Security failures cost exchanges £125m
Failed cross-border trades cost the global securities industry a staggering £800m annually with £125m being lost on security system failures.
The London Stock Exchange said it intends to prevent the loss due to security failures by introducing a new global numbering system in 2003 that is better able to identify the trades involved.
The security failures occur when systems are unable to provide codes for trades with multiple listings or when they cannot find codes quickly enough for the trading cycle. The LSE’s existing seven-character numeric SEDOL code will be updated to alphanumeric and fully extended to market level.
‘This new system will allow us to provide a unique global security identifier to address market needs,’ said David Lester, chief information officer of the LSE.