Stock exchanges and other trading platforms should develop and publish contingency plans for handling outages to enhance predictability for customers, the global securities watchdog IOSCO stated on Wednesday. Exchanges worldwide have experienced glitches and outages due to various factors, including software updates.
Spectrum Markets, a pan-European trading venue, operates 24/5 and has achieved 100% uptime since its launch in 2019, thanks to its state-of-the-art, custom-built technology.
Nicky Maan, CEO of Spectrum Markets, responded to the IOSCO report, stating:
“IOSCO’s report once again highlights an issue that has been playing out across the world for years, and shows no signs of abating.
The global exchange landscape is dominated by big, legacy players relying on complex, creaking infrastructure, that in some cases is 30 or 40 years old. It’s no surprise they’re finding it hard to keep up with an increasingly demanding trading environment, whether that’s about higher volumes or evolving requirements like extended hours.
In most cases, ongoing cost pressures combined with the scale of the challenge, makes it very difficult for venues to deliver the kind of technology overhaul required. Plus, you can’t just switch off an exchange for a couple of weeks while you move everything across – it’s like trying to upgrade the London Underground: you can only tweak little bits here and there, overnight and on the weekend.
Another obstacle to change is the fact that trading systems sit within a wider ecosystem made up of many different organisations using infrastructure that may only be compatible with legacy technology, and so counterparties may not be willing or able to accommodate a switch or major upgrade on the part of the exchange.”
