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LSE reports strong listing growth

London Stock Exchange - Trading activity flat
London Stock Exchange - Trading activity flat

The London Stock Exchange reported growth in its core equities business, underlining its plan to move into derivatives trading and clearing more aggressively.

The LSE said the number of new listings for the 11 months to the end of February was up 90% on the previous year to 167, while UK daily trading activity was up 2% to £4.7 billion sterling.

The British exchange, which has faced serious competition in UK equities trading for the first time in recent years, also said its domestic market share remained steady at 63.4% for the period.

It provided no fresh updates on the planned acquisition of Canada's TMX Group, saying that work to achieve shareholder and regulatory approvals was under way.

The LSE also reported growth in its fledgling post-trade business, which includes clearing, with derivatives (12%) outperforming equities (1%), and cited its plan to launch this year a pan-European derivatives trading platform.

The LSE is keen to move into derivatives to diversify its business and reposition ahead of regulatory changes set to shake-up the world's over-the-counter (OTC) derivatives markets.

US and European regulators plan to draft, perhaps as early as the middle of this year, rules to force swathes of the OTC market on to exchange-like trading platforms, in an attempt to make these markets more transparent and easier to oversee.