Stock Exchange cuts its charges for UK trading

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The London Stock Exchange is cutting its charges for the trading of UK shares for the first time since Big Bang 10 years ago to coincide with the launch of order-driven trading next month, writes Michael Harrison.

The new pricing structure, which will see charges fall by more than a half, will make London one of the most competitive exchanges in the world with lower charges than New York or any of the main European bourses.

For trading on the new order book, which applies only to stocks in the FTSE 100 Index, the charges will be cut from 15p per pounds 1,000 of shares under the previous system to 6p per pounds 1,000. The maximum charge remains at pounds 10.

For trading in shares outside the FTSE 100 the maximum charge is cut from pounds 10 to pounds 2.25.