London Stock Exchange Group plc 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 BroughPaul Froud MediaInvestor 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

 

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%