Nyse Euronext begins migration to Universal Trading Platform

Nyse Euronext begins migration to Universal Trading Platform

Nyse Euronext has begun moving over to its new Linux-based multi-asset class, Universal Trading Platform (UTP) with the migration of European bond products.

The transatlantic exchange decided to create a single platform for all its US and European markets in a bid to reduce costs following the merger of the New York Stock Exchange and Euronext in 2007.

The UTP will replace four separate platforms by the end of 2009: the Nouveau Système de Cotation (NSC) for Euronext, Liffe Connect for the derivative Liffe market, Arca in the US and the electronic order book supporting the hybrid model on the NYC market.

Once completed, customers will need only one connection through Nyse Euronext's SFTI global network to access all its cash and derivatives markets in the US and Europe as well as new initiatives like Nyse Arca Europe and SmartPool.

On Monday the first stage of the migration saw the exchange move 2889 fixed-income products from the NSC platform, involving approximately 120 European customers.

Based on existing systems and incorporating new technology, the platform will see European cash customers experience reduced latency from 1.5 milliseconds a roundtrip to 150-400 microseconds, with capacity trebling, from 30,000 orders a second to 100,000 orders a second.

Anthony Attia, executive director and head of the Universal Trading Platform programme, says: "In an increasingly competitive environment, particularly in Europe, the Universal Trading Platform puts us ahead of the competition and not only meets the needs of our customers today but will also meet their future needs for greater speed and capacity as well as sophisticated functionality."

Stanley Young, co-global CIO, Nyse Euronext, adds: "At the time of the Nyse Euronext merger we committed to introduce one single trading platform for all our markets, to significantly reduce costs and create IT synergies. Since then, our IT teams on both sides of the Atlantic have been working to a very ambitious timetable on the development of the next-generation platform, which represents a step change in the trading capabilities and efficiency of our markets."

Nyse Euronext is not alone in revamping it technology platform, as traditional exchanges looks to realise IT synergies from consolidation and face off competition from modern automated platforms.

Deutsche Börse - which earlier this week said that talks with Nyse Euronext about a potential mega merger had fizzled out - has committed to a rise in costs of EUR1.35 billion for next year as it invests in the development of a single global trading system, initially for ISE, as the nucleus of its IT platform strategy.

Comments: (1)

Matt White
Matt White - Finextra - Toronto 12 December, 2008, 13:53Be the first to give this comment the thumbs up 0 likes

Nyse Euronext has posted some decent videos on its site, in which the UTP programme executive director Anthony Attia talks to co-CIOs Steve Rubinow and Stanley Young.