Trading Statement

London Stock Exchange Plc
14 July 2004

14 July 2004


                          LONDON STOCK EXCHANGE plc
 
                              TRADING STATEMENT
                    FOR THE THREE MONTHS ENDED 30 JUNE 2004


Unless otherwise stated, all figures referenced below refer to the three months
ended 30 June 2004 and the corresponding period last year.

Turnover for the three months ended 30 June 2004 ("Q1") increased nine per cent
to £63.7 million (2003: £58.7 million).

Issuer Services

Issuer Services' turnover decreased 11 per cent to £8.4 million from £9.4
million in the corresponding period last year.  The decline in revenue reflects
the impact of lower tariffs, effective from 1 April 2004, offset in part by an
increase in the number of new issues on our Main Market.

There were 92 new issues on the Exchange's markets during the quarter (2003: 40)
of which 16 were on the Main Market (2003: 10).  AIM, our international market
for smaller, growing companies, had a total of 76 new issues compared to 30 in
the corresponding period last year.  At 30 June 2004, a total of 2,722 companies
were traded on our markets (2003: 2,727) including 846 on AIM (2003: 701).

Broker Services

Broker Services' turnover increased 15 per cent to £24.2 million (2003: £21.0
million).  The total number of equity bargains increased 14 per cent to 15.3
million (2003: 13.4 million), a daily average of 250,000 (2003: 220,000).

Trading on SETS, the electronic order book, continued to be strong, up 22 per
cent to 154,000 bargains per day (2003: 126,000).  Growth in SETS volumes was in
part attributable to trading on SETSmm, the electronic order book for FTSE 250
and other leading non order book securities launched in November 2003, which
averaged 12,000 bargains per day during the quarter.

At £22,000, the average value of a SETS bargain was unchanged from the
corresponding period last year (2003: £22,000).  The daily average number of UK
off book bargains was 51,000 (2003: 54,000).  The daily average number of
international bargains for the period was 45,000 (2003: 40,000).

During the quarter the Exchange launched its EUROSETS Dutch Trading Service,
with approximately 40 firms utilising the service since go-live on 24 May 2004.

Information Services

Information Services' turnover was up four per cent to £26.7 million (2003:
£25.6 million).  Despite a further decline in the overall number of terminals
receiving Exchange data on a real-time basis since Q1 last year, the increase in
turnover reflects demand for the Exchange's range of information products.  This
included Proquote, our low cost financial markets software and real-time price
data company, FTSE, our joint venture with the Financial Times, and the launch
of SEDOL Masterfile, the extension to the Exchange's previous securities
identifier launched in March 2004.

At the end of Q1, the total number of terminals was 90,000 (31 March 2004:
90,000; 30 June 2003: 92,000) of which approximately 80,000 were attributable to
the higher yield professional user base (31 March 2004: 80,000; 30 June 2003:
84,000).

RNS contributed £1.8 million (2003: £1.8 million) to turnover with over 90
companies in the FTSE 100 using RNS to release regulatory announcements.
Turnover from FTSE was £3.6 million, up from £3.1 million in the corresponding
period last year.

With over 2,100 installed screens (30 June 2003: 1,300), including the first
tranche of a total of 500 screens contracted by TD Waterhouse in May 2004,
Proquote continues to grow.

Derivatives Services

Derivatives Services, our newest division, contributed £2.0 million to turnover,
with EDX London, launched 30 June 2003, contributing £1.9 million of the total.
EDX London continued to make good progress with 5.1 million contracts traded
(nine months ended 31 March 2004: 13.7 million).

Prospects

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

"The Exchange has started the year well with overall turnover growth of nine per
cent reflecting in particular strong SETS volumes in April and May.  We continue
to invest in new initiatives to expand and diversify our business and believe
the Exchange is well positioned for the future."


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 2004


Turnover                                     Three months ended      Year ended
                                                  30 June              31 March
                                              2004        2003             2004
                                                £m          £m               £m
________________________________________________________________________________
Continuing operations
Issuer services                                8.4         9.4             38.5
Broker services                               24.2        21.0             94.1
Information services                          26.7        25.6            101.0
Derivatives services                           2.0           -              6.1
Other income                                   2.4         2.7             10.7
________________________________________________________________________________
Gross turnover                                63.7        58.7            250.4

Less: share of joint venture's turnover       (3.6)       (3.1)           (13.3)

________________________________________________________________________________
Net turnover                                  60.1        55.6            237.1
________________________________________________________________________________



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