NYSE Euronext has bought a supplier of market data systems to boost its high-speed trading volume.
The exchange, created from the merger of Europe's Euronext and the New York Stock Exchange, spent $200m (£101.3m) on Wombat Financial Software, in its first strategic purchase of a specialist technology supplier.
"Wombat bridges our commercial technology and market data strategies, broadening our customer reach and enabling NYSE Euronext to deliver advanced technology solutions to our customers' increasing data management challenges," Duncan Niederauer, NYSE Euronext's chief executive, said in a statement.
By integrating Wombat’s technology and expertise, NYSE Euronext hopes to improve its connectivity, transaction and data-management offerings, it said.
NYSE Euronext will use Wombat’s high-speed market data and messaging platform and its direct and fast connections to all the major markets to improve efficiency and to roll out new products.
The bourse expects Wombat's technology to provide a number of benefits for its customers, including improved access to "increasingly fragmented, high speed and electronic market models which are emerging as a result of regulatory changes such as MiFID and RegNMS".
The purchase comes as competition heats up from New York's Nasdaq exchange, as well as start-up electronic trading systems. New regulations, such as MiFID in Europe and RegNMS in the US, have led to an increase in competition from so-called multi-lateral trading facilities and electronic exchanges.
Wombat, founded in 1997, supplies market data systems to banks and brokers, enabling them to react to changing market conditions more effectively.
Wombat lists Bear Stearns and Merrill Lynch amongst its customers.