Pre-Close Period Update
26 September 2008 - 4:01PM
UK Regulatory
RNS Number : 3745E
London Stock Exchange Group PLC
26 September 2008
26 September 2008
PRE-CLOSE PERIOD UPDATE
London Stock Exchange Group plc
Unless otherwise stated, the following commentary refers to the 5 months ended 31 August 2008 and, where appropriate, to the
corresponding period last year. Figures for Borsa Italiana refer to the same time periods although the business has only been part of
London Stock Exchange Group plc since 1 October 2007.
London Stock Exchange Group plc ("the Exchange") today issued a routine update ahead of the close period relating to the six months
ending 30 September 2008.
In summary, against a backdrop of testing market conditions, overall trading performance remains good:
* Average daily number of SETS trades increased strongly, up 27 per cent to 699,000, while average daily value traded was eight per
cent down, a resilient performance in the context of the fall in the FTSE 100 which was on average 11 per cent lower compared with the
corresponding period last year; trading at Borsa Italiana was down 13 per cent to 253,000 trades/day
* Demand for professional terminals receiving LSE real time data remained firm at 111,000, up 9,000 over last year though slightly
down since the first quarter; professional users of Borsa Italiana data were up 6,000 to 161,000, unchanged since Q1
* In Issuer Services there were 100 new issues in London and 5 in Italy, with the Exchange maintaining its leading position in
international IPOs
Commenting on current trading and outlook, Clara Furse, Chief Executive, said:
"Trading volumes on SETS have continued to increase, illustrating the vitality of our central price forming order book. The new tariff
structure implemented at the start of September received strong positive feedback, and we continue to upgrade our trading platform with
further planned enhancements to speed and capacity over the coming period. Our Issuer Services division turned in a good performance
despite testing market conditions for equity issuance, with over 100 new issues, including 25 international companies. In our Information
businesses, demand for data from our UK and Italian markets remains robust.
"The overall resilient performance of our operations in highly uncertain market conditions, and our continued business development,
position us well to meet the challenges and realise the opportunities ahead."
Issuer Services
Issuer Services has performed well for the year to date against a backdrop of testing market conditions for new issuance.
April - August
2008 2007 Change
New Issues
Main Market, PSM & SFM 47 69 -32%
AIM 53 147 -64%
Blt 5 23 -78%
Total 105 239 -56%
Company Numbers (as at 31 August)
Main Market, PSM & SFM 1,588 1,623 -2%
AIM 1,626 1,685 -4%
Blt 306 304 1%
Total 3,520 3,612 -3%
Market capitalisation (as at 31 August)
Main Market (UK only) (�bn) 1,676 1,916 -13%
AIM (�bn) 78 102 -24%
BIt (EURbn) 543 778 -30%
Although new issues are down year on year, the Exchange remains strong in terms of international IPOs, equivalent to the number on
Nasdaq OMX and NYSE-Euronext combined.
In total, �41.8bn was raised on the Exchange's markets in the period, over 40 per cent up on last year (2007: �28.9bn).
Trading Services
Trading Services has delivered a good overall performance for the year to date, in particular with trading on SETS, the Exchange's
electronic order book, demonstrating strong volume growth over the period.
April - August
2008 2007 Change
Equity Volume Bargains (m)
LSE 74.1 57.9 28%
BIt 27.1 30.8 -12%
Total 101.2 88.7 14%
Equity Value Traded
LSE (�bn) 852 918 -7%
BIt (EURbn) 454 721 -37%
BIt (�bn) 360 489 -26%
Total �bn 1,212 1,341 -10%
April - August
2008 2007 Change
Equity Average Daily Bargains ('000)
LSE 699 551 27%
BIt 253 290 -13%
Total 952 841 13%
Equity Average Daily Value Traded
LSE (�bn) 8.0 8.7 -8%
BIt (EURbn) 4.2 6.8 -38%
BIt (�bn) 3.4 4.6 -26%
Total �bn 11.4 13.3 -14%
Equity Average Bargain Size (�'000)
LSE (�'000) 11.5 15.9 -28%
BIt (EUR'000) 16.8 23.4 -28%
Derivatives (contracts m)
EDX 24.9 17.7 41%
IDEM 15.6 17.2 -9%
Total 40.5 34.9 16%
Fixed Income (Notional Val. Traded)
Borsa Italiana MOT (EURbn) 63.5 61.8 3%
MTS (EURtn) 8.5 9.4 -10%
The reduction in average daily value traded of eight per cent for LSE mainly reflects an average 11 per cent decline in the FTSE 100
over the same period last year, partly offset by the increase in trading volumes.
SETS yield per bargain reduced to �0.73 (2007: �1.00) generally mirroring the fall in the average SETS bargain size to �11,500.
Trading volumes at Borsa Italiana reduced 12 per cent over the period, in part reflecting a slowdown in retail investment which comprises a
greater proportion of trading than in the London market, which saw trading volumes increase by 28 per cent.
Information
Information operations have performed well during the period, with resilient overall demand for real time price and trading data for
both exchanges.
August
2008 2007 Change
LSE Terminals
Professional 111,000 102,000 9%
Private 28,000 23,000 22%
Total 139,000 125,000 11%
BIt Terminals
DDM Professional 161,000 155,000 4%
DDM Private 829,000 719,000 15%
Total 990,000 874,000 13%
Professional users taking LSE data increased over last year, although at 111,000 the number represents a slight drop on the level for
the first quarter (30 June 2008: 112,000). Professional users in Italy are unchanged since Q1.
Post Trade
Activity levels in the Post Trade operations, the Italian-based clearing, settlement and custody businesses, generally reflected the
slowdown in trading for Italian cash equities and for fixed income trading at MTS during the period.
April - August
2008 2007 Change
CC&G Clearing:
Equity Clearing (m) 27.6 31.2 -12%
Derivative Clearing (m) 15.6 17.2 -9%
Total Contracts (m) 43.2 48.4 -11%
Open interest (m) 3.9 3.5 11%
Monte Titoli:
Settlement Instructions (m) 18.0 23.0 -22%
Custody assets under management (EURtn) 2.75 2.82 -2%
Share Buyback Programme
Since the start of the financial year, the Exchange has bought back 5.9 million shares, for a total consideration of �51.5 million. The
number of ordinary shares in issue stands at 270,519,018.
Current Trading and Prospects
Volume growth on SETS has continued into September, and value traded has also increased markedly, in part reflecting market volatility
and also the beneficial effects of the new tariff structure. The migration of Italian cash equities trading at Borsa Italiana to the
TradElect platform takes place next month, which should facilitate higher levels of trading in this market.
The Exchange is making good progress with the integration of Borsa Italiana, and overall remains well positioned to meet the challenges
and realise the opportunities ahead.
The Exchange expects to announce its Interim results for the six months ending 30 September 2008 on 13 November 2008.
Further information is available from:
London Stock Exchange Alessandro Pavesi - Media +39 02 72426 211
Patrick Humphris - Media +44 (0) 20 7797 1222
Paul Froud - Investor Relations +44 (0) 20 7797 3322
Finsbury Alex Simmons +44 (0) 20 7251 3801
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCUVOBRWORKUAR
Lon.Stk.Exch.B (LSE:LSEB)
Historical Stock Chart
From Jun 2024 to Jul 2024
Lon.Stk.Exch.B (LSE:LSEB)
Historical Stock Chart
From Jul 2023 to Jul 2024
