The London Stock Exchange will shut down the trading system it acquired from Borsa Italiana in the first half of next year, as part of its plan to save £20m by combiningits UK and Italian operations.
The LSEsaid it expected to save £20m from the merger - split equally between IT and non-IT related savings - by 2010.Thisincludes moving all trades to the London Stock Exchange's core trading platform, Tradelect.
The firm this week transferred a total of 360 company shares listed on the Italian system to Tradelect. It said it will complete the migration of all trading in the first half of 2009.
Massimo Capuano, deputy chief executive of the London Stock Exchange Group, said this is a major step in the integration of Borsa Italiana and the London Stock Exchange. "Our Italian member firms in particular will benefit from improved system performance and the opportunity to employ new technical trading strategies which have been driving record volume growth in London."
The London Stock Exchange Group reported a record number of trades in October at 29.6 million. This was 55% more than the same period last year.But the value traded was down 18% to £246.1bn because of falls in the value of FTSE 100 and its Italian equivalent. The average daily number of trades during October was 1.3 million.
The company completed the implementation of Tradelect in July 2007, ending a £40m, four-year IT programme. Tradelect reduced the time taken to complete a trade from 140 milliseconds to 10 milliseconds and was able to process 2,500 orders a second rather than 593 under the previous system. Following several upgrades it now completes trades in three milliseconds and can handle 10.000 trades a second.