The London Stock Exchangehas reported that demand for its information and technology services has declined in the first five months of 2009 as it embarks on the acquisition of Millennium IT to replace its TradElect platform.
Demand for London Stock Exchange (LSE) terminals that provide real time data to traders dropped to 94,000. Borsa Italiana, the LSE owned Italian stock exchange, also reported a decline in demand for its data services, losing 3000 customers in the same period. LSE was upbeat, stating in its pre-close trading report that demand for its information services was “good overall”, adding it is seeing strong demand for its SEDOL identification codes, Proquote real time market data and FTSE services.
A week ago the LSE announced it was acquiring Millennium IT, a Sri Lankan developer of trading systems. Millennium IT already supplies its system to the London Metal Exchange and a number of foreign exchanges. The Millennium platform is, the vendors claim, faster than the TradElect system currently utilised by the LSE. In its trading statement the LSE said it expects to make savings of £10 million per annum by 2011 from the acquisition.
LSE has reduced its staff count by 12 per cent since July, with 133 people leaving both the UK and Italian operations, it said this will provide costs savings of £11 million a year.
“We continue to take actions to ensure the Group is well placed to compete and develop,” said Xavier Rolet, LSE chief executive. “The acquisition of Millennium IT is an exciting and important step that will provide a more flexible, efficient and high performance trading platform.”