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ANALYST VIEWS: WHAT DOES THE FUTURE HOLD FOR THE LSE?

<!--StartFragment--> <!--StartFragment--> <strong>RUPAK GHOSE </strong> CREDIT SUISSE<br /> <!--StartFragment-->&ldquo;The main area of positive surprise was from costs, around &pound;10-20m better than expectations. We continue to believe that LSE is relatively fully valued and have an underperform rating on the stock &ndash; but given the better than expected costs we expect the share price to be relatively strong in the near-term.&rdquo;<br /><br /> <!--StartFragment--> <strong>JUSTIN URQUHART-STEWART </strong> 7 INVESTMENT MANAGEMENT<br />&ldquo;With Furse going, there is an opportunity for the LSE to develop a new strategy. It needs to create linkages with the areas that are going to see the most growth - and that will not be the West. The direction for the world&rsquo;s most international stock exchange is to become more international. Go East.&rdquo;<br /> <!--EndFragment--> <br /> <!--StartFragment--> <strong>SIMON DENHAM </strong> CAPITAL SPREADS<br />&ldquo;The LSE has too much competition &ndash; and it is not well priced in comparison. It has been a dinosaur for the past nine years since Furse took over and is paying for it now. But it still has the dominant position, and Rolet coming in &ndash; who is more attuned to the components that the markets want.&rdquo; <!--StartFragment--> <!--StartFragment--> <!--EndFragment--> <!--EndFragment-->