NYSE, colocation providers battle it out on data center regulation

from SearchDataCenter.com

>>NYSE, colocation providers battle it out on data center regulation

NYSE tries to strong-arm on standards
The NYSE has built and is equipping a 400,000-square-foot data center in Mahwah, N.J., about 35 miles from Wall Street. It plans to use only 40% of the data center floor space for its own equipment; the rest will be designated for colocation.

I don't see any need for any type of regulation. Jeff Paschke, senior data center analyst, Tier 1 Research

The benefits to hosting at a specific exchange are quicker access to market data and transactions. But some financial companies choose third-party data center providers such as Equinix because these third parties have access to multiple trading platforms rather than just, for instance, the NYSE.

Third-party data center colocation providers say their facilities provide hosting for multiple industries, not just the financial sector. And they argue that their ability to provide third-party hosting for multiple exchanges helps offset the benefits that exchange customers get by hosting their servers directly at the exchange.

"The New York Stock Exchange has opted to build out its own colocation facilities in New York and London," said John Knuff, the global business development director at Equinix. "Since their core offering is exchanges and they are granted licenses issued by the government, they operate under regulatory statutes and have to operate within a tight framework."