Trading Statement

London Stock Exchange Plc
29 January 2004


29 January 2004
                           LONDON STOCK EXCHANGE plc

                               TRADING STATEMENT
                  FOR THE THREE MONTHS ENDED 31 DECEMBER 2003

Turnover for the three months ended 31 December 2003 ("Q3") was £63.3 million
(2002: £59.4 million), representing seven per cent growth over the same period
last year.

For the nine months ended 31 December 2003, turnover increased two per cent to
£182.9 million (2002: £178.9 million).


Issuer Services

In Q3, Issuer Services' turnover increased to £10.7 million (2002: £8.7 million)
reflecting an increase in the number of new and further issues on the Exchange's
markets.

There were 81 new issues on the Exchange's markets during the quarter (2002:
48).  In particular, December proved to be a period of notably higher levels of
activity on the Exchange's primary markets with over half of the new issues for
the quarter occurring during the month.  As at 31 December 2003, the number of
companies on our markets was 2,692 (2002: 2,824).

For the nine months ended 31 December 2003, Issuer Services' turnover increased
four per cent to £29.1 million (2002: £27.9 million).  The number of new issues
(175) on our markets in the period was in line with the corresponding period
last year (2002: 176) despite the increased level of activity in December.

In difficult market conditions, the Exchange accounted for 89 per cent of the
IPOs in Western Europe in the first nine months of this financial year (2002: 75
per cent).  In particular, AIM, the Exchange's international market for smaller,
growing companies, continued to attract new issues.  As at 31 December 2003,
there were 754 AIM companies compared with 705 at 31 March 2003.


Broker Services

Broker Services' turnover in Q3 increased six per cent to £22.9 million (2002:
£21.6 million).  The average number of equity bargains per day increased to
226,000 and totalled £1.0 trillion in value during the period (2002: 216,000 and
£1.0 trillion respectively).

During the quarter, trading volumes through SETS, the electronic order book,
continued to grow.  SETS volumes were boosted by the launch of SETSmm in
November, a new trading service for mid-cap securities.  The average number of
SETS bargains per day, including SETSmm, was 137,000, a 26 per cent increase
(2002: 109,000).  The average number of off-book bargains increased to 53,000
per day (2002: 48,000) whilst the average number of international bargains
decreased to 36,000 per day (2002: 59,000).

Broker Services' turnover for the nine months ended 31 December 2003 increased
two per cent to £66.6 million (2002: £65.3 million).  During the period, the
daily average number of equity bargains was 221,000 (2002: 212,000) and the
daily average number of SETS bargains was 129,000 (2002: 101,000).  The average
value of a SETS bargain decreased 19 per cent to £22,000 (2002: £27,000).


Information Services

Information Services' turnover for the three months ended 31 December 2003
decreased three per cent to £25.1 million (2002: £26.0 million), reflecting a
reduction in data charge income offset by increased contributions from Proquote,
a low cost software and data provider, and FTSE, the Exchange's joint venture
with the Financial Times.

Since the half year, the overall number of terminals remained unchanged at
90,000 (31 December 2002: 98,000).  Similarly, the number of terminals
attributable to professional users was unchanged at 81,000 (31 December 2002:
91,000).

Proquote continues to make progress with almost 1,600 screens, and more than 100
corporate customers.  RNS, the Exchange's financial communications service,
contributed £1.7 million to Information Services' revenue, in line with the
corresponding period last year.  Turnover from FTSE was £3.4 million, up from
£2.9 million in the corresponding period last year.

For the nine months ended 31 December 2003, Information Services' turnover
decreased two per cent from £76.7 million to £75.3 million.  During this period,
RNS and FTSE accounted for £5.3 million (2002: £5.1 million) and £9.6 million
(2002: £8.5m) of revenue respectively.

SEDOL, the Exchange's securities numbering service is scheduled for launch early
2004, providing unique identification for securities on a global basis. Customer
feedback has been positive with approximately 500 company contracts for SEDOL
licenses signed to date.


Derivatives Services

Derivatives Services, principally EDX London revenue, contributed £1.5 million
and £3.2 million to turnover for the three and six months to 31 December 2003
respectively.  EDX London, our new jointly owned equity derivatives business,
commenced trading on 30 June 2003 following approval as a Recognised Investment
Exchange by the Financial Services Authority.  During the first six months of
operations, 7.5 million contracts were traded.  Plans to introduce
over-the-counter UK equity derivatives trade confirmation and clearing services
for wholesale market participants, in conjunction with LCH, are well underway.
The Exchange expects to introduce these services in the first half of calendar
year 2004.


Current Trading and Prospects

Since the half-year, market conditions have remained challenging.  In
particular, despite a high level of activity in the primary markets in December,
prospects in the IPO market remain subdued with 11 new issues to date in
January, down from 14 in the corresponding period last year.  With regards to
Information Services, notwithstanding a temporary ease, the Exchange has seen no
substantial reduction in pressure on professional terminal numbers.

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

"The Exchange performed satisfactorily in the third quarter.  Although we
benefited from increased primary markets activity in December, our outlook for
the year remains unchanged."


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 2003

Turnover                                                        Nine months ended           Year ended
                                                                      31 December             31 March
                                                             2003            2002                 2003
                                                               £m              £m                   £m

Issuer Services                                              29.1            27.9                 36.0
Broker Services                                              66.6            65.3                 87.3
Information Services                                         75.3            76.7                102.2
Derivative Services                                           3.2               -                    -
Other income                                                  8.7             9.0                 11.8
Gross turnover                                              182.9           178.9                237.3

Less: share of joint venture's turnover                      (9.6)           (8.5)               (11.4)

Net turnover                                                173.3           170.4                225.9


Three months ended 31 December 2003

Turnover                                                              Three months ended
                                             30 June       30 September 2003    31 December 2003 31 December 2002
                                             2003 £m                      £m                  £m               £m

Issuer services                                  9.4                     9.0                10.7              8.7
Broker services                                 21.0                    22.7                22.9             21.6
Information services                            25.6                    24.6                25.1             26.0
Derivative Services                                -                     1.7                 1.5                -
Other income                                     2.7                     2.9                 3.1              3.1
Gross turnover                                  58.7                    60.9                63.3             59.4

Less: share of joint venture's turnover         (3.1)                   (3.1)               (3.4)            (2.9)

Net turnover                                    55.6                    57.8                59.9             56.5


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