London Stock Exchange Group said the UK's decision to leave the EU may eventually damage investor confidence and weigh on trading, adding to challenges facing the exchange operator.

“There is a broad range of possible outcomes resulting from this vote which has created uncertainty in the markets,” LSE said Thursday in a statement while reporting first-half profit. “The uncertainty or the outcome may erode investors’ confidence and impact primary and secondary market volumes, assets-based fees and clearing volumes in the UK.”

So far that has not been a problem. The company made more money from capital markets in the first half, with revenue rising 7 per cent to £181.6 million (€213.9m). Sales increased 9 per cent.

London Stock Exchange is pursuing a tie-up with Deutsche Börse, a transaction that has also been shaken by Brexit. The holding company’s London headquarters is a sticking point for German officials, especially in light of an eventual exit.

Officials in France and Germany have threatened to claw back euro denominated clearing – the majority of which happens in London – that is central to the acquisition. – (Bloomberg)