Last week’s connectivity failure at the LSE highlights the need for robust systems and specialists to create and run them.

On 4 November traders on the London Stock Exchange (LSE) were left unable to trade for the last half hour of business. The shutdown was pinned on a connectivity problem with the exchange’s real-time data dissemination system, Infolect, which underpins the LSE’s new dealing system TradElect.

Chi-X, the order-driven pan-European equities multi-lateral trading facility that claims to be cheaper and 10 times faster than other European exchanges, was quick to capitalize, sending a broadcast e-mail to traders saying it was business as usual.

Peter Randall, director at Chi-X, refuses to be drawn on the connectivity failure, but predicts demand for connectivity specialists is set to rise: he says, the future is “bright and growing”.

Whereas MiFID currently just looks at equities, Randall says it will inevitably move into other asset classes, “and connectivity is going to be a very important part of this.”

Simon Barnby, global marketing director at Fidessa Group – a provider of multi-asset trading, market data and global connectivity solutions – says demand for connectivity expertise is already surging: “Firms generally are looking to connect to a broader range of venues to trade a broader range of instruments. Things like MiFID are throwing up additional execution venues which people need to connect to as well.”

The Financial Information eXchange (“FIX”) Protocol underpins most efforts to improve connectivity. A FIX support specialist who also has a strong knowledge of UNIX can expect to earn 50k to 70k plus bonus in an investment bank. Similarly, a project manager working on FIX/exchange connectivity can bring in up to 70k plus bonus.