(Alliance News) - London Stock Exchange Group PLC on Friday reported a strong third quarter, with the Capital Markets unit - the stock exchange part of the group - doing well despite "challenging" market conditions.
LSEG, which earlier October rebuffed a GBP30 billion bid from Hong Kong Exchanges & Clearing, posted a 12% increase in total income for the three months to September to GBP587 million.
On a nine-month basis, LSEG's total income has risen 9% to GBP1.73 billion.
"The group continues to perform well and has delivered a strong third-quarter performance. LCH's OTC clearing services saw continued strong volumes during the period in both member and client clearing," said Chief Executive David Schwimmer.
"In Information Services, FTSE Russell reported 10% growth as subscription revenues remained strong. Capital Markets also produced a good overall performance against a backdrop of continued challenging market conditions."
Information Services revenue was up 9% to GBP230 million, and Capital Markets by 14% to GBP102 million. Like-for-like Capital Markets revenue growth was 5%, with primary markets and fixed income trading offsetting "subdued" equity markets.
In Post Trade-LCH, income was 19% higher at GBP197 million, helped by OTC clearing, while Post Trade-Italy income climbed 8% to GBP39 million.
LSEG is in the midst of a USD27 billion takeover of market data firm Refinitiv, and said on Friday that good progress is being made. It is on track for completion in the second half of 2019.
LSEG has appointed David Shalders as chief integration officer as part of the move, with Shalders joining in November. His most recent role was as operations & technology director at insurance firm Willis Towers Watson, leading the merger of Willis and Towers Watson in 2015.
Shalders also is a non-executive director at FTSE 250 firm TP ICAP PLC. Interdealer broker TP ICAP said in its own statement Friday that Shalders will be leaving the TP ICAP board at the end of October to take up the new role.
LSEG also said Chief Financial Officer David Warren will be leaving by the end of 2020. He will stay on through the close of the Refinitiv deal and to help "smooth" the transition to a new CFO.
LSEG Chair Don Robert said: "There will be time next year for the board to express its gratitude to David for his significant contribution and commitment to our group during his tenure, both as CFO and as interim CEO.
"David has played a key role in the successful growth, diversification and global expansion of our business over the last seven years."
LSEG has also made some organisational changes. As of the start of 2020, its Post Trade units will be combined into one division, which will be led by Daniel Maguire, who currently heads LCH Group.
The new Post Trade division will include LCH Group and the Italian post trade businesses Monte Titoli and CC&G, as well as trade reporting business UnaVista, which is currently part of LSEG's Information Services division.
"The new division will ensure greater group-wide collaboration and aim to facilitate coordination amongst the different businesses with a view to developing commercial activities for the benefit of customers," said LSEG.
"We will continue to operate all our businesses on an open access basis in partnership with customers and stakeholders. The current local legal entity governance, including decision-making processes and reporting lines, will be unchanged."
By George Collard; georgecollard@alliancenews.com
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TP ICAP (TCAP)