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Technical Glitches Cause Downtime To London Stock Exchange

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.

Our Comments

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.

Related Links

London Stock Exchange Resumes Trading After Technical Glitch

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Technical glitch halts London trading

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Competition costs LSE as profits slide

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Désiré has been musing and writing about technology during a career spanning four decades. He dabbled in website building and web hosting when DHTML and frames were en vogue and started writing about the impact of technology on society just before the start of the Y2K hysteria at the turn of the last millennium. Following an eight-year stint at ITProPortal.com where he discovered the joys of global tech-fests, Désiré now heads up TechRadar Pro. Previously he was a freelance technology journalist at Incisive Media, Breakthrough Publishing and Vnunet, and Business Magazine. He also launched and hosted the first Tech Radio Show on Radio Plus.