The London Stock Exchange (LSE) has made software and hardware upgrades to TradElect, its recently launched electronic trading platform, to handle ongoing volume growth.
LSE claims the overhaul has improved processing speed by 40% and systems capacity by 70%.
The upgrade to provide extra capacity complements an integration project with newly acquired Borsa Italiana. LSE plans to migrate all the Boursa’s equities trading onto the London systems by September 2008. Earlier this month, the exchange upgraded its global wide area network (WAN) communication infrastructure to boost high-speed data transmission.
On its website, LSE said the upgrade would "ensure enough headroom for future growth".
The improvements, called Release 2.0, will also allow the exchange to offer firms a "full suite of MiFID compliant solutions," it said. The EU's Markets in Financial Instruments Directive comes into effect tomorrow, requiring among other things that firms provide best-execution on all trades. The legislation means trading entities must be able to prove they have taken "all reasonable steps to obtain the best possible result [on a trade], taking into account price, costs, speed, likelihood of execution and settlement, size, nature or any other consideration relevant.”
David Lester, CIO at the LSE, said the TradElect platform had handled the "top ten busiest days by volume and seven of the top ten busiest days by value traded" in the four months since it launched.
"Following this upgrade, TradElect now enables market participants to execute trades in around 6 milliseconds and has the ability to handle 4,200 orders a second."