Press releases 2001
16 July 2001
EXCHANGE ANNOUNCES NEW TECHNOLOGY APPOINTMENT
The London Stock Exchange today announced that WorldCom has been appointed to help install a high-capacity network that will link the Exchange and its customers using Internet Protocol (IP) communications technology.
The appointment of WorldCom, a global supplier and manager of IP networks, underlines the Exchange's commitment to delivering world-class technology. WorldCom will provide an ongoing managed network service as part of the agreement.
Importantly, the IP network will provide increased technological capacity, flexibility and reach, and is the key component of the Exchange's new customer communication service, named Extranex, which will replace its current communication network.
Following transition to Extranex, the Exchange's customers will have access to a range of new initiatives the Exchange plans to introduce, including:
RSP Gateway. An efficient centralised solution for routing messages between retail brokers and retail service providers. This will significantly lower industry costs, as well as increase processing efficiency by developing links to Crest through which matched trades can be sent for settlement.
Crest Network Service Provision. Subject to CrestCo accreditation, the Exchange intends to provide a competitive and secure gateway that will enable customers to use a single connection to both the Exchange and Crest.
Covered Warrants. To meet customer demand for geared derivative products, the Exchange is introducing a new trading service for covered warrants. This will allow retail investors to buy and sell geared products in exactly the same way as they trade equities - through their stockbroker, holding the covered warrants in Crest.
Added Value Real-Time Information Services. The Exchange will use the IP network to introduce four new information messages - Continuous Volume Weighted Average Prices, Daily Cumulative Volumes, Uncrossing Price with Volume and Enhanced Best Price information - that will satisfy the market demand for standardised, and officially badged, London Stock Exchange data.
David Lester, Chief Information Officer at the Exchange, said:
"We are delighted to announce this agreement with WorldCom. The London Stock Exchange is committed to extending its service offering and broadening its product base to support the development of our customers' businesses."
"This IP network will enable us to provide capacity for future growth in existing services as well as playing a key role in our provision of our new communication service, Extranex, which is the delivery platform for a range of new and enhanced trading, information and settlement services."