MARKET INFRASTRUCTURE

LSE’s post-trade division records 31% jump in revenue in H1

Revenues for its post-trade services, including LCH and Monte Titoli, increased to £270 million.

By Joe Parsons joe.parsons@strategic-i.com August 03, 2017 12:33 PM GMT

The post-trade division of the London Stock Exchange group (LSEG) saw revenues increase by almost a third during the first half of 2017, off the back of growth from its clearing business.

Revenues for its post-trade services, including LCH and Monte Titoli, increased 31% to £270 million, of which OTC clearing revenues grew 19% following strong performance from SwapClear.

The LSEG stated: “the principal drivers of this growth were a 33% rise in clearing of client trades and further growth in compression services, with $312 trillion compressed in H1 (H1 2016: $178 trillion).”

LCH recently launched SwapAgent, a new service for processing non-cleared derivatives trades with the backing of 14 swaps dealers.

Post-trade services in Italy, comprising of CC&G and its CSD Monte Titoli, recorded a revenue increase of 8% to £74 million, with charges for using its Target2 Securities (T2S) services being the main cause of its 47% increase in sales.

It also posted a 27% rise in settlement and custody revenue, due to a “small increase in settlement instructions and assets under custody up 2% to €3.24 trillion.”