LONDON STOCK EXCHANGE GROUP plc PRE-CLOSE PERIOD TRADING UPDATE

Unless otherwise stated, the following commentary refers to the five months ended 31 May 2015 and, where appropriate, to the corresponding period last year. 

  • Group continues to perform well
     
  • FTSE and Russell making good progress - FTSE total ETF AUM benchmarked up 14 per cent to $236 billion and Russell ETF AUM up 22 per cent to $157 billion; both index businesses now combined as FTSE Russell
     
  • Good demand for other Information Services products, including UnaVista and SEDOL. Professional users of both UK and Italian market real time information declined slightly against Q1 2015
     
  • LCH.Clearnet has delivered a good performance in all OTC areas:

    -       Increased use of compression services through LCH.Clearnet, with $144 trillion compressed in total in the period, helping reduce IRS notional outstanding to $292 trillion, down 30 per cent

    -       CDS notional cleared of €45.1 billion, up 28 per cent

    -       Forex notional cleared of $431 billion, up 29 per cent

    -       Fixed income clearing of €30.3 trillion was flat on last year

    -       Cash equities and listed derivatives clearing were up 20 per cent and down 25 per cent respectively (reflecting decline in derivative trading levels in customer venues)

     

  • Total equity capital raised on the Group’s markets for the period of £16.5 billion (2014: £17.6 billion), with 40 UK Main Market new issues (2014: 31) and 10 in Italy (2014: 9); the new issue pipeline remains promising
     
  • In fixed income trading, MTS money markets (repo) value traded increased 26 per cent while cash markets value traded declined 4 per cent
     
  • Average daily UK equity value traded was up 8 per cent to £5.3 billion, Italian average daily volumes rose 6 per cent
     
  • Italian clearing volumes increased in line with Italian equities and derivatives trading levels, up 7 per cent in total; initial margin held increased 9 per cent, averaging €11.9 billion
     
  • Good progress continues to be made on the Russell Investment Management divestment process 

Commenting on performance for the period, Xavier Rolet, Group Chief Executive, said: 

“The Group has continued to perform well and we have delivered a positive operational performance in the period. Our index businesses have shown good growth, and are now combined as a global business as FTSE Russell.   Good performance across Capital Markets is also reflected in increased activity in our clearing businesses  and LCH.Clearnet has seen further progress in OTC services. 

“The Group remains well positioned for the changing regulatory and competitive landscape and continues to develop a broad range of opportunities to serve our clients globally on an open access basis.  We are focused on achieving integration and efficiency benefits, both from the acquisitions we have made and organically, including the many initiatives highlighted in our Post Trade strategy update last month.”

The Group expects to announce its Interim results for the six months ending 30 June 2015 on 5 August 2015.

Further information is available from:

London Stock Exchange Group plc

Victoria Cowley

Paul Froud

Media

Investor Relations

+44 (0) 20 7797 1222

+44 (0) 20 7797 3322

 

Guy Lamming / Mike Turner

Finsbury

 +44 (0) 20 7251 3801

 

 

Key Performance Indicators

 

Capital Markets - Primary Markets

Five months ended

31 May

Variance

2015

2014

%

New Issues

UK Main Market, PSM & SFM

40

31

29%

UK AIM

24

51

(53%)

Borsa Italiana

10

9

11%

Total

74

 

91

(19%)

Money Raised (£bn)

UK New

4.9

7.5

(35%)

UK Further

11.1

7.7

44%

Borsa Italiana new and further

0.5

2.4

(79%)

Total (£bn)

16.5

 

17.6

(6%)

 

 

Capital Markets - Secondary Markets

Five months ended

31 May

Variance

Equity

2015

2014

%

Totals for period

UK value traded (£bn)

543

501

8%

Borsa Italiana (no of trades m)

31.1

29.7

5%

Turquoise value traded (€bn)

480

387

24%

SETS Yield (basis points)

0.62

0.62

0%

Average daily

UK value traded (£bn)

5.3

4.9

8%

Borsa Italiana (no of trades '000)

302

285

6%

Turquoise value traded (€bn)

4.6

3.7

24%

Derivatives (contracts m)

LSE Derivatives

2.0

7.2

(72%)

IDEM

17.7

16.4

8%

Total

19.7

 

23.6

(17%)

Fixed Income

MTS cash and BondVision (€bn)

1,827

1,900

(4%)

MTS money markets (€bn term adjusted)

37,966

30,018

26%

 

Post Trade Services - CC&G and Monte Titoli

Five months ended

31 May

Variance

2015

2014

%

CC&G Clearing

Contracts (m)

50.8

47.4

7%

Initial margin held (average €bn)

11.9

10.9

9%

Monte Titoli

Settlement instructions (trades m)

28.8

28.4

1%

Custody assets under management (average €tn)

3.32

3.37

(1%)

 

Post Trade Services - LCH.Clearnet

Five months ended

31 May

Variance

2015

2014

%

OTC derivatives

SwapClear

IRS notional outstanding ($trn)

292

418

(30%)

IRS notional cleared ($trn)

214

277

(23%)

SwapClear members

112

105

7%

CDSClear

Notional cleared (€bn)

45.1

35.3

28%

CDSClear members

11

9

22%

ForexClear

Notional value cleared ($bn)

431

334

29%

ForexClear members

23

 

20

15%

Non-OTC

Fixed income - Nominal value (€trn)

30.3

30.2

0%

Listed derivatives (contracts m)

58.6

78.3

(25%)

Cash equities trades (m)

224.8

 

187.3

20%

Average cash collateral (€bn)

55.3

43.9

26%

 

Information Services

As at

 

31 May

Variance

 

2015

2014

%

 

Terminals

 

UK

75,000

79,000

(5%)

 

Borsa Italiana Professional Terminals

128,000

131,000

(2%)

 

 

ETFs assets under management benchmarked ($bn)

 

FTSE

236

207

14%

 

Russell Indexes

157

129

22%

 

 

Russell Investment Management AuM   ($bn)

270

276

(2%)

 

Note: FTSE benchmarked AUM figures for Q1 (3 months ended 31 March 2015) have been amended to $223bn