According to a Dow Jones story?by Jacob Bunge,?CME Group Inc. (NASDAQ:CME?) and Nasdaq OMX Group Inc. (NASDAQ:NDAQ?) have plans to introduce a wireless network joint venture transmitting stock and derivatives prices between Chicago and New York in fractions of a second.
This launch will take place in May. The service is geared toward?high-frequency traders and Wall Street banks looking for a competitive advantage to quickly make trades over their competitors.?
What’s interesting about the plan is the wireless technology used; most firms still utilize the slower but reliable and higher-capacity fiber-optic cable to quickly send orders. There are trading firms currently employing wireless networks that are somewhat similar with futures prices coming from Chicago subsequently advancing equity trading strategies in New York and vice versa.
Eric Noll, head of U.S. transaction services for Nasdaq OMX, said to Dow Jones,?”If you are active in the futures markets you want to know where the [exchange-traded funds] are trading, and if you are active in the ETF market you want to know where the futures are trading.”?
For the Nasdaq and CME, they have previously built links for stock index licenses. This has allowed the exchanges to go into their market information and give customers fast prices inexpensively who lack their own communication links.
Craig Mohan, managing director of data center services for CME said to Dow Jones,?”There will always be demand for [fast speeds] between data centers.”?