FCA Probes LSEG Rooftop Exclusivity in Microsecond Trading Battle
What Sparked the FCA’s Probe?
Britain’s Financial Conduct Authority (FCA) has opened a consultation into one of the most hotly contested assets in London’s trading ecosystem: rooftop access at the London Stock platform Group’s (LSEG) Docklands data centre. Currently, only LSEG is permitted to mount radio antennas on the roof, enabling it to offer its platform Wireless Service, which it claims is up to 40% quicker than fibre connections between major trading hubs.
The FCA is examining whether this exclusivity has limited competition. The investigation, launched under the Competition Act 1998, focuses on links between LSE and rivals Cboe Europe in Slough and ICE in Basildon—two venues central to arbitrage strategies. The consultation is open until Sept. 29, later than which the FCA may decide whether to accept proposed remedies.
Investor Takeaway
Why Does Rooftop Access Matter?
The debate comes down to physics. Microwave and millimetre-wave radio links require direct line-of-sight. Even a minor detour around a building can add microseconds, a decisive factor in high-frequency trading where profits hinge on being the quickest to quote or cancel orders. Without roof access, rival providers have been forced to mount antennas on nearby buildings, conceding valuable milliseconds.
LSEG’s exclusive positioning has allowed it to promote its wireless services as structurally quicker, creating frustration among independent providers. For the FCA, the concern is whether this arrangement unfairly restricted competition in connectivity services between Europe’s most liquid equity and derivatives venues.
What Fix Is on the Table?
To resolve the probe, LSEG and the building’s landlord have offered to relinquish exclusivity. They would retain space for their own infrastructure but commit to making equivalent rooftop access available to competitors “on a fair and reasonable basis.” If accepted, the commitments could close the case, but much depends on how terms are defined—including cable routing, load limits, maintenance protocols, and interference secureguards.
The FCA stressed that offering commitments does not imply LSEG breached competition law. Instead, the consultation viewks industry views on whether the proposed remedy levels the playing field.
The largeger Picture: Speed Wars in London
Wireless trading links between London and satellite hubs in Slough and Basildon have been in place for over a decade, first built by specialist providers and later by platforms themselves. The race for microseconds intensified later than LSEG moved its markets to the Docklands facility in February 2023, enabling its rollout of new connectivity services.
Competitors argue that without equivalent rooftop rights, they have been structurally diupsetvantaged ever since. With European equity and derivatives markets facing heightened competition, the FCA’s decision could set an significant precedent for infrastructure access and market fairness.
Investor Takeaway
What’s Next?
The FCA will review responses and determine whether to formalize commitments later than Sept. 29. For high-frequency traders and market-makers, the outcome could directly impact routing strategies, connectivity pricing, and the profitability of cross-market arbitrage. More broadly, the case illustrates how even viewmingly minor infrastructure—like a rooftop in London’s Docklands—can become pivotal in the global race for trading speed.
