The London Stock Exchange has confirmed that it will replace its Tradelect core trading platform with one from Sri Lanka-based MillenniumIT and will acquire the company for about £18m in the process.
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As Computer Weekly revealed exclusively earlier this month, the London Stock Exchange has been in talks with MillenniumIT about using its technology to replace Tradelect.
The exchange decided in June to replace Tradelect after recognising that it is no longer competitive in an increasingly congested market. The exchange said it could either buy a system or upgrade the current one.
MillenniumIT will give the exchange a platform that is not used by a competitor. Only stock exchanges in Europe are competition to the London exchange.
Xavier Rolet, chief executive of London Stock Exchange Group, said, "This transaction enables the group to implement a new, more agile, innovative and efficient IT capability for our future business development as well as running a new cash trading platform which will provide substantially lower latency, significantly higher capacity and improved scalability."
Tradelect was introduced two years ago and developed using Microsoft's .net Framework. The project to design, build and implement Tradelect took four years and cost £40m.
Europe's trading venues use about 20 trading platforms. The company had a limited choice of systems to replace for Tradelect if it wanted to avoid systems used by rival exchanges.