LSEG pre-close trading update

Unless otherwise stated, the following commentary refers to non-financial KPIs for the eleven months ended 30 November 2015 and, where appropriate, to the corresponding period last year.

  • Good performance across each of the Group businesses
  • In Information Services:
    - Continued momentum in the integration of FTSE Russell and delivery of synergies
    - ETF assets benchmarked to FTSE Russell up 4%
    - demand for other information products, including UnaVista and SEDOL, remained strong
    - trend in professional users of real time market data broadly unchanged
  • In Post Trade Services, LCH.Clearnet has delivered a good performance in all OTC areas:
    - increased use of compression services through LCH.Clearnet, with $304 trillion compressed in total in the period, helping reduce IRS notional outstanding to $263 trillion, down 27%
    - global client swap clearing up 67% - with 612,000 trades cleared
    - CDSClear notional cleared up 165% - to €155 billion
    - ForexClear notional cleared up 19% - to $974 billion
    - fixed income clearing broadly unchanged - at €67 trillion
    - cash equities and listed derivatives clearing up 22% and down 19% respectively, reflecting a continued decline in derivative trading levels in customer venues
  • In Post Trade Italy, clearing volumes increased 11%; initial margin held increased 24%, averaging €12.3 billion
  • In Capital Markets:
    - Primary markets were robust with £40 billion equity capital raised on the Group’s markets for the period – down just 2% on last year in more challenging market conditions - with 161 new issues (2014: 193)
    - Secondary markets saw average daily UK equity value traded up 9%; Italian average daily volumes up 7%; derivatives contracts traded on IDEM in Italy rose 14%; MTS money markets (repo) value traded increased 21% and fixed income cash markets value traded declined 4%
    - announcement of CurveGlobal, a new interest rate derivatives venture with a number of major dealer banks and CBOE, in line with our open access and partnership approach. Products to be traded on London Stock Exchange Derivatives market and cleared through LCH.Clearnet 

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

"The Group has once again delivered a good performance across our business areas, particularly at LCH.Clearnet and FTSE Russell. The Capital Markets business delivered a robust performance and the new issue pipeline remains encouraging.

"We continue to invest in a wide range of attractive organic growth opportunities, focusing in particular on our Post Trade and Information Services businesses. The Group continues to innovate and partner with customers as we deliver on our strategy to be a leading global, open access market infrastructure business."

The Group expects to announce its Preliminary results for the period ending 31 December 2015 on 4 March 2016.

Further information is available from:
London Stock Exchange Group plc
Gavin Sullivan - Media                     +44 (0)20 7797 1222
Paul Froud - Investor Relations         +44 (0)20 7797 3322

Finsbury
Guy Lamming / Michael Turner         +44 (0)20 7251 3801

Additional information on London Stock Exchange Group plc can be found at www.lseg.com

Key Performance Indicators


Capital Markets - Primary Markets


Eleven months ended


30 November


Variance


2015


2014


%


New Issues


UK Main Market, PSM & SFM


82


68


21%


UK AIM


54


101


(47%)


Borsa Italiana


25


24


4%


Total


161


 


193


(17%)


Money Raised (£bn)


UK New


9.5


14.8


(36%)


UK Further


23.5


15.9


48%


Borsa Italiana new and further


7.0


10.3


(32%)


Total (£bn)


40.0


 


41.0


(2%)


Capital Markets - Secondary Markets


Eleven months ended


30 November


Variance


Equity


2015


2014


%


Totals for period


UK value traded (£bn)


1,152


1,069


8%


Borsa Italiana (no of trades m)


66.3


61.7


7%


Turquoise value traded (€bn)


997


864


15%


SETS Yield (basis points)


0.62


0.63


(2%)


Average daily


UK value traded (£bn)


5.0


4.6


9%


Borsa Italiana (no of trades '000)


283


265


7%


Turquoise value traded (€bn)


4.2


3.67


16%


Derivatives (contracts m)


LSE Derivatives


4.3


10.8


(60%)


IDEM


40.8


35.8


14%


Total


45.1


 


46.6


(3%)


Fixed Income


MTS cash and BondVision (€bn)


3,792


3,933


(4%)


MTS money markets (€bn term adjusted)


82,663


68,066


21%

 

 


Post Trade Services - CC&G and Monte Titoli


Eleven months ended


30 November


Variance


2015


2014


%


CC&G Clearing


Contracts (m)


111.3


100.3


11%


Initial margin held (average €bn)


12.3


9.9


24%


Monte Titoli


Settlement instructions (trades m)


56.5


60.1


(6%)


Custody assets under management (average €trn)


3.31


3.30


0%


Post Trade Services - LCH.Clearnet


Eleven months ended


30 November


Variance


2015


2014


%


OTC derivatives


SwapClear


IRS notional cleared ($trn)


486


606


(20%)


SwapClear members


115


113


2%


Client trades ('000)


612


367


67%


CDSClear


Notional cleared (€bn)


154.9


58.4


165%


CDSClear members


11


10


10%


ForexClear


Notional value cleared ($bn)


974


817


19%


ForexClear members


23


 


21


10%


Non-OTC


Fixed income - Nominal value (€trn)


66.9


67.7


(1%)


Listed derivatives (contracts m)


132.6


163.0


(19%)


Cash equities trades (m)


504.3


 


414.1


22%


Average cash collateral (€bn)


56.7


47.1


20%


Information Services


As at


30 November


Variance


2015


2014


%


ETFs assets under management benchmarked ($bn)


FTSE


216


222


(3%)


Russell Indexes


165


 


146


13%


Total


381


 


368


4%


Terminals


UK


75,000


76,000


(1%)


Borsa Italiana Professional Terminals


131,000


130,000


1%


Russell Investment Management AuM ($bn)1


247


276


(11%)