On Wednesday, on the back of much lower than before trading activity, the London Stock Exchange Plc. posted a 40% drop in profits for the current fiscal year's first six months. The bourse was also quick to warn that market conditions are still very unstable, hurting the idea now nurtured by many experts that UK is well out of the recession and on the recovery path.

Net earnings of 49.3 Million Pounds ($82.4 Million) were reported by LSE for the six months ending up-to September 30, a substantial fall from the 81.7 Million Pounds recorded for the same period last year.

"Underlying market conditions remain uncertain, at least in the near term, and competition in cash equities trading is expected to remain intense. Lower trading levels, together with intense competition from new trading venues with aggressive pricing, have contributed to lower equity trading revenues, the main area of decline for the group", LSE shared in an official statement.

Revenue also dropped by 9% to 310.9 Million Pounds from last year's 342.5 Million Pounds. The Exchange has also been hit hard by increasing competition.

In mid-morning trading, LSE's own shares recorded a 0.9% decline and slipped to 839.5 pence.