Day trading is so passe. Today's sharp traders make their cash by
trading milliseconds ahead of the other guy. To do that you need
really fast stock exchanges, which is where Linux comes in.
The Deutsche Borse Group manages the International Securities
Exchange, an equity options exchange in New York, as well as the Eurex
and Deutsche Borse's own Xetra cash exchange. The Xetra stock exchange
platform is also used by the Irish Stock Exchange, the European Energy
Exchange, and the Shanghai Stock Exchange among others. It has long
used Linux as the basis of these high-speed stock exchanges. Later
this year, it is launching a next generation. The new trading
infrastructure will use IBM WebSphere MQ Low Latency Messaging and
Linux to make it the fastest stock exchange software on the planet.
How fast is it? A Deutsche Borse representative claimed that their
Linux-powered exchange software can "easily execute more than a
million trades per second, dwarfing even the mighty NY Stock
If you fall behind this race, you're at a competitive disadvantage.
It's like running a race with one foot in a bucket. As the Deutsche
Borse spokesperson pointed out, "for exchanges who lose the latency
race, failure can be disastrous, as the London Stock Exchange learned
last September when a much-publicized glitch in its Windows-based
system shut down trading for a full seven hours, leading to enormous
losses for listed companies, investors and the exchange itself."...
The London Stock Exchange (LSE) is leaving Windows behind. The
exchange hasn't announced yet what it will be moving to. If I might
suggest that if Linux is good enough for the Deutsche Borse, the NYSE,
and the Chicago Mercantile Exchange, it's good enough for the LSE....
Don't blink, but Linux, the "free" software darling, is what is
powering the meteoric rise of the new world of capitalism. We're in
for some interesting, and very fast, times ahead.