The London Stock Exchange's Tradelect trading platform saved
the exchange from a series of hostile takeovers, its CIO David
Lester disclosed today.
Speaking as the exchange confirmed its plans to
replace Tradelect with a platform from Sri Lanka-based
MillenniumIT, Lester said that Tradelect had allowed the
exchange to stay competitive in a crowded market.
The London Stock Exchange has been the subject of
hostile takeover bids by other exchanges, such as Nasdaq and
Euronext, but its ability to move forward in an increasingly
electronic market helped it retain its independent status, said
Lester.
"Tradelect saved this business because it allowed us to process
the flow of electronic trades," he said.
Tradelect, which was developed in-house using Microsoft .net
technology, has not been able to keep pace with the performance of
some of the exchange's competitiors.
The London Stock Exchange is now replacing Tradelect with
technology from MillenniumIT, which it acquired today for £18m.
MillenniumIT's core trading platform can complete a trade in about
100 microseconds compared to Tradelect's 3.7 milliseconds.
The deal also gives the exchange access to smart order routing,
surveillance and information dissemination software systems.
Lester said by acquiring MilleniumIT the exchange can replace
some of the technology suppliers it worked with and take control of
its own destiny.
Yann L'Huillier, CTO at rival trading venue Turquoise, said
Tradelect was good at the time it was introduced but its inability
to change meant it was less successful in the long term.
Bob McDowall, analyst at TowerGroup, said Tradelect had been
core to the London Stock Exchange's trading strategy.