LONDON STOCK EXCHANGE FORMS STRATEGIC ALLIANCE WITH SMARTS GROUP FOR MARKET SURVEILLANCE SOLUTIONS

4 October 2006

The London Stock Exchange (‘Exchange’) and SMARTS Group have today signed an agreement to install the SMARTS Market Integrity Platform as its next generation market surveillance technology. The adoption of SMARTS is part of the Exchange’s four year Technology Roadmap project due for completion in Q2 2007. In addition, the London Stock Exchange will become a global reseller of the SMARTS platform alongside its new next generation Trading and Information platforms.

The SMARTS Market Integrity Platform is a globally proven market surveillance package that will enable the Exchange to continue to monitor and investigate trading in real-time.

The Exchange will customise SMARTS to include additional features as part of its Technology Roadmap programme to move the Exchange’s markets on to next generation trading technology. The Roadmap will complete in Q2 2007 with the launch of TradElect, a new multi-product capable trading platform, which will deliver a step change in speed, capacity and business agility to the market.

Commenting on the agreement, David Lester, CIO at the London Stock Exchange, said:

“We are delighted to be partnering with the SMARTS Group to ensure we have a next generation surveillance system in place alongside our new trading and information platforms - TradElect and Infolect. The SMARTS platform will play a crucial role in the monitoring and regulation of our markets and will ensure that we continue to provide our customers with the most robust and innovative trading environment in the world.”

Michael Aiken, Director and co-founder of SMARTS, commented:

“The agreement with the London Stock Exchange represents an important milestone in the development and deployment of the SMARTS Market Integrity Platform as a world standard. We have always sought to build and share our technology with the primary aim of enhancing market integrity across as well as within markets.”

Adam Kinsley, Director of Regulation at the Exchange, said:

“We support the SMARTS concept that market integrity is a responsibility shared by all market participants. To this end the SMARTS technology will also be available to UK brokers via Capital Markets Surveillance Services Pty Ltd (CMSS) and will aid their compliance officers in assisting the Exchange in maintaining market integrity.”

SMARTS is currently deployed in 26 national exchanges and regulators across 20 countries, including the Swiss, Hong Kong, Singapore and Australian exchanges.

Become a bobsguide member to access the following

1. Unrestricted access to bobsguide
2. Send a proposal request
3. Insights delivered daily to your inbox
4. Career development