Computer crash embarrasses LSE
When the London Stock Exchange (LSE) trading system crashed shortly before 9am yesterday who would have though that nearly a whole day's trade would be wiped out before the issue was resolved?
The news that the system was only resurrected about 30 minutes before the close of play yesterday has hit the financial headlines all around the world. The LSE is the second largest stock exchange in the world and events like this are just not supposed to happen. So what actually went wrong?
While there is no suggestion of foul play it seems as though the ongoing integration of Borsa Italia and a massive surge in trading just after the open may have been at the root of the problem. However, as you would expect, the LSE is not commenting further until the results of a full internal enquiry have been received.
As we commented yesterday, this could not have come at a worse time for the LSE with competitors literally queuing up to try and grab some market share from the exchange. Some are also suggesting that the more problems that the exchange experiences the more chance of a successful takeover attempt in the short to medium term.
While the reputation of the LSE may have been bruised yesterday there are still many companies around the world that would like to gain control of this leading financial powerhouse!
Share this..
Related stories
Will loyalty cards rescue the UK retail market?
Over the last few days we have seen a significant number of retail companies revamping and relaunching their loyalty cards. Tesco has spent in the region of £150 million on a relaunch of their Clubcard operation although this just appears to be the tip of the iceberg. There is a feeling among retailers in the UK that loyalty cards will not only attract more customers that they will in due course...
Read MoreMPC member talks about problem of inflation
Spencer Dale, a member of the MPC, has today stepped out to defend the UK banks policy in relation to the UK economy at the moment. Like so many other members of the MPC he is immediately concerned about the strength of the UK economy and the need to introduce fiscal stimulus programs to kick-start businesses again. However, he has also questioned the threat of inflation which many people had writ...
Read MoreAlistair Darling's growth forecast smashed to pieces
Today's news that the UK economy fell by a shocking 0.4% in the third quarter of 2009, against analysts expectations of a rise of 0.2%, has blown Alistair Darling's budget forecasts to pieces. He had originally suggested that the UK economy would move out of recession in the second half of 2009 yet we are now moving towards the latter part of 2009 and many analysts are now concerned that the UK co...
Read MoreUK budget deficit under extreme pressure
The revelation that the UK government had to borrow £16.1 billion to balance the books in August has caught many analysts and economists offguard. This figure is 63% higher than the same period last year and is in fact the largest shortfall since records began back in 1993. Since the beginning of the new tax year the UK government has borrowed in excess of £65 billion compared to only £26 billi...
Read MoreBSkyB places 10.4% stake in ITV
As expected, BSkyB has today confirmed the placing of 404.4 million shares in ITV at a price of 48.5p each. This now brings the company's shareholding in ITV down to 7.5%, a figure which the Competition Commission is happy with, although it does crystallise a £348 million loss on the 10.4% share sale. The company has confirmed that the residual 7.5% stake will be held in the medium term for inves...
Read More