Chi-X follows LSE in speedy IT overhaul
AN ARMS race has broken out between the world’s top stock exchanges as they rush to revamp their computer systems in a bid to improve performance and win back business from their newer rivals.
Chi-X, which launched in March 2007, will today announce an agreement with IBM to use the IT giant’s high-speed messaging technology on its platform, a move which the exchange said would ensure it continues to meet “the speed and mission-critical reliability requirements” of today’s trading communities.
The news comes one day after the London Stock Exchange (LSE) confirmed it will acquire IT group MillenniumIT for $30m (£18.2m) to ramp up its own high-speed offering.
The LSE plans to begin migrating clients to an in-house system provided by MillenniumIT next year.
The exchange has faced increased competition over the past few years, as new firms such as Turquoise and Nasdaq OMX Europe entered the market offering a faster alternative with lower fees.
Xavier Rolet, the LSE’s new chief executive, said improving the firm’s technology and increasing its competitive position in the fast-moving trading environment was “vital”.
Separately, LSE shares rose up to 10 per cent in trading yesterday on speculation Deutsche Börse was preparing a bid for the group, though the suggestion was firmly played down by both sides.