17 November 2017
visit www.atos.net

LSE takes £23.1 million charge on EDX London derivatives unit

03 November 2005  |  6029 views  |  0 London Stock Exchange

The London Stock Exchange has taken a goodwill impairment charge of £23.1 million on EDX London, the equity derivatives business it launched in 2003 with Scandinavian stock exchange operator OMX, and says it will not make any further investments in the venture.

EDX London was set up by LSE and OMX in 2003 to tap into the over-the-counter derivatives market, but the business has struggled to make any significant headway. The number of contracts traded on EDX in the first half reached just over 10 million, compared with 9.2 million in H1 2004.

LSE, which owns 76% of the venture, says that as a result of the poor take-up the Exchange will refrain from further investment in the unit, although the business will continue to operate.

Overall turnover for the LSE's derivatives services business, which mainly comprises EDX London, remained flat in the first half, reaching just £3.9 million, compared to £3.6 million a year ago.

In a separate statement OMX, which owns 24% of EDX, says it is too early to estimate the total net income effect of EDX on its own business.

The EDX charge, along with £2.6m in advisors fees related to the potential bids for the exchage, ate into LSE's first half operating profits which fell to £25.1 million, from £45.4 million a year ago.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

LSE puts Nic Stuchfield in charge of EDX

LSE puts Nic Stuchfield in charge of EDX

05 August 2003  |  5134 views  |  0 comments
EDX London ready for launch

EDX London ready for launch

27 June 2003  |  3249 views  |  0 comments
London Stock Exchange and OM in OTC derivatives venture

London Stock Exchange and OM in OTC derivatives venture

09 December 2002  |  8111 views  |  0 comments

Related company news


Related blogs

Create a blog about this story (membership required)
visit www.vasco.comvisit www.aciworldwide.comvisit www.asiapacificwealthreport.com

Top topics

Most viewed Most shared
Singapore central bank open sources blockchain prototypesSingapore central bank open sources blockc...
11247 views comments | 15 tweets | 28 linkedin
Digital receipt startup Flux scores game-changing deal with BarclaysDigital receipt startup Flux scores game-c...
9511 views comments | 20 tweets | 36 linkedin
AmEx partners Ripple and Santander for blockchain-enabled cross-border paymentsAmEx partners Ripple and Santander for blo...
8285 views comments | 12 tweets | 35 linkedin
UK cryptocurrency exchange startup launches debit card for spending bitcoinUK cryptocurrency exchange startup launche...
7260 views comments | 26 tweets | 37 linkedin
Visa bids to bring contactless transit payments to the worldVisa bids to bring contactless transit pay...
7134 views comments | 16 tweets | 29 linkedin

Featured job

to £70K base, £105K ote, benefits
London, UK

Find your next job