News
News
8/22/2005
01:01 PM
Connect Directly
RSS
E-Mail
50%
50%

Savvis Lands Two Electronic Communication Networks

An ENC automatically matches bids and offers from multiple broker-dealers. BATS Trading and Track ECN will use Savvis' financial extranet to access market data, route orders to market centers, and connect with other financial institutions.

Savvis Inc. said Monday that two electronic communication networks, BATS Trading Inc. and Track ECN, will use Savvis' financial extranet to access market data, route orders to market centers, and connect with other financial institutions.

An electronic communication network automatically matches bids and offers from multiple broker-dealers. The number of ECNs, however, has declined due to consolidation in the electronic trading industry. Earlier this year, the New York Stock Exchange revealed plans to merge with Archipleago Holdings Inc., and the Nasdaq Stock Market Inc. said it was buying Instinet Group.

The consolidation has caused market participants to seek out other venues to avoid the creation of "a duopoly in trading markets," says Joe Ratterman, chief operating officer at BATS Trading Inc.

Savvis provides hosting, networking, and application services for 4,700 financial-services firms. By collocating their communication systems, trading firms can reduce latency, or the time needed to execute trades, and connect to each other more easily, according to Savvis. Its financial extranet provides "a shared platform to which financial institutions can connect and get their service out to market quickly," says Matthew Fox, VP and general manager of Savvis' financial-services division.

BATS, which plans to launch its ECN in early 2006, will host its data center at Savvis' facility in Weehawken, N.J. "Savvis already provides connectivity to many of the market participants we'll be looking to attract," Ratterman says.

Track ECN, a subsidiary of Track Data Corp., will connect its data center to Savvis to reach other market participants on the Savvis network. It will charge trading firms that send orders to it electronically through Savvis a fee of $2.50 per thousand shares traded, versus a fee of $3.00 per 1,000 shares for orders that come to it indirectly through Nasdaq, says Rafi Reguer, Track Data's VP of marketing and corporate communications. Says Reguer, "In a lot of cases, we've approached financial institutions that have been hitting us indirectly, and therefore paying more, and gotten them to connect to use directly through Savvis."

Comment  | 
Print  | 
More Insights
The Business of Going Digital
The Business of Going Digital
Digital business isn't about changing code; it's about changing what legacy sales, distribution, customer service, and product groups do in the new digital age. It's about bringing big data analytics, mobile, social, marketing automation, cloud computing, and the app economy together to launch new products and services. We're seeing new titles in this digital revolution, new responsibilities, new business models, and major shifts in technology spending.
Register for InformationWeek Newsletters
White Papers
Current Issue
InformationWeek - September 2, 2014
Avoiding audits and vendor fines isn't enough. Take control of licensing to exact deeper software discounts and match purchasing to actual employee needs.
Flash Poll
Video
Slideshows
Twitter Feed
InformationWeek Radio
Archived InformationWeek Radio
In in-depth look at InformationWeek's top stories for the preceding week.
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.