(Reuters) -The London Stock Exchange Group has ceded exclusive rights to the rooftop of its data centre building to allow fair access to rivals, following a British probe into whether the arrangement
London Stock Exchange to Share Data Centre Rooftop After FCA Review
LSEG's Commitment to Fair Competition
(Reuters) -The London Stock Exchange Group has ceded exclusive rights to the rooftop of its data centre building to allow fair access to rivals, following a British probe into whether the arrangement restricted competition for high-speed trading services.
Background of the FCA Investigation
Currently, only LSEG, which operates the London Stock Exchange and supplies data and analytics, can use the rooftop for radio equipment used for high-speed connectivity, which helps traders access data across asset classes.
Impact on Trading Groups
Britain's Financial Conduct Authority (FCA) said on Friday it has provisionally accepted the proposal from LSEG and the landlord of its data centre building to share the rooftop, which came after the financial watchdog had raised anti-competition concerns.
LSEG's Position on Competition Law
The FCA said that other trading groups were unable to install equipment at the building, blocking out alternatives for high-speed offerings called low latency connectivity services.
"Offering very fast connections is key to competition, and to maximise the speed of their connections, providers must be able to place radio units close to trading venues," the FCA said in a statement.
The regulator has, however, not yet reached a decision on whether competition law had been broken.
LSEG has not been the subject of any infringement decision in the investigation, a spokesperson for the company said in an emailed statement.
"These commitments have been made without prejudice to LSEG's position that it has not infringed UK competition law and that the initial concerns that prompted the FCA to commence its investigation are unfounded," the representative said.
Reuters provides news for LSEG's flagship news and data terminal, Workspace.
(Reporting by Pushkala Aripaka and DhanushVignesh Babu in Bengaluru; Editing by Anil D'Silva and Shinjini Ganguli)
