London stock market cuts its fees

Companies complained after the LSE imposed steep price increases

The London Stock Exchange (LSE) says it is slashing its annual fees on its main share market following a probe by the competition watchdog, the OFT.

The OFT launched an investigation when the LSE hiked the fees it charges firms to have their shares traded by about 85% for the year 2002/03.

Now the LSE has been forced to reverse most of the increase, bringing it down to a rise of about 35%.

The Stock Exchange also agreed to limit prices rises in the next two years.

Fees that smaller companies on its AIM market are charged will also be cut, the LSE pledged.

'Anti-competitive'

The Office of Fair Trading said it felt the steep increases in the annual fees to remain listed on the stock market were anti-competitive.

The new cuts mean that a company with a market capitalisation of £2m will pay an annual fee of £3,375 compared with the current tariff of £5,215.

For a company with a market cap of over £2bn, the fees will drop to £33,244 from £43,240.

LSE deputy chief executive Martin Wheatley said the exchange did "not agree" with the watchdog's conclusions.

But he added that a "swift and definite resolution to this matter is in the best interests of customers and shareholders".