The London Stock Exchange has been hit by its third system outage since October of this year
The issue affected training in a large number of smaller stocks for around 30 minutes earlier this morning (December 5).
Financial analysts have warned that the company’s credibility going forward due to the series of system outages happening in such quick succession.
In response, the London Stock Exchange said it was “undertaking immediate analysis” of the error at 9.23 am.
The company confirmed that during the error, only FTSE 100, FTSE 250 and IOB securities were available for trading.
According to the London Stock Exchange, the outage issue has been resolved and normal trading can continue.
Trading on affected securities resulted by 9.55 am earlier this morning which meant the system error lasted over 30 minutes.
Back in October, trading on the London Stock Exchange of smaller shares was disrupted for 80 minutes.
The following month, the FTSE Russell indexes were forced to deal with a 40-minute system outage.
Following these previous errors, analysts demanded an explanation from the London Stock Exchange as to why this happened.
Speaking to City AM, Fiona Cincotta, the senior markets analyst at City Index, broke down that those investing are not as confident in the company as they were before.
She explained: “(The incident) will catch the attention of investors, people will want to have a quick answer to what was going on in order to maintain confidence.
“The quicker we can get some news on what caused the incident, the quicker the market will be able to move on.”
Similar errors have affected trading via the London Stock Exchange in previous years as well.
Back in 2019, the company was afflicted by an almost two-hour outage that imputed the FTSE 100 and midcap stocks.
The financial services group blamed a technical software issue” for this particular outage which was significantly longer than any experienced this year.
David Morrison, a market strategist for Trade Nation, added: ““For a stock exchange, you have one job and that’s to keep your market going. And when these outages do occur, it doesn’t inspire a lot of confidence.”
