IT glitch shuts stock market

AN EMBARRASSING technical glitch forced the London Stock Exchange (LSE) to open an hour late, hitting trades worth as much as £580m.

The bug delayed yesterday’s opening auction which sets the starting price of shares.

It was the first major failure for seven years and sparked fury on trading floors which rely on the exchange to do business.

Dealers slammed the business for focusing more on last year’s failed takeover by German rival Deutsche Boerse and internal boardroom battles than on providing a solid service. The late opening meant traders could not respond to the day’s company announcements quickly.

There were concerns that it may have damaged the City’s reputation for reliability and professionalism, which is more vital than ever as Brexit looms.

One trader said: ‘This only happens in third world countries.’ The LSE is now expected to carry out an internal probe.

And the Financial Conduct Authority watchdog, which is responsible for protecting market integrity, is also thought to be watching. LSE figures suggest it handles £580m of trades in listed companies every hour.

A spokesman said: ‘LSE identified a technical software issue that was preventing some members from entering orders.

‘To preserve the integrity of the market and to ensure orderly trading, London Stock Exchange decided to delay the market open while the matter was investigated and informed market participants. Following resolution of the issue, members were notified at 8.40am that trading would commence at 9am.’