Pre-Close Period Update

RNS Number : 4906P

London Stock Exchange Group PLC

26 March 2009

 



26 March 2009

PRE-CLOSE PERIOD UPDATE

London Stock Exchange Group plc

Unless otherwise stated, the following commentary refers to the 11 months ended 28 February 2009 and, where appropriate, to the corresponding period last year. Figures for Borsa Italiana refer to the same time periods although the business has only been part of London Stock Exchange Group plc since 1 October 2007.

London Stock Exchange Group plc ('the Exchange') today issued a routine update ahead of the close period relating to the financial year ending 31 March 2009. 

In summary:

Issuer Services

• In Issuer Services total money raised across our markets rose 86% to a record £84bn, a strong increase in capital raising through further issues on our market 

• However, activity levels for new issues reflect the difficult market environment, particularly since the half year. Nevertheless, there have been 149 new issues in London and 8 in Italy in the year to date
  

Trading Services

• Average daily number of SETS trades increased 17 per cent to 735,000, while average daily value traded at £7.1bn per day declined 21 per cent, in line with the average fall in the FTSE 100; trading at Borsa Italiana was down 12 per cent to 253,000 trades per day

• Equity trading in the five months to end February reflects the deterioration in the market since October, with average daily value traded on SETS down 40 per cent at £5.6bn compared to a 32 per cent fall in the average value of the FTSE 100; average daily volume traded in London was up 2 per cent to 730,000 and in Italy it declined 17 per cent to 242,000 trades per day

• Derivatives volumes increased 12 per cent year to date to a record level of 88 million contracts, with EDX recording a 24 per cent increase driven by very strong trading in Russian derivatives. Fixed income markets remain mixed with MOT trades up 20 per cent, while MTS notional value traded decreased 10 per cent

Information Services

• Demand for professional terminals receiving LSE real time data remained strong, given the market environment, at 107,000, representing a modest decrease of 3,500 over last year and down 4,000 since the end of third quarter; professional users of Borsa Italiana data were down 4,500 to 153,500, a reduction of 2,000 since Q3

Post Trade Services

• While market volumes have been weaker, open interest in the derivatives market remained strong at 4.5m contracts, up by 1 million contracts on last year and the level of margin held has remained high in continuing volatile markets. 

Commenting on current trading and outlook, Clara Furse, Chief Executive, said:

'Trading volumes on SETS have increased over the year to date, but value traded has fallen, particularly in the second half of the year, reflecting a sharp reduction in the value of the FTSE 100 as all trading venues experience very difficult market conditions. However, our markets remain open for business, robust, well regulated and ever more vital to economic recovery. Our Issuer Services division saw a record £84 billion raised by companies mainly seeking further equity capital. And our Post Trade services continue to work very well in uncertain markets.

'We have produced a resilient overall performance and benefit from a sound financial position. We continue to trade in line with the Board's expectations for the full year.'  

The Exchange will announce its Preliminary results for the financial year ending 31 March 2009 on 20 May 2009.

Further information is available from:

London Stock Exchange	Alessandro Pavesi - Media	[phone]
	Patrick Humphris - Media	[phone]
	Paul Froud - Investor Relations	[phone]
Finsbury	Alex Simmons	[phone]

  Issuer Services

	11 months to
	end February		Variance
	2009	2008	%
New Issues
Main Market, PSM & SFM	63	114	-45%
AIM	86	251	-66%
Borsa Italiana	8	31	-74%
Total	157	396	-60%
Company Numbers (as at end February)
Main Market, PSM & SFM	1,538	1,603	-4%
AIM	1,514	1,683	-10%
Borsa Italiana	300	304	-1%
Total	3,352	3,590	-7%
Money raised (£bn)
LSE New money raised	6.9	21.4	-68%
LSE Further money raised	69.3	16.2	328%
Borsa Italiana new and further	7.5	7.5	0%
Total money raised	83.7	45.1	86%

Trading Services

	11 months to
	end February		Variance
	2009	2008	%
Equity Volume Bargains (m)
LSE	171.3	145.9	17%
Borsa Italiana	58.7	66.6	-12%
Total	230.0	212.5	8%
Equity Value Traded
LSE (£bn)	1,653	2,095	-21%
Borsa Italiana (€bn)	793	1,427	-44%
Borsa Italiana (£bn)	642	1,005	-36%
Total (£bn)	2,295	3,100	-26%
Equity Average Daily Bargains ('000)
LSE	735	629	17%
Borsa Italiana	253	288	-12%
Total	988	917	8%
Equity Average Daily Value Traded
LSE (£bn)	7.1	9.0	-21%
Borsa Italiana (€bn)	3.4	6.2	-45%
Borsa Italiana (£bn)	2.8	4.4	-36%
Total (£bn)	9.9	13.4	-26%
Equity Average Bargain Size
LSE (£'000)	9.6	14.4	-33%
Borsa Italiana (€'000)	13.5	21.4	-37%
SETS Yield
Yield per bargain £	0.70	0.89	-21%
Yield basis points	0.87	0.79	10%

	11 months to
	end February		Variance
	2009	2008	%
Derivatives (contracts m)
EDX	55.2	44.5	24%
IDEM	32.8	34.1	-4%
Total	88.0	78.6	12%
Fixed Income
Borsa Italiana MOT (€bn nominal)	176.1	140.0	26%
Borsa Italiana MOT number of trades (m)	3.0	2.5	20%
MTS (€bn nominal)	16,800	18,750	-10%

Information 

	End February		Variance
	2009	2008	%
LSE Terminals
Professional - UK	43,000	45,000	-4%
Professional - International	64,000	65,500	-2%
LSE Total	107,000	110,500	-3%
Borsa Italiana - Professional	153,500	158,000	-3%

Post Trade

	11 months to
	end February		Variance
	2009	2008	%
CC&G Clearing:
Equity Clearing (m)	59.9	67.6	-11%
Derivative Clearing (m)	32.8	34.1	-4%
Total Contracts (m)	92.7	101.7	-9%
Open interest (m) (as at end February)	4.5	3.5	29%
Monte Titoli:
Settlement Instructions (m)	41.4	49.3	-16%
Custody assets under management (€tn) (as at end February)	2.6	2.7	-4%

 

END

 

 

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