Market report - December

London Stock Exchange Group PLC
09 January 2007


News Release



9 January 2007
MR66-12.06



             EXCHANGE COMPLETES RECORD BREAKING YEAR WITH A SPRINT

                     •         SETS trading up 67 per cent

Trading on the London Stock Exchange continued to be extremely strong during
December 2006.  Despite two half days during the month, the average daily number
of trades on SETS was 346,286, up 67 per cent on December 2005, while the
average daily value traded increased 47 per cent to £6.0 billion, making what is
traditionally a quiet period the third busiest month on record.  Up to 15
December, the average daily number of trades was 402,579, 30 per cent ahead of
the average for the year as a whole.


The total number of trades executed on SETS during December was 6.6 million
trades, and the total value traded was £114.1 billion.


This capped a record year for trading on SETS.  For the year as a whole, the
total number of trades on the order book was up 52 per cent on last year to 78.2
million trades, while the value traded increased 44 per cent to £1.5 trillion.


Included in the December SETS figures was a very active month on SETSmm, with
1.5 million trades worth £11.1 billion, representing increases of 111 per cent
and 76 per cent respectively on December last year.  For the year as a whole,
the total number of trades on SETSmm grew 127 per cent to 16.6 million, while
the total value traded grew 90 per cent to £128.6 billion.


Trading on the IOB was also very strong during December: the total number of
trades during the month increased 80 per cent on last year to 49,900 while the
total value traded increased 85 per cent to £4.0 billion.


The average daily number of trades in UK equities was up 55 per cent on December
last year to 388,028, and the average daily value traded increased 36 per cent
to £12.8 billion.  The total number of trades in UK shares throughout 2006 was
89.6 million, and the total value traded reached £3.2 trillion.


The total value traded in ETFs during December was £1.8 billion, and there were
23,057 trades.  2006 was a year of rapid growth in ETF trading and the total
number of ETF trades during the year grew 110 per cent on last year to 268,117.
The total value traded grew by 96 per cent to £18.1 billion.


December also provided a strong finish to a record year on the Exchange's
primary markets.  There were nine IPOs on the Main Market during December,
raising £1.9 billion, of which £1.5 billion was raised by six IPOs from
international companies.  AIM attracted 39 IPOs during the month, raising £1.8
billion between them.  Of these new AIM companies, eleven were international
companies, raising £365.6 million between them.


In the last three months of the year, AIM companies raised a total £3.5 billion
through IPOs, up 26 per cent on the corresponding quarter last year, itself a
very strong period for fund-raising.


The Exchange's markets attracted 367 IPOs during the year, raising a record
£29.4 billion, an increase of 81 per cent on the £16.3 billion raised by IPOs on
the Exchange's markets last year.  The 2006 totals included 89 IPOs on the
Exchange's Main Market and Professional Securities Market, raising £20.1 billion
and 278 IPOs on AIM, raising £9.3 billion.


RNS, the Exchange's service for the dissemination of company news, recorded its
highest volumes ever, transmitting 17,123 company announcements during December,
up 26 per cent on the same month last year.  Of these 4,963 were news and
results announcements, representing 86 per cent of all company news and results
announcements issued in the UK.


There were 19 trading days in December 2006, one fewer than in December 2005.

                                    - ends -







For further information, please contact:

Catherine Mattison                       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.







LONDON STOCK EXCHANGE - MONTHLY FACTSHEET FIGURES December 2006


                                                 December 2006                    December 2005
DOMESTIC EQUITY TRADING                        Month    Year to date            Month    Year to date
Equity Trading Value (£m)                    242,676       3,210,536          187,905       2,497,539
Number of Equity Trades                    7,372,531      89,589,649        5,006,669      63,073,310


INTERNATIONAL EQUITY TRADING
Equity Trading Value (£m)                    308,243       3,447,680          255,848       2,702,929
Number of Equity Trades                    2,055,005      21,763,043        1,639,316      18,089,550


ORDER BOOK TRADING
Order Book Value (£m)                        114,125       1,511,411           81,916       1,052,135
Order Book Trades                          6,579,432      78,246,367        4,157,196      51,415,546


                                                      December 2006            December 2005

DOMESTIC MARKET CAPITALISATION (£bn)                                 2,023                           1,838

TOTAL NUMBER OF COMPANIES                                            3,256                           3,093
Main Market UK                                         1,276                    1,358
Main Market International                                330                      334
of which techMARK                                        134                      148
AIM                                                    1,634                    1,399
Professional Securities Market (Equity only)              16                        2


                                                        December 2006                     December 2005
MONEY RAISED (£m)                                    Month    Year to date             Month  Year to date

Equity Money Raised:
  New issues: Main Market UK                           331           9,088             1,124         6,078
  New issues: Main Market International              1,540          10,451               686         4,583
  New issues:  AIM                                   1,876           9,944             2,018         6,461
  Further issues: Main Market UK                       157          14,445               380         8,518
  Further issues: Main Market                            -           1,716               726         1,051
  International
  Further issues: AIM                                  629           5,734               499         2,481
  PSM (new & further, UK & International)                -             606                 -            38

COMPANIES ADMITTED                                      80             578                83           626

Debt Money Raised (£m)
  Main Market UK                                    12,406         216,495            34,319       148,309
  Main Market International                         14,922         197,795            13,542       121,078
  PSM (  PSM (UK & International)                      820          11,577             3,223        27,558




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