Market Report - August 2002

London Stock Exchange Plc
09 September 2002



9th September 2002

MONTHLY MARKET REPORT FOR AUGUST 2002


CONTINUED GROWTH IN THE NUMBER OF UK TRADES ON SETS IN AUGUST 2002


The number of trades on SETS, the Exchange's electronic order book, increased 56
per cent in August 2002 to 2.0 million trades compared with 1.3 million in
August 2001.  The average daily number of trades on SETS rose 63 per cent from
59,446 in August 2001 to 96,848 in August 2002.


The average daily number of trades on the London Stock Exchange in UK and
international shares increased by 11 per cent from 176,786 in August 2001 to
195,538 in August 2002.  The number of UK trades rose 21 per cent in August to
3.0 million trades, compared with 2.5 million trades in the same month in 2001.
The value of these trades fell from £135.7 to £131.1 billion.


In August 47 per cent of all SETS business was netted for settlement (using new
facilities introduced for SETS transactions in July).  During the month, 24
firms used netting and saw an increase in trading efficiency through reducing
the number of settlements by 98 per cent.


Settlement netting, combined with the other automated features used in SETS
trading, now provides a highly efficient straight through processing function
for the Exchange's customers.


There were 21 new issues during August 2002, 4 of which were IPOs.   The IPOs
were split between the Main Market (1) and AIM (3), raising £16.3 million
between them.  So far this year, to the end of July (the latest available
figures), the Exchange has accounted for more than 75 per cent of all western
European IPOs.



For further information, please contact:

Tiffany Hardie-Evans                        Press Office   [phone]

                                            [e-mail]



Notes to editors:


•         About the London Stock Exchange:

The London Stock Exchange is one of the world's leading equity exchanges 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 by trading
in the world and Europe's largest pool of liquidity.  By the end of 2001, the
market capitalisation of UK and international companies on its markets amounted
to £4.1 trillion, with over £5.6 trillion of 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.



•           SETS - the electronic order book

It is now over four years since the launch of SETS and the service continues to
go from strength to strength. Overall, the market is benefiting from tighter
spreads, greater liquidity and lower execution costs. Usage of SETS continues to
grow, as shown by recent record increases in the number of orders entered, the
number of firms using the order book and order book share of business. For more
information see our publication: "SETS - four years on" available at
www.londonstockexchange.com/trading/pdfs/sets4years.pdf



•           Settlement netting

Settlement netting was introduced on 1st July 2002.  Previously traders had to
settle every trade executed individually.  With netting all executions in a
single stock are netted together to give a single settlement at the end of each
day.



•           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 a
wholly autonomous company.

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



•           IPO - when a new company joins our market raising money.  This
excludes transfers and introductions (a company that joins a market without
raising money).





LONDON STOCK EXCHANGE


MONTHLY FACTSHEET FIGURES

August 2002


                                                     2002                              2001
DOMESTIC EQUITY TRADING                         Month    Year to date             Month    Year to date

Equity Trading Value (£m)                     131,088       1,246,540           135,734       1,287,994
Number of Equity Trades                     2,994,509      24,095,025         2,468,290      20,544,549


INTERNATIONAL EQUITY TRADING

Equity Trading Value (£m)                     174,820       1,999,538           267,491       2,661,999
Number of Equity Trades                     1,111,787      10,154,848         1,421,000      10,875,594


                                                    August 2002               August 2001
DOMESTIC MARKET CAPITALISATION £bn                              1,253                        1,578

TOTAL NUMBER OF COMPANIES                                       2,865                        2,928
UK list                                         1,754                     1,856
Foreign                                           429                       475
AIM                                               682                       597
of which techMARK                                 224                       249




                                                          2002                             2001
MONEY RAISED £m                                   Month    Year to date           Month    Year to date

UK & AIM New Issues Equity                           29           5,002             453           6,156
Further, Rights and Other                           530           9,949             143          12,091
Bonds, Warrants, Fixed Interest                   1,804          54,142           5,529          56,922
Int. New Issues Equity                                -               -               -           3,292
Further, Rights and Other                             2           1,717              33           1,346
Bonds, Warrants, Fixed Interest                   2,929          53,506           4,351          59,924


COMPANIES ADMITTED                                   21             166              34             222



INDICES PERFORMANCE                              Month Close        Mvt in Month           Mvt in Year
FTSE100                                              4,227.3                  0%                  -19%
FTSE All Share                                       2,046.2                  0%                  -19%
FTSE techMARK 100                                      783.0                 +1%                  -47%
FTSE AIM                                               666.2                 -3%                  -26%




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