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Novell SuSE United Kingdom Linux News

London Stock Exchange Finishes Switch To Linux 106

Posted by Soulskill
from the takes-a-while-to-put-on-a-good-tux dept.
DMandPenfold writes "The London Stock Exchange has successfully set into live trading a new matching engine based on Novell SUSE Linux technology, following successful last-step setup procedures on Saturday. The move has been billed as one of the LSE's most significant technological developments since the increasing prevalence of electronic trading led to the closure of the traditional exchange floor in 1986. LSE chief executive Xavier Rolet has insisted that the exchange, once a monopoly, will deliver record speed and stable trading in order to fight back against the fast erosion of its dominant marketshare by specialist electronic rivals."
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London Stock Exchange Finishes Switch To Linux

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  • Impending Merger (Score:3, Informative)

    by Anonymous Coward on Tuesday February 15, 2011 @03:46AM (#35207324)

    This likely means that the Toronto Stock exchange will soon be using Linux as well [www.cbc.ca], if they aren't already.

  • by JanneM (7445) on Tuesday February 15, 2011 @05:30AM (#35207626) Homepage

    Because clearly, ever more HFT is exactly what everyone needs!

    If you are an automated trader then you do need any speed you can get. If you aren't - well, you probably don't have any business being on the stock exchange any more. A bit more or less speed is not going to make any difference; you're hopelessly outgunned either way.

  • get the fact (Score:5, Informative)

    by DUdsen (545226) on Tuesday February 15, 2011 @06:56AM (#35207904)
    Wasn't this the MS get the fact showcase as to how much better ms.net and sql server were compared to linux? Before the system came crashing down and latency became an issue?
  • by micheas (231635) on Tuesday February 15, 2011 @07:16AM (#35207980) Homepage Journal

    "increased liquidity" has a cost.

    If you want to buy now, or sell now, instead of spending a few days shopping for a willing partner on the other side of the trade you won't get as good of a price. But you also have the reduced risk of not spending a few days trying to unload your stock.

    The one thing that you will notice is that with the high frequency traders the spread is now very small, but the volitility is much higher, so in some ways this is a reaction to discount brokerages and the decimalization of stock prices, as the fees are not in the spread but in the volatility. I don't know which is more profitable to the house, but the reduced spread and the greatly reduced commissions had to be made up for someway. Banks are more profitable now, but there are many fewer banks, so direct comparisons with thirty years ago are not possible without correcting for industry consolidation.

    An example of the cost of liquidity is that, while exchanges are liquid, someone selling five to ten percent of a company in the open market in a few minutes can easily erase more than half of the companies market capitalization. But the stock is sold and the books are closed.

    One difference between specialists and high frequency traders is that specialists have to be the buyer and seller of last resort, while HFT's have no obligation to make a losing trade.

    I have not looked at the math behind technical trading recently, but in the nineties there were several papers published that suggested that technical trends could only see about 15 minutes into the future, and the predictive value more than five minutes into the future was murky, but not useless.

    As far as your question of how a companies market capitalization matters to the company, it depends on the company. Some companies carry a large number of authorized shares on the balance sheet, but do have not issued them. The company can give bonuses as stock options which if the options are deep in the money, the investors are essentially paying a substantial percentage of employee compensation, instead of the company paying it. A high market capitalization does not guarantee that people will loan you money, but it does tend to lower your interest rate, and allow you to issue really long term debt. (Disney and Coke issued 100 year bonds, Canadian Pacific issued 1000 year bonds.) One other thing that companies can do with an over inflated market cap is buy things with the stock, see aol buying time warner as a famous example of that. I am sure that there are uses that I am forgetting at the moment. But I hope that is somewhat illuminating.

  • Re:get the fact (Score:5, Informative)

    by David Off (101038) on Tuesday February 15, 2011 @08:43AM (#35208356) Homepage

    Yes, it was one of them. I worked on another Reuters Intelligent Advisor which ran like a 3 legged dog, a very expensive dog, until someone did the decent thing and shot it through the head.

    I don't think RIA's expensive failure can be wholly blamed on .net. I think the technical team deceived management and probably themselves about what they could do. They had drunk the SOA/Web Services kool aid and the architecture was basically wrong. I suspect a number of devs saw the project as resume keyword fodder.

  • Re:ACN FTW (Score:4, Informative)

    by nicholas22 (1945330) on Tuesday February 15, 2011 @12:56PM (#35211376)
    The CEO who brought in the TradElec joint Accenture / Microsoft solution has been fired. As for the TradElec platform itself, it was binned. The main rival of TradElec was selected. I'd call this a major SNAFU [zdnet.com]. Where are the self-indulgent comments from MCSEs that 'choosing Microsoft never got anyone fired' now?
  • Re:Impending Merger (Score:4, Informative)

    by dolmen.fr (583400) on Tuesday February 15, 2011 @05:32PM (#35214944) Homepage

    The trading engine of the Paris stock exchange (previously Euronext, now NYSE-Euronext) is already on Red Hat Linux since 2006 [atoseuronext.com].

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