The Financial Conduct Authority has opened an investigation into whether the London Stock Exchange Group and the landlord of the LSE data centre building have restricted competition for low latency connectivity services between trading venues.
LLCS providers build high-speed links between venues, enabling trading firms to execute transactions in very short timeframes. To maximise speed, providers often place radio equipment close to the exchanges. At present, only LSEG is allowed to use the rooftop of the data centre building to install such equipment.
Concerns Over Exclusive Rights and Competition Impact
The FCA said it is concerned that LSEG’s exclusive rights to the rooftop, along with its policy at the LSE trading venue, could prevent rival LLCS providers from installing equipment. This may give LSEG’s own service an advantage and reduce competition. The investigation focuses on connections between the LSE trading venue in London and two other UK venues, Cboe Europe and ICE.
Proposed Commitments from LSEG and Landlord
To address these concerns, LSEG and the landlord have proposed to end LSEG’s exclusive rooftop rights. Under the plan, LSEG would continue to use part of the rooftop, but equivalent space would be offered to third parties on what the FCA describes as a fair and reasonable basis.
Public Consultation on Rooftop Access Proposals
The FCA has provisionally said these proposals may resolve its competition concerns. A consultation on the commitments opened on 5 September 2025 and will run until 29 September 2025. Interested parties can submit responses by email.
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The commitments have been offered under the Competition Act 1998, which allows firms under investigation to make binding promises on their future conduct. The FCA has discretion on whether to accept such commitments and must first consult affected third parties.
Regulator Makes No Finding of Breach
The regulator has not reached any conclusion on whether competition law has been breached. It also noted that the commitments do not represent an admission of infringement by LSEG or the landlord.
