The LSE may consider a number of technology options, if it buys Turquoise, Silva said. These could include taking some of the Turquoise technology and deciding a strategy for how this would fit with MillenniumIT's system.

Another option could be to run Turquoise as a "separate algorithmic platform", he said, handling high-volume trading, such as that of hedge funds. Or it could simply be a case of eliminating a competitor, he said.

"Whatever happens, the LSE could get Turquoise now at a good price, before its value increases dramatically as it becomes established," Silva said.

An acquisition of Turquoise would eliminate a key competitor. The platform was backed by nine leading banks: BNP Paribas, Citi, Credit Suisse, Deutsche Bank, Goldman Sachs, Merrill Lynch, Morgan Stanley, Société Générale and UBS.

Meanwhile, at the end of next year the LSE will switch off TradElect platform in favour of Millennium IT's software, aiming for "sub-millisecond" latencies, compared to a reported current 2.7 millisecond time.