London Stock Exchange Group reported a stable good performance for the first quarter of 2020 against unprecedented market backdrop.
The total turnover came to £615 million, up by 13% YoY, affected by increased equity trading in Capital Markets and higher clearing activity across listed and OTC products leading to higher NTI in Post Trade.
The Group focused its resources in ensuring strong operational resilience across the Group’s market infrastructure platforms and services. The company’s employees work almost entirely on a remote basis across all locations.
London Stock Exchange’s integration planning for Refinitiv transaction is also going well. CFIUS received approval and anti-trust filings were prepared in multiple jurisdictions, the commitment to achieving completion in H2 2020 still remains.
The company’s revenue reached £215 million, up by 7% with 8% growth at FTSE Russell. The company observed good growth in both subscription and asset-based revenues, the latter reflecting growth in ETF AUM in prior quarter. ETF AUM dropped sharply at the end of Q1, reflecting market turbulence in March.
In post trade, income was up by 17%, reaching £271 million, with 11% growth in LCH revenue and strong listed and OTC clearing activity, including record volumes in SwapClear. The clearing volumes were good as CC&G drove a 15% revenue increase. Increased clearing activity brought higher cash margin, with consequent stronger NTI, up 39% in LCH and 10% in CC&G.
Total revenue in Capital Markets reached £112 million, up 15%, reflecting higher equity secondary markets activity in London and Milan.
Revenues in technology services remain unchanged at £14 million.
London Stock Exchange Group continues to make good progress on planning for the integration of Refinitiv. A number of workstreams on business structure and opportunities are well developed, and the Integration Management Office has been widened to bring additional resource.
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