The London Stock Exchange on Wednesday turned to the Indian subcontinent to help reduce its huge technology costs, snapping up Sri Lankan company MillenniumIT in a $30m (£18m) deal that the exchange hopes will help it fend off nimbler rivals.

The move marks the most significant strategic step yet taken by Xavier Rolet, LSE chief executive, to arrest the exchange’s declining market share since taking over from Dame Clara Furse five months ago.