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- Acquired outstanding 50% of FTSE International Limited
- Over £12.6 billion raised in 74 IPOs
- International Order Book 10-year anniversary
- Order Book for Retail Bonds (ORB) raised over £860 million
- Turquoise launched new derivatives platform
The London Stock Exchange Group saw good growth across all four of its key business divisions in 2011: Capital Markets, Post-Trade, Information Services and Technology. This reflects the success of the Group's ongoing diversification strategy. The Group now consists of a broad portfolio of markets and services, diversified across geography and asset classes delivering 79% uplift in profit before tax for the first half financial year 2012.
The London Stock Exchange celebrated a number of notable achievements in 2011; total IPO money raised during the year was £12.6 billion, a 27% increase on 2010 (£9.9 billion); the IOB celebrated its 10-year anniversary, raising over £40 billion since 2001; the Order Book for Retail Bonds raised over £860 million in only its second year of operation and the Group completed the acquisition of the outstanding 50% of leading index provider FTSE International Limited.
Xavier Rolet, Chief Executive, London Stock Exchange Group, said:
"2011 has been another strong year for the London Stock Exchange Group, building on the significant progress made in 2010. The business has reaped the rewards of our diversification strategy, which is delivering real and tangible results. Our broad business portfolio provides a measure of natural hedging, combining products and services which respond to different macro drivers, often inversely correlated to changing market volatility. This gives us strength and resilience. We remain focused on diversifying our business, driving organic and inorganic opportunities, working with our customers and leveraging on our assets. 2012 promises to be another exciting year."
2011 LONDON STOCK EXCHANGE GROUP HIGHLIGHTS:
Capital Markets
- On 1 February the London Stock Exchange celebrated the 1st anniversary of its Order Book for Retail Bond (ORB) market. In 2011 the market has raised over £860 million for a wide variety of issuers including National Grid, Places for People, Tesco Bank and RBS. Barclays Capital became the sixth dedicated market maker on ORB in October.
- February also saw the launch of Turquoise Derivatives, currently offering trading in FTSE100 Futures and Options.
- 2011 saw 76 companies raise a total of £12.9 billion through IPOs on London's markets*.
- On 24 May, Glencore International plc, a leading commodities producer and marketer, became the largest ever international IPO in London, raising $10 billion. It became the first company to enter the FTSE100 at admission in 25 years.
- In July, MTS, Europe's premier facilitator for the electronic fixed income market, launched an electronic market for UK government bonds (Gilts).
- The International Order Book (IOB) celebrated 10 years of trading. Over £40.6 billion has been raised in primary and secondary issues since the market was founded in 2001 and the IOB is now the world's most liquid market for trading in Global Depository Receipts (GDRs).
Information Services
- In October the London Stock Exchange finalised the acquisition of Transaction Reporting Service (TRS) from the FSA and is successfully migrating existing users to the LSE's enhanced UnaVista platform.
- In December LSEG confirmed that it had completed the acquisition of the outstanding 50% of leading index provider FTSE International Limited that it did not own.
Technology
- In 2011 MillenniumIT won contracts to supply trading systems to Oslo Børs, Johannesburg Stock Exchange and the Delhi Stock Exchange.
- MillenniumIT was also selected to provide clearing technology services for a new cross-market Central Counterparty (CCP) mechanism for Central and Eastern European (CEE), initially in Vienna, Prague, Ljubljana and Budapest.
- Successful migration onto the Millennium platform was completed for LSE's cash markets in February 2011.
- First deliveries to the Mongolian Stock Exchange and Tullet Prebon have also begun.
Post-Trade
- In September Monte Titoli opened a new settlement link with Euroclear UK & Ireland to assist in the harmonisation of cross border trading. This represents Monte Titoli's ninth cross-border link in Europe and the USA.
- LSEG remains actively engaged in exclusive discussions with LCH.Clearnet.
Other
- In May, the London Stock Exchange launched a unique market open ceremony for companies listing on the LSE's markets.
- LSEG celebrated the 1st anniversary of the Group's charitable Foundation in November.
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For further information, please contact:
Ed Clark
Press Office +44 (0)20 7797 1222
newsroom@londonstockexchange.com
*As of 28 December 2011
Notes to editors:
About London Stock Exchange Group:
London Stock Exchange Group (LSE.L) sits at the heart of the world's financial community. The Group operates a broad range of international equity, bond and derivatives markets, including London Stock Exchange; Borsa Italiana; MTS, Europe's leading fixed income market; and Turquoise, offering UK and Russian derivatives trading, pan-European and US lit and dark equity trading. Through its markets, the Group offers international business unrivalled access to Europe's capital markets.
The Group is a leading developer of high performance trading platforms and capital markets software and also offers its customers around the world access and an extensive range of real-time and reference data products and market-leading post-trade services. The Group is also home to a world leading index provider FTSE, which creates and manages of over 200,000 equity, bond and alternative asset class indices.
Headquartered in London, United Kingdom with significant operations in Italy and Sri Lanka, the Group employs around 1,850 people.
Further information on London Stock Exchange Group can be found at http://www.londonstockexchangegroup.com/
