*

LSEG data feeds, FX pricing temporarily affected by outage

*

European Energy Exchange says some clients had problems

trading

*

Schwab reports issues with some online functions

*

Bank of America, Goldman Sachs ( GS ) see no major impact on

systems

(Updates throughout with details, quotes and background)

LONDON/NEW YORK, July 19 (Reuters) - Trading in oil,

gas, power, stocks, currencies and bonds was on its way back to

business as usual after a sweeping global cyber outage hampered

operations at financial services firms and banks from London to

Singapore, although residual data problems remained.

A software update wreaked havoc on computer systems

globally, grounding flights, forcing some broadcasters off air

and hitting services from banking to healthcare.

The outage sent ripples through financial markets during

Asia and early European trading hours with a number of firms

involved in various aspects of the trading process affected.

LSEG Group, which runs the London Stock Exchange ( LDNXF ),

said its Workspace news and data platform, regulatory news

service and currency spot and forward prices had been affected

by the outage caused by a "third-party global technical issue".

By midday in London, most of those issues seemed to have

been resolved. Securities trading on the London Stock Exchange ( LDNXF )

was not affected.

A spokesperson for FTSE Russell, which is part of LSEG, said

that they were experiencing an impact to real-time platforms,

"which is preventing clients from accessing and receiving data"

and affecting its indices.

The European Energy Exchange said in a statement on its

website that clients using the Trayport power and gas trading

platform were having problems trading "due to infrastructure

issues with third-party service provider".

At least six trading sources at oil majors Shell

and BP as well as trading house Vitol said operations

were affected. BP and Shell did not immediately respond to

requests for comments.

Vitol said core trading operations were functioning well

though some individual computers and some processes that

interface with third party systems were impacted temporarily.

"Friday's global tech outage is an example of an unforeseen

event that market participants always fear, but don't frequently

think about," said Glen Smith, chief investment officer at GDS

Wealth Management.

By the start of U.S. business, normality was returning.

The New York Stock Exchange and Nasdaq said markets were

operational and working normally.

Major U.S. banks including Bank of America and Goldman Sachs ( GS )

said they had not seen any major impact on their systems or

operations. Citigroup has also not been affected, a source

familiar with the matter said.

HURDLES TO ACCESSING SYSTEMS

While there were no confirmed reports of trading

difficulties as a result of the outage, some traders earlier

said there were signs of disruption at smaller financial

institutions.

One London-based trader said several multilateral trading

facilities were affected, leaving some clients unable to trade.

Some banks and financial services firms said employees and

customers had problems accessing their systems.

"People can't switch their computers on after restarts.

Those who didn't restart are doing fine," another trader said.

Schwab had a posting on its website saying: "Due to a

third-party, global, industry-wide issue, certain online

functionality may be intermittently slow or unavailable. We're

actively monitoring the issue. Phone services may be disrupted

and hold times may be longer than usual."

Schwab did not immediately respond to a request for comment.

Barclays ( JJCTF ) reported customers were unable to manage

accounts on its digital investing platform Smart Investor.

Germany's Allianz said the outage affected the ability

of employees to log on to their computers. Banks in South Africa

also reported disruptions.

A spokesperson at the Financial Services Information Sharing

and Analysis Center (FS-ISAC) said the outages had not had a

systemic impact on the financial services industry.

"Core functions, including banking and payment processing,

are largely functioning with some scattered effects," the

spokesperson said.

Fitch said the latest event would likely increase regulatory

scrutiny on IT providers.

"Financial institutions' dependencies on third parties has

grown in recent years as part of the ongoing digitalisation of

the sector," said Monsur Hussain, Head of Financial Institutions

Research at Fitch.

"The economies of scale are compelling, but they can also

bring systemic risks."