LSE's FTSE stock market suffers longest outage in years

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UPDATE 3-LSE's FTSE stock market suffers longest outage in years

* FTSE 100, 250 trading delayed due to software issue

* Outages comes as LSE prepares to buy Refinitiv

* Second trading disruption in just over a year (Adding details throughout)

The London Stock ExchangeLSE.L suffered a "technicalsoftware issue", which postponed the opening of trading until0840 GMT, a spokeswoman said in an email. The markets normallyopen at 0700 GMT. urn:newsml:reuters.com:*:nFWN25B0UE

In a statement on its website, it said it was stillinvestigating the issue.

The fault affected hundreds of shares in some of the UK'slargest companies, including Shell RDSa.L , Unilever ULVR.L and HSBCHSBA.L and BHP GroupBHPB.L , worth a total of $2.8trillion.

Traders were frustrated by the latest outage coming during ahectic week on global financial markets, hit by worries about aU.S. recession and the U.S.-China trade spat.

"Investors would have been yearning for a quiet Friday aftera week of turmoil for the markets driven by recession fears,"said AJ Bell investment director Russ Mould.

"It looked like just such a peaceful interlude was on thecards until (the LSE's) technical issues."

A large number of market participants were also away onholiday, which may have limited the impact of the failure.

Paul Mumford, a fund manager at Cavendish Asset Managementsaid it would be a "major embarrassment" for the LSE amidstiffening competition, rising costs and greater regulationamong exchange operators.

LSE shares listed on the FTSE 100 were up 0.9% in earlydeals, in line with the broader FTSE 100.

This is the second outage at the LSE, which handles about 5billion pounds ($6.1 billion) worth of volume each day, in justover a year.

In June 2018, the opening auction was delayed due to atechnical fault, but trading resumed after an hour. urn:newsml:reuters.com:*:nL5N1T91H0

Prior to that, the market was shut until lunchtime one dayin February 2011.

Reuters News' parent Thomson ReutersTRI.TOTRI.N holdsa 45% stake in financial data and news provider Refinitiv.Thomson Reuters will own 15% in LSE after the proposed dealcloses. urn:newsml:reuters.com:*:nL8N24X1XT ($1 = 0.8253 pounds) (Reporting by Shashwat Awasthi, Noor Zainab Hussain and MuvijaA in Bengaluru and and Josephine Mason in London; editing byJason Neely and Keith Weir) ((Shashwat.Awasthi@thomsonreuters.com; within U.S.+1 646 2233403; outside U.S. +91 80 6749 3403;))

This article appears in: Politics , World Markets , US Markets , Stocks

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