London Stock Exchange revenue drops as IT uncertainty remains

The London Stock Exchange has seen revenues fall, in a three month period that saw great uncertainty over the future of its IT setup.

The exchange may undertake an IT shake-up in the coming weeks, as it looks to switch technology and potentially cut jobs.

A spokesperson for the bourse described the LSE to Computerworld UK as an “IT operation” in an era where super-fast electronic trading has taken over.

Revenue at the LSE declined eight percent in the three months to 30 June, year on year. It was £161.9 million and was hit by a decline in the number of customer terminals taking real time stock exchange data, down 6,000 in one year to 98,000. But it said this was offset by “good” demand for non-real time data.

There was also a large fall on its electronic order book, SETS. Revenue there fell 38 percent year-on year.

Former Lehman Brothers executive Xavier Rolet, chief executive at the LSE, said market conditions would “remain challenging in the near term”. In a statement to the market, he said “the Group is taking actions to ensure we are in good shape and responding fast to changing markets”.

“A new, leaner organisation structure is taking effect, new trading tariffs for UK cash equities trading have been announced, and work continues to ensure the group is well placed to capture market opportunities,” he said.

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