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London Stock Exchange smashes world record trade speed with Linux

London Stock Exchange smashes world record trade speed with Linux

New system double speed of rivals, LSE says

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The London Stock Exchange has said its new Linux-based system is delivering world record networking speed, with 126 microsecond trading times.

The news comes ahead a major Linux-based switchover in twelve days, during which the open source system will replace Microsoft .Net technology on the group’s main stock exchange. The LSE had long been criticised on speed and reliability, grappling with trading speeds of several hundred microseconds.

The record breaking times were measured on the LSE’s Turquoise smaller dark pool trading venue, where trades are conducted anonymously. That network switched over to Linux from Cinnober technology two weeks ago. Speed is crucial as more firms trade automatically at lightning speed, using advanced algorithms.

The 126 microsecond speed is “twice as fast” as its main international competitors, the London Stock Exchange said. BATS Europe and Chi-X, two dedicated electronic rivals to the LSE, are reported to have an average latency of 250 and 175 microseconds respectively. Netiher company immediately provided details. But many of the LSE’s older and more traditional rivals offer speeds of around 300 to 400 microseconds. Nevertheless, Linux is now standard in many exchanges.

Millennium Exchange is set to go live on the LSE’s main exchange in 12 days’ time, on 1 November. The LSE has already conducted one live ‘dress rehearsal’ last weekend, and announced it would hold a second dress rehearsal this weekend and one the Saturday after, two days before the go-live.

The third dress rehearsal was pegged in after some of the LSE’s customers, which number 300 trading firms in total, this week requested more time to test their systems live on the new Linux network. While it is understood the LSE’s technology ran largely successfully on the first test, the migration is complex for customers and may be presenting some challenges.

If the third test is successful, the LSE will open on Linux on 1 November, otherwise it will postpone the launch for a fortnight.

David Lester, CEO of Turquoise, said that alongside the 126 microsecond average latency, 99 percent of orders would be processed within 210 microseconds, and only 0.1 percent will take longer than 400 microseconds.

He said the the speed demonstrates the LSE has “made it clear we intend to compete, and compete strongly”.

Update: LSE delays Linux launch after live test

Now read: London Stock Exchange Linux record breaking system faces new high-speed challenge

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  • Leung Tsz Chun is it faster than quantum computer
  • Karl So you have been working purely on the sellside and not actually on a company developing trading systems in Java Its amazing to me that there are still after 15 years misconceptions about Java and speed out there even among IT-specialists There are systems out there developed in pure Java that easily matches orders in 500 us or less I would not call that do not have what it takes I would guess the reason it did not hold up in the place you worked is probably related to design and coding that is not geared towards running stuff fast I used to work on the sellside large investment bank and we never got the time needed to properly optimize anything we built If stuff crumbled in production because of the load yes but we never got the extra time needed to code with performance in mind It was all about being first to market with new features before anyone else In the trading system bussiness speed has been a competetive advantage for the past few years but I think that is going to change back to stable systems that treat all their customers in a fair and equal manner Not just giving the money away to the client that have the smartest and fastest algo boxes
  • Karl Well Didnt you know its the fastest trading system in the world You know the LSE PR-department is doing a fantastic job when that is what is being stressed in a pressrelease about their new system going off-line I believe the LSE has just redefined what is the most important feature in a good trading system Stability is now for the first time second on the list Casualties of war and all that
  • Insider Yes but its now crashed twice in one month resulting in the main market go-live being pushed back by four months into next year and offers a tiny subset of the previous platforms functionality Awesome
  • Kane Linux can actually multi task and is far more secure and stable Is you contention the Search Dog that doesnt even work being missing from Linux
  • guest1 Watching on their careers section it seems they are using C and Java For High Performance C is the way to go
  • the_annoying_thing All for linux making inroads but The financial system can implode twice as fast would seem an equally valid headline
  • Darkelf CC for the bulk of it most likely Java and C just dont have what it takes for a system of this nature to keep up You can use something like those for the human interfaces into the overall system but the bulk of it will be something done in CC period I should know I used to work for one of the companies that made the other end of this stuff the stuff capturing the ticker feeds and placing the orders against the exchange Java was only used for the UI and for interfaces where we translated the incoming feeds data from the exchanges format to our own- and the Java there was specialized coding that most Java coders wouldnt quite get No NEWs or GC generating events once your initialized and similaras those would stall out the pipeline and you drop trades or book requests on the floor and it was only used because it allowed us to make slightly more maintainable code for the interfaces
  • Ramesh Ram i think he wanted to say how far behind windows is to linux
  • Davidson Kris Because an official site for the product would never use a dodgy methodology or cherry pick results to portray its product in a good light
  • evo Trolling or just not educated sufficiently about the state of OSs
  • Uncle Demotivator Touch
  • Sarang Bhoirkar Linux rocksssthanks to open source
  • Ishan MillenniumIT has its internal latency around 90 micro seconds hence still this is the world fastest 126 is the external latency measured at client side with all the firewall networks etc
  • Liberian Geek Nice to know considering how far behind Linux is to Windows
  • libre666 Good news for Linux bad news for th world
  • A. C. Cool Will this make those lightning stock crashes like the one we saw a few months ago even faster than lightningI think Linux is a good choice for truly reliable systems Im just a little skeptical about the goodness of nanosecond quick transactions in the stock exchange
  • Carlos Eat this Windows Fanboyshauhauhuhauhuahuah
  • Gandalf When numbers are comming from the venues they should not be taken seriously They are just number without a context The transparency are none The numbers can not be compared Algo Tech claims 16 usec - httpwwwautomatedtradernetWhenif any larger broker algo firm present connectivity latency it could be worth looking as and indicator
  • Jedibeeftrix London Stock Exchange smashes world record trade speed with LinuxHooray for linux D
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