Protester Perches on London Stock Exchange Roof during Network Dispute Escalation by FCA
The Financial Conduct Authority (FCA) Launches Investigation into Potential Competition Restrictions at London Stock Exchange
The Financial Conduct Authority (FCA) has initiated an investigation into potential competition restrictions for low latency connectivity services between trading venues at the London Stock Exchange (LSE). The regulator's concerns stem from the exclusive rights held by the London Stock Exchange Group (LSEG) to use the rooftop of the LSE datacenter building for installing equipment, which could prevent rival service providers from installing their own equipment.
Currently, only LSEG is allowed to use the rooftop for installing high-speed links between trading venues. However, the FCA has not reached any conclusion on whether competition law has been breached. To address these concerns, LSEG and the landlord have proposed to end LSEG's exclusive rooftop rights.
Under the proposed plan, LSEG would continue to use part of the rooftop, but equivalent space would be offered to third parties on a fair and reasonable basis. The companies that have presented projects to liberalize access to the rooftop of the data center building and thereby promote competition for fast connections between stock exchanges in London, Cboe Europe, and ICE are not explicitly named in the provided search results.
The commitments have been made under the Competition Act 1998, which allows firms under investigation to make binding promises on their future conduct. The FCA has provisionally deemed the proposals as addressing its competition concerns. Interested parties can submit responses by email during the public consultation period, which opened on 5th September 2025 and will run until 29th September 2025.
It is important to note that the commitments do not represent an admission of infringement by LSEG or the landlord. The FCA has discretion on whether to accept such commitments and must first consult affected third parties. The regulator has the power to accept or reject these commitments, depending on their potential impact on competition.
Connectivity in finance refers to the networking between trading venues for fast data transfer. To maximize speed, these providers often place radio equipment close to exchanges. Low latency connectivity service providers build high-speed links between trading venues for quick transaction execution. The FCA's investigation aims to ensure fair competition in this area and maintain the integrity of the financial markets.
The FCA encourages all interested parties to participate in the public consultation and provide their views on the rooftop access proposals. This will help the regulator in making an informed decision on whether to accept the commitments and promote competition in the low latency connectivity services market.
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