Pre-Close Trading Update

London Stock Exchange Plc
25 September 2003

25 September 2003



                              PRE-CLOSE PERIOD UPDATE
                             London Stock Exchange plc

Unless otherwise stated, the following commentary refers to the five months
ended 31 August 2003 and, where appropriate, to the corresponding period last
year.

London Stock Exchange plc ("the Exchange") today issued a routine update ahead
of the close period relating to the six month period ending 30 September 2003.

The Exchange's trading performance is satisfactory against the backdrop of
difficult conditions in financial markets.

Issuer Services

The total number of companies on the Exchange's markets at 31 August 2003 was
2,701 (2002: 2,865).  There were 73 new issues on the Exchange's markets in the
period compared with 114 in the same period last year, including 24 IPOs (2002:
56), reflecting continuing weakness in the IPO market.

AIM, the Exchange's international market for smaller, growing companies,
continued to attract new companies.  At 31 August 2003, 707 companies were
traded on AIM (2002: 682).

Broker Services

The total number of equity bargains was 22.3 million, up two per cent on the
same period last year (2002: 21.8 million).  The average number of daily equity
bargains increased from 208,000 to 215,000 primarily as a result of further
growth in volumes on SETS, the electronic order book.

Average daily SETS bargains increased 31 per cent to 123,000 (2002: 94,000).
This growth was offset in part by a 27 per cent fall in the average value of a
SETS bargain to £22,000 (2002: £30,000).  The daily average number of off book
bargains for the period decreased marginally to 54,000 (2002: 55,000).

The total value of equity bargains amounted to £1.4 trillion (2002: £2.1
trillion).  This reduction in value principally reflects a decline in the number
of international bargains.  The daily average number of international bargains
for the period fell to 38,000 (2002: 59,000) and the average yield per
international bargain also reduced.

Information Services

At 31 August 2003, the total number of terminals receiving Exchange data was
90,000 (2002: 101,000), in line with our expectations.  Approximately 82,000
terminals were attributable to the professional user base, down 12,000 on the
previous year (2002: 94,000).

RNS, the Exchange's financial communications service, and Proquote, a provider
of financial market software and data services, have continued to perform well.

EDX London

On 27 June 2003, following approval as a Recognised Investment Exchange by the
Financial Services Authority, the Exchange and OM AB announced the completion of
EDX London, a new equity derivatives business jointly owned by both companies.
EDX London commenced trading on 30 June 2003 and has made steady progress in its
first few weeks.

Commenting on current trading, Clara Furse, Chief Executive, said:

"Against a background of difficult market conditions the Exchange is performing
satisfactorily.  Control of costs is helping to support earnings in the first
half of the year.  Although market conditions for the remainder of the year are
likely to remain challenging, we are confident of maintaining progress."

The Exchange will release its Interim Results for the half year ending 30
September 2003 on 6 November 2003.

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



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