  The Large Observatory for X-ray Timing (LOFT) is one of the five mission
candidates that were considered by ESA for an M3 mission (with a launch
opportunity in 2022 - 2024). LOFT features two instruments: the Large Area
Detector (LAD) and the Wide Field Monitor (WFM). The LAD is a 10 m 2 -class
instrument with approximately 15 times the collecting area of the largest
timing mission so far (RXTE) for the first time combined with CCD-class
spectral resolution. The WFM will continuously monitor the sky and recognise
changes in source states, detect transient and bursting phenomena and will
allow the mission to respond to this. Observing the brightest X-ray sources
with the effective area of the LAD leads to enormous data rates that need to be
processed on several levels, filtered and compressed in real-time already on
board. The WFM data processing on the other hand puts rather low constraints on
the data rate but requires algorithms to find the photon interaction location
on the detector and then to deconvolve the detector image in order to obtain
the sky coordinates of observed transient sources. In the following, we want to
give an overview of the data handling concepts that were developed during the
study phase.
