LSE shuns exchanges shake-up to focus on own businessWednesday 15 May 2013 14.44
The London Stock Exchange today said it was focussing on its own business rather than taking part in a global shake-up of exchange owners.
Pressure on exchanges to buy each other is strong, as declining trading volumes of stocks and bonds, due to an uncertain economic outlook, puts pressure on profits and increasing regulation raises costs.
"This is not going to stop. Our industry still has consolidation issues. But the bottom line is that is not where we are focussing. We will let others do that. We are focussing on our business," LSE chief executive Xavier Rolet told reporters on a conference call.
Last year, Atlanta-based IntercontinentalExchange sparked another round of consolidation when it agreed to buy NYSE Euronext for $8.2 billion, while in February, Deutsche Boerse denied a report it was in talks with CME Group Holdings.
LSE reported a 7% rise in revenue to the year ended 31 March to £726.4m sterling, driven by its information services division. Adjusted profit before tax fell 5% to £380.7m.
The LSE, which earlier this month completed the acquisition of a majority stake in London clearing house LCH.Clearnet, said it had made efforts to become more efficient and diversify its business.