Trading Statement

RNS Number : 1556R

London Stock Exchange Group PLC

25 June 2015

 

25 June 2015

LONDON STOCK EXCHANGE GROUP plc

PRE-CLOSE PERIOD TRADING UPDATE

Unless otherwise stated, the following commentary refers to the five months ended 31 May 2015 and, where appropriate, to the corresponding period last year. 

·    Group continues to perform well

·    FTSE and Russell making good progress - FTSE total ETF AUM benchmarked up 14 per cent to $236 billion and Russell ETF AUM up 22 per cent to $157 billion; both index businesses now combined as FTSE Russell

·    Good demand for other Information Services products, including UnaVista and SEDOL. Professional users of both UK and Italian market real time information declined slightly against Q1 2015

·    LCH.Clearnet has delivered a good performance in all OTC areas:

-      Increased use of compression services through LCH.Clearnet, with $144 trillion compressed in total in the period, helping reduce IRS notional outstanding to $292 trillion, down 30 per cent

-      CDS notional cleared of €45.1 billion, up 28 per cent

-      Forex notional cleared of $431 billion, up 29 per cent

-      Fixed income clearing of €30.3 trillion was flat on last year

-      Cash equities and listed derivatives clearing were up 20 per cent and down 25 per cent respectively (reflecting decline in derivative trading levels in customer venues)

·    Total equity capital raised on the Group's markets for the period of £16.5 billion (2014: £17.6 billion), with 40 UK Main Market new issues (2014: 31) and 10 in Italy (2014: 9); the new issue pipeline remains promising

·    In fixed income trading, MTS money markets (repo) value traded increased 26 per cent while cash markets value traded declined 4 per cent

·    Average daily UK equity value traded was up 8 per cent to £5.3 billion, Italian average daily volumes rose 6 per cent

·    Italian clearing volumes increased in line with Italian equities and derivatives trading levels, up 7 per cent in total; initial margin held increased 9 per cent, averaging €11.9 billion

·    Good progress continues to be made on the Russell Investment Management divestment process

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

"The Group has continued to perform well and we have delivered a positive operational performance in the period. Our index businesses have shown good growth, and are now combined as a global business as FTSE Russell.   Good performance across Capital Markets is also reflected in increased activity in our clearing businesses  and LCH.Clearnet has seen further progress in OTC services.

"The Group remains well positioned for the changing regulatory and competitive landscape and continues to develop a broad range of opportunities to serve our clients globally on an open access basis.  We are focused on achieving integration and efficiency benefits, both from the acquisitions we have made and organically, including the many initiatives highlighted in our Post Trade strategy update last month."

The Group expects to announce its Interim results for the six months ending 30 June 2015 on 5 August 2015.

Further information is available from:

London Stock Exchange Group plc

Victoria Cowley Paul Froud

Media Investor Relations

[phone] [phone]

Guy Lamming / Mike Turner

Finsbury

[phone]

Key Performance Indicators

Capital Markets - Primary Markets
	Five months ended
	31 May			Variance
	2015		2014	%
New Issues
UK Main Market, PSM & SFM	40		31	29%
UK AIM	24		51	(53%)
Borsa Italiana	10		9	11%
Total	74		91	(19%)
Money Raised (£bn)
UK New	4.9		7.5	(35%)
UK Further	11.1		7.7	44%
Borsa Italiana new and further	0.5		2.4	(79%)
Total (£bn)	16.5		17.6	(6%)

Capital Markets - Secondary Markets
	Five months ended
	31 May			Variance
Equity	2015		2014	%
Totals for period
UK value traded (£bn)	543		501	8%
Borsa Italiana (no of trades m)	31.1		29.7	5%
Turquoise value traded (€bn)	480		387	24%
SETS Yield (basis points)	0.62		0.62	0%
Average daily
UK value traded (£bn)	5.3		4.9	8%
Borsa Italiana (no of trades '000)	302		285	6%
Turquoise value traded (€bn)	4.6		3.7	24%
Derivatives (contracts m)
LSE Derivatives	2.0		7.2	(72%)
IDEM	17.7		16.4	8%
Total	19.7		23.6	(17%)
Fixed Income
MTS cash and BondVision (€bn)	1,827		1,900	(4%)
MTS money markets (€bn term adjusted)	37,966		30,018	26%

Post Trade Services - CC&G and Monte Titoli
	Five months ended
	31 May			Variance
	2015		2014	%
CC&G Clearing
Contracts (m)	50.8		47.4	7%
Initial margin held (average €bn)	11.9		10.9	9%
Monte Titoli
Settlement instructions (trades m)	28.8		28.4	1%
Custody assets under management (average €tn)	3.32		3.37	(1%)

Post Trade Services - LCH.Clearnet
	Five months ended
	31 May			Variance
	2015		2014	%
OTC derivatives
SwapClear
IRS notional outstanding ($trn)	292		418	(30%)
IRS notional cleared ($trn)	214		277	(23%)
SwapClear members	112		105	7%
CDSClear
Notional cleared (€bn)	45.1		35.3	28%
CDSClear members	11		9	22%
ForexClear
Notional value cleared ($bn)	431		334	29%
ForexClear members	23		20	15%
Non-OTC
Fixed income - Nominal value (€trn)	30.3		30.2	0%
Listed derivatives (contracts m)	58.6		78.3	(25%)
Cash equities trades (m)	224.8		187.3	20%
Average cash collateral (€bn)	55.3		43.9	26%

Information Services
	As at
	31 May				Variance
	2015		2014		%
Terminals
UK	75,000		79,000		(5%)
Borsa Italiana Professional Terminals	128,000		131,000		(2%)
ETFs assets under management benchmarked ($bn)
FTSE	236		207		14%
Russell Indexes	157		129		22%
Russell Investment Management AuM ($bn)	270		276		(2%)

Note: FTSE benchmarked AUM figures for Q1 (3 months ended 31 March 2015) have been

amended to $223bn

 

END

 

 

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