08 Sep 2008, David Benyon, Operational Risk & Regulation
LONDON – On a day with higher than average trading volumes for a Monday morning, screens have frozen at the London Stock Exchange (LSE). The problem began at around 9am and appears to be ongoing. The LSE has blamed a “connectivity problem” for the glitch.
The LSE website states that efforts to achieve "consistent connectability" with clients are still underway, and that the market status is "auction".
"To ensure consistent connectivity we are suspending connectivity to trading for a short period from 2.45pm," said the website.
One LSE trader said: “It's a market-wide problem. The feed to the LSE has gone down, and although there are now other exchanges out there, most institutions’ internal systems are linked to the LSE. It doesn’t look like it's a volume problem, probably just that someone pressed the wrong button.”
The LSE experienced its first outage in seven years on November 7 last year, when its newly installed trading system, TradElect, ground to a halt 30 minutes before close of trading.
On that occasion, the LSE was forced to wipe clean its electronic price display system and extend its closing auction from 4.30pm to 6pm.
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