Pre-close period update

RNS Number : 0703B

London Stock Exchange Group PLC

28 March 2013

 



28 March 2013

LONDON STOCK EXCHANGE GROUP plc (LSEG)

PRE-CLOSE PERIOD UPDATE FOR the eleven months ended 28 FEBRUARY 2013

Unless otherwise stated, the following commentary refers to the eleven months ended 28 February 2013 and, where appropriate, to the corresponding period last year. 

·    Group is continuing to make good progress

·    Against a backdrop of subdued global market activity, there is an encouraging resurgence in the London IPO market

·    LSEG and LCH.Clearnet shareholder meetings on 27 March gave required shareholder approvals for LSEG to acquire up to 55.5 per cent of LCH.Clearnet shares; letter of non-objection received from FSA, completion expected in coming quarter subject to satisfaction of the remaining conditions

·    FTSE announced a new fixed income index joint venture, continuing the Group's expansion in North America; FTSE TMX Debt Capital Markets will be the third largest fixed income ETF index provider globally

·    In fixed income trading, MTS money markets (repo) value traded increased 17 per cent, while cash markets value traded was unchanged; MOT retail bond trading volumes were strong, showing a 19 per cent increase

·    London Stock Exchange confirmed introduction of its High Growth Segment, a new Main Market segment designed to meet the needs of fast-growing companies and investors seeking growth opportunities

·    Total equity capital raised on the Group's markets for the period was £14.8 billion (2012: £32.4 billion), with 107 new issues (2012: 144); issuance was strong in Q3 and we are finishing the year well with 12 new issues on the UK Main Market and AIM in March and an encouraging pipeline for the new financial year

·    Average daily UK equity value traded down 15 per cent and Italian average daily volumes down 14 per cent; derivatives trading volumes decreased 30 per cent over the same period last year

·    Clearing volumes reduced in line with trading levels; initial margin held increased 6 per cent to an average €10.1 billion; net treasury income in the current quarter reduced as expected, with €4.9 billion invested on a fully collateralised basis

·    FTSE continues to make good progress, with ETF AUM increasing 33 per cent year on year, on a like-for-like basis, as at the end of February 2013;  up 140 per cent reflecting the new Vanguard AUM effective from January 2013; subscription renewal rates remain high at 94 per cent

·    FTSE benefitting from postiitve trends for international investment in China: FTSE China A50  index has a leading position for ETFs on QFII and RQFII schemes, with quotas on both increasing

·    Professional users of both UK and Italian market real time information decreased as expected; demand for other information products, including UnaVista and SEDOL, remained good

·    The Group has completed the acquisition of a 67 per cent stake in GATElab, an Italian and UK-based trading and connectivity technology company; will complement existing capabilities working, with MillenniumIT on further developing the Group's capital markets IT capabilities

·    The Group launched the 'International Board', an agreement with Singapore Stock Exchange to allow the largest stocks on each exchange to be traded by their respective member firms

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

"We are making good progress.  The Group has continued to develop, diversifying in scope and extending its international reach. Notable recent developments include FTSE's fixed income joint venture, the continued strengthening of our IT capabilities and the launch of our International Board. The new High Growth Segment of our London market provides further funding opportunities for fast growing companies and is an important additional development to help stimulate growth and job creation.

"We are also pleased to have secured shareholder approvals for the acquisition of a majority stake in LCH.Clearnet and we continue to work towards completion in the coming period.  We remain well placed across a wide range of business lines to develop further in the year ahead."

The Group expects to announce its Preliminary results for the year ending 31 March 2013 on 15 May 2013.

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
	Eleven months ended
	28 Feb		29 Feb	Variance
	2013		2012	%
New Issues
UK Main Market, PSM & SFM	34		54	(37%)
UK AIM	68		82	(17%)
Borsa Italiana	5		8	(38%)
Total	107		144	(26%)
Company Numbers (as at period end)
UK Main Market, PSM & SFM	1,372		1,444	(5%)
UK AIM	1,094		1,122	(2%)
Borsa Italiana	287		291	(1%)
Total	2,753		2,857	(4%)
Market Capitalisation (as at period end)
UK Main Market (£bn)	2,135		1,947	10%
UK AIM (£bn)	65		71	(8%)
Borsa Italiana (€bn)	359		378	(5%)
Borsa Italiana (£bn)	310		319	(3%)
Total (£bn)	2,510		2,337	7%
Money Raised (£bn)
UK New	8.1		11.7	(31%)
UK Further	5.2		5.2	0%
Borsa Italiana new and further	1.5		15.5	(90%)
Total (£bn)	14.8		32.4	(54%)

Capital Markets - Secondary Markets
	Eleven months ended
	28 Feb		29 Feb	Variance
Equity	2013		2012	%
Totals for period
UK value traded (£bn)	901		1,060	(15%)
Borsa Italiana (no of trades m)	51.2		60.7	(16%)
Turquoise value traded (€bn)	376.0		472.0	(20%)
SETS Yield (basis points)	0.68		0.69	(1%)
Average daily
UK value traded (£bn)	3.9		4.6	(15%)
Borsa Italiana (no of trades '000)	222		258	(14%)
Turquoise value traded (€bn)	1.61		2.00	(20%)
Derivatives (contracts m)
Turquoise	22.8		36.5	(38%)
IDEM	33.5		43.4	(23%)
Total	56.3		80.3	(30%)
Fixed Income
MTS cash and Bondvision (€bn)	2,189		2,196	(0%)
MTS money markets (€bn term adjusted)	63,085		54,065	17%
MOT number of trades (m)	5.74		4.82	19%

Post Trade Services
	Eleven months ended
	28 Feb		29 Feb	Variance
	2013		2012	%
CC&G Clearing (m)
Equity clearing (no of trades)	53.9		64.0	(16%)
Derivative clearing (no of contracts)	33.5		43.3	(23%)
Total	87.4		107.3	(19%)
Open interest (contracts as at period end)	4.8		5.7	(16%)
Initial margin held (average €bn)	10.1		9.5	6%
Monte Titoli
Pre Settlement instructions (trades m)	26.3		30.7	(14%)
Settlement instructions (trades m)	24.6		31.6	(22%)
Total Settlement	50.9		62.3	(18%)
Custody assets under management (average €tn)	3.22		3.04	6%

Information Services
	As at
	28 Feb		29 Feb	Variance
	2013		2012	%
UK Terminals
Professional - UK	33,000		38,000	(13%)
Professional - International	50,000		53,000	(6%)
Total	83,000		91,000	(9%)
Borsa Italiana Professional Terminals	133,000		135,000	(1%)

 

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