| NEW YORK
NEW YORK Jan 15 NYSE Euronext offered on
Wednesday to take over the data processor at the center of the
massive Nasdaq trading outage last August after Nasdaq OMX Group
Inc indicated it would stop running it.
NYSE Euronext "would be happy to" run the Nasdaq securities
information processor (SIP) that provides investors with stock
quotes and last sale prices, Duncan Niederauer, chief executive
of NYSE Euronext, told CNBC on Wednesday.
The IntercontinentalExchange Group unit operates its
Nasdaq recently gave the committee that governs the SIP
that provides data for Nasdaq-listed stocks a two-year notice
that it will stop running the system, Reuters reported on
A software glitch crippled Nasdaq's SIP in August, forcing
the exchange to halt trading on stocks it lists.
Soon after, U.S. Securities and Exchange Commission Chair
Mary Jo White ordered the exchanges to come up with new
protocols to improve the resiliency of the processors.
Nasdaq presented the SIP committee, which is made up of
members from all of the U.S. exchanges, with a list of 10
recommendations to improve the SIP, including expanding its
capacity, upgrading the testing environment for the system, and
enhancing information security.
It also asked that the SIP be registered as a limited
liability company (LLC) and a formal contract be signed
regarding Nasdaq's operational duties.
The enhancements would take around two years to complete,
but so far the committee has not given the go-ahead on any of
the recommendations, sources told Reuters.
Frustrated by the slow pace of the negotiations with the SIP
committee, Nasdaq gave its two-year termination notice of its
agreement to run the system, but said it would continue trying
to reach a deal in the meantime.