"raise £77 billion in the form of equity insurance. It has further helped to enablecompanies as well as different sovereign states to raise a capital of £680 billion asdebt. It has delivered a high level of liquidity in the primary market and developsnew scale and scope for operation. Volume as well as value of the business hasnever been affected due to volatility during any financial crisis. The organisationitself has diversified over the economic cycle because of the exposure in both thefixed income and equities (cash and derivatives).Ajayi et al. (2008) mentioned that there is little fundamental logic that needs to bere-examined before entering to the details of the communication process. The firmshould work in partnership with the clients so that they can receive the best qualityservice at the competitive price. Result illustrated that at the end of the year there are 3046 companies that arelisted or quoted on this market. This primary market assisted in raising the £77billion through new equity and critically remains open for the business when manyother markets have faltered.24 Capital marketCapital market Cash equity trading in UK Cash equity trading in Italy Derivative trading Fixed income trading Annual fees Admission fees Other capital markets 13% 12% 35% 12% 11% 10% 7% Figno-1 Capital market segmentation of LSE(Source Baillie, R.T. and T. Bollerslev., 2009 p 298) On the other hand secondary market reciprocates in a different a different mannerby using the equity trading and derivatives. Madhusudan (2007) explained thatamong the cash equity trading business most valuable one is the London market interms of performance metrics and similarly in terms of volume trade it is the Italianone. In the London there is anomalous behaviour in the transaction pattern. Furtherit is observed that average value traded was down by 33% at £4.6 billionillustrating the presence of huge uncertainty along with the competition. Thispercentage decline can be well explained by the overall financial crisis of in theglobal market in the previous financial year. But in Italy that was decline at thetune of 2%. Though there is as no noticeable pick is observed in the trading duringthe current year. Therefore statistics mentioned in Fig No-1 and 2 demonstrates theoverall progress of the LSE in terms of scope and competitiveness in their offeringsboth in trading as well as in other equity shares.25 2.4.2 Post trade service As opined by Mallikarjunappa et al. (2008, p 45), “LSE post trade service providesa host of risk management and trade services to ensure the successful completionof the trades as well as the custody of assest.The attractive of this trade servicedepends on the level of competency and efficiency of the organisation staff”.Introduction of a new product in the market is invariably interdependent on theassociated post trade developments. These kinds of services are quite critical toassess the counter party risk. It not only develops confidence in the mind of theclients but at the same time helps to promote additional liquidity in the market.This kind of division has mainly two interrelated objectives a)To ensure that LSE market gain the maximum access to the all kind of posttrade arrangement.Simultaneously they can utilize most of the in-houseassest whenever they feel appropriate.b) To deliver the wider European market place to the clients with efficient andwider level of post trade choices so that organisation can reduce total costand increase turnover for their business.[Available from: URL http://mpra.ub.uni-muenchen.de/12788/ accessed on12.11.2012]26 Post trade servicePost tradeClearing Net income through CCP business Settlement Cusatody and others 29% 39% 14% 18% Fig no-2 Post trade service(Source: Bahmani-Oskooee, M. and Sohrabian, A., 2009, p 460).Table no-2 Variance at the constantRevenue2011 2010Variancecurrency level clearing33.4 32 4 -2settlement21.1 17.2 23 15 custody andothers45.5 42.4 7 1Total100 91.6 34 14revenue 27 Net interestIncomethroughvarious CCP16.2 20.8 -22 -27business (Source: N. Chen, R. Roll and R. Ross., 2006, p 385) 2.4.3 Information and technology services Table no-3Variance at the constantRevenue2011 2010 Variancecurrency level Real time data103.7 114.4 -9 -11Otherinformationservices 65.6 59.2 11 10Technologybased services 47.3 33.9 40 37Total216.6 207.5 4 328(Source: N. Chen, R. Roll and R. Ross., 2006, p 386) Considering the real market trend professional user has used the real time data for93000 terminals. The result indicates that there is a significant growth in the all themarket position related with the information and technology based services.Information based services delivered a reasonably good growth from a number ofour non real time data business. It has been seen that the major contributors wasSEDOL [which delivers a unique notification of the world wide global tradablesecurities]. In the year of 2011 the Turquoise contributed in a massive manner.Technology services also encompass a large amount of contribution fromMillennium IT, which delivered £6.7million (approx). Beside it there is a significantgrowth (18) % is noticed from the hosting business and Oslo exchange partnership,both are intimated a prior signal before the end of the financial year ( Chen et.al.,2006).29 Information and technology services of LSE Real timeTechnology data 22% 48% Other information 30% Fig no-3 Information and technology based services (Source: N. Chen, R. Roll and R. Ross., 2006, p 389)2.5 Principle Risk components and uncertainties The following section depicts the uncertainties of the market that has challengedthe group?s overall ability to execute the strategy.Risk area Context of the risk MitigationcomponentChange of the It has beenobserved regulatory environment under the jurisdiction ofgovernment this risk hasincreased while a largenumber of product is30 launched Operational risk factorsThe organisation isSenior management hasundergoing a series of IT looked after the strategyprojects parallely. These and the project pipelineprojects are associated keeping in view thewith the client?s importance of the futureengagement programme, success the teamintervention of new members used to keepinnovative technology and track on the softwarestrategic development of design methodologies. Sothe post trade business. that any kind ofThese projects are equally implementation risk factorcomplex and major. Any can be minimized delay in the time scalescould be detrimental forthe growth and corefunctional area (Longinand Solnik, 2009). Macroeconomic-RiskUnfavorable tax regimeCross party politicalfactor and sometimes the relationship is must tochanging regulatory avoid such situation. Topmechanism of the official of the LSE used togovernment may reduce share their experience andthe attractiveness of the expertise withthe policy31 "