Market Report - August 2007

London Stock Exchange Group PLC
10 September 2007


News Release



10 September 2007
MR74-08.07


               ELECTRONIC TRADES SURGE 141 PER CENT DURING AUGUST

               • SETS trades for 2007 already exceed 2006 total


A combination of market volatility, the introduction of TradElect and recent
enhancements to the volume discount scheme contributed to a surge in trading
volumes on SETS, the London Stock Exchange's electronic order book, during
August.  The number of trades on SETS exceeded a million on three separate days
during August, helping to take the average daily number of trades to a new high
of 688,391, an increase of 141 per cent on August last year.  The average daily
value traded on SETS was also a record at £9.9 billion, an increase of 96 per
cent on August 2006.


The total number of trades on SETS during the month exceeded 15 million,
bringing the total number of trades for the calendar year so far to 86.1
million.  This is already well in excess of the 78.2 million trades carried out
on the order book during the whole of 2006, and takes the year to date growth in
the number of SETS trades to 72 per cent.


Trading on SETSmm, which is included in the SETS totals, was particularly
noteworthy.  Compared with August last year, the total number of trades on
SETSmm increased 221 per cent to 4.3 million, and the value traded grew 177 per
cent to £26.0 billion.  Trading on the International Order Book was also strong,
with 112,218 trades during the month, just over double the number carried out on
the IOB during August last year.  The value traded on the IOB grew 75 per cent
year on year to £8.9 billion.


The value traded in ETFs on the Exchange during August increased 268 per cent on
the same month last year to £3.8 billion, while the number of trades increased
234 per cent on August last year to 53,343.



There were 22 IPOs on the Exchange's markets during August, raising a combined
total of £1.2 billion, more than three times the total raised during August last
year.  Of these, two were UK IPOs on the Main Market, raising £84.4 million
between them, two were international IPOs on the Main Market, raising a total of
£382.4 million, and 18 were on AIM, raising £692.7 million between them.



RNS, the Exchange's service for the dissemination of company news, issued 18,059
announcements during August.  Of these, 38 per cent, or 6,864 were news and
results announcements, representing an 87 per cent share of all such
announcements made in the UK market.



There were 22 trading days in August 2007, the same number as during August last
year.



                                    - ends -



For further information, please contact:

John Wallace   Press Office   [phone] 
[e-mail]


Notes to editors:


•      About the London Stock Exchange



The London Stock Exchange is the world's premier international equity exchange
and a leading provider of services that facilitate the raising of capital and
the trading of shares.



The London Stock Exchange is the most international equities exchange in the
world and Europe's largest pool of liquidity.  By the end of 2006, the market
capitalisation of UK and international companies on the London Stock Exchange's
markets amounted to £4.4 trillion, with £6.7 trillion of equity business
transacted over the year.



The London Stock Exchange is a Recognised Investment Exchange (RIE) under the
Financial Services and Markets Act 2000 and is supervised by the Financial
Services Authority.



Companies considering flotation have a choice of markets:



AIM

AIM is the London Stock Exchange's international market specifically designed
for smaller, growing companies, combining the benefits of a public flotation
with appropriate levels of regulation.



Main Market

The London Stock Exchange's Main Market for established companies seeking
international recognition is one of the world's best known, longest-established
and most liquid markets.  It is home to some of the world's largest and most
successful companies, giving them access to one of the deepest pools of capital
in the world.



Professional Securities Market

The Professional Securities Market was established in July 2005, to coincide
with the introduction of the FSA's new Listing Rules.  PSM provides a solution
for those issuers seeking to list securities in London without having to
re-state their financial information to IFRS or follow the additional
requirements of an offering to retail investors.  Debt securities or depository
receipts of any denomination may be listed on PSM on production of a prospectus
aimed at a wholesale or professional audience.



•   IPO

An IPO or Initial Public Offering is when a new company joins one of our markets
and raises capital by issuing shares.  This excludes transfers and introductions
(when companies join the market without raising money).

•   Indices

Indices are calculated and managed by FTSE Group, a world-leader in the creation
and management of global equity indices. The FTSE Group is jointly owned by the
London Stock Exchange and the Financial Times, but operates as an autonomous
company.



For information about the company or any FTSE indices, please contact
[e-mail]



•    SETS - the electronic order book



It is over eight years since the launch of SETS and the order book continues to
go from strength to strength, compressing spreads and significantly improving
liquidity. SETS has recently delivered record increases in the number of orders
entered and executed as new technology improves efficiency and fuels growth.



•    SETSmm



SETSmm is the Exchange's trading service for FTSE 250 and other leading non
order book securities.  By combining the best features of the existing SETS and
SEAQ trading services, SETSmm appeals to market users who want to trade
electronically, as well as those customers who use the market making system.



•    International Order Book (IOB)



The IOB is the Exchange's order book for the trading of international Depositary
Receipts, negotiable certificates which represent ownership of a given number of
a company's shares and can be listed and traded independently from the
underlying shares.



•   Retail Trading Figures

       Retail trading figures are available from our website at -

www.londonstockexchange.com/en-gb/products/membershiptrading/retailtradestat

Figures are available from November 2002 to date.



AUGUST 2007
                                        2007                             2006
DOMESTIC EQUITY TRADING                 Month        Year to date        Month        Year to date

Equity Trading Value (£m)                    376,470       2,821,359          227,657       2,137,812
Number of Equity Trades                   16,117,602      94,511,924        7,047,791      58,004,073


INTERNATIONAL EQUITY TRADING

Equity Trading Value (£m)                    510,058       3,454,731          268,374       2,195,780
Number of Equity Trades                    4,636,147      26,759,892        1,825,554      13,403,175


ORDER BOOK TRADING

Order Book Value (£m)                          217,067       1,417,248           110,724         998,676
Order Book Trades                           15,144,601      86,057,657         6,289,059      50,117,275


                                                                 August 2007                   August 2006

DOMESTIC MARKET CAPITALISATION (£bn)                                   2,022                         1,898

TOTAL NUMBER OF COMPANIES                                              3,308                         3,205
Main Market UK                                                         1,259                         1,294
Main Market International                                                337                           321
of which techMARK                                                        129                           143
AIM                                                                    1,685                         1,579
Professional Securities Market (Equity only)                              27                            11


                                                  2007                            2006
MONEY RAISED (£m)                                Month       Year to date       Month        Year to date


Equity Money Raised:
  New issues: Main Market UK                              84          5,388               38         5,566
  New issues: Main Market International                  382         10,368                -         6,575
  New issues:  AIM                                       696          5,360              331         6,001
  Further issues: Main Market UK                       2,502          7,494            1,290         8,845
  Further issues: Main Market International                -            527               61         1,243
  Further issues: AIM                                    686          7,726              169         3,913
  PSM (new & further, UK & International)                  -            285                -           527

COMPANIES ADMITTED                                        33            289               31           358
Debt Money Raised (£m)
  Main Market UK                                       9,502        112,475            9,982        85,374
  Main Market International                            6,632        165,210            6,614       119,537
  PSM (  PSM (UK & International)                        233         10,103              638         9,154




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