Computer glitch halts LSE trading

Trading has been suspended on Friday morning on the London Stock Exchange (LSE) after a technical malfunction.

“The uncrossing trades at the opening auction are under investigation for potential cancellation,” said a spokesperson of the exchange.

The trades are part of a computer algorithm used by the bourse to determine opening prices.

Traders expressed concern that trading may not resume in time for UK fourth quarter GDP data released at 0930 GMT.

The spokesperson added that orders-driven securities trading wo0uld be paused in the meantime, and she did not know when the problem would be fixed.

Trading on the Borsa Italiana – which is owned by the LSE – was halted for three and a half hours on Tuesday, also because of computer error.

“In this day and age, you simply cannot afford not to have your technology in duplication,” commented David Buik of brokerage BGC Partners, speaking on Bloomberg television, criticising the exchange’s apparent lack of a back-up system.

“If it’s not foolproof, where is the alternative?”