LSEG reports strong 2015 on back of LCH business

LCH.Clearnet continues to be a major source of growth for LSEG, according to pre-close statement.

The London Stock Exchange Group (LSEG) has seen improved performance this year, with its LCH.Clearnet subsidiary again delivering strong results.

In its pre-close trading update covering the first 11 months of 2015, the group also reported continued momentum in the integration of FTSE Russell and delivering synergies while also benchmarking exchange trading fund assets to FTSE Russell by 4%.

LCH.Clearnet has been a major driver of the group’s performance in recent years as regulation has pushed market participants to focus on their post-trade processes, particularly in OTC products.

Overall global client swap clearing was up 67% in the 11 months to 20 November 2015 to 612,000 trade, while CDS notional clearing increased 165% to €155 billion. Forex notion cleared increased 19% to $974 billion. Listed derivatives clearing declined 19%, reflecting an ongoing decline in overall listed derivative trading volumes.

Clearing volumes in Italy increased by 11% with the initial margin held increasing by 24%, averaging €12.3 billion.

LSEG’s capital markets business also saw a healthy increase in secondary market equity trading, with average UK daily value traded up 9% while Italian trading volumes increased by 7%. On the primary market, £40 billion was raised, down 2% on the same period of 2014.

On the derivatives front performance was stronger, with contracts traded on IDEM in Italy up 14% while MTS money market repo value traded increased by 21%. Fixed income markets fared less well, with overall cash trading down 4%.

Group chief executive Xavier Rolet, said: “The group has once again delivered a good performance across our business areas, particularly at LCH.Clearnet and FTSE Russell.

“We continue to invest in a wide range of attractive organic growth opportunities, focusing in particular on our post trade and information services business.”

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