The London Stock Exchange Group (LSEG) has decided to relinquish its exclusive rights to the rooftop of its data center building. This move aims to alleviate regulatory concerns that such exclusivity may be restricting competition in low latency connectivity services (LLCS).
Currently, only LSEG has access to this rooftop space for installing radio equipment essential for high-speed trading operations. The Financial Conduct Authority (FCA) has been examining whether this limitation on rooftop access for competing LLCS providers hampers competitive practices in the market.
According to the regulator, “Providing ultra-fast connections is critical for fostering competition, and to optimize their services, providers must place their radio units in close proximity to trading venues.”
In light of these concerns, LSEG and the data center’s landlord have proposed granting equal rooftop access to other providers. The FCA has indicated that it tentatively views this proposal as a positive step toward addressing competition issues, though it will conduct further consultations before making a final determination on the ongoing investigations.