LSE to compete with better technology

The talk lately has been that not all alternative trading systems will be able to survive in Europe. There may not be enough volume to go around. Some are questioning the value of MiFID, in general, which, in a sense, boosts the stakes for the old-guard, as represented by the London Stock Exchange.

The venerable institution is battling a hoard of techno-savvy services. Chi-X has certainly made a splash; it just launched its new European dark pool. Turquoise got off to a fast start but faded a bit as key deals expired. BATS is in the game. The Nasdaq OMX and NYSE Euronext are also moving ahead with their services.

So what can the LSE do? Well, it's looking to upgrade its technology for one thing, perhaps within a year, according to Bloomberg. Recall the LSE's trading system faltered on Sept. 8, leaving customers unable to transact on a busy day--a huge snafu. The LSE will move ahead with its dark pool, Baikal--which was originally planned as a service to be launched with Lehman Brothers. It will also start a smart order routing service that will connect to other exchanges and MTF's this summer. This strikes some as a bit late. But that's better than never. 

For more:
- here's the Bloomberg article

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