27 March 2014
LONDON STOCK EXCHANGE GROUP plc (LSEG)
PRE-CLOSE PERIOD UPDATE FOR the eleven months ended 28 FEBRUARY 2014
All figures provided are for 11 months financial year to date and equivalent period in prior year, unless stated otherwise
· Continuing momentum across the Group in the fourth quarter
· Total equity capital raised on the Group's markets for 11 months to date increased 91 per cent to £28.3 billion (2013: £14.8 billion), with 162 new issues (2013: 107); issuance in Q4 has remained good with 17 new issues across UK and Italy in March and continuing good signs of issuance activity in the period ahead
· Average daily UK equity value traded up 8 per cent and Italian average daily volumes up 3 per cent year to date; growth rates in both markets have been stronger in Q4, at 23 and 13 per cent respectively
· In fixed income trading, MTS cash and Bondvision markets value traded increased 46 per cent, driven by improved market conditions in Italy, while MTS money markets (repo) value traded rose 2 per cent; MOT retail bond trading volumes decreased by 9 per cent
· Clearing volumes in Italy moved in line with trading levels; net treasury income reflects the current low returns now that cash margin is fully invested in secured instruments
· LCH.Clearnet recorded increases in OTC derivatives clearing volumes, with IRS notional cleared of $472 trillion, up 17 per cent year on year; global client clearing of swaps performing well with over $8.8 trillion notional cleared in February, more than doubling year on year. Clearing volumes also increased in fixed income, commodities and equities
· FTSE continues to make good progress, with ETF AUM benchmarked increasing 36 per cent year on year as at the end of February 2014; subscription renewal rates remain high at 95 per cent
· Professional users of both UK and Italian market real time information decreased as expected; demand for other information products, including UnaVista and SEDOL, remains good
· MTS entered into a merger agreement earlier this month to acquire Bonds.com, a US-based platform for the electronic trading of US corporate and emerging market bonds; provides MTS with a good market entry point with Bonds.com's 600 buy and sellside clients
· LCH expanded its services this month to include multilateral compression via SwapClear, which reduces the number of trades and notional outstanding by terminating contracts with offsetting positions and enables users to reduce their counterparty credit exposure and associated capital costs
Commenting on performance, Xavier Rolet, Chief Executive, said:
"The Group is seeing good performance across our businesses in the final quarter. Both primary and secondary market activity levels have increased over the past year, with improvements in capital markets also feeding through to our Post Trade businesses. The clearing volumes in the SwapClear OTC business continue to grow and we are pleased with its performance."
"We remain focused on delivering the benefits from our partnership with LCH.Clearnet. Suneel Bakhshi started in his role as CEO last month and good progress continues to be made on integration.
"Overall, we believe the Group remains well positioned. We are also pleased to note the recent EU agreement on MiFID2, with provisions on open access for clearing houses and index licensing, which should drive industry change and open up further opportunities for the Group."
Change of financial year
In order to create alignment of the financial years of LSEG plc and LCH.Clearnet, the Board has approved a change to the Group's accounting reference date, moving from 31 March to 31 December, with effect from 1 April 2014. As a result of this change, the Group's financial reporting calendar will be as follows:
· Preliminary results for the 12 months ended 31 March 2014, to be published in May 2014
· Q1 IMS (revenues for the quarter April - June) in July 2014
· Interim results (for the 6 months ended 30 September) in November 2014
· Preliminary results for the 9 months to 31 December 2014, to be published in March 2015
· Thereafter, LSEG plc to report full year results for 12 months ending 31 December in March and Interim results in August in subsequent years.
Provisional information on the 12 months to 31 December 2013 will be provided at the time of the Group's Preliminary results in May 2014 and results for the 6 months to June 2014 will also be provided at the time of the Group's interim results in November 2014.
Dividend payments are expected to be made as follows:
· Final dividend for year ending 31 March 2014 - to be paid August 2014 (as per current timetable)
· Interim dividend for 6 months ending 30 September 2014 - to be paid January 2015 (as per current timetable)
· Final dividend for 9 months ended 31 December 2014 - to be paid May 2015
· Thereafter, interim dividends to be paid in October and final dividends to be paid in May
The Group expects to announce its Preliminary results for the year ending 31 March 2014 on 15 May 2014.
Further information is available from:
London Stock Exchange Group plc
Gavin Sullivan Paul Froud |
Media Investor Relations |
+44 (0) 20 7797 1222 +44 (0) 20 7797 3322 |
Key Performance Indicators
Capital Markets - Primary Markets |
|
|
|
|
|
|
|
|
|
Eleven months ended |
|
|
28 February |
Variance |
|
2014 |
|
2013 |
% |
New Issues |
|
|
|
|
UK Main Market, PSM & SFM |
45 |
|
34 |
32% |
UK AIM |
99 |
|
68 |
46% |
Borsa Italiana |
18 |
|
5 |
275% |
Total |
162 |
|
107 |
51% |
|
|
|
|
|
Company Numbers (as at period end) |
|
|
|
|
UK Main Market, PSM & SFM |
1,354 |
|
1,372 |
(1%) |
UK AIM |
1,088 |
|
1,094 |
(1%) |
Borsa Italiana |
291 |
|
287 |
1% |
Total |
2,733 |
|
2,753 |
(1%) |
|
|
|
|
|
Market Capitalisation (as at period end) |
|
|
|
|
UK Main Market (£bn) |
2,303 |
|
2,135 |
8% |
UK AIM (£bn) |
81 |
|
65 |
25% |
Borsa Italiana (€bn) |
483 |
|
359 |
35% |
Borsa Italiana (£bn) |
398 |
|
310 |
28% |
Total (£bn) |
2,782 |
|
2,510 |
11% |
|
|
|
|
|
Money Raised (£bn) |
|
|
|
|
UK New |
12.4 |
|
8.1 |
53% |
UK Further |
13.9 |
|
5.2 |
167% |
Borsa Italiana new and further |
2.0 |
|
1.5 |
33% |
Total (£bn) |
28.3 |
|
14.8 |
91% |
Capital Markets - Secondary Markets |
|
|
|
|
|
|
|
|
|
Eleven months ended |
|
|
28 February |
Variance |
Equity |
2014 |
|
2013 |
% |
Totals for period |
|
|
|
|
UK value traded (£bn) |
971 |
|
901 |
8% |
Borsa Italiana (no of trades m) |
52.9 |
|
51.2 |
3% |
Turquoise value traded (€bn) |
646.1 |
|
376.0 |
72% |
|
|
|
|
|
SETS Yield (basis points) |
0.65 |
|
0.68 |
(4%) |
|
|
|
|
|
Average daily |
|
|
|
|
UK value traded (£bn) |
4.2 |
|
3.9 |
8% |
Borsa Italiana (no of trades '000) |
228 |
|
222 |
3% |
Turquoise value traded (€bn) |
2.74 |
|
1.61 |
70% |
|
|
|
|
|
Derivatives (contracts m) |
|
|
|
|
LSE Derivatives |
16.3 |
|
22.8 |
(29%) |
IDEM |
30.9 |
|
33.5 |
(8%) |
Total |
47.2 |
|
56.3 |
(16%) |
|
|
|
|
|
Fixed Income |
|
|
|
|
MTS cash and Bondvision (€bn) |
3,196 |
|
2,189 |
46% |
MTS money markets (€bn term adjusted) |
64,309 |
|
63,085 |
2% |
MOT number of trades (m) |
5.21 |
|
5.73 |
(9%) |
Post Trade Services |
|
|
|
|
|
|
|
|
|
|
Eleven months ended |
|
|
28 February |
Variance |
|
2014 |
|
2013 |
% |
CC&G Clearing (m) |
|
|
|
|
Equity clearing (no of trades) |
55.5 |
|
53.9 |
3% |
Derivative clearing (no of contracts) |
30.9 |
|
33.5 |
(8%) |
Total |
86.4 |
|
87.4 |
(1%) |
Open interest (contracts as at period end) |
5.4 |
|
4.8 |
13% |
Initial margin held (average €bn) |
11.9 |
|
10.1 |
18% |
|
|
|
|
|
Monte Titoli |
|
|
|
|
Pre Settlement instructions (trades m) |
26.2 |
|
26.3 |
(0%) |
Settlement instructions (trades m) |
26.3 |
|
24.6 |
7% |
Total Settlement |
52.5 |
|
50.9 |
3% |
Custody assets under management (average €tn) |
3.31 |
|
3.22 |
3% |
LCH.Clearnet |
|
|
|
|
|
Eleven months ended |
|
|
28 February |
Variance |
|
2014 |
|
2013 |
% |
|
|
|
|
|
OTC derivatives |
|
|
|
|
SwapClear |
|
|
|
|
IRS notional outstanding ($trn) |
435 |
|
374 |
16% |
IRS notional cleared ($trn) |
472 |
|
402 |
17% |
SwapClear members |
104 |
|
74 |
41% |
CDSClear |
|
|
|
|
Open interest (€bn) |
26.5 |
|
12.6 |
110% |
Notional cleared (€bn) |
149.0 |
|
65.2 |
129% |
CDSClear members |
11 |
|
8 |
38% |
ForexClear |
|
|
|
|
Notional value cleared ($bn) |
765 |
|
611 |
25% |
ForexClear members |
20 |
|
14 |
43% |
Non-OTC |
|
|
|
|
Fixed income - Nominal value (€trn) |
66.1 |
|
65.5 |
1% |
Commodities (lots m) |
114.7 |
|
105.1 |
9% |
Listed derivatives (contracts m) |
159.6 |
|
177.4 |
(10%) |
Cash equities trades (m) |
344.0 |
|
300.9 |
14% |
|
|
|
|
|
Average cash collateral (€bn) |
39.9 |
|
44.8 |
(11%) |
Information Services |
|
|
|
|
|
|
|
|
|
|
As at |
|
|
28 February |
Variance |
|
2014 |
|
2013 |
% |
UK Terminals |
|
|
|
|
Professional - UK |
32,000 |
|
33,000 |
(3%) |
Professional - International |
47,000 |
|
50,000 |
(6%) |
Total |
79,000 |
|
83,000 |
(5%) |
|
|
|
|
|
Borsa Italiana Professional Terminals |
126,000 |
|
133,000 |
(5%) |
FTSE |
|
|
|
|
ETFs assets under management benchmarked ($bn) |
186 |
|
137 |
36% |
