London Stock Exchange revenues boosted by surge in volatility
London Stock Exchange Group reported a 16 per cent year-on-year rise in third-quarter revenues to £1.9bn, as market volatility and a rush to raise collateral boosted the company’s earnings.
A trading update on Friday showed the owner of the London Stock Exchange and London Clearing House benefited from market uncertainty triggered by the UK government’s ill-fated “mini” Budget last month.
Unfunded tax cuts contained in the “mini” Budget triggered a surge in gilt yields, sending UK pension funds scrambling to sell assets and raise cash in order to meet margin calls on derivative investments. The fallout also heightened volatility, with gilt yields soaring and the pound plunging against the dollar.
This story originally appeared on: Financial Times - Author:Nikou Asgari
