The Financial Conduct Authority (FCA) is investigating the London Stock Exchange Group (LSEG) over exclusivity concerns regarding access to the rooftop of its principal data centre building in London's Docklands. This rooftop space is crucial for installing radio equipment that facilitates low-latency connectivity services (LLCS) — high-speed communication links essential for rapid trading decisions in the financial markets.

Currently, LSEG holds exclusive rights to place radio equipment on the rooftop. This exclusivity has raised concerns among regulators and competing trading groups, as others have been forced to install equipment on nearby buildings, relying on longer fibre-optic connections. Such arrangements potentially place these rival firms at a competitive disadvantage due to inherently slower data transmission speeds compared to rooftop-based installations.

In response to the FCA's probe, which began in July 2023, LSEG and the landlord of the data centre have proposed shared access to the rooftop for rival firms. The FCA has provisionally accepted these commitments, subject to a consultation period inviting industry feedback. The regulator has not yet concluded whether LSEG violated UK competition law; the investigation remains ongoing.

LSEG, however, denies any wrongdoing, maintaining that it has not breached any regulations and viewing the FCA's concerns as unfounded. The proposal to open rooftop access could mark a significant shift in the competitive landscape of LLCS provision by removing the physical barriers that have constrained rival firms’ access to optimal trading infrastructure.

Industry observers suggest that the FCA's efforts highlight broader tensions in the financial sector, where infrastructure control can directly impact market fairness and innovation. The agency's willingness to consult on the rooftop-sharing proposal signals its commitment to ensuring a level playing field among trading venues and connectivity providers, a critical factor in maintaining market integrity and efficiency.

The consultation period is scheduled to run from 5th to 29th September 2025, during which stakeholders can provide their views on the proposed changes. The outcome of this process will determine the regulatory stance on whether LSEG’s prior exclusivity arrangements constituted anti-competitive behaviour and what further measures, if any, are necessary to promote fair access in the financial markets.

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Source: Noah Wire Services