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London Stock Exchange Offers Single-Stock Options Trading

London Stock Exchange Group Plc (LSE) will introduce trading in single-stock options next month, offering 19 contracts on energy and mining companies listed in the U.K.

The exchange’s Turquoise unit will offer to trade options on companies from BP Plc to Rio Tinto Group from June 10, according to an e-mailed statement today. The products will clear through LSE’s LCH.Clearnet Ltd. business.

The move to trade options puts LSE in competition with NYSE Euronext’s Liffe unit and Deutsche Boerse’s Eurex platform, which both offer trading in U.K. options. LSE’s Chief Executive Officer, Xavier Rolet, is seeking to diversify the company’s business away from traditional equities trading after losing market share to new entrants.

“For the first time, customers will be able to trade U.K. single-stock options through our markets, alongside existing FTSE 100 futures and options,” Nicolas Bertrand, LSE’s head of equity and derivatives markets, said in the statement.

LSE’s shares fell 2 percent to 1,395 pence at 2:10 p.m. in London today, trimming their rally this year to 28 percent.

To contact the reporter on this story: Andrew Rummer in London at arummer@bloomberg.net

To contact the editor responsible for this story: Chris Nagi at chrisnagi@bloomberg.net

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