Friday, April 1, 2011

Nasdaq: If Bid Wins, at Least One Data Center Will Close

from www.marketwatch.com:

>>Nasdaq OMX Group and IntercontinentalExchange would close at least one U.S. data center if their unsolicited offer for NYSE Euronext is successful, a deal that Nasdaq has promised would create lower costs.

....

"It would certainly involve closing a data center," Mr. Greifeld said in a call with reporters. But without further research, "it's impossible to know which one would be the right candidate at this point," he said.

Industry experts said a merger of the exchanges would likely choose to keep open NYSE's data center in Mahwah, N.J., that opened last August.

...

Having fewer data centers could lower costs for firms that have to invest significant funds in keeping expensive equipment as close as possible to all four stock exchanges and other major trading venues. Traders will still want to connect to exchange operators Direct Edge and BATS Global Markets, which run out of different data centers.

That will ensure that third-party companies that operate independent data centers, like Savvis and Equinix , still play a role in connecting traders to market data.

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