Data Centers and the Exchange M&A Frenzy
Last week NYSE Euronext and Deutsche Boerse agreed to merge to form a trans-Atlantic exchange company with major hubs in New York and Frankfurt. The deal has kicked off merger fever among the world’s major financial exchanges. NASDAQ OMX and the Intercontinental Exchange (ICE) have entered talks to discuss teaming on a rival bid for the NYSE. Meanwhile Bats Global Markets has agreed to acquire Chi-X Europe in another deal combining U.S. and European trading operations.
As electronic trading has grown in importance for major exchanges, data centers have become critical components in the global financial system. How might this merger mania affect the companies’ data centers and the space they lease from third-party providers? NYSE Euronext has invested heavily in building two huge new data centers in Mahwah, New Jersey and Basildon, England.
Here are several articles analyzing the potential impact of the NYSE Euronext-Deutsche Boerse deal.
NYSE and Deutsche Borse Merger – The Data Center Question: DataCenterDynamics notes that the combination “is expected to generate annual cost savings of some EUR 300 million/US$ 400 million, principally from information technology, clearing, and market operations, as well as from corporate administration and support functions.”
NYSE-Deutsche Boerse Merger: Any Impact on Equinix’s Financial Ecosystem? At Seeking Alpha, Paolo Gorgo takes a look at what the deal might mean for Equinix (EQIX). “The announced NYSE (NYX)-Deutsche Boerse (DBOEY.PK) merger will create the world’s largest exchange for stocks and derivatives – and will represent both a risk and an opportunity for both companies’ data center partners.”
And here’s a review of some of our coverage of NYSE Euronext’s data center infrastructure:
- NYSE Partners With Interxion in London
- NYSE Euronext Plans Global Trading Hubs
- NYSE Opens Mahwah Data Center
- NYSE Euronext’s Future: The Data Center
- Is NYSE’s NJ Data Center A Game Changer?
For more on high speed trading see our Low Latency Trading Channel.