LSE clearing agreement signed

London Stock Exchange Plc
25 November 2003



25 November 2003



LONDON STOCK EXCHANGE SIGNS NEW CLEARING SERVICES AGREEMENT WITH LONDON CLEARING
                                     HOUSE


The London Stock Exchange announced today that it has signed a new clearing
services agreement with London Clearing House (LCH).

Under the terms of the new agreement, LCH will reduce its clearing fees by 25
per cent for trades carried out on the London Stock Exchange.  The new tariff
will take effect from January 2004.

In addition, the Exchange has accepted Euronext's offer of one of its permanent
seats on the LCH.Clearnet board, which will help ensure exchange neutrality at
board level.

The Exchange has negotiated its new clearing agreement with LCH without a
lock-in period; the notice period remains at twelve months.  The short-term
nature of this contract will perpetuate competitive tension between for-profit
clearing organisations in the best interests of the UK equity market and the
Exchange's strategic flexibility.

The Exchange's decision to remain with LCH follows a tender process for its
clearing business, which saw a strong competing offer from Eurex.  The quality
and scope of Eurex's proposal reflects their position as clearer to the largest
derivatives market in the world.

Clara Furse, the Exchange's Chief Executive, said:

"The LCH.Clearnet merger has changed the European clearing landscape into one of
for-profit central counterparties.  Negotiations over the summer and autumn, in
which we created a new competitive tension between clearing providers, have been
rewarding.  We are grateful for the support of our customers that enabled us to
achieve substantially improved terms for them and the Exchange.  We are pleased
to have concluded this agreement with LCH, who have accommodated all of our
requests and with whom we look forward to building a commercial relationship."

John Serocold, a director of the London Investment Banking Association (LIBA),
said:

"I believe LIBA members will be pleased with this outcome.  It is welcome that
the Exchange has brought some competitive tension to the market for clearing
services and market users should benefit from this."

                                    - Ends -


For further information, please contact:

John Wallace                         Press Office   [phone]



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