TradElect boost LSE profits

The London Stock Exchange has posted a 41% rise in profits in its interim half yearly results, boosted by increasing volumes of electronic trading after the launch of its new TradElect platform.

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The London Stock Exchange has posted a 41% rise in profits in its interim half yearly results, boosted by increasing volumes of electronic trading after the launch of its new TradElect platform.

Revenues were up 24% to £203m, with profits hitting £115m in the six months to 30 September, the LSE reported.


The soaring figures were underpinned by a 77% growth in volume on the exchanges SETS electronic order book, to 555,000 bargains per day, following the introduction of TradElect in June.

TradElect "played a critical role" in stimulating electronic order book growth a statement issued with the results said: "The greatly increased capacity and improved latency resulting from the new system facilitated the significant uplift in trading volumes during the latter part of the period, in particular enabling customers to trade at much higher frequencies at times of peak demand and heightened market activity."

The new platform marked the culmination of a four-year IT overhaul at the LSE. Last month an upgradeincreased processing speed by 40% and systems capacity by 70% as well as supporting the introduction of new pan-European products following the advent of the Markets in Financial Instruments Directive (Mifid) this month. Further enhancements to the platform were planned, the LSE said.

LSE chief executive Clara Furse said: "This result reflects very strong performances in each division, particularly in broker services with the continued growth of trading on our SETS electronic order book, following the launch of our new TradElect trading platform in June."

She added: “The quality of our technology, products, market model and regulatory integrity, plus our ability to provide best execution, means we are well placed to continue to compete successfully and meet the evolving needs of increasingly international market users."

The half yearly report also highlighted growth in the LSE’s information services division, with the number of terminals receiving real-time market data rising by 17,000 to 126,000 compared with the same period last year.

LSE has also completed its takeover of the Borsa Italiana exchange, now valued at £1.3bn, a move aimed at giving the London exchange access to the prized MTS European electronic bond trading platform. The deal was finalised in October, but integration of the Borsa business had “started well”, Furse said.

Earlier this month, the LSE was hit by a connectivity problem with its Infolect information broadcast system, which prevented some trades being closed. But TradElect was not affected, a spokepsrson said.

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