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London Stock Exchange Technology issues

2011-08-25 09:50:28

The LSE's current trading platform is its own Linux-based edition named

"Millenium Exchange".

The old trading platform was based on Microsoft's .NET Framework, was developed

by Microsoft and Accenture. Microsoft used the LSE software as an example of

the supposed superiority of Windows over Linux in the "Get the Facts" campaign,

claiming that the LSE system provided "five nines" reliability. For Microsoft,

LSE was a good combination of a highly visible exchange and yet a relatively

modest IT problem.

After suffering extended downtime and unreliability the LSE announced in 2009

that it was planning to switch to Linux in 2010.

In October 2010, the London Stock Exchange announced that the new Linux based

trading system named Millennium Exchange, had smashed the world record for

trade speed, with 126 microsecond trading times being recorded on the Turquoise

dark pool trading venue and would go live on 1 November. The system, which was

developed by MillenniumIT, a Sri Lankan IT company bought by the LSE in 2009,

was taken out of service following a 2-hour outage of the Turquoise venue on 2

November. The incident was according to LSE officials caused by human error

that "may have occurred in suspicious circumstances."

Plans were to introduce Millennium Exchange also on the main share trading

platform in December. The LSE stated it was hoping the software would be ready

for use again early in 2011.

In February 2011, the London Stock Exchange finished the switch to Linux. LSE

chief executive Xavier Rolet insisted that the exchange, once a monopoly, would

deliver record speed and stable trading in order to fight back against the fast

erosion of its dominant marketshare by specialist electronic rivals.