Trading on the London Stock Exchange (LSE) has plummeted, sending the group’s revenues tumbling by nearly 12 per cent to £154.9 million in the quarter to 31 December.
The exchange said this morning that the year-on-year fall in revenues – which equates to 9 per cent in real terms and 12 per cent in currency constant terms – mainly reflects a decline in UK cash equities trading and reduced tariffs on the LSE.
Revenues were significantly down from the third quarter in 2008 when economic volatility boosted profits and trading. The exchange has also been adjusting to a cut in its tariffs, which was made last September to make it more competitive.
However, the LSE did benefit from a flurry of rights issues in the last three months of last year which raised a total of £22.8bn on the group’s markets.
Xavier Rolet, chief executive, said: “Market conditions may not have been easy in the last quarter, particularly in cash equities. They are expected to remain testing in the current quarter. We continue to focus on improving the shape of the business with actions clearly underway to reduce underlying operational costs.”