FTSE Russell and LCH drive profits at LSEG

The London Stock Exchange Group (LSEG) has reported a 17% increase in revenues in 2017, with its FTSE Russell and LCH businesses driving growth.

The exchange group’s Information Services division saw revenues surge 24% from £595 million in 2016 to £736 million in 2017. 

LSEG explained its acquisition of Mergent, The Yield Book and Citi’s fixed income indices have provided opportunities to improve FTSE Russell’s fixed income analytics and index business, as well to expand LSEG’s presence in the US. 

“FTSE Russell continued to perform strongly delivering double-digit revenue growth, up by more than 30%,” LSEG said. “This is a consolidating sector where FTSE Russell has successfully differentiated itself through its global reach and breadth of offering.”

Similarly, LSEG’s post-trade business which includes LCH saw revenues grow in 2017 by 21% from £356 million in 2016 to £432 million.

The exchange group said LCH saw record volumes across multiple clearing services throughout the year, driven by new business as well as additional flow from existing customers. 

Commenting on the full-year results, CFO and interim Group chief executive, David Warren, said: “We remain focused on delivering the financial targets we have set for the next two years. Our Open Access approach in partnership with customers will enable us to benefit from MiFID II and to adapt to an evolving regulatory and macroeconomic environment.”

LSEG added that MiFID II, which came into force on 3 January, was a key focus for several businesses with the Turquoise Block Discovery business seeing a 600% increase in total value traded in 2017, as firms adjusted their trading strategies ahead of MiFID II.