Q1 Trading Statement

London Stock Exchange Plc
16 July 2003


16 July 2003

                           LONDON STOCK EXCHANGE plc

                              TRADING STATEMENT
                    FOR THE THREE MONTHS ENDED 30 JUNE 2003
 

Turnover for the three months ended 30 June 2003 ("Q1") was £58.7 million (2002:
£58.5 million).

Issuer Services

Issuer Services' turnover decreased five per cent to £9.4 million from £9.9
million in the corresponding period last year, reflecting continued weakness in
the Initial Public Offerings (IPOs) market.

There were 40 new issues on the Exchange's markets during the quarter (2002: 71)
of which 13 were IPOs (2002: 44).  At 30 June 2003, a total of 2,727 companies
were traded on our markets (2002: 2,891) including 701 on AIM, our international
market for smaller, growing companies (2002: 673).

Broker Services

Broker Services' turnover increased one per cent to £21.0 million (2002: £20.8
million).  The total number of equity bargains increased eight per cent to 13.4
million (2002: 12.4 million), a daily average of 220,000 (2002: 203,000).
Trading on SETS, the electronic order book, continued to be strong at an average
of 126,000 bargains per day (2002: 85,000), a 48 per cent increase on the
corresponding period last year.

The growth in SETS bargains was offset in part by a 33 per cent fall in the
average value of a SETS bargain to £22,000 (2002: £33,000) and a decline in the
number of off book and international bargains reported to the Exchange.  The
daily average number of UK off book bargains was 54,000 (2002: 59,000).  The
daily average number of international bargains for the period decreased 32 per
cent to 40,000 (2002: 59,000).

Information Services

Information Services' turnover was up four per cent to £25.6 million (2002:
£24.7 million).  Despite a further decline in the overall number of terminals
receiving Exchange data on a real-time basis, the increase in turnover reflects
generally resilient demand for the Exchange's range of information products
including RNS, the UK's leading distributor of financial communications to the
global financial markets, FTSE, the Exchange's joint venture with the Financial
Times, and Proquote, a low cost software and data provider acquired by the
Exchange in February 2003.

At the end of Q1, the total number of terminals fell to 92,000 (31 March 2003:
94,000; 30 June 2002: 103,000) reflecting difficult conditions in the financial
services sector.  Approximately 84,000 were attributable to the higher yield
professional user base (31 March 2003: 88,000; 30 June 2002: 94,000).

RNS contributed £1.8 million (2002: £1.7 million) to turnover with over 85
companies in the FTSE 100 using RNS to release regulatory announcements.
Turnover from FTSE was £3.1 million, up from £2.7 million in the corresponding
period last year.

With over 1,300 screens and over 90 corporate customers, Proquote continues to
be further developed.

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.

Prospects

Market conditions continue to be difficult, with pressure on terminal numbers
and weak IPO activity.  However, the Exchange continues to invest in new markets
to expand its product offering.

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

"The current year is proving challenging but broadly in line with our
expectations.  We are investing in new markets to expand and diversify our
business and continue to view the Exchange's future with confidence."


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



                         LONDON STOCK EXCHANGE plc


                Summary Turnover - Three months ended 30 June 2003

Turnover                                   Three months ended      Year ended
                                               30 June               31 March
                                           2003        2002              2003
                                             £m          £m                £m

Continuing operations
Issuer services                             9.4         9.9              36.0
Broker services                            21.0        20.8              87.3
Information services                       25.6        24.7             102.2
Other income                                2.7         3.1              11.8
Gross turnover                             58.7        58.5             237.3

Less: share of joint venture's turnover    (3.1)       (2.7)            (11.4)

Net turnover                               55.6        55.8             225.9



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