In a move which many see as a strong endorsement for open source software, the London Stock Exchange has decided to move from its current Microsoft .Net based TradElect system to a Linux based platform developed by MillenniumIT.
It is important to note that the LSE is not only getting a platform from MillenniumIT, but is actually purchasing the entire company for a sum of £18 million and the deal is set to close by the middle of October.
Though many analysts see it as another victory for the open source community, LSE spokesman, Alistair Fairbrother was quick to quash such talks by pointing out that the LSE has had a positive working relationship with Microsoft and reason behind the shift comes from a desire to incorporate a new and better trading platform.
Fairbrother also mentioned that the change would also allow cost-cutting as the finances would be in-house rather than from an external supplier, which incidentally was the case with Microsoft .NET.
LSE spokesman also claims that the new system would help them being a little more flexible with the future upgrades and went on to add “The new technology is a lot lighter, nimbler and easier to install”.
Smart move from LSE which we reckon will not only save money but also allows it to develop bespoke trading platforms that will allow it to keep industrial secrets inhouse. It is no secret that LSE would like to expand overseas in the future and acquiring MillenniumIT and working on its own platform is one step towards that.