The London Stock Exchange Group (LSEG) has seen its overall revenues for the three months to 30 June 2011 increase 14% over the same quarter for the previous year to £190 million, despite the continued low trading volumes in the equity market.
Income within the firm's capital markets business rose 4% year-on-year thanks to a 32% increase in fixed income trading revenue and a 39% increase in admission fees on the primary market.
Equity trading revenues declined by 9% across the London Stock Exchange and Turquoise markets, and by 11% on the Borsa Italiana, compared to the same period for the previous year. Derivatives revenues fell by 12%.
Income for post-trade services rose by 58% year-on-year supported overwhelmingly through treasury income made by investing the collateral posted as margins on its central counterparty business, which increased by 338%. This growth was achieved through more active management of the cash and broadening the scope of banks with which it is invested allowing the LSEG to get a better interest rate.
Revenues for information services, including fees for market data provision, grew by 6% year–on-year.
The results reflect the revenue diversification strategy behind LSEG's failed merger with Canadian market operator TMX. According to the initial proposal, the combination was aimed at developing “new trading products and opportunities, supported by strong regional post-trade operations and information services”.