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System failure shuts down London Stock Exchange

(Image credit: Image Credit: AhmadArdity / Pixabay)

The London Stock Exchange (opens in new tab) (LSE) suspended trading for around seven hours following its worst system failure in eight years.

To make matters worse, the outage occurred on what could have been one of the busiest trading days of the year following a worldwide market rebound after the US government decided to bail out the mortgage companies Fannie Mae and Freddie Mac. 

The Johannesburg Stock Exchange also had to suspend trading as it uses LSE's trading platform, TradElect. 

The exchange did not reveal whether volume had caused the issue and it gave no details to disgruntled traders on what exactly had caused the outage. 

On the day of the disruption, the LSE opened at 7am GMT but some brokers were unable to trade as a result of connectivity problems. The exchange was then forced to suspend trading so that some market players were not disadvantaged. With only half an hour left before closing time, the LSE re-opened giving brokers a short window in which to conduct trades. 

The recent trading suspension was the longest the LSE has dealt with since April 5, 2000 when issues with an older trading system led to an eight-hour halt on trading. 

Image Credit: AhmadArdity / Pixabay

After getting his start at ITProPortal and then working with the TechRadar Pro team for the last several years, Anthony is now the security and networking editor at Tom’s Guide where he covers everything from data breaches to how to cover your whole home or business with Wi-Fi. When not writing, you can find him tinkering with PCs and game consoles, managing cables and upgrading his smart home.