Mutual fund operators are beginning to use cloud services offered by NYSE Euronext, in its 10-month old launch of a platform for worldwide use of computing resources by financial firms.
The mutual fund operators are using the platform to develop and test applications, as well as, in one case, a laboratory for trying out an order management system, said Ken Barnes, senior vice president of the capital markets community platform in the cloud of NYSE Euronext.
He declined to name the fund complexes involved. His comments came as he discussed plans to launch an applications and services hub for its Capital Markets Community in the United Kingdom next week.
The hub will be located at its Basildon, England, data center, Barnes said.
This will make the fourth hub for the Capital Markets Community, which NYSE Euronext launched July 1, 2012, in partnership with data storage provider EMC and virtual hardware and software management pioneer VMware.
The others are in Mahwah, N.J., where NYSE Euronext operates its other main data center; Toronto and Tokyo.
The London-area hub will provide computing-on-demand services to market participants and connections to NYSE Euronext’s worldwide trading network.
It will also be the home of a European edition of NYSE Euronext’s FIX Marketplace, which provides order routing services using the Financial Information Exchange communications protocol.
Overall, the Capital Markets Community Platform, which bills itself as the first cloud computing service aimed at a specific industry, provides direct, on-demand access to high-performance, low-latency services from NYSE Technologies, including its Superfeed of market data, its Risk Management Gateway, its Managed Services Hub, and its global Liquidity Center Network.
The company will hold a launch party in London on Tuesday, May 15, to mark the event, Barnes said.
The cloud platform now has “dozens” of customers, he said, including a range of “smaller” market makers and broker-dealers, as well as asset managers in the hedge fund and mutual fund businesses.
Besides the kind of development and testing that mutual fund firms are using the platform for, broker-dealers are also using the platform for backup services.
Barnes spoke with Money Management Executive at the general membership meeting of the Investment Company Institute, in Washington, D.C.