The London Stock Exchange has disclosed the reason behind a disruption that halted trading for numerous small-cap stocks last Thursday.
The disruption was due to a problem with the matching engine, which pairs buy and sell orders, according to the company.
Upon further examination, it was found that the problem stemmed from the request for a quote function related to exchange-traded products.
The London Stock Exchange mentioned, “In the event of a hardware issue, the backup process did not activate as anticipated.”
Bloomberg has stated that the exchange is still probing the primary cause of this technical glitch.
Previously, the London Stock Exchange had limited the trading of many stocks as they delved into this system malfunction.
Trading was only permitted for FTSE 100, FTSE 250, and IOB (international order book) stocks.
All other stock trades were halted and previous transactions were voided as the investigation continued.
This situation impacted shares in several firms, such as Asos, Deliveroo, and Boohoo.
