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. Last Updated: 07/27/2016

London Bourse Inaugurates Computer Trading System

LONDON -- The London Stock Exchange on Tuesday launched its new integrated trading and information computer system, the last stage in a three-year program to take the London stock market into the next century.

The new system completes the introduction of electronic trading begun at the time of the Big Bang shake-up of the London market in 1986.

It also paves the way to electronic trading in Britain's largest shares during the transition from quote-driven trading for FTSE 100 stocks next summer.

"We are delighted that Sequence 6 has been implemented successfully, on time and under budget. The launch has gone very well today and the users appear to be very happy," said a spokeswoman for the exchange.

However some market makers in London said they experienced problems in posting prices Tuesday, citing difficulties with the Reuters system.

A Reuters spokewman said the company's link to Sequence 6 was operating as planned but that there was an unrelated temporary operational problem with feeds from several European exchanges, including London, which affected prices in the morning.

The completion of the Sequence program at a cost of ?81 million ($126 million) marks the culmination of a modernization process by the Exchange and Andersen Consulting that officials hope will provide the flexibility to adapt to the future needs of the market place.

It will help ensure that London retains its competitive edge, and reduces ongoing costs for both the Exchange and its participants, the Exchange said.

Sequence 6 will provide the basis for new electronic trading in FTSE 100 shares once the structure of a new order-driven regime is agreed to and implemented in 1997.

That will signal the end of the quote-driven system where prices are set exclusively by dealers authorized to act as "market makers" and deals struck over the telephone.