LSE expects fall in data revenue

The London Stock Exchange says revenue from its Information & Technology Services division delivered a "good" first quarter performance, despite a reduction in real-time data revenue.

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LSE expects fall in data revenue

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The LSE revealed these numbers at its recent interim management statement for the three months ended 30 June 2009.

The reduction in real-time data revenue reflects the expected decline in the number of professional terminals taking LSE data, down 6000 to 98,000, and a similar 6000 fall in professional users of Borsa Italiana data to 145,000. The exchange did say that "good demand for non-real-time data products offset the expected reduction in number of terminals taking real time data".

However, the LSE claims that other revenues strengthened as demand for various Information & Technology product lines remained good overall, with gains principally from Sedol, Proquote and FTSE.

Meanwhile the Financial Times reports that the LSE plans to launch a new market for the trading of corporate bonds aimed at retail investors.

Xavier Rolet, chief executive, says that the LSE would expand its modest over-the-counter derivatives clearing business, but ruled out extending that to credit default swaps.

Rolet says that there is a need, "particularly in the SME [small- and medium-sized enterprise] sector" for better access to the bond market, "particularly for retail investors".

Currently, private investors wishing to invest in the corporate bond market must call a broker. But many brokers do not have access to trading in bonds in a market that is relatively illiquid.

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