London Stock Exchange 'robust' after Tokyo crash

The London Stock Exchange has said it is confident about the robustness of its trading platform following last week's crash on the Tokyo bourse, which stopped trading in stocks and bonds for more than four hours.

The London Stock Exchange has said it is confident about the robustness of its trading platform following last week's crash on the Tokyo bourse, which stopped trading in stocks and bonds for more than four hours.

The crash in Tokyo was the most serious since the exchange replaced floor trading with an electronic trading system in 1999. The exchange recently carried out a software upgrade to handle an increase in the market's trading volumes.

Following the crash, Fujitsu, which built and provides maintenance for the system, said in a statement, "We are currently making every effort to confirm the cause of the incident and to take measures to ensure that this type of incident does not occur in future."

The London Stock Exchange's trading software is developed in-house, though the build is outsourced to Accenture.

Unlike the Tokyo exchange, which lacked a back-up system, the London Stock Exchange said it has "a fully redundant back-up system" for all mission-critical applications. It also said it has a "very comprehensive" business continuity strategy, including a dedicated team that looks after all aspects of business continuity.

The London Stock Exchange's current trading platform, Sets, is due to be replaced in 2007. By then the replacement system will have been tested for more than a year.

A spokesman for the London Stock Exchange said it remain-ed confident its testing procedures were robust enough to guarantee the resilience of the new system.

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