London Stock Exchange sees drop in revenue

LONDON Stock Exchange Group Plc has posted a 9 per cent fall in revenue for its third quarter and said it expected market conditions to be testing for the current quarter.

LSE, like other European exchanges, has been losing market share to upstart multilateral trading facilities (MTFs) such as Chi-X and BATS since pan-European regulation opened the market to competition in 2007.

"Market conditions are expected to remain testing in the current quarter," said LSE Chief Executive Xavier Rolet in a statement.

"We continue to work on ways to leverage the assets and develop opportunities across the group to provide a platform for growth further ahead."

Revenue fell to £154.9m for the three months to end-December.

That included a drop of 13 per cent in post-trade revenues due to an expected decline in interest on the margin held in its clearing business from high levels a year ago, it said.

Its information and technology services rose 3 per cent, with a first-time contribution from newly acquired firm MilllenniumIT, LSE said.