After months of regulatory review and proposals, Nasdaq OMX Group Inc. has decided to discontinue running its?Securities Information Processor (SIP). This stemmed from last August’s software problem that resulted in a trading halt for Nasdaq-listed stocks.
In September, the Securities and Exchange Commission (SEC) convened with exchange leaders for a discussion on outtages and backup systems. The exchanges had been tasked with coming up with proposals by a November 2013 deadline. By late that month, Nasdaq had decided not to renew its SIP contract, reported the Wall Street Journal.
This came in light of frustrations to make changes for its SIP as well as the fact its contract had?been set to expire on Jan 1; however, there’s still a requirement for Nasdaq to run?SIP for two additional years.?
One answer to the problem may have come on Wednesday as NYSE Euronext said it “would be happy to” run the Nasdaq’s (SIP), reported Reuters. This came from comments by Duncan Niederauer, chief executive of NYSE Euronext, to CNBC, the?IntercontinentalExchange Group (ICE) unit has its own SIP.
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