CHICAGO Jan 6 CME Group Inc, the
world's largest futures exchange operator, said on Monday it
moved its primary backup data center to New York from Chicago
last month to make its backup facilities more secure and
CME, owner of the Chicago Board of Trade and New York
Mercantile Exchange, moved the backup center to space in the
building that houses the Nymex trading floor in lower Manhattan,
Securities and Exchange Commission documents show.
The center is the company's "primary backup for electronic
trading, clearing and regulatory infrastructures," according to
CME's backup site for electronic trading, which comprises
the majority of its trading volume, had previously been located
in Chicago, about 50 miles from the company's main data center
in Aurora, Illinois.
The move makes CME the latest financial firm to increase the
physical distance between its main and backup data centers to
reduce risks from large-scale disruptions in one geographic
area, such as those caused by extreme weather.
CME told regulators the change "will help to ensure that CME
has sufficient physical, technological and personnel resources
to enable the timely recovery and resumption of operations
following disruptions, resulting in an increase in reliability
and security of its backup data facilities," the SEC said in a
Dec. 31 order approving the move.
The move also will decrease the risk of disruptions in
connectivity because the New York data center "will feature
single IP connectivity," according to the order.
Chicago-based CME had been developing plans for an
out-of-region backup data center for more than a year, a company
spokeswoman said on Monday. She declined to detail the costs of
the switch and said it was unrelated to a cyber attack on CME in
The New York site previously operated "in part as a tertiary
data center" for CME, according to SEC documents. CME told
regulators it planned to redesign the site to make it an "all
disaster recovery data center."
Regulators have been encouraging firms to increase the
physical distances between main and backup sites since the
attacks of Sept. 11, 2001, crippled New York's financial system
Direct Edge, a stock exchange operator, last year completed
a move of its backup data center to Chicago from New Jersey,
which also was home to its main data facility.
The company wanted more distance between its main and backup
data equipment and a "diversity of infrastructure" that supports
the equipment, such as electrical power, said Kevin Carrai, head
of market data and connectivity services.
"We really haven't seen any negatives from our decision to
do this," he said.
BATS Global Markets, a stock and options market operator,
also moved its backup data center to Chicago from New Jersey,
which was home to its main data center.