London Stock Exchange tariff change sends its shares lower
SHARES in London Stock Exchange (LSE) shed 5.5 per cent to close at 663.5p yesterday, as investors reacted to Wednesday’s announcement that it will introduce a new tariff to attempt to improve trading.
In new chief executive Xavier Rolet’s latest break with the old regime, the LSE is cutting its fees by roughly nine per cent and is moving away from the “maker taker” model applied by rivals.
The exchange operator says the new tariff would have resulted in £3m worth of trading fee reductions between January and March.
Analysts said the market was surprised that the LSE was abandoning the old pricing system, which it only introduced in September 2008, to instead now charge both sides of the trade the same fee.