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Rivals lash out at LSE after damaging technology glitch

RIVALS to the London Stock Exchange expressed outrage yesterday after a crippling technical glitch put a stop to trading, claiming investors had effectively been duped by an inability to route their custom to other venues.<br /><br />The problem&nbsp; brought trading to a halt for over three hours on the London Stock Exchange. During that time, the market was put into &ldquo;auction&rdquo;, meaning buy and sell orders could be submitted by traders but not fully executed.<br /><br />Chi-X Europe, one of the primary contenders to the LSE&rsquo;s crown among the newer exchanges, called on the Financial Services Authority to ensure individual venues act &ldquo;in the interest of the overall market&rdquo; after such system failures.<br /><br />&ldquo;The introduction of alternative venues was designed to improve competition and reduce concentration risk,&rdquo; Chi-X said. &ldquo;These objectives are not achievable while the markets of listing are able to use technical constructs to prevent normal market activity continuing.&rdquo;<br /><br />The problem was reminiscent of September last year, when a computer crash brought the market to its knees for seven hours on one of the busiest days of the year.