Practical Technology

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The Linux of Stock Markets


Today’s news that TSE (Tokyo Stock Exchange) has moved to Red Hat’s RHEL (Red Hat Enterprise Linux) as the operating platform for its next-generation “Arrowhead” trading system shouldn’t come as any surprise. Linux has become the smart stock market’s operating system of choice.

Red Hat has been working with TSE and Fujitsu for some time on the Arrowhead platform. The name of the game, as always with stock markets is to accelerate TSE’s order response and information distribution speeds According to Red Hat, “Arrowhead is designed to combine low latency with high reliability to accommodate diverse products, trading rules and changes within a short time window.”

How short? Red Hat and the TSE claims that Arrowhead can accept ten times more orders per seconds than the previous system with an “order response time of two milliseconds and an information distribution time of three milliseconds. In addition, the solution offers the flexibility to accommodate new trading rules, the ability to be scaled with jumps in system demand and trading growth and expanded security and reliability.”

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