CME Group building high-speed connections around the world (Dow Jones)

By | October 14, 2011

Here’s more proof that the exchanges are quickly becoming technology companies – if they’re not already.  This network sounds oddly like NYSE’s SFTI.  Nevertheless, its easy to see how this makes sense for CME and should generate them even more revenue beyond the $45 million they already make on this kind of service:

Traders striving to ensure the fastest possible time to market likely will gravitate toward that offering. The “backbone” effort is seen appealing to futures brokers and fund managers that don’t need to do business at top speed, but still have to be competitive, according to Kevin McPartland, director of fixed-income research at Tabb Group. 

“Even if you’re a long-only asset manager doing big block trades, your technology still has to be up to a certain level of sophistication to make sure you’re getting the best possible execution,” McPartland said. 

Read the full story at the Chicago Tribune.

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