Spread Connects Carteret, Secaucus Trading Hubs
January 11th, 2011 By: Rich Miller
Connectivity providers continue to lay more dark fiber routes between financial data centers in northern New Jersey, seeking ever-faster routes between major financial exchanges. Yesterday Spread Networks said that it had laid new fiber between key trading hubs in Carteret and Secaucus, which could also provide some customers in an Equinix data center in Secaucus with faster routes to exchanges in Chicago.
Equinix operates several data centers in Secaucus that house high-frequency trading operations for financial traders as well as the Boston Options Exchange and Direct Edge, while Carteret is home to a data center for the NASDAQ stock exchange. Shares of Equinix (EQIX) rose more than 4 percent in trading Monday after the new fiber route was announced.
Spread Networks said its newly-trenched route”sets the new standard connecting these two financial centers.” Spread said customers can use the route for metro-NJ only communications, giving them the fastest path between Carteret and Secaucus, or they can combine it with Spread Networks current Chicago to Carteret route to achieve the shortest route from Chicago to Secaucus.
“We literally built a brand new dark fiber network from the ground up to raise the standard for speed, diversity security and reliability between New York and downtown Chicago,” said W. Brennan Carley, SVP Product Marketing, Spread Networks. “By working with Equinix we can now provide customers with connectivity between Carteret and Secaucus at the lowest possible latency.”
“Low latency is critical to electronic trading, and the availability of Spread Networks’ new service at our NY4 IBX data center presents an attractive value proposition for our customers,” said John Knuff, general manager for Equinix Global Financial Services.
Spread Networks inaugurated its private dark fiber network in August 2010, connecting New York and Chicago. Spread Networks provides its customers with a private network to achieve a “clean speed” that allows data to run as close as possible to the true speed of light through fiber.