Linux trading system to save London Stock Exchange £10m a year

Linux trading system to save London Stock Exchange £10m a year

Chief executive says Millennium Exchange crucial to future

Article comments

The London Stock Exchange has said its new open source-based trading system will save it at least £10 million annually, as well as driving new business.

Millennium Exchange, a Linux and Sun Solaris Unix-based platform, which uses Oracle databases, is being rolled out across all of the LSE’s electronic trading systems, replacing the slower TradElect platform, which is Microsoft .Net based. TradElect had suffered a series of high-profile outages and will be replaced by Millennium Exchange in stages from September.

TIMETABLE FOR MOVE TO LINUX-BASED PLATFORM

TradElect: in stages from September

Turquoise: one-day 'big bang' due in August or September

Selected clients testing new platform in both venues from now

The LSE took on board the new system when it acquired Sri Lankan technology firm MillenniumIT eight months ago for £18 million. As the group today said annual operating profits had fallen 18 percent to £280.3 million, which it attributed to a challenging economy and increased competition, it booked £25.3 million depreciation costs on TradElect.

LSE chief executive Xavier Rolet today said “further savings” from the system would be “forthcoming” over time, as time-to-market for new products is slashed, functionality extended, and development and ownership costs cut.

“As well as providing the Group with a new, high performance, scalable trading platform for our cash equities markets, MillenniumIT brings us our own in-house software development capability with dedicated R&D [research and development] resource,” he said.

The LSE was driving to increase its scope of activities, with MillenniumIT “integral” to this, Rolet said. “As well as providing cost effective trading platforms, MillenniumIT will be used to deliver market surveillance, ticker plant, desktop services, smart order routing and post trade technology.”

The group’s acquisition last year of a majority stake in Turquoise, an anonymous or ‘dark-pool’ trading venue, was also highlighted by Rolet as a crucial step. “As the majority shareholder, we will ensure that the pan-European platform is neutral, efficiently run, open to the broadest pool of clients and develops services on an international scale,” he said.

Turquoise will also move to the Millennnium Exchange systems, and away from the Cinnober Tradexpress platform, which is Java-based. It will migrate in August or September, with a “big bang” approach, as services across the Integrated and Dark Midpoint order books commence trading on the same day. Testing is currently taking place.

Share:

Comments

Advertisement
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

ComputerworldUK Knowledge Vault

ComputerworldUK
Share
x
Open
* *