London Stock Exchange Looks to Derivatives as LCH Boosts

London Stock Exchange Group Plc will increase its focus on futures to boost growth as LCH.Clearnet Group Ltd., the world’s largest clearinghouse for interest-rate swaps, buoyed its full-year financial results.

The operator of Europe’s oldest independent bourse today said full-year revenue rose 50 percent to 1.09 billion pounds ($1.83 billion), from 726.4 million pounds last year. LCH, which is majority-owned by LSE, contributed 263 million pounds of sales. LSE also said it’s boosting its cost-savings estimate from integrating LCH to 60 million euros ($82.3 million) in 2015 from 23 million euros.

“Look to announcements from us in the futures area,” Xavier Rolet, chief executive officer of the exchange, said on a call with journalists today. “We are dedicating significant time and resources,” he said, without giving further details.

LSE, which is diversifying its traditional operations from equities after losing market share to new entrants, said on May 13 that it is considering a purchase of Russell Investments Ltd., the indexing and fund-management unit of Northwestern Mutual Life Insurance Co., to expand its FTSE International Ltd. business.

LSE has trailed rivals such as Deutsche Boerse AG in providing derivatives to investors. Owning an index operator makes it easier to provide futures and options contracts based on different gauges.

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