electronic trading platform
In finance, an electronic trading platform also known as an online trading platform, is a computer software program that can be used to place orders for financial products over a network with a financial intermediary. Various financial products c ...
London Stock Exchange Group
London Stock Exchange Group plc (LSEG) is a United Kingdom-based stock exchange and financial information company headquartered in the City of London, England. It owns the London Stock Exchange (on which it is also listed), Refinitiv, LSEG Te ...
. It has also been sold and is in use by a number of other exchanges around the world.
History
In 2009, the London Stock Exchange Group was unhappy with the cost and the insufficient speed of their electronic trading platform, TradElect, so after only 2 years of operating TradElect they decided to switch to a new platform. The LSE investigated the possibility of building a new system in-house, but eventually decided on acquiring the existing,
Linux
Linux ( or ) is a family of open-source Unix-like operating systems based on the Linux kernel, an operating system kernel first released on September 17, 1991, by Linus Torvalds. Linux is typically packaged as a Linux distribution, which ...
-based system, Millennium Exchange, which had a lower, sub-millisecond latency.
Acquisition
LSE acquired the system through acquisition of, Sri Lanka-based MillenniumIT - the original creators of the software, for £18m in 2009. In its annual report, the LSE said that it expected the switch to Millennium Exchange to save $16m per year starting from the 2012
financial year
A fiscal year (or financial year, or sometimes budget year) is used in government accounting, which varies between countries, and for budget purposes. It is also used for financial reporting by businesses and other organizations. Laws in many j ...
.
Software launch and initial problems
In October 2010, the London Stock Exchange claimed that Millennium Exchange had broken the world record for trade speed, with 126 microsecond trading times being recorded on the
Turquoise
Turquoise is an opaque, blue-to-green mineral that is a hydrated phosphate of copper and aluminium, with the chemical formula . It is rare and valuable in finer grades and has been prized as a gemstone and ornamental stone for thousands of yea ...
dark pool
In finance, a dark pool (also black pool) is a private forum (alternative trading system or ATS) for trading securities, derivatives, and other financial instruments.
Competing against specialist electronic rivals
In February 2011, the London Stock Exchange finished the switch to Linux. LSE chief executive Xavier Rolet said that the exchange, once a monopoly, would deliver record speed and stable trading in order to fight back against the fast erosion of its dominant marketshare by specialist electronic rivals.
Users
As well as the
London Stock Exchange
London Stock Exchange (LSE) is a stock exchange in the City of London, England, United Kingdom. , the total market value of all companies trading on LSE was £3.9 trillion. Its current premises are situated in Paternoster Square close to St Pau ...
the system has been sold to a number of other exchanges includin BYMA - Argentina
Borsa Italiana
Borsa Italiana, based in Milan, is the Italian stock exchange. It manages and organises domestic market, regulating procedures for admission and listing of companies and intermediaries and supervising disclosures for listed companies.italy24.ils ...
,
Oslo Stock Exchange
Oslo Stock Exchange ( no, Oslo Børs) (OSE: OSLO) is a stock exchange within the Nordic countries and offers Norway’s only regulated markets for securities trading today. The stock exchange offers a full product range including equities, deriv ...
,
Johannesburg Stock Exchange
JSE Limited (previously the JSE Securities Exchange and the Johannesburg Stock Exchange) is the largest stock exchange in Africa. It is located in Sandton, Johannesburg, South Africa, after it moved from downtown Johannesburg in 2000. In 2003 ...
and the Bolsa de Valores de Lima. On January 22, 2019, the London Stock Exchange Group announced that its Millennium Exchange matching engine had been selected by the Hong Kong headquartered digital asset trade platform AAX. It is the first time LSEG technology is used to power a digital asset exchange.
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