London Stock Exchange Group plc pre-close period update

Unless otherwise stated, the following commentary refers to the five months ended 31 August 2010 and, where appropriate, to the corresponding period last year.

London Stock Exchange Group plc (“the Group”) today issued a routine update ahead of the close period relating to the six months ending 30 September 2010

Headlines

· The total number of new issues on the Group’s markets more than doubled during the period, with increases on the Main Market and on AIM, though the total amount of capital raised was lower at £17 billion as the levels of secondary issues declined compared with the busier prior year period

· Average daily value traded in the UK increased nine per cent year on year at £5.0 billion, though trading in Q2 to date has been lower at an average £4.2 billion per day; trading volume at Borsa Italiana declined two per cent on last year at 256,000 trades per day

· Share of total UK cash equities order book trading over the past five months has been broadly stable since the start of the period: average share of trading on the UK platform was 62.6 per cent (57.6 per cent on just FTSE 100 trading); in addition, Turquoise averaged 3.2 per cent of European trading in the period and has consolidated gains in trading in the dark mid-point book, becoming the largest European dark pool MTF

· Yield on UK cash equities trading in the period was 0.71 basis points of value traded following introduction of a pilot tariff scheme effective from May 2010

· Volume traded on IDEM increased 26 per cent, with record trading days in May; overall derivative contracts traded declined 12 per cent in the year to date reflecting lower levels on EDX

· On the Fixed Income markets, MTS Cash and Repo markets value traded increased strongly on last year, up 25 and 78 per cent respectively

· In Post Trade, equity and derivative clearing volumes increased one and 26 per cent respectively while open interest remained high at 4.6 million contracts, though down on the same time last year; the increase in derivatives and fixed income trading, together with more active treasury management, will see a significant increase treasury income from CCP operations

· Settlement instructions were 25 per cent lower mainly due to a fall in OTC trading volumes, while the Monte Titoli custody business was steady with a three per cent increase in assets under management

· Demand for terminals taking real time data remained resilient at 93,000 professional users of LSE information (end of June 2010: 93,000; same period last year 94,000); professional terminals receiving Borsa Italiana data were also stable since Q1 at 141,000 (same period last year: 142,000)

· Demand for other Information and for Technology Services product lines remained good overall

Commenting on performance for the period, Xavier Rolet, Chief Executive said:

“Performance for the year to date reflects the continuation of generally variable market conditions, although there have been good levels of activity in parts of the business, such as fixed income trading and clearing of equities and derivatives. Actions taken to improve UK equities trading are taking effect, with share of trading resilient in the past few months, and recent announcements of fee reductions for clearing by third party providers will help reduce the total cost of trading.”

The Group expects to announce its Interim results for the six months ending 30 September 2010 on 18 November 2010.

Further information is available from:

London Stock Exchange

Victoria Brough – Media

+44 (0) 20 7797 1222

Luca Grassis ­– Media

+39 02 72426 211

Paul Froud – Investor Relations

+44 (0) 20 7797 3322

Citigate Dewe Rogerson

Patrick Donovan/ Grant Ringshaw/ Lucie Holloway

+44 (0) 20 7638 9571

Key performance indicators:

Capital Markets -   Primary Markets

     
       
 

Five months ended

 

31 August

Variance

 

2010

2009

%

New Issues

     

UK Main Market, PSM   & SFM

32

20

60%

UK AIM

41

10

310%

Borsa Italiana

3

2

50%

Total

76

32

138%

       

Company Numbers (as at   period end)

     

UK Main Market, PSM   & SFM

1,485

1,515

-2%

UK AIM

1,212

1,365

-11%

Borsa Italiana

295

295

0%

Total

2,992

3,175

-6%

       

Market capitalisation   (as at period end)

     

UK Main Market (£bn)

1,716

1,571

9%

UK AIM (£bn)

59

52

13%

Borsa Italiana (€bn)

398

444

-10%

Borsa Italiana (£bn)

329

383

-14%

Total (£bn)

2,104

2,006

5%

       

Money raised (£bn)

     

UK New

4.9

0.7

600%

UK Further

11.0

30.1

-63%

Borsa Italiana new and   further

1.1

11.3

-90%

Total (£bn)

17.0

42.1

-60%

 

Capital Markets -   Secondary Markets

   
       
 

Five months ended

 

31 August

Variance

 

2010

2009

%

Equity Volume Bargains   (m)

     

UK

64.6

65.8

-2%

Borsa Italiana

27.4

27.8

-1%

Total

92.0

93.6

-2%

       

Equity Value Traded

     

UK (£bn)

523

478

9%

Borsa Italiana (€bn)

351

293

20%

Borsa Italiana (£bn)

297

256

16%

Total (£bn)

820

734

12%

       

Equity Average Daily   Bargains ('000)

     

UK

621

633

-2%

Borsa Italiana

256

262

-2%

Total

877

895

-2%

       

Equity Average Daily   Value Traded

     

UK (£bn)

5.0

4.6

9%

Borsa Italiana (€bn)

3.3

2.8

18%

Borsa Italiana (£bn)

2.8

2.4

17%

Total (£bn)

7.8

7.0

11%

       

SETS Yield (basis points)

0.71

0.94

-24%

       

Equity Average Bargain   Size

     

UK (£’000)

8.1

7.3

11%

Borsa Italiana (€’000)

12.8

10.5

22%

       
 

Five months ended

 

31 August

Variance

 

2010

2009

%

Derivatives (contracts   m)

     

EDX

14.8

24.8

-40%

IDEM

23.0

18.3

26%

Total

37.8

43.1

-12%

       

Fixed Income

     

MTS cash and   Bondvision (€bn)

999

799

25%

MTS money markets (€bn   term adjusted)

25,259

14,201

78%

       

MOT (€bn)

95

98

-3%

MOT number of trades   (m)

1.53

1.47

4%

 

Post Trade

     
       
 

Five months ended

 

31 August

Variance

 

2010

2009

%

CC&G Clearing (m)

     

Equity clearing   (trades)

29.0

28.8

1%

Derivative clearing   (contracts)

23.0

18.3

26%

Total Contracts

52.0

47.1

10%

Open interest   (contracts as at period end)

4.6

5.0

-8%

       

Monte Titoli

     

Pre Settlement   instructions (trades m)

12.8

15.9

-19%

Settlement   instructions (trades m)

16.9

22.6

-25%

Custody assets under   management (€tn)

2.97

2.77

7%

 

Information Services

     
       
 

Five months ended

 

31 August

Variance

 

2010

2009

%

UK Terminals

     

Professional - UK

38,000

38,000

0%

Professional -   International

55,000

56,000

-2%

Total

93,000

94,000

-1%

       

Borsa Italiana   Professional Terminals

141,000

142,000

-1%

       

Proquote terminals

4,900

5,100

-4%

Proquote Italy   terminals

35,000

29,000

21%