Nasdaq, NYSE close in on deal to back each other up

|About: Nasdaq Inc. (NDAQ)|By:, SA News Editor

Nasdaq (NDAQ) and the NYSE (NYX) are reportedly nearing an agreement to back up each others' data streams in a move that would help overcome common points of failure.

The exchanges are also discussing other ideas that could stabilize their infrastructure, such as passing the operational control of their securities information processors (SIP), which include price quotes, to a third party.

The report follows a number of technical problems on financial bourses, such as an outage of the Nasdaq in August.

"The exchanges need to help one another," says analyst E. Paul Rowady. "They have similar headline risk from the ongoing glitchapalooza."