Linked by Thom Holwerda on Thu 21st Oct 2010 22:28 UTC, submitted by tux68
Linux "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."
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ozonehole
Member since:
2006-01-07

I'm glad to see that Linux is so capable, putting Windows-based servers to shame.

That said, these micro-second trading schemes are all about committing massive financial fraud. It's known as "high-frequency trading" and Wikipedia has a page:

http://en.wikipedia.org/wiki/High-frequency_trading

It's a clever way of manipulating stock prices, though a little complicated to explain. Google it for more info. It's become a gold mine for those who run the servers - they are illegally manipulating stock prices and making millions. This is happening big time in both London and New York.

The law should ban high-frequency trading. All trades should go into the queue and wait a full minute before being executed. That would put an end to this.

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