Nasdaq wins SIP mandate

Nasdaq wins SIP mandate

Nasdaq OMX has retained the right to continue running the Securities Information Processor (SIP), a critical piece of US securities trading infrastructure.

The operation of the SIP has been hotly debated since a malfunction last year forced a shutdown of Nasdaq OMX and stopped trading in hot technology stocks for over three hours.

Nasdaq has since improved capacity and processing speeds for the SIP under instruction from the Securities and Exchange Commission.

The exchange committee responsible for overseeing the SIP subsequently issued an RFP, which has ultimately seen Nasdaq run out the clear winner in a closely-fought contest with the Thesys Technology division of Tradeworx.

Under the terms agreed, Nasdaq will transfer the operation of the SIP to a subsidiary company divorced from its own technology platform and maintain a live backup system.

Committee chair Thomas Knorring of CBOE says: “We had strong competition during the RFP process, which resulted in our ability to contract for both improved technology and a more attractive commercial solution.”

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