A technical glitch brought share trading on the London Stock Exchange to a halt for seven hours yesterday, wiping out most of the trading day on what should have been one of the busiest sessions of the year.

The meltdown could not have happened at a worse time for the LSE, which is battling a slew of new rivals who are offering ultra-fast trading systems and low fees. One competitor, Chi-X, was quick to pounce on the debacle, with Peter Randall, chief executive, likening it to the opening of Heathrow's Terminal 5.