London Stock Exchange introduces new order book pricing

London Stock Exchange introduces new order book pricing

London Stock Exchange Group today announced a new, simplified fee structure for trading on its UK order books. The new structure, to be introduced from 1 September, will deliver benefits to a broad cross section of the Exchange’s diverse customer base.

In particular, the new price list will:

  • Balance charges applicable to each side of a transaction
  • Substantially lower the threshold for volume discounts
  • Increase the number of firms benefiting from incentives
  • Reduce the minimum charge per execution
  • Introduce new incentives for trading in Small Cap securities

Xavier Rolet, Chief Executive of London Stock Exchange Group, said:

“We aim to ensure that our pricing evolves to meet the needs of customers. The structure announced today will offer new incentives from which a broader range of firms can benefit, and should help to encourage a return to the long-term trend of volume growth on our markets. There will also be savings for trading in small cap securities, where liquidity has been most affected by the financial crisis.”

The Group expects the new tariff to drive growth in trading. For instance, applying the new tariff to the trading activity between January and March 2009, an additional £3 million in aggregate trading fee benefits would have accrued to member firms.

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For further information, please contact:

Catherine Mattison Press Office +44 (0)20 7797 1222

Notes to editors:

Outline of new tariff structure:

1 All charged trades subject to a minimum charge of 10p per side

2 0.25 bps surcharge on value traded aggressively in excess of 70% of value traded

3 Includes FTSE Small Caps, AIM, International Bulletin Board, SETSqx, SET3, Exchange Traded Funds, Exchange Traded Commodities, Covered Warrants and Listed Structured Products

About London Stock Exchange Group:

London Stock Exchange Group is Europe's leading diversified exchange business. It operates Europe's largest and most liquid equity market with over 500 member firms, holds the number one position in trading ETFs and securitised derivatives, and through its interest in MTS, is the leading platform for the trading of fixed income products.

The London Stock Exchange itself is the world's most international exchange with nearly 700 overseas companies from over 70 countries on its markets. It has consolidated this position in the last three calendar years, having attracted 218 international companies which raised over £32 billion between them. These figures include international companies on AIM, the London Stock Exchange's growth market, which has grown to become the world's most successful market for small and medium sized enterprises with over 1500 companies at the end of 2008.

Following its merger with Borsa Italiana in 2007, London Stock Exchange Group also now offers post-trade services such as netting, clearing and settlement on an efficient and competitive basis, and a comprehensive range of European bond trading services through MTS.