Nasdaq OMX says that last week's three hour outage was caused by a software flaw triggered by a flood of messages from rival Nyse Arca.
It almost seems as if - for the sake of high frequency trading - the technical architectures of exchanges have been made less reliable than they used to be in the past. Where there used to be big iron keeping trading functions under central control, we now
find pretty complex server farms and a lot of dispersed functionality optimized for sheer speed, with the risk that part X of the system does not always know what part Y of the system is doing - although it better should. Having strong protocols and proper
flow control also between exchanges could prevent overload situations, those trading systems might be somewhat slower but much more reliable.
to £65k baseLondon, UK
© Finextra Research 2013