LSEG report record highs for RepoClear
04 March 2020 London
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The London Stock Exchange Group (LSEG) has reported a ‘strong financial performance’ and continued revenue growth for 2019, compared to the previous year. Record volumes have been reported by all LCH over-the-counter (OTC) clearing services – SwapClear, CDSClear, ForexClear and RepoClear.
LSEG revealed that total revenue and income were both up 8 percent to £2,056 million compared to £1,911 million in 2018, and £2,314 million compared to £2,135 million in 2018, respectively.
Non-OTC clearing revenue increased by 4 percent to £140 million, in 2018 - £136 million was reported, this reflected a continued strong performance by RepoClear.
RepoClear reached a record nominal value cleared of €106 trillion in comparison to 2018 which was recorded at €98.7 trillion, this was up by 7 percent, which was predominantly a result of strong growth in the underlying repo market, particularly in Europe, this was a result of excess liquidity with members realising netting and other benefits from the newly consolidated Euro debt pool in the continental European clearing house LCH SA.
Further financial highlights found that LCH over-the-counter (OTC) revenues were up 15 percent — up 13 percent on a constant currency basis — driven by record SwapClear volumes with over $1.2 quadrillion of notional cleared.
LCH continues to facilitate migration to alternative reference rates and was the first CCP to launch clearing for €STR swaps.
Elsewhere in the report, LSEG commented on its investment in Euroclear revealing that it had “further strengthened [the group’s] and Euroclear’s existing operational and commercial relationship to the benefit of our respective customers”.
Discussing performance for the year, Schwimmer said: “It was another strong year for London Stock Exchange Group – delivering a good financial performance, making meaningful progress executing on our strategic objectives, and taking significant steps on a number of group-wide initiatives.”
“The group continued to perform well, navigating an evolving macroeconomic and geopolitical landscape and remains well-positioned for the future. We continue to partner with our customers to develop innovative services in a range of areas, from reference rate reform to sustainable investment,” Schwimmer added.
LSEG revealed that total revenue and income were both up 8 percent to £2,056 million compared to £1,911 million in 2018, and £2,314 million compared to £2,135 million in 2018, respectively.
Non-OTC clearing revenue increased by 4 percent to £140 million, in 2018 - £136 million was reported, this reflected a continued strong performance by RepoClear.
RepoClear reached a record nominal value cleared of €106 trillion in comparison to 2018 which was recorded at €98.7 trillion, this was up by 7 percent, which was predominantly a result of strong growth in the underlying repo market, particularly in Europe, this was a result of excess liquidity with members realising netting and other benefits from the newly consolidated Euro debt pool in the continental European clearing house LCH SA.
Further financial highlights found that LCH over-the-counter (OTC) revenues were up 15 percent — up 13 percent on a constant currency basis — driven by record SwapClear volumes with over $1.2 quadrillion of notional cleared.
LCH continues to facilitate migration to alternative reference rates and was the first CCP to launch clearing for €STR swaps.
Elsewhere in the report, LSEG commented on its investment in Euroclear revealing that it had “further strengthened [the group’s] and Euroclear’s existing operational and commercial relationship to the benefit of our respective customers”.
Discussing performance for the year, Schwimmer said: “It was another strong year for London Stock Exchange Group – delivering a good financial performance, making meaningful progress executing on our strategic objectives, and taking significant steps on a number of group-wide initiatives.”
“The group continued to perform well, navigating an evolving macroeconomic and geopolitical landscape and remains well-positioned for the future. We continue to partner with our customers to develop innovative services in a range of areas, from reference rate reform to sustainable investment,” Schwimmer added.
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