London Stock Exchange moots multinational cross-market trading technology

Remains to be confirmed if foreign trades would go through LSE systems

The London Stock Exchange is in the early stages of plans to launch a single trading network offering share dealing from multiple stock exchanges around the world.

The LSE intends to create an "international board" to establish a network that would allow blue chip stocks from foreign exchanges to be traded during London trading times, according to reports.

It remains unclear how the LSE would set up its IT infrastructure to cope with such a change. It recently moved to a new Linux-based, C++ written matching engine, a major change after which top price data vendors including Thomson Reuters initially experienced severe interface problems. The exchange is also planning a major systems integration project as it merges with Toronto Exchange parent TMX.

Tony Weeresinghe, director of global development at the LSE, told the Wall Street Journal at the World Exchanges Congress this week: "We're bringing in the concept of an international board. It's a new concept, where we will trade other countries' stocks during London time and we will do it as a partnership."

Weeresinghe said the LSE was hoping to start the single trading network "sometime in July or August".

"We're talking to four or five exchanges around the world and we want to trade their top blue chips. This is not a listing, but a partnership in trading," Weeresinghe said.

The exchanges partnering with the LSE will be "announced shortly", he said. However, the venues are understood to be in early discussions.

Meanwhile, following the severe share price data problems after the LSE trading system launch, Computerworld UK revealed that changes to closing price procedures had been a key factor in the issues.

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