NYSE says it would take over Nasdaq stock quote system

Wed Jan 15, 2014 11:37am EST
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By John McCrank

NEW YORK (Reuters) - 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 (NDAQ.O: Quote) 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 (ICE.N: Quote) unit operates its own SIP.

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 Tuesday.

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.   Continued...

Snow falls outside the New York Stock Exchange during a winter storm in New York February 26, 2010. REUTERS/Chip East