX matching engines will join the International Securities Exchange there, which said it expects to go live at the same facility by November of next year with new core trading technology. The ISE will operate there then with “massive capacity” on its rebuilt technical platform, according to director Jeanine Hightower.

The Hightower, Rich and Gray comments came at an industry update held Tuesday at the Marriott Marquis by the Options Industry Council and the Futures Industry Association.


The ISE operation in Secaucus will operate at “extreme low latency,’’ Hightower said, without defining it. The new platform, she said, will succeed technology supplied by Nasdaq OMX, a competing exchange operator.

Also operating at the Equinix hosting center in Secaucus will be the Boston Options Exchange, which recently dropped the “maker-taker” fee model and went back to the “pro rata” model.

“Clearly, we all see a benefit to that particular data center,’’ Rich said of the Equinix facility in Secaucus. He did not elaborate.

Already at Equinix in Secaucus: Electronic exchange pioneer Direct Edge, as well as NYSE Euronext’s Arca largely electronic exchange.

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