Rolet stepping down from LSE, reports solid third quarter

London Stock Exchange announced the departure of chief executive Xavier Rolet on Thursday, confirming he would leave the group by the end of December next year after nine years with the company.

The FTSE 100 firm said that under Rolet’s leadership, LSE Group had built a “clear and successful” strategy and a “strong” management team, resulting in an increase in its market capitalisation to almost £14bn from £800m.

“I am extremely proud of all we have done together in just under a decade to turn LSEG into a truly global financial market infrastructure group,” said Xavier Rolet.

“By adhering to our core values of partnership, innovation, open access and integrity, we have shown the hugely positive contribution capitalism can make to all of society.”

Rolet said that even the most transformational global strategy could not be possible, however, without a “dogged and professional” focus on execution, adding that he continued to be in the debt of all his friends and colleagues at LSE Group who “made it happen”.

“I would also like to thank the board and our shareholders for supporting this strategy.

“Establishing relevance and leadership in a consolidating global industry cannot be achieved without taking certain risks and making bold moves.

“I look forward to getting on with the business of ensuring an orderly transition as we continue to deliver on our strategy and financial targets.”

LSE Group’s board said it was now initiating a process to find a successor, and would work closely with Rolet to ensure a “smooth” transition process as it continued to execute on its growth strategy, based on the “enduring principles” of open access and partnership with customers.

“There will be many opportunities ahead to celebrate Xavier's remarkable achievements,” said LSE Group chairman Donald Brydon.

“Under his leadership, LSEG has been transformed in scale to become a truly diversified and international leader in financial markets infrastructure.”

Brydon said he was “delighted” that Rolet would remain as CEO and continue to lead the company until his successor is appointed.

“LSE Group remains well-positioned for the opportunities ahead and remains confident of delivering further success and value for shareholders.”

Group reports solid third quarter amid acquisitions and investments

At the same time, LSE Group updated the market on its third quarter to 30 September, which the board described as “another period of delivery” against its targets with continued good growth.

Third quarter total income was up 17% to £486m, and up 19% for the nine months year-to-date, to £1.43bn.

Revenues in the third quarter were up 18% to £443m and up 18% for the nine months year-to-date at £1.3bn.

The board reported a “strong demonstration” of capital deployment to drive growth and returns, including the completion of the Citi Fixed Income Indices and The Yield Book acquisition, increasing its stake in LCH, and completion of the £200m share buyback programme.

In information services, LSE said revenues were up 22%, or up 15% on an organic and constant currency basis, with “good” underlying growth and one month's inclusion of The Yield Book and Citi Fixed Income Indices.

LSE said in its post trade operations, LCH income was up 26%, or 22% at constant currency, with 23% revenue growth in OTC from higher volume of SwapClear client trades.

ForexClear continued to see “strong” volume growth, and CC&G and Monte Titoli income was up 2%, but down 4% at constant currency.

Capital markets revenues were up 8%, or 5% on an organic and constant currency basis, with record quarterly primary markets revenues in a period of strong equity issuance.

Turquoise continued to trade well, with strong growth in the Turquoise Plato Block Discovery service - including a record month in September.

Its technology services division saw revenues rise 9%, or 7% at constant currency.

“The group continues to perform very well, with good revenue growth in our main businesses and a strong period of successful development and delivery,” said Xavier Rolet.

“The completion of the acquisition of Citi Fixed Income Indices and The Yield Book is already contributing to the further growth in FTSE Russell while LCH continues to perform strongly and has launched innovative new services.

“I am also delighted that we are increasing our stake in the LCH Group.”

Rolet said the group's “excellent” financial performance was reflective of its continued innovation and execution of its growth strategy, enabling LSE Group to deliver against its three year financial targets.

“Together with our proven customer partnership and open access approach, this positions us strongly to benefit from the introduction of MiFID II in less than three months time.”