The exchange will relocate from the Stock Exchange Tower to aneight-story 220,000-sf building at King Edward's Court, PaternosterSquare in 2004. A 25-year lease has been signed at initial rent of£12.5 million ($17.5 million) per annum.

The automation of many of the stock exchange's functions meansthat the old Stock Exchange Tower is now far too large for theexchange's requirements and it currently only occupies 62% of thefloorspace. The exchange plans to sell the building once itsrelocation is complete. The tower was valued on 31 March 2001 byDTZ Debenham Tie Leung on an Existing Use Value basis at £93million ($129.25 million).

The stock exchange's chief executive Clara Furse said: 'I ampleased to confirm the Exchange's new headquarters will be based inthe City of London. The City is widely regarded as the financialheart of Europe and the London Stock Exchange is part of itslifeblood. We want to stay close to our customers--most of whom arebased in the City.'