Nasdaq (NDAQ) today announced that Global Access Services, the exchange group's facilitator of alpha-generating market solutions for the financial services community, will launch a Nasdaq Point of Presence (Nasdaq POP) in Chicago, Illinois in the first quarter of 2015.
The Nasdaq POP in Chicago, along with the Nasdaq POP already live in Secaucus, New Jersey, will be available for market participants seeking access to Nasdaq eSpeed, the exchange group's over-the-counter platform for electronic trading in U.S. Treasury securities, and Nasdaq's U.S. cash equities and equity derivatives markets pending Securities and Exchange Commission approval. In addition, Nasdaq will establish a disaster recovery facility in Chicago for Nasdaq eSpeed in the fourth quarter of 2014.
"Given the role of our Global Access Services business as a connector for the industry, we have designed solutions for traders that wish to use our liquidity destination, the Nasdaq Data Center," said Stacie Swanstrom, Head of Global Access Services and Senior Vice President of Global Trading and Market Services at Nasdaq. "We have ambitions to create a worldwide network, bringing trading opportunities across all asset classes closer to our clients."
The Nasdaq POP in Chicago will connect traders in the Midwest region to the Nasdaq Data Center on the East Coast of the U.S., providing an efficient, secure route to access Nasdaq's deeply liquid markets, receive Nasdaq market data, utilize order entry capabilities and receive third party data feeds. Nasdaq's POP in Chicago will leverage Equinix, the global interconnection and data center company. Located in Equinix's Chicago data center (CH4), the Nasdaq POP in Chicago will provide clients with trading systems already located in the Midwest region the ability to simply cross connect directly to Nasdaq markets. Benefiting from economies of scale, clients can customize their connectivity to only pay for the market information and services they need. The Nasdaq POP in Chicago furthers the Global Access Services connectivity offering, which includes the Nasdaq POP in Equinix's Secaucus, New Jersey data center (NY4) launched in September 2014. Nasdaq's redundant, high-performance fiber circuits connecting to tasdaq's redundant, high-performance fiber circuits connecting to the Nasdaq Data Center will enable clients to send orders and receive acknowledgements and market data with one-way expected latency of 7.3 milliseconds from Chicago and 150 microseconds from Secaucus. Nasdaq's POP offerings in Chicago and Secaucus extend the reach of the exchange group's network through a single hand-off connection.
"We're thrilled to offer the trading community an easy way to access our electronic Treasury market, amongst other Nasdaq markets. With continuous demand seen around the globe for dollar based investments, it is vital eSpeed operate in all the major financial centers," said Joe Noviello, Head of Nasdaq eSpeed and Senior Vice President of Global Trading and Market Services at Nasdaq. "The establishment of our disaster recovery facility in Chicago will also be convenient and cost effective for market participants."
Nasdaq's disaster recovery facility in Chicago will provide regional diversity for business continuity planning with further distance from the exchange group's primary U.S. data center and less chance of impact from natural disasters that affect the East Coast region. The location will be convenient for clients who already maintain trading systems in Chicago to access other equities, options and futures primary and disaster recovery matching engines. Clients utilizing Nasdaq's disaster recovery facility will achieve cost-efficiency with a simple cross-connect from their existing connectivity or presence in Chicago.
Nasdaq's Global Access Services group provides market solutions to the financial services community which facilitate our clients' alpha generation. As a connector, Nasdaq brings global trading opportunities closer to clients. Nasdaq protects clients through Global Access Services' comprehensive risk, compliance and reporting platforms. Global Access Services is also an enabler, with outsourcing and warehouse solutions which allow clients to easily handle operations and concentrate on growing their business.
Also part of Nasdaq's Global Trading & Market Services (GTMS) division, the Nasdaq eSpeed platform is well positioned to help customers navigate the U.S. Treasury securities market with services for the full life-cycle of global fixed income trading. Nasdaq provides the financial services community with global fixed income offerings such as the NLX platform for European interest rate futures trading, a European clearinghouse for fixed income derivatives traded on the major Nordic markets, strategic ownership of LCH.Clearnet Group, Limited, trading in Nordic corporate bonds and the exchange group's U.S. derivatives marketplaces for listing fixed income products. Nasdaq's GTMS division incorporates all transaction, clearing and settlement services in the U.S. and Europe, covering cash and derivatives within the fixed income, currency, commodities and equities business.
The Nasdaq eSpeed electronic trading platform is operated by Execution Access, LLC, a member of FINRA and SIPC.