IN THE CITY OF LONDON, the financial heart of the UK, the London Stock Exchange (LSE) has begun a twelve-month migration to a Linux based trading system.
By the end of the year it wants the Linux-based MillenniumIT trading platform up and running.
The software was gained by acquiring the Sri Lankan company that developed it for £18 million in September. When it is switched on it will replace the outgoing TradElect platform, which is based on Microsoft's .Net framework and was upgraded by Accenture only two years ago at a cost of £40 million.
The TradElect system has been an embarrassment to the LSE with a number of high profile outages. It is also understood to be significantly slower than specialist rivals such as Chi-X. Just keeping it running over its last year of operation cost the LSE £20 million for patches.
In a press release the LSE told the financial markets that the Linux based software will bring significant benefits. The new trading system will give it "high performance" trading, as well as an "agile, efficient, in-house IT development capability", it said.
With LSE financial backing, the trading system will be flogged to other stock exchanges around the world. µ