NYSE Euronext

Challenge

To meet and anticipate the evolving demands of the global trading community NYSE Euronext has made significant investments in technology. 

NYSE Euronext recognizes the value of providing a superior data center asset, as well as superior technology platform in order to provide a consolidated, but diverse product offering to the market place. In 2010, NYSE Euronext established two state-of-the-art data centers in Mahwah, NJ, and Basildon, UK, designed to ensure the highest level of availability is delivered for the world's largest leading financial exchange.

CS Technology (CST) and KLG Advisors (KLG), provided strategic advisory support and project management in the delivery of the complex configuration of physical and technical assets.This began when NYSE Euronext contracted with KLG Advisors to assist with site selection for a new liquidity center facility in the New York City metropolitan area. The initiative intends to produce operational synergies and efficiencies and create new business and client opportunities through a consolidation and an enhanced application of its data center footprint.

CST was engaged to provide advisory services focused on site selection. NYSE Euronext leveraged both firms specialized expertise to enable the global-exchange operator to deliver operational efficiencies, cost savings, and revenue-generating opportunities from its portfolio of assets. To that end, NYSE Euronext engaged CST and KLG to provide advisory services, project management, technical oversight, financial analysis, and migration planning and execution services to support the delivery of the two strategic assets.

Solution

CST and KLG conducted a comprehensive market analysis in the U.S. and Europe on NYSE Euronext’s behalf identifying an increasing propensity for financial services firms to co-locate their trading assets in close proximity to trading venues’ matching engines. Moreover, this research revealed that many financial services firms expressed the value of concentrating liquidity venues at one geographic location where they could deploy low-latency trading capabilities across variety of asset classes.

From these findings, NYSE Euronext further enriched its business and technology platforms and strengthened its unique co-location business. NYSE Euronext has now delivered on a its strategic vision and emerged as the leading exchange groups to market proprietary data center capabilities to financial services companies based on a co-location model, with greater effectiveness and access than ever before.

Result

Moving forward, CST and KLG have formed a joint venture, CSTK InVenture, which brings together a range of expertise from enterprise infrastructure to real estate, creating a positive disruption in the traditional trading market environment.

By working in collaboration with NYSE Technologies, CSTK InVenture provides a strong case study for financial services firms in how to best aggregate the value of a firm’s assets and business operations. This relationship leverages NYSE Technologies market leading technology solutions and CSTK InVenture’s consulting and advisory expertise in the capital markets.

WHAT WE DO

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