Trading Statement

London Stock Exchange Plc
13 July 2005

13 July 2005



                           LONDON STOCK EXCHANGE plc

                               TRADING STATEMENT
                    FOR THE THREE MONTHS ENDED 30 JUNE 2005
          


Unless otherwise stated, all figures referenced below refer to the three months
ended 30 June 2005 and the corresponding period last year, re-stated on an
International Financial Reporting Standards (IFRS) basis.



Turnover for the three months ended 30 June 2005 ("Q1") was strong, increasing
by 13 per cent to £67.7 million (2004: £60.1 million).



Issuer Services



Issuer Services performed strongly in the first quarter with turnover up 40 per
cent to £14.3 million from £10.2 million in the corresponding period last year.
The rise in revenue mainly reflects the notable increase in the number of new
and further issues on our Main Market and the continued success of AIM in
attracting new companies.



In Q1 there were 184 new issues on the Exchange's markets (2004: 92) including
82 in June, the highest monthly number for eight years.  The number of new
issues in the first quarter on the Main Market more than doubled to 37 (2004:
16).  AIM, our international market for smaller, growing companies, also
performed strongly with a total of 147 new issues compared to 76 in the
corresponding period last year.  Further issues rose to 308 from 211 on the Main
Market.  At 30 June 2005, a total of 2,994 companies were traded on our markets
(2004: 2,722) including 1,240 on AIM (2004: 846).



RNS, now included in Issuer Services' revenue under IFRS, contributed £2.0
million to turnover (2004: £1.8 million).



Broker Services



Continued good secondary market trading contributed to an 11 per cent increase
in Broker Services' turnover to £27.1 million (2004: £24.4 million).  The total
number of equity bargains increased 27 per cent to 19.4 million (2004: 15.3
million), a daily average of 308,000 (2004: 250,000).



The volume of trading on the SETS electronic order book continued to grow, up 27
per cent to 196,000 bargains per day (2004: 154,000) while the total value of
shares traded increased 13 per cent to £238 billion (2004: £210 billion).
Growth in SETS volumes was in part attributable to trading on SETSmm, the hybrid
electronic order book, which averaged 27,000 bargains per day during the quarter
(2004:12,000).  On 11 July 2005 a further 197 securities were added to SETSmm.



The average value of a SETS bargain reduced 14 per cent compared to the same
quarter last year to £19,000 (2004: £22,000).  This fall reflects an increasing
number of smaller order sizes from both "black box" or automated algorithmic
trading, and from SETSmm trades.



The daily average number of UK off book bargains was 45,000 (2004: 51,000).  The
daily average number of international bargains for the period was 67,000 (2004:
45,000).



Information Services



Information Services' turnover rose six per cent to £22.4 million (2004: £21.2
million).  The increase reflects growth in terminal numbers over the
corresponding period last year and increased contributions from Proquote and
SEDOL Masterfile.



At the end of Q1, the total number of terminals receiving real time Exchange
data was 96,000 (31 March 2005: 95,000; 30 June 2004: 90,000) of which
approximately 83,000 were attributable to the higher yield professional user
base (31 March 2005: 83,000; 30 June 2004: 80,000).  Proquote continues to make
progress, with the number of screens rising to 2,800 (30 June 2004: 2,100).



SEDOL Masterfile, the Exchange's service providing unique identification for a
range of global tradable instruments, continued to perform well since its launch
in March 2004.



Derivatives Services



Derivatives Services' revenue was unchanged, contributing £2.0 million to
turnover (2004: £2.0million).  EDX London performed steadily with 5.0 million
contracts traded (2004: 5.1 million).



Prospects



Commenting on the first quarter, Clara Furse, Chief Executive, said:



"The Exchange has made a strong start to the financial year, increasing turnover
by 13 per cent.  The performance was characterised by continued growth in issuer
activity on both our Main Market and on AIM, good trading on SETS and an overall
increase in the number of terminals receiving Exchange data.  This strong start
to the year demonstrates why our confidence in the future is high."



Further information is available from:


London Stock Exchange    John Wallace - Media                      020 7797 1222
                         Paul Froud - Investor Relations           020 7797 3322
                         Lyndal Kennedy - Investor Relations       020 7797 3322
Finsbury                 James Murgatroyd                          020 7251 3801
                         Melanie Gerlis                            020 7251 3801




                           LONDON STOCK EXCHANGE plc

             Summary Turnover - Three months ended 30 June 2005




Turnover                                                  Three months ended           Three months ended
                                                         30 June on IFRS basis   30 June on UK GAAP basis
                                                           2005        2004                          2004
                                                             £m          £m                            £m

Continuing operations
Issuer services                                            14.3        10.2                           8.4
Broker services                                            27.1        24.4                          24.2
Information services                                       22.4        21.2                          26.7
Derivatives services                                        2.0         2.0                           2.0
Other income                                                1.9         2.3                           2.4
Gross turnover                                                                                       63.7

Less: share of joint venture's turnover                       -           -                          (3.6)

Net turnover                                               67.7        60.1                          60.1





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