London Stock Exchange boosts data business as trading dips

LONDON Stock Exchange (LSE) managed to boost its profits in the final three months of 2012, despite low trading volumes hitting its core capital markets business.

Income from fees on UK share trades dropped by 13 per cent, while earnings from post-trade services – such as clearing – slumped from £58m to £49.6m.

However total group income was up six per cent on the same period last year at £208.9m thanks to a strong performance from the stock exchange’s data business.

“The group has continued to benefit from a more diversified range of businesses with particularly strong performances from our information services and our technology operations,” said chief executive Xavier Rolet.

Income from the data division rose 44 per cent to £76m, largely thanks to the integration of the FTSE International business, which maintains the famous stock market indices. In December 2011 LSE paid Financial Times publisher Pearson £450m for the 50 per cent of the FTSE business it did not own.

LSE also said it was making progress on its purchase of clearing house LCH.Clearnet, with regulators in UK, Portugal, Spain and France backing the deal. Only the Dutch authorities and the UK’s Financial Services Authority have yet to give it the go-ahead.