>>Typically, Equinix's Knuff confirms, financial firms will put their servers in multiple data centers to be near the liquidity. The trading system that executes on the NYSE will go into the NYSE data center; the system that focuses on Nasdaq will be located in Carteret, N.J., where Nasdaq's data center is located; and the strategy focused on Direct Edge or C2 would be colocated in the Equinix data center, he says.
But usually, Knuff adds, firms will house complex event processing technology and smart order routers in one data center, where they can connect all of the endpoints. Firms need to bring all the information into a central location and then make the decision on where or when to trade, he says. "That's where the network density of the data center as a hub is [critical]," Knuff asserts. "That's typically where we play in the financial markets."