The stock market has been in the news a lot lately. As global uncertainty about national debts rise, the markets are in flux, with prices changing incredibly quickly. On a trading floor, every second counts and precise time is essential for global buying and selling of commodities, bonds and shares.
The international stock exchanges such as the NASDAQ and London Stock Exchange all require accurate and precise time. With traders buying and selling shares for customers across the globe, a few seconds of inaccuracy could cost millions as share prices fluctuate.
NTP servers linked to atomic clock timing signals ensure that the stock exchange keeps an accurate and precise time. As computers across the globe all receive the stock prices, as and when they change, these two use NTP server systems to maintain time.
The global timescale UTC (Coordinated Universal Time) is used as the basis for atomic clock timing, so no matter where a trader is on the globe, the same timescale prevents confusion and errors when dealing with stocks and shares.
Because of the billions of pounds worth of stocks and shares that are bought and sold on trading floors every day, security is essential. NTP servers work externally to networks, getting their time from sources such as GPS (Global Positioning System) or radio signals put out by organisations like the National Physical Laboratory (NPL) or the National Institute for Standards and Time (NIST).
The stock exchanges can’t use a source of internet because of the risk this could pose. Hackers and malicious users could tamper with the time source, leading to mayhem and cost millions and perhaps billions if the wrong time was spread around the exchanges.
The precision of internet time is limited too. Latency over distance can create delays, which could lead to errors, and if the time source ever went down, the stock markets could hit trouble.
It is not only stock markets that need precise and accurate time, computer networks across the globe concerned about security use dedicated NTP servers like Galleon Systems’ NTS 6001. Providing accurate time from both GPS and radio signals from NPL and NIST, the NTS 6001 ensure accurate, precise and secure time every day of the year.