Fixed income revenue led the banks’ Q3 results, boosting overall growth.
LSEG’s capital markets revenue was up 24.8% year-on-year (YoY) in Q3 2024, reaching £468 million. The bulk of this came from Tradeweb (fixed income, derivatives and other) – up 31.7% to £341 million – while the London Stock Exchange’s equities revenue contributed just £60 million to the total, an increase of 9.1% YoY.
The London Stock Exchange launched a new main market this quarter, aligning with updated UK capital markets reforms. These reforms include providing companies with new ways to raise money, and introducing different ways of investing in UK capital markets and executing mergers and acquisitions. This launch helped to boost equities performance, the group said.
Growth in the business was dwarfed by Tradeweb, however, which acquired Institutional Cash Distributors, introduced a corporate client channel and took an increased portion of US IG and HY trading over the quarter, the group stated. Tradeweb’s average daily volumes jumped more than 50% in August alone, and stated in its independent Q3 results that Q3 was its “best quarter ever, with record volumes in multiple asset classes”.
At Deutsche Börse Group, cash equities revenue was similarly low compared to fixed income; €70.7 million (£59 million) over Q3, remaining static YoY.
Equity derivatives fared better, rising by 6% YoY to €125.6 million (£104.7 million) – but fixed income derivatives led the way for the trading and clearing segment’s 10% YoY growth, with revenue up 15% YoY to €132.6 million (£110 million).
©Markets Media Europe 2024
