Stock Market Technology
Delivered December 10, 2019. Contributor: Megan B.
Goals
To understand the technology required to run a stock market.
Early Findings
- While not exactly a stock market itself, some similar principles will apply. The technology needed to run a trading platform includes: authorization system, user page to manage personal data, view/edit data interface, payments and transactions mechanisms, newsfeeds, real-time tracking, deposits, quote monitoring, search, analytics, sorting/filtering and push notifications.
- The NYSE and several other major stock markets use an auction-based system to trade. Therefore, the relevant technology would need to support this 'bidding' system for direct buyer-seller relationships.
- The NYSE uses actual humans on the trading floor, so the technology would look quite different than another stock market type.
- However, NASDAQ (and others) use a dealer market. A system would need to support these market-makers listing prices to facilitate buying and selling between the relevant parties. All trading is done electronically from no particular location.
- NASDAQ uses the Small Order Execution System to automatically execute traders under 1,000 shares.
- Its backend technology is essentially broken down into 3 components: the interface, the matching engine and quote services. The matching engine is apparently a single, high-powered computer.
- The London Stock Exchange uses a system called the Millennium Exchange. The system is Linux-based and runs on commodity Intel hardware.
- There are reportedly about 20 trading platforms in use in Europe.
- The Tokyo Sotck Exchange recently announced it was upgrading its "arrowhead" trading system in partnership with Fujitsu.
Research proposal:
Only the project owner can select the next research path.