London Stock Exchange boss sees 'much work ahead'

Xavier Rolet, chief executive of the London Stock Exchange, today admitted that after a year in the job he still has a long way to go.

"We recognize that there remains much work to be done and that, in many cases, the fruits of our labour to date have yet to be harvested," he said.

Rolet cut 130 jobs at the LSE last year and expects another 50 to go shortly as he strives to reduce costs.

Profits at the LSE dropped 20% to £280 million last year as it battled against growing competition from rival trading platforms and fragile share trading markets.

Average share trading values fell by a third to £4.6 billion a day.

Rolet was upbeat about the year ahead when the LSE will begin the switch from its old systems to Millennium, the technology company it bought for £31 million last year.

He said: "The main cash equity market will transfer in mid-September with other areas of the market following on."

Rolet highlighted the increase in companies raising capital on the stock market through rights issues, and said there were "encouraging signs that the initial public offering pipeline is strengthening".

He also said that yesterday, for the first time, Turquoise, the joint venture with 12 investment banks, became the number one dark pool trading platform in Europe, handling £300 million of trades.

When the LSE took control of it last December it was number six in the market.