3rd Quarter Results

London Stock Exchange Plc
23 January 2003


23 January 2003

                           LONDON STOCK EXCHANGE plc

                              TRADING STATEMENT
                  FOR THE THREE MONTHS ENDED 31 DECEMBER 2002


Turnover for the three months ended 31 December 2002 ("Q3") increased to £59.4
million (2001: £55.6 million), representing 7 per cent growth over the same
period last year.

For the nine months ended 31 December 2002, turnover increased 10 per cent to
£178.9 million (2001: £162.4 million).

Issuer Services

Issuer Services' turnover in Q3 increased 38 per cent to £8.7 million (2001:
£6.3 million), with weakness in the IPO market offset by selective tariff
changes which took effect 1 April 2002.

There were 48 new issues (2001: 67) on the Exchange's markets during the quarter
which in total raised £0.3 billion (2001: £0.6 billion) of new equity capital.
As at 31 December, the number of companies on our markets was 2,824 (2001:
2,891).

For the nine months ended 31 December 2002, Issuer Services' turnover increased
39 per cent from £20.1 million to £27.9 million.  During this period, the number
of new issues on the Exchange's markets was 176 (2001: 237).

In difficult market conditions, in the first nine months of this financial year,
the Exchange accounted for 75 per cent of the IPOs in Western Europe,
demonstrating the continued relative attractiveness of the Exchange's markets
(2001: 64 per cent).  As at 31 December 2002, there were 704 companies on AIM,
the Exchange's market for younger enterprises, compared with 641 at 31 March
2002.

Broker Services

Broker Services' turnover in Q3 increased 2 per cent to £21.6 million (2001:
£21.2 million).  The total number of equity bargains per day remained unchanged
at 216,000 and totalled £1.0 trillion in value (2001: £1.2 trillion).

Trading volumes on SETS, the electronic order book, were strong, increasing to
an average 109,000 bargains per day (2001: 79,000), a 38 per cent increase on
the corresponding period last year.  This increase was offset in part by a
decline in the average number of off-book bargains to 48,000 bargains per day
(2001: 59,000) and international bargains to 59,000 bargains per day (2001:
78,000).

Broker Services' turnover for the nine months ended 31 December 2002 increased 7
per cent to £65.3 million (2001: £61.1 million).  During the period, the daily
average number of equity bargains was 212,000 (2001: 199,000) and the daily
average number of SETS bargains was 101,000 (2001: 68,000).  The average value
of a SETS bargain decreased 29 per cent to £27,000 (2001: £38,000).

Information Services

Information Services' turnover in Q3 increased 7 per cent to £26.0 million
(2001: £24.3 million), supported by increased contribution from the Exchange's
Regulatory News Service ("RNS") and FTSE joint venture.

During Q3, the number of terminals receiving Exchange data fell from 100,000 to
98,000 (31 December 2001: 107,000), of which approximately 91,000 terminals were
attributable to professional users (30 September 2002: 94,000; 31 December 2001:
98,000).  RNS contributed £1.7 million to Information Services' revenue, up from
£0.6 million in the corresponding period last year.

For the nine months ended 31 December 2002, Information Services' turnover
increased 7 per cent from £71.5 million to £76.7 million.  During this period
RNS, which commenced operation on a commercial basis on 15 April 2002, accounted
for £5.1 million (2001: £1.6 million)

EDX London

On 9 December 2002, the London Stock Exchange and OM announced the creation of a
new international equity derivatives business, EDX London.  The Exchange will
pay £18.2 million for 76 per cent ownership of the new joint venture. Based in
London, EDX London will combine the strength of the London Stock Exchange's
global equity market offering and expertise, with OM's flexible technology and
experience in equity derivatives.

Subject to approval as a Recognised Investment Exchange by the Financial
Services Authority, EDX London intends to begin trading in the second quarter of
2003.

Current Trading and Prospects

Since the half year, uncertain market conditions have continued.  In particular,
the IPO market remains weak, and the Information Services division continues to
be impacted by the decline in terminal numbers.

Commenting on the Q3 results and prospects for the full year, Clara Furse, Chief
Executive Officer said:

"Against a backdrop of tough market conditions the Exchange produced a
creditable performance for the third quarter, due to the range and resilience of
our business lines.  We continue to expect a satisfactory result for the year."



Further information is available from:


London Stock Exchange        John Wallace - Media                  020 7797 1222
                             Paul Froud - Investor Relations       020 7797 3322
                             Ruth Anagnos - Investor Relations     020 7797 3322
Finsbury                     James Murgatroyd                      020 7251 3801
                             Melanie Gerlis                        020 7251 3801


Nine months ended 31 December 2002


Turnover                                       Nine months ended     Year ended
                                                     31 December       31 March
                                               2002         2001           2002
                                                 £m           £m             £m
                                                                     
Issuer services                                27.9         20.1           26.9
Broker services                                65.3         61.1           81.2
Information services                           76.7         71.5           94.9
Other income                                    9.0          9.7           12.6
Gross turnover                                178.9        162.4          215.6

Less: share of joint venture's turnover        (8.5)        (6.5)          (9.0)

Net turnover                                  170.4        155.9          206.6



Three months ended 31 December 2002


Turnover                                                  Three months ended
                                            30 June  30 September 31 December  31 December 
                                               2002          2002        2002         2001
                                                 £m            £m          £m           £m

Issuer services                                 9.9           9.3         8.7          6.3
Broker services                                20.8          22.9        21.6         21.2
Information services                           24.7          26.0        26.0         24.3
Other income                                    3.1           2.8         3.1          3.8
Gross turnover                                 58.5          61.0        59.4         55.6

Less: share of joint venture's turnover        (2.7)         (2.9)       (2.9)        (2.3)

Net turnover                                   55.8          58.1        56.5         53.3




                      This information is provided by RNS
            The company news service from the London Stock Exchange