PRE-CLOSE PERIOD UPDATE

RNS Number : 4376T

London Stock Exchange Group PLC

29 September 2010

 



29 September 2010

LONDON STOCK EXCHANGE GROUP plc

PRE-CLOSE PERIOD UPDATE

Unless otherwise stated, the following commentary refers to the five months ended 31 August 2010 and, where appropriate, to the corresponding period last year. 

London Stock Exchange Group plc ("the Group") today issued a routine update ahead of the close period relating to the six months ending 30 September 2010

Headlines

·    The total number of new issues on the Group's markets more than doubled during the period, with increases on the Main Market and on AIM, though the total amount of capital raised was lower at £17 billion as the levels of secondary issues declined compared with the busier prior year period   

·    Average daily value traded in the UK increased nine per cent year on year at £5.0 billion, though trading in Q2 to date has been lower at an average £4.2 billion per day; trading volume at Borsa Italiana declined two per cent on last year at 256,000 trades per day

·    Share of total UK cash equities order book trading over the past five months has been broadly stable since the start of the period: average share of trading on the UK platform was 62.6 per cent (57.6 per cent on just FTSE 100 trading); in addition, Turquoise averaged 3.2 per cent of European trading in the period and has consolidated gains in trading in the dark mid-point book, becoming the largest European dark pool MTF

·    Yield on UK cash equities trading in the period was 0.71 basis points of value traded following introduction of a pilot tariff scheme effective from May 2010

·    Volume traded on IDEM increased 26 per cent, with record trading days in May; overall derivative contracts traded declined 12 per cent in the year to date reflecting lower levels on EDX

·    On the Fixed Income markets, MTS Cash and Repo markets value traded increased strongly on last year, up 25 and 78 per cent respectively

·    In Post Trade, equity and derivative clearing volumes increased one and 26 per cent respectively while open interest remained high at 4.6 million contracts, though down on the same time last year; the increase in derivatives and fixed income trading, together with more active treasury management, will see a significant increase treasury income from CCP operations

·    Settlement instructions were 25 per cent lower mainly due to a fall in OTC trading volumes, while the Monte Titoli custody business was steady with a three per cent increase in assets under management

·    Demand for terminals taking real time data remained resilient at 93,000 professional users of LSE information (end of June 2010: 93,000; same period last year 94,000); professional terminals receiving Borsa Italiana data were also stable since Q1 at 141,000 (same period last year: 142,000)

·    Demand for other Information and for Technology Services product lines remained good overall

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

"Performance for the year to date reflects the continuation of generally variable market conditions, although there have been good levels of activity in parts of the business, such as fixed income trading and clearing of equities and derivatives.  Actions taken to improve UK equities trading are taking effect, with share of trading resilient in the past few months, and recent announcements of fee reductions for clearing by third party providers will help reduce the total cost of trading."

The Group expects to announce its Interim results for the six months ending 30 September 2010 on 18 November 2010.

Further information is available from:

London Stock Exchange	Victoria Brough - Media	[phone]
	Luca Grassis -- Media	[phone]
	Paul Froud - Investor Relations	[phone]
Citigate Dewe Rogerson	Patrick Donovan/ Grant Ringshaw/ Lucie Holloway	[phone]

Key Performance Indicators

Capital Markets - Primary Markets
	Five months ended
	31 August		Variance
	2010	2009	%
New Issues
UK Main Market, PSM & SFM	32	20	60%
UK AIM	41	10	310%
Borsa Italiana	3	2	50%
Total	76	32	138%
Company Numbers (as at period end)
UK Main Market, PSM & SFM	1,485	1,515	-2%
UK AIM	1,212	1,365	-11%
Borsa Italiana	295	295	0%
Total	2,992	3,175	-6%
Market capitalisation (as at period end)
UK Main Market (£bn)	1,716	1,571	9%
UK AIM (£bn)	59	52	13%
Borsa Italiana (€bn)	398	444	-10%
Borsa Italiana (£bn)	329	383	-14%
Total (£bn)	2,104	2,006	5%
Money raised (£bn)
UK New	4.9	0.7	600%
UK Further	11.0	30.1	-63%
Borsa Italiana new and further	1.1	11.3	-90%
Total (£bn)	17.0	42.1	-60%

Capital Markets - Secondary Markets
	Five months ended
	31 August		Variance
	2010	2009	%
Equity Volume Bargains (m)
UK	64.6	65.8	-2%
Borsa Italiana	27.4	27.8	-1%
Total	92.0	93.6	-2%
Equity Value Traded
UK (£bn)	523	478	9%
Borsa Italiana (€bn)	351	293	20%
Borsa Italiana (£bn)	297	256	16%
Total (£bn)	820	734	12%
Equity Average Daily Bargains ('000)
UK	621	633	-2%
Borsa Italiana	256	262	-2%
Total	877	895	-2%
Equity Average Daily Value Traded
UK (£bn)	5.0	4.6	9%
Borsa Italiana (€bn)	3.3	2.8	18%
Borsa Italiana (£bn)	2.8	2.4	17%
Total (£bn)	7.8	7.0	11%
SETS Yield (basis points)	0.71	0.94	-24%
Equity Average Bargain Size
UK (£'000)	8.1	7.3	11%
Borsa Italiana (€'000)	12.8	10.5	22%
	Five months ended
	31 August		Variance
	2010	2009	%
Derivatives (contracts m)
EDX	14.8	24.8	-40%
IDEM	23.0	18.3	26%
Total	37.8	43.1	-12%
Fixed Income
MTS cash and Bondvision (€bn)	999	799	25%
MTS money markets (€bn term adjusted)	25,259	14,201	78%
MOT (€bn)	95	98	-3%
MOT number of trades (m)	1.53	1.47	4%

Post Trade
	Five months ended
	31 August		Variance
	2010	2009	%
CC&G Clearing (m)
Equity clearing (trades)	29.0	28.8	1%
Derivative clearing  (contracts)	23.0	18.3	26%
Total Contracts	52.0	47.1	10%
Open interest (contracts as at period end)	4.6	5.0	-8%
Monte Titoli
Pre Settlement instructions (trades m)	12.8	15.9	-19%
Settlement instructions (trades m)	16.9	22.6	-25%
Custody assets under management (€tn)	2.97	2.77	7%

Information Services
	Five months ended
	31 August		Variance
	2010	2009	%
UK Terminals
Professional - UK	38,000	38,000	0%
Professional - International	55,000	56,000	-2%
Total	93,000	94,000	-1%
Borsa Italiana Professional Terminals	141,000	142,000	-1%
Proquote terminals	4,900	5,100	-4%
Proquote Italy terminals	35,000	29,000	21%

 

END

 

 

TSTUWSURRRAKUAR