Pre-close period update

RNS Number : 9308O

London Stock Exchange Group PLC

26 September 2013

 



26 September 2013

LONDON STOCK EXCHANGE GROUP plc (the Group or LSEG)

PRE-CLOSE PERIOD UPDATE

Unless otherwise stated, the following commentary refers to the five months ended 31 August 2013 and, where appropriate, to the corresponding period last year. 

·    Diversified Group performing well

·    Total equity capital raised on the Group's markets for the period was £9.3 billion (2013: £4.0 billion), with 63 new issues (2013: 53); issuance has been good so far this year and the pipeline is encouraging

·    In fixed income trading, MTS money markets (repo) value traded increased 14 per cent; and, cash markets value traded increased 37 per cent; MOT retail bond trading volumes were strong, showing a 15 per cent increase

·    MTS announced the launch of MTS Swaps, expected in Q4 2013, a new platform giving buy-side institutions the ability to electronically trade interest rate swaps

·    LCH.Clearnet has seen strong growth in all OTC areas with IRS notional cleared of $205 trillion, up 29 per cent; CDS notional of $94 billion, a nearly five-fold increase; and, Forex notional of $379 billion, up by over 140 per cent. Fixed Income clearing of €30.8 trillion was up 3 per cent, Commodities were also up 3 per cent and equities broadly similar to the same period last year 

·    Global Client clearing of Swaps performing well with a current average of over $1 trillion notional value cleared per week; in total, over $50 trillion has been cleared since launch

·    FTSE performing well; demand for other information products, including UnaVista and SEDOL, remained good. Professional users of both UK and Italian market real time information decreased from June 2013

·    Average daily UK equity value traded up 5 per cent, Italian average daily volumes down 7 per cent; derivatives trading volumes down 31 per cent over the same period last year

·    Italian clearing volumes declined in line with trading levels; initial margin held increased 17 per cent, averaging €12.0 billion; with 95 per cent of cash margin invested on a fully collateralised basis by start of September

·    MillenniumIT has been selected to be the business development and technology partner by the Argentinian Central Securities Depository

·    The Group has entered into an agreement to acquire Turquoise Derivatives; the platform will continue to operate as at present but as a Regulated Market of a Recognised Investment Exchange   

·    Borsa Italiana acquired a 70 per cent stake in EuroTLX, an Italian MTF operating in the retail fixed income market; revenue in last financial year to December 2012 of €14.5 million

·    In July 2013, the Group signed a new £700m unsecured, committed revolving facility package with its banks, on favourable terms, to replace its existing credit lines. The new facility package comprises a mix of 5 and 3 year commitments which extend the Group's debt maturity profile and underpin its financial flexibility

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

"The Group continues to make good progress, with good operational  performance in particular at FTSE, in primary markets, fixed income and in OTC clearing at LCH.Clearnet.  We are focused on the ongoing development of our diversified business, including the opportunities at LCH.Clearnet, the expansion of our settlement and custody offering, development of our MTS Swaps service and sales of MillenniumIT software to global customers. In addition, we have seen exciting growth from SwapClear, as it continues to develop its interest rate swap clearing business in the US and elsewhere.

"We are well positioned in a wide range of businesses, and in a number of growth markets, and remain firmly focused on the execution of our strategy."

The Group expects to announce its Interim results for the six months ending 30 September 2013 on 13 November 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
	Five months ended
	31 August			Variance
	2013		2012	%
New Issues
UK Main Market, PSM & SFM	20		13	54%
UK AIM	38		36	6%
Borsa Italiana	5		4	25%
Total	63		53	19%
Company Numbers (as at period end)
UK Main Market, PSM & SFM	1,361		1,397	(3%)
UK AIM	1,086		1,110	(2%)
Borsa Italiana	282		291	(3%)
Total	2,729		2,798	(3%)
Market Capitalisation (as at period end)
UK Main Market (£bn)	2,171		1,866	16%
Borsa Italiana (€bn)	387		341	13%
Money Raised (£bn)
UK New	3.3		0.4	725%
UK Further	5.0		2.2	127%
Borsa Italiana new and further	1.0		1.4	(29%)
Total (£bn)	9.3		4.0	133%

Capital Markets - Secondary Markets
	Five months ended
	31 August			Variance
Equity	2013		2012	%
Totals for period
UK value traded (£bn)	441		418	6%
Borsa Italiana (no of trades m)	22.4		23.9	(6%)
Turquoise value traded (€bn)	285.4		170.7	67%
SETS Yield (basis points)	0.66		0.68	(3%)
Average daily
UK value traded (£bn)	4.2		4.0	5%
Borsa Italiana (no of trades '000)	210		226	(7%)
Turquoise value traded (€bn)	2.6		1.6	63%
Derivatives (contracts m)
Turquoise	7.4		11.4	(35%)
IDEM	12.5		17.5	(29%)
Total	19.9		28.9	(31%)
Fixed Income
MTS cash and Bondvision (€bn)	1,239		906	37%
MTS money markets (€bn term adjusted)	30,871		27,178	14%
MOT number of trades (m)	2.43		2.12	15%

Post Trade Services
	Five months ended
	31 August			Variance
	2013		2012	%
CC&G Clearing (m)
Equity clearing (no of trades)	23.7		25.1	(6%)
Derivative clearing (no of contracts)	12.5		17.5	(29%)
Total	36.2		42.6	(15%)
Open interest (contracts as at period end)	5.0		5.3	(6%)
Initial margin held (average €bn)	12.0		10.3	17%
Monte Titoli
Pre Settlement instructions (trades m)	11.0		11.3	(3%)
Settlement instructions (trades m)	11.5		10.4	11%
Total Settlement	22.5		21.7	4%
Custody assets under management (average €trn)	3.28		3.18	3%

LCH.Clearnet
	Five months ended
	31 August			Variance
	2013		2012	%
OTC derivatives
SwapClear
IRS notional outstanding ($trn)	423		331	28%
IRS notional cleared ($trn)	205.1		158.6	29%
SwapClear members	98		67	46%
CDSClear
Open interest (€bn)	18.2		9.3	96%
Notional cleared (€bn)	93.5		17.0	450%
CDSClear members	11		8	38%
ForexClear
Notional value cleared ($bn)	379.3		156.4	143%
ForexClear members	15		13	15%
Non-OTC
Fixed income - Nominal value (€trn)	30.8		29.8	3%
Commodities (lots m)	54.1		52.3	3%
Listed derivatives (contracts m)	69.6		83.9	(17%)
Cash equities trades (m)	148.5		148.6	(0%)
Average cash collateral (€bn)	40.7		48.5	(16%)

Information Services
	As at
	31 August			Variance
	2013		2012	%
UK Terminals
Professional - UK	32,000		35,000	(9%)
Professional - International	48,000		51,000	(6%)
Total	80,000		86,000	(7%)
Borsa Italiana Professional Terminals	136,000		141,000	(4%)
FTSE
ETFs assets under management benchmarked ($bn)	166		57	191%

 

END

 

 

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