LSE has not had an easy time so far this year, after it was shuffled out of the FTSE 100 in June. Following the worst of the financial crisis, 2010 has seen nervous investors shuttle into bonds and out of equities, partly explaining why the company’s revenues saw barely any change.

Its results yesterday benefited from a one-off gain of £5.6m after renegotiating VAT calculations with the Treasury, but they were otherwise right on consensus, with operating profit of £155m.

Still, despite growing fragmentation in the marketplace, LSE is well-placed to compete in Europe.

It maintains a dominant market share in the UK and with its move into high-frequency trading (albeit slightly marred by suspected sabotage), it has proved that, with some prodding, it is ready to move with the times.
juliet.samuel@cityam.com