Technology at the heart of London Stock Exchange strategy

Technology featured high on the agenda as the London Stock Exchange outlined...

Technology featured high on the agenda as the London Stock Exchange outlined strategic plans with its interim results.

The company announced a 9% drop in revenues and a 38% fall in profit for the six months to 30 September compared with the same period a year ago.

The declines were the result of a number of factors, including the economic turmoil and acquisitions. But increased competition from multi-trading facilities is a major factor in eroding the stock exchange's revenues.

CEO Xavier Rolet said modernising technology, reducing costs and growing the business are key aims, and the company's recent acquisition of MillenniumIT will be important to this.

The stock exchange bought trading technology supplier MillenniumIT for £18m in September. It will be run as a separate company supplying trading technology and will also provide the London Stock Exchange's core trading platform.

By the end of 2010, the company aims to migrate its trading from the inhouse developed Tradelect to MillenniumIT's core trading system.

Rolet said the Millennium acquisition is critical for the exchange. He said it delivers high-performance IT, improves IT development, helps lower costs and contributes to revenue.

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