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London Stock Exchange trading opens hour late after 'embarrassing' blackout 

The London Stock Exchange (LSE) has blamed a technical glitch for its first major trading blackout in more than seven years, a rare disruption for one of the largest equity markets in the world.
The start to trading on Europe's largest stock exchange suffered a one-hour delay on Thursday morning after "a technical software issue" stopped investors from trading on its pre-open auction system, the exchange's first major outage since 2011.
LSE later said trading was operating as normal after it was forced to delay the opening bell to "preserve the integrity of the market and to ensure orderly trading".
Russ Mould, an investment director at AJ Bell, said even though the market settled down pretty quickly the whole fiasco was embarrassing for the UK's financial district. 
"We were in the dark like everyone else. After the initial hiatus which was not brilliantly organised the market settled down pretty quickly," he said. "Is it embarrassing for the stock exchange? Yes. Is it inconveniently embarrassing given the Brexit negotiations? Yes." 
London Stock Exchange trading opens hour late after 'embarrassing' blackout 

Russ Mould, an investment director at AJ Bell, said the glitch was extra embarrassing in the context of the Brexit negotiations 
While many were left irritated by the outage, especially as no explanation was given by the LSE, Mr Mould said it did give investors another hour to read company news. The LSE would not give a reason for the software issue. 
"The longer they stay silent with a vague technical issue reason, the more curious people will be," said Mike Van Dulken, head of research at Accendo Markets. "We want the blame to be apportioned to something or someone, we'd like to know exactly what it was and put it to bed. [However] the rest of the day was without incident. It was annoying but thankfully there was only one subsequent delay - they said 8.45am and then 9am."
The outage is likely to be the result of human error when attempting to add a patch to the trading platform or from "hidden vulnerabilities" in LSE's complex layers of back-up systems, Doron Pinhas, chief technology officer at IT infrastructure company Continuity Software, explained. 
"A single glitch would not have resulted in this full meltdown for one hour," he added.
Mr Pinhas warned that it is likely that LSE's "back-ups did not kick in as planned" and the outage pointed to a "more systemic vulnerability" on the exchange.
The exchange would be "a very high profile target" for hackers and is "likely to be under constant attack from cyber criminals looking to disrupt market activity", according to Andy Barratt of cyber security consultancy Coalfire.
However, he added:  "A sophisticated cybercriminal would have far more to gain from keeping the system online and manipulating it than causing a short-term outage. It’s hard to cash-out if you bring down the very infrastructure needed to monetise a successful attack."
London Stock Exchange trading opens hour late after 'embarrassing' blackout 

Technical glitches have been blamed for previous outages with investors last left in limbo by a four-hour delay to trading in 2011, after the LSE switched from its Turquoise system to a new platform called MillenniumIT. The shutdown came on the new system's 10th day of operation.
The exchange also suffered a huge outage in 2008 on one of the busiest days of trading of the year. It has also suffered problems in recent months with its regulatory news announcements, which updates investors with the latest financial results and company news.
"Outages like this morning are increasingly frequent, especially in complex software-driven industries like financial services," said Lev Lesokhin of software firm Cast. 
The exchange has been without a permanent chief executive since Xavier Rolet left in November following a boardroom bust-up. American banker David Schwimmer from Goldman Sachs will take the helm in August
This morning's delay follows recent technical problems at Tesco Bank, rival lender TSB and payments system Visa. When Visa's system crashed last Friday thousands had their cards declined at supermarkets, retailers and on public transport while TSB's IT meltdown meant hundreds were wrongly told they had died
The FTSE 100 climbed 0.5pc on opening and appeared unaffected by the LSE glitch.
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