The London Stock Exchange today reported performance and market quality improvements following its data centre migration and hardware upgrade.
During February 2023, LSE completed a landmark data centre migration and hardware upgrade of the London Stock Exchange, Turquoise and TRADEcho services to a new dedicated facility in London.
LSE’s data centre is now both more innovative and robust in its architecture and tooling but also highly energy efficient – powered entirely by green energy.
Moreover, LSE is already seeing evidence of an increase in trading efficiency to the benefit of its clients, such as:
- A 50% reduction in the London Stock Exchange Order Book equities average round-trip latency (or order processing time), and ‘outlier’ observations (fat tails) in the distribution have reduced by 75%
- A 66% reduction in the London Stock Exchange Order Book ETFs average round-trip latency, and outliers are down by 80%
Alongside this improved latency, LSE data indicates that the London Stock Exchange Order Book has considerably increased its role as a price-former in UK Equities, increasing its FTSE 100 EBBO setting by 9% points compared to pre-data centre move, now accounting for just over 40% of all EBBO Setting events, and resulting in an increase to total LSE Lit liquidity (continuous/auction) with a share of trading consistently above 70% throughout April.
The FTSE 100 EBBO Size Contribution has also increased by 5%, meaning the London Stock Exchange now accounts for a larger proportion of the volume available at the best price.
LSE comments:
“All of this means that our clients now receive confirmation of their orders more quickly and more predictably than ever before – translating into an ability to trade on the London Stock Exchange with more confidence and to enable greater access to liquidity”.
