Nasdaq is expanding connectivity to global markets with nearly a dozen points of presence in data centers around the world, with the latest located in Mahwah, New Jersey. We sat down with Rich Mitterando, vice president of Nasdaq North America Connectivity Services, to learn how POPs connect users with Nasdaq markets from global data centers.
What is a Point of Presence (POP)?
A Point of Presence (POP) is a connectivity service offered by Nasdaq in strategically placed financial services-focused data centers that extends our world-class services outside of our primary regional data centers. We currently have POPs in 11 locations across North America, Europe and Asia, and we do plan to introduce additional POPs based on our clients’ needs and feedback.
Why do clients use a POP, and how does it benefit them?
Many different types of clients use our Nasdaq POPs because they are simpler to set-up and provide a flexible, redundant, secure, low latent and cost-effective connectivity to our many Nasdaq exchange services.
Can you tell us about the new Nasdaq Mahwah POP? What services does it offer?
The main data center for ICE and their NYSE and ARCA US exchanges is located at 1700 MacArthur Blvd in Mahwah, New Jersey. A client with a presence in this building can request a Nasdaq POP service via our web-based Customer Portal and start receiving their requested Nasdaq or third-party market data feeds within a few days. (Approval of data feeds by exchange and ICE installation of the cross-connect is required.)
Earlier this year, as the coronavirus spread, market volatility peaked and trading volumes soared. What impact has the pandemic had on POPs?
We observed a large spike in the amount of data traffic and trading volumes during the pandemic that seamlessly traveled over our POP connections. Clients did not need to dispatch any of their personnel to add bandwidth or deal with any connectivity issues since Nasdaq manages these POP connections for our clients.
With the markets always moving, speed matters. What does latency mean for markets and investors? And can you elaborate on the Mahwah POP latency?
We send the data from our main data center in Carteret to the Mahwah POP in around 322 microseconds, the fastest commercial fiber-based links currently available. This allows clients to receive valuable market data faster and thus make trading decisions quicker.