A technical glitch in London’s Stock Exchange (LSE) caused an over an hour’s delay in trading due to a “potential Trading Service issue”.
In a statement, LSE has said that other parts of the market are working as usual, but that waits were being experienced in the FTSE 100 and FTSE 250 indexes.
Trading was meant to start at 8am GMT, but by 9.30am today, the exchange was still not working, making it behind by 90 minutes.
Second glitch in 14 months
This is the second glitch in just over a year for the LSE, as well as it being the longest one in 8 years.
People took to Twitter to vent their frustrations with one user saying, “Seems technical problems at London Stock Exchange AGAIN”
Others, nonetheless, saw the lighter side of the situation and used the social media platform to post memes comparing the operators of the exchange to the popular TV character, Homer Simpson.
A worrying sign for the markets
Commenting on the current financial market with the UK’s nearing departure from the EU, Klaudius Sobczyk, a fund manager at PEH Wertpapier AG in Frankfurt says, “The market is at the moment in a very delicate stage…“Should the market fall or rally strongly and the stock exchange is still shut, this would be a terrible development for active traders/investors.”
The London Stock Exchange is one of Europe’s biggest markets and says on its website they are investigating the technical fault.
Not a surprise
Lev Lesokhin, EVP of Strategy and Analytics at CAST, spoke of his lack of surprise over the glitch. He commented: “It’s not surprising the London Stock Exchange has faced another glitch following the software issue last June, the financial services sector is largely propped up by legacy IT systems often decades out of date. It is extremely complex for any bank to try to maintain or update their current IT infrastructure, when the availability of legacy skills is on the wane. ”
He continued: “With increased IT complexity and lack of visibility they cannot tell what alterations might cause an outage. The addition of modern app interfaces and web user interfaces add additional complexity to systems, making them too complex for any individual architect to understand. IT outages can cause losses to the financial institution, more than security breaches which get a lot of attention from board and business. Organisations need to realise this and understand the importance of managing software risk in general”