Press releases 2003

14 October 2003

London Stock Exchange to launch Dutch Trading Service

Clearnet to provide Central Counterparty facilities

The London Stock Exchange today announced that it has signed an agreement with Clearnet to provide the central counterparty for its full, bespoke equity trading service in Dutch securities.

The service, which is based on SETS™, the Exchange’s electronic order book, will use the Dutch market’s existing post trade market infrastructure. More specifically, CLEARING 21® will provide the central counterparty services.

This combination is designed to attract trading business from all those operating in the Dutch market. The service will be launched, subject to FSA regulatory approval, in the first quarter of 2004.

Full details of the service, including launch date, pricing and how it will work, will be announced later this month when the London Stock Exchange will be holding kick-off events in Amsterdam (22 October) and London (23 October).

Commenting on the proposal, Clara Furse, Chief Executive of the London Stock Exchange, said:

“We have spent considerable time talking to firms active in the Dutch market in an effort to understand and, ultimately, meet their specific requirements for a bespoke market offering.  The market wants competition.  This is an important step in moving forward Europe’s capital markets.”

Patrice Renault, Chief Executive of Clearnet, continued:

“Clearnet intends to provide services to multiple exchanges.  Our members will be thus offered the opportunity to increase the benefits of their post trading rationalisation across several markets.”

- ends -

For further information, please contact:

Huw Gott    +44 (0)20 7797 1222 or  newsroom@londonstockexchange.com

About the London Stock Exchange:

The London Stock Exchange is one of the world’s leading equity exchanges and a leading provider of services that facilitate the raising of capital and the trading of shares.

The London Stock Exchange is the most international equities exchange by trading in the world and Europe's largest pool of liquidity.  By the end of 2002, the market capitalisation of UK and international companies on its markets amounted to £3.1 trillion, with £4.6 trillion of equity business transacted over the year.

The London Stock Exchange is a Recognised Investment Exchange (RIE) under the Financial Services and Markets Act 2000 and is supervised by the Financial Services Authority.