Shareholder FAQs

1. How can I find out the price of the Exchange's shares?
There are a number of places where the price of our shares is available:

our own website at www.londonstockexchange-ir.com
Reuters - LSE.L
Bloomberg - LSE LN
Thomson Financial - ILX LSE-LN and GlobalTOPIC LSE.L
by contacting your broker.

2. How can I purchase or sell Exchange shares?
Like all listed companies to purchase or sell shares in the Exchange, you should contact your sharebroker or sharedealing service, as if you were buying shares in any company traded on the Exchange's markets.

3. Can anybody buy shares in the Exchange?
Yes. Like most listed companies anyone can purchase shares in the Exchange. Prior to the Exchange's Extraordinary General Meeting on 19 July 2001, under the articles of the Exchange, there had been a maximum shareholding limit of 4.9%. This limit has been removed.

4. Is membership of the Exchange and ownership of shares the same thing?
No. Any person can purchase shares in the Exchange and you do not have to own shares in the Exchange to become a member firm. However, membership of the Exchange is restricted to those firms that are able to satisfy the criteria for membership set out in the Rules of the London Stock Exchange, which are outlined on: http://www.londonstockexchange.com/regulation/market_rules.asp

5. How are your shares traded?
Our shares are traded on SETS, our leading-edge electronic order book.

6. Is stamp duty payable on transactions in Exchange shares?
Yes. As London Stock Exchange plc is incorporated in England and Wales, stamp duty on share transactions is payable at the normal rate for all UK registered companies.

7. How are transactions in Exchange shares settled?
Transactions affected on SETS, our electronic order book, are settled 3 business days after the transaction takes place (T+3). Transactions are settled in CREST, in the same manner as for the majority of UK securities listed on our markets.

8. If I want a share certificate, can I still get one?
If you would like to receive a share certificate, our registrars will send one to you. However because share transactions are settled in CREST, you can hold your shares in uncertificated form if you wish to do so.

Registrar

9. Who is the Exchange's registrar?
Our share registrar is:

Equiniti Limited
Aspect House
Spencer Road
Lancing
West Sussex
BN99 6DA

For enquiries about your registered holding, you can contact the registrar on 0870 600 3964 or for basic shareholder questions see Equiniti FAQs on http://www.shareview.co.uk/helpcentre/Pages/AllFAQs.aspx

10. What is Shareview?
Shareview is a service provided by Equiniti Limited. It may be accessed though www.shareview.co.uk. Creating a Shareview Portfolio gives you online information about your Exchange shares and other investments including:

direct access to information held for you on the share register including share movements
a daily valuation of all investments held in your portfolio
a range of information and practical help for shareholders.

To register at Shareview you will need your shareholder reference (which can be found on your share certificate) and you will be asked to select your own personal identification number (PIN). A User ID will then be posted to you. If you have any problems in registering your portfolio for the Shareview services, please contact Equiniti on 0870 600 3989.

Dividend policy

11. What is your dividend policy?
The Exchange maintains a sustainable progressive dividend policy. Interim and final dividends will generally be payable each year in January and August in the approximate proportions of one third and two thirds respectively of the expected total dividend.

12. When do you pay out dividends?
We intend to pay an interim and final dividend each year, payable in January (interim) and August (final). The interim and final dividends will be paid in the approximate proportions of one third and two thirds of the expected total annual dividend. For more details of annual events affecting shareholders, see our Financial Calendar.

For the year ended 31 March 2006 the Board declared an interim dividend of 4.0 pence per share, paid on 6 January 2006. The directors resolved to pay a second interim dividend, in lieu of a final dividend for the year ended 31 March 2006, of 8.0 pence per share on or shortly after 26 May 2006. This enables shareholders to receive entitlement to the second interim dividend prior to the share consolidation accompanying the £510 million capital return. Accordingly, no final dividend will be paid at the usual time in August. This brings the total dividend for the year to 12.0 pence per share.

Listing

13. Why did you choose to list?
At the time of demutualisation, the Directors concluded that an interim period was required while our business evolved and the consequences and benefits of demutualisation had time to take full effect. Since then, we have operated on a fully commercial basis with the primary objective of maximising shareholder value.

The next stage of our development was to move to a full listing which required the removal of the 4.9%. limit on shareholdings.

As a fully listed company, we have greater access to capital that provides us with the necessary strategic flexibility to play a leading role in the development of global capital markets.

In addition, the move to a full listing and the removal of the 4.9% limit on shareholdings enables a broader range of institutions to invest in our shares. Based on the closing share price of £3.65 (bonus adjusted) on 15 June 2001, our shares have since been included in the FTSE All Share and FTSE 250 Indices.

The Directors continue to believe that we should maintain a strong balance sheet that provides the financial flexibility to implement our key strategic objectives. In view of the significant cash balances that we had on our balance sheet at the time of listing, the Directors did not consider it appropriate to raise additional capital at that time.

Shareholder Services

Dividends

Home | Disclaimer | Privacy statement