Algo Technologies Ltd.: IntercontinentalExchange Group Inc.

IntercontinentalExchange Group Inc.: That was the diagnosis after its new owner, IntercontinentalExchange Group Inc. ICE:US , examined the software known as the matching engine that pairs buyers and sellers, according to two people familiar with the matter. To modernize trading on the 222-year-old market, ICE bought Algo Technologies Ltd., a firm that claims to have the industrys fastest matching engine, the people said, according to Business Week. High-frequency traders have become the de facto facilitators of buying and selling in the $22 trillion U.S. equity market, and their business models depend on reacting to price movements as fast as possible. Those firms are some of the best customers of exchanges, so the faster Algo Technologies system could help ICE lure business away from NYSEs competitors Nasdaq OMX Group Inc. US and Bats Global Markets Inc. Lowest Latency The New York Stock Exchange is due for a tune-up. The system created by Algo Technologies, which was formed in 2010 by executives with backgrounds in high-frequency and quantitative trading, will drive NYSEs U.S. stock and options markets, according to the people familiar with the matter, who asked to not be identified because the acquisition hasnt been publicly announced. ICE considers the current technology outdated and slow, one of the people said. (news.financializer.com). As reported in the news.