The Electronic Trading System at the London Stock Exchange (LSE) was severely affected by a technical glitch today, bringing share trading to a stop for close to 3 hours.
The Stock Exchange had to place order driven securities into auction call period. Due to this, traders were able to post buy and sell orders for some shares but where not able to execute them.
The Stock Exchange later explained its move by stating that it had been affected by connectivity problems that prevented many stock brokers from connecting to its electronic order book.
The exchange also added that the FTSE and other indices could not be properly updated as rival systems like Chi-X and BATS were not able to recover the lost business as they depend on the LSE for share prices.
LSE has suffered a number of technical issues in last few years with the trading breakdown witnessed last year in September at LSE was the worst ever as it had resulted in break down of share trading for 7 hours. This technical breakdown at the LSE marks the second instance trading has come to a halt this month.
In order to prevent such incidents, LSE has tried to improve its technology and has even bought a specialised IT company MillenniumIT to improve its share trading platform.
LSE is one of these systems where uptime is critical and paramount to the smooth running of the system. A three hours downtime already compromises its 99.99 percent uptime promise. In truth, no system is perfect but LSE needs to invest and test to make sure that this doesn't happen ritually every year.
(The Globe And Mail)