LSE TO LOWER SEVERAL TRADING CHARGES IN EFFORT TO PROMOTE GROWTH

Posted August 1, 2008

LONDON – The London Stock Exchange has announced a new price list for trading services, to take effect September 1 for all trading clients.

For all securities, the LSE will end its 7.5 pence execution charge from both sides; its standard 1 pence order management charge; and its maximum per trade charge. The LSE will offer free off-book trade reporting for registered market makers in supported securities.

For FTSE 350, IOB and other liquid securities, the LSE will introduce a tiered credit scheme for liquidity provision based on value traded by a client in each month. The exchange also will simplify charges for taking liquidity with a revised tiered discount scheme based on value traded in each month to better align with clients’ business models. For smaller company securities, registered market makers will receive a fixed credit rate for providing liquidity and a simple discounted charge for removing liquidity.

“We believe the new shape of this tariff structure will capture the important growth arising from the major shift towards statistical arbitrage and algorithmic trading in UK equity markets,” says Clara Furse, Chief Executive of the London Stock Exchange. “This continues to be a major driver of change in market micro structure, driving overall growth and significantly improving market efficiency by reducing total transaction cost, thereby decreasing the cost of capital for the companies listed on our market.”