London Stock Exchange EDX derivatives platform experiencing IT issues

EDX, the London Stock Exchange’s derivatives platform, has experienced technical problems this morning (Thursday).

It has not been established whether the problems are on the LSE’s SOLA derivatives platform, which was written in C++ and supports Linux and Unix as well as Windows platforms. The LSE has said that if a proposed merger with Canada’s TMX goes ahead, the SOLA platform would be its group-wide derivatives system. It is also set to use SOLA for its pan European derivatives platform, Turquoise Derivatives.

At 9.44 am, the LSE sent a service message to clients stating that there was a “tick table” issue on its high speed vendor feed. Tick tables are based solely on trading activity. They are well-used among day traders.

The feed uses a TCP/IP broadcast interface, and provides data on trades, quotes, market depth, strategies, bulletins, summaries and other statistics. For executing trades, EDX uses the SOLA automated interface language and the industry FIX 4.2 protocol, to interface with external applications.

The problems experienced this morning meant that reference data for the derivatives index future for Russian products, RIOB, was incorrect. It also affected all Norwegian products.

“[An] investigation by the EDX technical teams is ongoing and further information will be provided as soon as it becomes available,” the exchange said in a statement. As of 11.20am, the investigations are ongoing.

Elsewhere, major data vendors supplying information from the main equities exchange at the LSE have been displaying blank and incorrect prices on some stocks for the last two weeks. The problems emerged after the LSE moved to the Millennium Exchange trading platform, but the root cause has not been fully established.

Yesterday, Borsa Italiana, owned by the LSE, missed the market opening auction and halted trading for several hours after it experienced problems with price data. That exchange still operates on TradElect, the system dumped by the LSE. Borsa Italiana will move to Millennium Exchange this year. The LSE declined to disclose the root cause of yesterday's problem on that exchange. The Italian market regulator has demanded an explanation.

Copyright © 2011 IDG Communications, Inc.

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