London Stock Exchange Group plc pre-close period update for the five months ended 31 August 2012

  • 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

+44   (0) 20 7797 1222

+44   (0) 20 7797 3322

Citigate Dewe Rogerson

Patrick   Donovan/Grant Ringshaw

 

+44   (0) 20 7638 9571

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%