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LSE says the new fee structure will cut the average charge per trade on SETS from £1.36 to £1.23 per trade.
'Lower fees stimulate volume growth and increase liquidity, which, in turn, reduce overall transaction costs,' says the exchange in a statement.
Furthermore, the LSE says a discounted trade reporting tariff will support the launch of its new MiFID European trade reporting service, which is being introduced to combat the threat of alternative trading and reporting systems that will spring up after the introduction of the EU's Markets in Financial Instruements Directive (MiFID).
The LSE says the year will also see the launch of TradElect, its new trading platform, in the second quarter.
The exchange's statement comes just days after Nasdaq extended the deadline for its £2.7bn hostile takeover bid.
Nasdaq formally launched its £2.7bn hostile offer for the LSE in December after its first two approaches were rebuffed by the UK market operator earlier in the year.
The US exchange has subsequently accused the LSE of failing to share the benefits of its growth with its customer base and of failing to recognise 'new competitive threats' such as Project Turquoise, the dealer-backed consortium which is looking to build a rival share trading platform.
According to press reports, the LSE is expected to offer shareholders a further cash incentive in yet another attempt to fend off Nasdaq's hostile takeover bid. Details of the cash sweetner are expected to be released later this week.