LSE posts drop in H1 earnings

10:08, November 26, 2009      

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The London Stock Exchange (LSE) posted a decline in earnings on a 9 percent drop in interim revenue from a year ago and said it expected competition in cash equities to remain intense and market conditions uncertain.

Pretax profit dropped to 79.4 million pounds ($131.3 million) for the six months to end-September from 127 million a year ago, the company said yesterday. Revenue fell to 310.9 million pounds.

LSE, like other long-standing European exchanges, has been losing market share to mulitalteral trading facilities such as Chi-X and BATS since pan-European regulation opened the market to competition in 2007.

"Lower trading levels, together with intense competition from new trading venues with aggressive pricing, have contributed to lower equity trading revenues, the main area of decline for the group," the company said in a statement, adding that market conditions remained uncertain.

The LSE's monthly market share in the UK has fallen to 58 percent in October from nearly 96 percent in January 2008, according to Thomson Reuters data for trade on transparent and dark order books and auctions.

Source: China Daily
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