Unless otherwise stated, the following commentary refers to the five months ended 31 August 2010 and, where appropriate, to the corresponding period last year.
London Stock Exchange Group plc (“the Group”) today issued a routine update ahead of the close period relating to the six months ending 30 September 2010
Headlines
· The total number of new issues on the Group’s markets more than doubled during the period, with increases on the Main Market and on AIM, though the total amount of capital raised was lower at £17 billion as the levels of secondary issues declined compared with the busier prior year period
· Average daily value traded in the UK increased nine per cent year on year at £5.0 billion, though trading in Q2 to date has been lower at an average £4.2 billion per day; trading volume at Borsa Italiana declined two per cent on last year at 256,000 trades per day
· Share of total UK cash equities order book trading over the past five months has been broadly stable since the start of the period: average share of trading on the UK platform was 62.6 per cent (57.6 per cent on just FTSE 100 trading); in addition, Turquoise averaged 3.2 per cent of European trading in the period and has consolidated gains in trading in the dark mid-point book, becoming the largest European dark pool MTF
· Yield on UK cash equities trading in the period was 0.71 basis points of value traded following introduction of a pilot tariff scheme effective from May 2010
· Volume traded on IDEM increased 26 per cent, with record trading days in May; overall derivative contracts traded declined 12 per cent in the year to date reflecting lower levels on EDX
· On the Fixed Income markets, MTS Cash and Repo markets value traded increased strongly on last year, up 25 and 78 per cent respectively
· In Post Trade, equity and derivative clearing volumes increased one and 26 per cent respectively while open interest remained high at 4.6 million contracts, though down on the same time last year; the increase in derivatives and fixed income trading, together with more active treasury management, will see a significant increase treasury income from CCP operations
· Settlement instructions were 25 per cent lower mainly due to a fall in OTC trading volumes, while the Monte Titoli custody business was steady with a three per cent increase in assets under management
· Demand for terminals taking real time data remained resilient at 93,000 professional users of LSE information (end of June 2010: 93,000; same period last year 94,000); professional terminals receiving Borsa Italiana data were also stable since Q1 at 141,000 (same period last year: 142,000)
· Demand for other Information and for Technology Services product lines remained good overall
Commenting on performance for the period, Xavier Rolet, Chief Executive said:
“Performance for the year to date reflects the continuation of generally variable market conditions, although there have been good levels of activity in parts of the business, such as fixed income trading and clearing of equities and derivatives. Actions taken to improve UK equities trading are taking effect, with share of trading resilient in the past few months, and recent announcements of fee reductions for clearing by third party providers will help reduce the total cost of trading.”
The Group expects to announce its Interim results for the six months ending 30 September 2010 on 18 November 2010.
Key performance indicators:
Capital Markets - Primary Markets |
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Five months ended |
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31 August |
Variance |
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2010 |
2009 |
% |
New Issues |
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UK Main Market, PSM & SFM |
32 |
20 |
60% |
UK AIM |
41 |
10 |
310% |
Borsa Italiana |
3 |
2 |
50% |
Total |
76 |
32 |
138% |
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Company Numbers (as at period end) |
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UK Main Market, PSM & SFM |
1,485 |
1,515 |
-2% |
UK AIM |
1,212 |
1,365 |
-11% |
Borsa Italiana |
295 |
295 |
0% |
Total |
2,992 |
3,175 |
-6% |
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Market capitalisation (as at period end) |
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UK Main Market (£bn) |
1,716 |
1,571 |
9% |
UK AIM (£bn) |
59 |
52 |
13% |
Borsa Italiana (€bn) |
398 |
444 |
-10% |
Borsa Italiana (£bn) |
329 |
383 |
-14% |
Total (£bn) |
2,104 |
2,006 |
5% |
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Money raised (£bn) |
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UK New |
4.9 |
0.7 |
600% |
UK Further |
11.0 |
30.1 |
-63% |
Borsa Italiana new and further |
1.1 |
11.3 |
-90% |
Total (£bn) |
17.0 |
42.1 |
-60% |
Capital Markets - Secondary Markets |
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Five months ended |
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31 August |
Variance |
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2010 |
2009 |
% |
Equity Volume Bargains (m) |
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UK |
64.6 |
65.8 |
-2% |
Borsa Italiana |
27.4 |
27.8 |
-1% |
Total |
92.0 |
93.6 |
-2% |
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Equity Value Traded |
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UK (£bn) |
523 |
478 |
9% |
Borsa Italiana (€bn) |
351 |
293 |
20% |
Borsa Italiana (£bn) |
297 |
256 |
16% |
Total (£bn) |
820 |
734 |
12% |
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Equity Average Daily Bargains ('000) |
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UK |
621 |
633 |
-2% |
Borsa Italiana |
256 |
262 |
-2% |
Total |
877 |
895 |
-2% |
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Equity Average Daily Value Traded |
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UK (£bn) |
5.0 |
4.6 |
9% |
Borsa Italiana (€bn) |
3.3 |
2.8 |
18% |
Borsa Italiana (£bn) |
2.8 |
2.4 |
17% |
Total (£bn) |
7.8 |
7.0 |
11% |
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SETS Yield (basis points) |
0.71 |
0.94 |
-24% |
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Equity Average Bargain Size |
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UK (£’000) |
8.1 |
7.3 |
11% |
Borsa Italiana (€’000) |
12.8 |
10.5 |
22% |
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Five months ended |
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31 August |
Variance |
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2010 |
2009 |
% |
Derivatives (contracts m) |
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EDX |
14.8 |
24.8 |
-40% |
IDEM |
23.0 |
18.3 |
26% |
Total |
37.8 |
43.1 |
-12% |
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Fixed Income |
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MTS cash and Bondvision (€bn) |
999 |
799 |
25% |
MTS money markets (€bn term adjusted) |
25,259 |
14,201 |
78% |
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MOT (€bn) |
95 |
98 |
-3% |
MOT number of trades (m) |
1.53 |
1.47 |
4% |
Post Trade |
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Five months ended |
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31 August |
Variance |
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2010 |
2009 |
% |
CC&G Clearing (m) |
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Equity clearing (trades) |
29.0 |
28.8 |
1% |
Derivative clearing (contracts) |
23.0 |
18.3 |
26% |
Total Contracts |
52.0 |
47.1 |
10% |
Open interest (contracts as at period end) |
4.6 |
5.0 |
-8% |
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Monte Titoli |
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Pre Settlement instructions (trades m) |
12.8 |
15.9 |
-19% |
Settlement instructions (trades m) |
16.9 |
22.6 |
-25% |
Custody assets under management (€tn) |
2.97 |
2.77 |
7% |
Information Services |
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Five months ended |
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31 August |
Variance |
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2010 |
2009 |
% |
UK Terminals |
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Professional - UK |
38,000 |
38,000 |
0% |
Professional - International |
55,000 |
56,000 |
-2% |
Total |
93,000 |
94,000 |
-1% |
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Borsa Italiana Professional Terminals |
141,000 |
142,000 |
-1% |
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Proquote terminals |
4,900 |
5,100 |
-4% |
Proquote Italy terminals |
35,000 |
29,000 |
21% |
