About a-team Marketing Services
The knowledge platform for the financial technology industry
The knowledge platform for the financial technology industry

A-Team Insight Blogs

Exchange Co-Lo Update: CME, Nasdaq

Subscribe to our newsletter

The last week or so has seen significant action in the world of exchange co-location – a space (excuse the pun) that as a whole is hotter than ever – with happenings at CME Group and Nasdaq OMX.

The news – though there was no actual news release – from CME Group was the planned Sunday, January 29th opening of co-location facilities at its newish Aurora, Il data centre – located some 40 miles west of the windy city.

Around half of the 428,000 square foot facility is earmarked for co-lo use, with 12.5 megawatts of power available for the first phase of the roll out. More than 100 customers are currently installed, and more want in, says a CME spokesperson.

As well as selling co-lo facilities directly, the CME has approved a number of service provider partners to manage and offer space. These include BT Radianz, CFN Services, Fidessa, Fixnetix, Interactive Data 7ticks, Need To Know News, QuantHouse, Savvis and Thomson Reuters.

Notably missing from that list are Equinix and Telx, which operate out of 350 East Cermak Road in Chicago proper, where the CME data centre was once located. In fact, CME customers can still access its Globex trading system from that facility, which remains a popular proximity data centre.

Connectivity into Aurora is via a sanctioned list of providers, including Anova Technologies, AT&T, Hudson Fiber Networks, Sidera Networks and Verizon. Not on the list is Spread Networks, which continues to connect into 350 East Cermak with its ‘fastest’ connection to Carteret, New Jersey – a building just across from Nasdaq OMX’s data centre.

Speaking of which … Nasdaq just announced upgraded services for its co-lo customers, located in a facility where the exchange group is the major tenant of Verizon – it has around 200, 000 square feet right now, with an option to take 30,000 more.

Nasdaq’s co-lo customers can now feed a whopping 17 killowatts into the new Super Cab offering – up from 10 killowatts for current cabinets – which provides an “innovative cabinet cooling design that draws the hot equipment exhaust into a custom cabinet chimney for maximum power at a high efficiency level.”

In other words, customers can now fit more equipment – servers and networking – into a single rack, and can install multi-socket servers that suck up significant power. This allows for more complex applications to be run, with lower latency between servers. And fewer cabinets also means an overall latency reduction for complete systems.

Coming in April – subject to SEC go ahead – is 40gE connectivity into Nasdaq’s trading systems and information feeds. The upgrade from the current 10gE should knock about seven microseconds off round trip times into the exchange’s matching engines.

Customers will also be able to use the upgraded connectivity to access all data feeds offered in the data centre, from Nasdaq and from other exchanges.

In order to offer 40gE connections, Nasdaq will be upgrading its network equipment, though it’s not saying who its current or future vendors are or will be. That’s in part because those vendors are engaged in ‘leap frog game’ in terms of reducing latency, and the exchange “chooses who is best” at any particular time, says a spokesperson.

Subscribe to our newsletter

Related content

WEBINAR

Upcoming Webinar: Unlocking value: Harnessing modern data platforms for data integration, advanced investment analytics, visualisation and reporting

4 September 2025 10:00am ET | 3:00pm London | 4:00pm CET Duration: 50 Minutes Modern data platforms are bringing efficiencies, scalability and powerful new capabilities to institutions and their data pipelines. They are enabling the use of new automation and analytical technologies that are also helping firms to derive more value from their data and...

BLOG

Regulations in the Balance as Institutions Remain Sustainability-Focussed: ESG Summit London Review

Despite a perception that ESG is in retreat around the world, financial institutions continue to take the issue very seriously as a matter of risk management, a trend that continues to exert an influence on the data demands of organisations. It isn’t even the compliance imperatives of organisations operating in heavily regulated parts of the...

EVENT

TradingTech Summit MENA

The inaugural TradingTech Summit MENA takes place in November and examines the latest changes and innovations in trading technology and explores how technology is being deployed to create an edge in sell side and buy side capital markets financial institutions in the region.

GUIDE

Complex Event Processing

Over the past couple of years, Complex Event Processing has emerged as a hot technology for the financial markets, and its flexibility has been leveraged in applications as diverse as market data cleansing, to algorithmic trading, to compliance monitoring, to risk management. CEP is a solution to many problems, which is one reason why the...