The London Stock Exchange Group extended its 'Exchange Hosting' service through which third party companies can locate their servers in its data centre cutting latency times for automatic trading systems.

The latest phase brings online a floor of the Exchange's data centre dedicated to hosting with 5kw of power available to each cabinet. The expansion of its central London data centre hosting service increases cabinet capacity fivefold.

The group also expanded its services offerings including planned and unplanned "remote hands" support services, adding low latency market data from other exchange venues and MTFs with services including data from key European, North American and Asian trading venues via QuantFEED and an ultra low latency data feed from QuantHouse. Low latency access to other markets in the group from within the Exchange Hosting facility, including London Stock Exchange and Borsa Italiana cash equity markets are also extended.

David Lester, Chief Information Officer, London Stock Exchange Group, said: "The introduction of QuantHouse's high-speed data feed, and the raft of other value added services we have announced today, underlines our commitment to providing our most latency sensitive clients with the tools they need to access London's deep pool of liquidity as fast and efficiently as possible. Take-up of our hosting services has been strong among both new and existing clients, reflecting the demand for Exchange Hosting from algorithmic traders. Our Exchange Hosting clients are now generating nearly a fifth of the total volume traded on the order book on a daily basis, increasing liquidity and encouraging market efficiency."

Meanwhile the FT reported that a server at the LSE went down yesterday causing a halt in trades on 300 UK stocks - affecting one in twelve of its stocks. The LSE saidi t was investigating the matter.

Pierre-François Filet, CEO & co-Founder of QuantHouse, commented: "I have no doubt that the London Stock Exchange's hosting centre will become the data centre of choice for all latency sensitive clients trading in Europe, and that it will become the preferred hosting centre for US and Asian trading members too because of its central London location."

Exchange Hosting was first established in September 2008. It provides high frequency algorithmic trading firms with sub-millisecond access to any of the London Stock Exchange Group's markets, allowing firms to physically locate their servers as close as possible to the Exchange's matching engines.

Low latency access is also being enabled for a range of markets, including London and Italian cash equity markets. Demand for hosting services has been driven by a diverse and global client base, with interest from UK and globally based clients. The Exchange continues to investigate ways to enhance its hosting facilities further, and is looking to release additional cabinet capacity to meet the continued customer demand for hosting next to the Exchange's matching engines.