NYSE Euronext together with NASDAQ OMX Group Inc was ordered by regulators to enhance the reliability of US equity markets to consider improvements such as acting as each other's backups on data feeds which disseminate prices. This was confirmed by two people who briefed the public on the matter.
The system by Nasdaq as to the public transmission of quotations malfunctioned last August 22 halted trading for thousands of companies for nearly three hours. This prompted the Securities and Exchange Commission Chairman Mary Jo White who told market owners to collaborate on the development of plans to avoid future shutdowns.
The options being considered by the NYSE and NASDAQ include the security of information processors or SIPs. These feeds which both New York based companies that oversee to distribute trading information for investors. These plans were confirmed by individuals who sought anonymity as the discussions remain private. Another plan is to have the backup systems with the Depository Trust and Clearing Corp, according to one of the individuals.
A spokeswoman for NYSE Euronext, Sara Rich and NASDAQ's Rob Madden had both declined to make a comment on the matter.
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