London Stock Exchange hires 81 C++ developers for delayed Linux system

LSE stands by new system in spite of problems

Article comments

The London Stock Exchange has hired 81 open source software staff for the development of the delayed Linux-based system being implemented on its cash markets.

The developers on the new system will work in a C++ environment, on which the new Millennium Exchange Linux matching engine will operate. Some development is also being conducted "externally", the LSE said, referring to staff at the platform's original base in Sri Lanka. The LSE is replacing a Microsoft .Net environment.

The migration, which would have gone live this week, was brought to a halt on 3 November after what the LSE termed as “suspicious” circumstances in which its Turquoise dark pool trading venue – which already runs the system - went down for two hours. The Financial Services Authority and police are investigating the incident, and it is understood an IT contractor has been suspended.

The LSE this month acknowledged concerns from traders that it needed to do more to improve the capacity of its network, which can handle 50,000 messages per second.

It declined to give details on the investigation or what changes were being made. An announcement is expected in the coming weeks, and the new system will go live early next year.

As the LSE said operating profits for the six months to 30 September grew 15 percent year-on-year to £155 million, it told investors it was sticking with the Linux technology, which is replacing Microsoft .Net.

It cut group staff numbers by over 70, but added 81 developers for the Millennium Exchange platform.

The headcount at MillenniumIT, the software firm it acquired for the platform, “increased from 461 to 542 to support the large number of both internal and external software development projects taking place in the business”, it said.

In a presentation to investors, LSE chief executive Xavier Rolet reiterated that the Linux platform’s 126 microsecond average trading time was a world record, and insisted the platform would perform consistently at speed.

The technology was “proven” and running at the London Metal Exchange and Colombo Stock Exchange, among other places, he said.

The LSE also sells datacentre services to its clients. The acquisition of Millennium IT pushed up sales in this area by £9 million, to £25 million, as the LSE won new clients including Tullett Prebon and the Egyptian Exchange.

Now read

London Stock Exchange timeline of technical problems



  • Fulhamite Thanks
  • Sysnet It they are hiring C programmers it looks like there is something seriously wrong with the Millenium IT system rather than the sabotage claimed I cant help wondering if the LSEs undying love for proprietary systems has tripped them up again LSE bought out a little known Unix reseller from Sri Lanka which set up the minuscule Sri Lankan Stock exchange over far more experienced and competent companies in the West primarily because they wanted to own their own proprietary system which they could resell to others I remember Millenium IT boasted on its website a test latency of 150 micro seconds and claimed it was the fastest in the world when the system used by the NYSE achieved a test latency 13 times lower on the same hardware I suspect the real world performance of Millenium ITs system under heavy load is as with all the others much lower LSE may have been taken in by Millenium ITs slick marketing and wasted a lot of money on the wrong supplierThe comments from LSE that Millenium ITs systems have been proven in the Colombo and Egyptian stock exchanges and the London Metal Exchange only strengthen this suspicion These exchances are all tiny compared to the LSE LSEs remarks about sabotage are also suspicious What kind of security do they have when their own staff or subcontractors can sabotage the system and not be traced and chargedBasically I think the LSE needs to decide on where its expertise lies and on whether it wants to be a stock exchange of a software developerreseller Trying to be a software developerreseller is impacting adversely with its core competency and revenue stream It would be better off leaving software development to software developers and hiring in software on a competitive basis from the the best and most competitive outside developers rather than attempting to become a software developer
  • Hunter Morris httpenwikipediaorgwikiB
Send to a friend

Email this article to a friend or colleague:

PLEASE NOTE: Your name is used only to let the recipient know who sent the story, and in case of transmission error. Both your name and the recipient's name and address will not be used for any other purpose.

We use cookies to provide you with a better experience. If you continue to use this site, we'll assume you're happy with this. Alternatively, click here to find out how to manage these cookies

hide cookie message
* *