Press releases 2002

12 December 2002

Trading system helps boost South Korean volumes in London

The London Stock Exchange said today that trading volumes for South Korean stocks in London have increased by 60 per cent compared with the same period last year. This was partly due to the introduction of the Exchange’s new automatic trading system for international depositary receipts - the International Order Book (IOB) - which was launched in April 2001.

The Exchange's Chairman, Mr Cruickshank, said: "We have seen record-breaking trading in South Korean depositary receipts in London this year, this has partly been driven by our trading system enhancements. This surge of interest in South Korean stocks offers great opportunities for other South Korean companies seeking an international listing in London".

Mr Cruickshank was speaking at the signing of a cooperation agreement between the London Stock Exchange and the Korea Stock Exchange.

The Exchange regards South Korea as a priority market and this week's visit is the fifth visit in the last twelve months. The Exchange has received considerable interest from South Korean companies looking to access international capital or raise their global profile through a London listing.

London is the most international of the top three global financial centres with Exchange members trading almost three times as much foreign equity as the NYSE. London is home to the world's largest pool of investment funds and liquidity - some $2.4 trillion according to the last major survey. The Exchange has 20 South Korean companies listed or traded - more than any of its competitors.

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Notes to editors:

Between November 2001 and October 2002, $32 billion of trading was reported in South Korean stocks in London. This represents a 60 per cent increase over the same period last year when there was $20 billion.

Our international companies section provides more information on South Korean companies listed in London.

As well as offering world class standards of financial market regulation, London also offers the fastest and easiest route for companies to access international capital.

The IOB trading system provides automatic electronic trading for 16 South Korean depositary receipts.

$50 billion of trading has taken place so far this year on the IOB, averaging over 20,000 trades per month.

The Exchange's competitive position has improved markedly in a very difficult year for equity markets: in the first six months of the Exchange's financial year, the Exchange attracted 75% of all western European IPOs, and had more IPOs than NYSE and Nasdaq combined.

London is Europe's leading financial centre and the gateway to the Eurozone.