Torrid summer boosts LSE

LONDON Stock Exchange chief Xavier Rolet highlighted the group’s diversification agenda yesterday as he said equity trading volumes were up 12 per cent due to the market turmoil over the past five months.

The LSE Group made £190.2m in revenues in the three months to the end of June, 14 per cent higher than a year earlier, as it was boosted by new IPOs and continued high growth in treasury income from its Italian clearing house CC&G.

Rolet, who is in line to add UK-based clearing house LCH.Clearnet to his stable, said the LSE was expanding into new business lines and had more developments to announce soon.

“We remain focused on developing the business, including initiatives in derivatives, fixed income and technology sales. Other projects are in development and we will continue to assess a range of options to deliver further growth,” he said in a pre-close update.

Bumper IPOs such as Glencore and Vallares pushed primary markets revenue up 22 per cent year-on-year. But its star performance was again its post-trade services business, where income jumped almost 60 per cent after treasury income, from investing Italian clearing revenues, soared.

The LSE hung onto its 64.6 per cent market share in UK cash equities and said its pan-European Turquoise platform had been trading well, but its UK secondary trading revenues fell nine per cent year-on-year.

FAST FACTS | LONDON STOCK EXCHANGE

● Daily average equity trading volumes up 12 per cent year-on-year in five months to August

● Capital raised in UK and Italy was up 35 per cent to £22.9bn

● The number of issues rose 19 per cent to 92