LSE boasts performance and market quality improvements after data centre migration
The London Stock Exchange today reported performance and market quality improvements following its data centre migration and hardware upgrade.
During February 2023, LSE completed a landmark data centre migration and hardware upgrade of the London Stock Exchange, Turquoise and TRADEcho services to a new dedicated facility in London.
LSE’s data centre is now both more innovative and robust in its architecture and tooling but also highly energy efficient – powered entirely by green energy.
Moreover, LSE is already seeing evidence of an increase in trading efficiency to the benefit of its clients, such as:
- A 50% reduction in the London Stock Exchange Order Book equities average round-trip latency (or order processing time), and ‘outlier’ observations (fat tails) in the distribution have reduced by 75%
- A 66% reduction in the London Stock Exchange Order Book ETFs average round-trip latency, and outliers are down by 80%
Alongside this improved latency, LSE data indicates that the London Stock Exchange Order Book has considerably increased its role as a price-former in UK Equities, increasing its FTSE 100 EBBO setting by 9% points compared to pre-data centre move, now accounting for just over 40% of all EBBO Setting events, and resulting in an increase to total LSE Lit liquidity (continuous/auction) with a share of trading consistently above 70% throughout April.
The FTSE 100 EBBO Size Contribution has also increased by 5%, meaning the London Stock Exchange now accounts for a larger proportion of the volume available at the best price.
“All of this means that our clients now receive confirmation of their orders more quickly and more predictably than ever before – translating into an ability to trade on the London Stock Exchange with more confidence and to enable greater access to liquidity”.