London Stock Exchange Group buoyed by rise in volumes – but Aim still suffering
Things were looking up for London Stock Exchange Group (LSEG) in the five months to the end of May – although volumes were less encouraging on its junior market.
New issues on LSEG's main markets were up 29 per cent in the period, while average daily UK equity value traded was up eight per cent to £5.3bn. On the FTSE, total ETF assets under management benchmarked up 14 per cent to $236bn (£150.2bn), while the same figure on newly-acquired index provider Russell rose 22 per cent to $157bn.
Read more: Happy birthday Aim
However, the exchange's junior market, Aim, is suffering after several debacles – including the woeful tales of Quindell and Afren – caused new issues to plummet 53 per cent.
Meanwhile, activity at its Italian businesses rose 11 per cent, although clearing volumes were up seven per cent, while initial margin held increased nine per cent, averaging €11.9bn (£8.5bn).
And clearing house LCH.Clearnet, delivered a strong performance, with a 28 per cent rise in the clearing of credit default swaps.
Why it's interesting
What with the Greek crisis and a still-faltering recovery in Europe, equities have had more ups and downs than Alexis Tsipras' suitcase in recent months.
In December last year LSEG bought the Russell business, and has spent the last six months integrating the business into its current operations – with the result that in May it launched FTSE Russell, the new integrated name for the combined businesses of the FTSE Group and Russell indexes. Today it said that integration was progressing well.
Aim celebrated its 20th birthday this month, but figures from Hargreaves Lansdown have suggested it is currently 24 per cent below its opening level – although HL also highlighted the success stories to come out of the market, including Asos, Majestic Wine and Domin's Pizza.
What LSEG said
Xavier Rolet, the business' chief executive, said:
The group remains well positioned for the changing regulatory and competitive landscape and continues to develop a broad range of opportunities to serve our clients globally on an open access basis. We are focused on achieving integration and efficiency benefits, both from the acquisitions we have made and organically, including the many initiatives highlighted in our post trade strategy update last month.
Equities may be shaky as economic woes continue to shake markets, but LSEG is well grounded.