Equinix Sees Accelerating Globalization in Financial Markets in 2012
Top exchanges expanding customer access models, tapping “information hubs” in
REDWOOD CITY, Calif. -- December 20, 2012
Equinix, Inc. (Nasdaq: EQIX), the global interconnection and data center
company, today announced that it is seeing a rapid increase in stock exchanges
extending their customer access models by placing electronic access nodes in
foreign markets. Already home to more than 75 exchanges and trading venues
around the globe, Equinix has recently announced new projects with the Toronto
Stock Exchange (TMX), New York Stock Exchange (NYSE), Australian Securities
Exchange (ASX), and Moscow Exchange (MICEX RTS). Equinix also announced today
that MIAX Options Exchange (MIAX) has selected Equinix International Business
Exchange^™ (IBX^®) data centers for its primary, backup and disaster recovery
sites for its new options exchange trading platform.
For more than two decades, the expansion of electronic trading in financial
markets has brought lower costs and a greater ability to manage risk in the
increasingly complex global economy. Accelerated by the Great Recession, this
long-term trend has also put pressure on margins across the trade cycle,
forcing both incumbent and upstart venues to diversify their investor base by
expanding customer access models to attract valuable multinational customers.
“Since 2011, we’ve seen a more than fivefold increase in the number of venues
reaching outside their home markets,” said John Knuff, general manager, Global
Financial Services for Equinix. “The trend is being driven by a steady
broadening of trading strategies that extend beyond a single venue, geography
or asset class. As markets become more interrelated, investors are seeking
local access to foreign markets and forward-thinking exchanges are delivering
these types of solutions in greater numbers.”
Knuff is seeing a huge upsurge in 'multi-asset connectivity' as trading firms
position infrastructure among numerous venues within the same facility, or
data center campus, that trade both the same and diverse instrument types. The
major caveat, he adds, is the physical proximity of these firms to multiple
trading venues, data sources and counterparties. “Distance from key financial
cities is the barrier for firms trading on multiple venues. If they can access
your exchange’s data locally, that eliminates this barrier. If they have to
long-haul the data, then that can present a problem”, Knuff explained. “The
value in cutting-edge software and systems is only present if those assets are
well-connected, wherever possible, to the markets and data sources that firm
When exchanges deploy access nodes and provide market data inside liquidity
hubs — or “information hubs” ― trading venues are giving trading firms the
ability to connect to multiple global data sources from one location. In an
environment where both speed and efficiency are critical to not just success,
but viability, information hubs are enabling these organizations to trade
smarter while maintaining agility.
Platform Equinix^™ provides an entire financial services ecosystem of more
than 725 business including exchanges and trading platforms, top market data
vendors, a myriad of service providers, and hundreds of buy-side and sell-side
*“Information, Liquidity and the Center of Opportunity” byline article by
John Knuff for Automated Trader
Equinix, Inc. (Nasdaq: EQIX), connects more than 4,000 companies directly to
their customers and partners inside the world’s most networked data centers.
Today, businesses leverage the Equinix interconnection platform in 30
strategic markets across the Americas, EMEA and Asia-Pacific. www.equinix.com.
Forward Looking Statements
This press release contains forward-looking statements that involve risks and
uncertainties. Actual results may differ materially from expectations
discussed in such forward-looking statements. Factors that might cause such
differences include, but are not limited to, the challenges of acquiring,
operating and constructing IBX centers and developing, deploying and
delivering Equinix services; unanticipated costs or difficulties relating to
the integration of companies we have acquired or will acquire into Equinix; a
failure to receive significant revenue from customers in recently built out or
acquired data centers; failure to complete any financing arrangements
contemplated from time to time; competition from existing and new competitors;
the ability to generate sufficient cash flow or otherwise obtain funds to
repay new or outstanding indebtedness; the loss or decline in business from
our key customers; and other risks described from time to time in Equinix’s
filings with the Securities and Exchange Commission. In particular, see
Equinix’s recent quarterly and annual reports filed with the Securities and
Exchange Commission, copies of which are available upon request from Equinix.
Equinix does not assume any obligation to update the forward-looking
information contained in this press release.
Equinix and IBX are registered trademarks of Equinix, Inc.
International Business Exchange is a trademark of Equinix, Inc.
Melissa Neumann, +1 650-598-6098 (Media)
GolinHarris for Equinix, Inc.
Liam Rose, +1 415-318-4380
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