Pre-close period update

RNS Number : 1506N

London Stock Exchange Group PLC

26 September 2012

 



26 September 2012

LONDON STOCK EXCHANGE GROUP plc

PRE-CLOSE PERIOD UPDATE FOR the five months ended 31 August 2012

Highlights:

·    Positive performance, with good revenue growth, from the diversified Group in difficult market conditions

·    Success of Group's equity markets continued with further raising of new capital to support businesses, though new issue levels and trading remained subdued, reflecting quiet market conditions (and compared with the strong prior year):

-     49 new issues across Group markets (FY 2012: 91), AIM performing particularly well;

-     Average daily UK equity value of £4.0bn (FY 2012: £5.0bn); and

-     Italian average daily volumes of 226,000 trades (FY 2012: 270,000)

·    Share of trading in the total UK equity order book increased 1.5 per cent to 64.4 per cent; share of equity trading in Italy increased 2.4 per cent to 85.7 per cent

·    In fixed income, trading on MOT increased 24 per cent and the UK ORB market saw a number of successful bond issues; MTS money markets were flat on last year and MTS cash markets were 18 per cent lower, reflecting difficult markets

·    Clearing volumes reduced in line with trading levels although the level of initial margin held increased 23 per cent to an average €10.3bn; net treasury income remained strong though, as previously indicated, is expected to reduce over time

·    Assets under management in the Monte Titoli custody business rose 4 per cent; settlement instructions reduced 25 per cent

·    In Information Services, FTSE and other Information businesses continued to perform well; in real time data, terminals taking Borsa Italiana data increased 3 per cent while users of UK data were 7 per cent down year on year

·    Notable developments in the period included the successful launch of MillenniumIT trading systems at Borsa Italiana, the Johannesburg Stock Exchange and the Mongolian Stock Exchange, with all systems continuing to operate well

·    The Group also announced the launch of its 'International Board' in an agreement with Singapore Stock Exchange to allow the largest stocks on each exchange to be traded by their respective member firms; and MTS, in conjunction with other partners, confirmed the launch of a daily repo index series for the euro

·    During the period the Group received an additional, non-recurring, payment of C$29 million from TMX Group in respect of last year's terminated merger transaction

·    Regulatory and anti-trust processes are continuing in respect of the shareholder approved acquisition of an up to 60 per cent stake in LCH.Clearnet. The competition authority in Spain has given clearance while authorities in the UK and Portugal continue to review the proposed transaction; it is targeted that all necessary outstanding clearances and approvals will be received during Q4 2012

·    Proposals for the regulatory requirements for CCPs under EMIR are expected to be released by EBA and ESMA in the coming days. We plan to update the market on their likely implications for the Group following their release
 

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

"We continue to make good progress, with our diversified business delivering  good revenue growth against the same period last year. This is particularly pleasing given that some parts of our business have experienced difficult market conditions. Primary markets have continued to successfully raise debt and equity capital for businesses.  Information Services, which includes FTSE, and our Post Trade Services have performed well.  The  MillenniumIT technology business has also had a very successful few months.

"Looking forward, we are well positioned to benefit from improved sentiment in the Eurozone and we remain firmly focused on growth opportunities and delivering benefits from recent initiatives and transactions."

The Group expects to announce its Interim results for the six months ending 30 September 2012 on 16th November 2012.

Further information is available from:

London Stock Exchange Group plc

Victoria Brough Paul Froud

Media Investor Relations

[phone] [phone]

Citigate Dewe Rogerson

Patrick Donovan/Grant Ringshaw

[phone]

Key Performance Indicators

Capital Markets - Primary Markets
	Five months ended
	31 August			Variance
	2012		2011	%
New Issues
UK Main Market, PSM & SFM	11		38	(71%)
UK AIM	34		48	(29%)
Borsa Italiana	4		5	(20%)
Total	49		91	(46%)
Company Numbers (as at period end)
UK Main Market, PSM & SFM	1,397		1,465	(5%)
UK AIM	1,110		1,158	(4%)
Borsa Italiana	291		295	(1%)
Total	2,798		2,918	(4%)
Market Capitalisation (as at period end)
UK Main Market (£bn)	1,866		1,809	3%
UK AIM (£bn)	59		72	(18%)
Borsa Italiana (€bn)	341		352	(3%)
Borsa Italiana (£bn)	271		311	(13%)
Total (£bn)	2,196		2,192	0%
Money Raised (£bn)
UK New	0.7		11.5	(94%)
UK Further	2.2		2.9	(24%)
Borsa Italiana new and further	1.4		8.5	(84%)
Total (£bn)	4.3		22.9	(81%)

Capital Markets - Secondary Markets
	Five months ended
	31 August			Variance
Equity	2012		2011	%
Totals for period
UK value traded (£bn)	418		519	(19%)
Borsa Italiana (no of trades m)	23.9		28.6	(16%)
Turquoise (€bn)	170.7		223.1	(23%)
SETS Yield (basis points)	0.68		0.70	(3%)
Average daily
UK value traded (£bn)	4.0		5.0	(20%)
Borsa Italiana (no of trades '000)	226		270	(16%)
Turquoise (€bn)	1.60		2.09	(23%)
Derivatives (contracts m)
Turquoise	11.4		17.6	(35%)
IDEM	17.5		24.4	(28%)
Total	28.9		42.0	(31%)
Fixed Income
MTS cash and Bondvision (€bn)	906		1,111	(18%)
MTS money markets (€bn term adjusted)	27,178		27,323	(1%)
MOT number of trades (m)	2.12		1.71	24%

Post Trade Services
	Five months ended
	31 August			Variance
	2012		2011	%
CC&G Clearing (m)
Equity clearing (trades)	25.1		30.2	(17%)
Derivative clearing  (contracts)	17.5		24.4	(28%)
Total Contracts	42.6		54.6	(22%)
Open interest (contracts as at period end)	5.3		5.9	(10%)
Initial margin held (average €bn)	10.3		8.4	23%
Monte Titoli
Pre Settlement instructions (trades m)	11.3		14.2	(20%)
Settlement instructions (trades m)	10.4		14.9	(30%)
Total Settlement	21.7		29.1	(25%)
Custody assets under management (average €tn)	3.18		3.06	4%

Information Services
	As at
	31 August			Variance
	2012		2011	%
UK Terminals
Professional - UK	35,000		38,000	(8%)
Professional - International	51,000		54,000	(6%)
Total	86,000		92,000	(7%)
Borsa Italiana Professional Terminals	141,000		137,000	3%

 

END

 

 

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