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Xavier Rolet presented his first update as chief executive of the London Stock Exchange today and it was broadly welcomed by the City.
The 49-year-old, who took over from Clara Furse in May, said first-quarter revenues were down 8% on last year to £161.9 million as the economic downturn slowed trading activity and competition from new trading platforms took some of the Exchange's market share.
However, it was better than the £151 million that had been estimated by analysts and LSE shares rose 2%, or 14½p, to 667½p. It came as Furse cut all formal ties with the London Stock Exchange, standing down as a director at the annual meeting having joined as chief executive in 2001.
"While market conditions are likely to remain challenging in the near term, the group is taking actions to ensure we are in good shape and responding fast to changing markets," he said.
LSE, which also operates the Borsa Italiana in Milan, said capital market revenues dropped 20% in the first quarter to £76.4 million.
This was due in part to a decline in the number of new company listings.
