FCA Probes LSE Data Centre Access in Competition Inquiry

The UK Financial Conduct Authority has opened an investigation into potential anti-competitive practices surrounding low-latency connectivity services at the London Stock Exchange's data centre. At issue is LSEG's exclusive rooftop access for radio equipment that enables high-speed trading connections.

Current arrangements grant LSEG sole rights to install latency-sensitive equipment on the data centre roof, potentially disadvantaging rival providers connecting to Cboe Europe and ICE trading venues. The regulator contends this structural advantage may distort competition in the critical infrastructure supporting algorithmic and high-frequency trading.

LSEG and the building owner have proposed remedies including terminating the rooftop exclusivity arrangement. The concessions aim to level the playing field for connectivity providers vying to offer the fastest possible links between major UK trading platforms.