The London Stock Exchange is thriving despite Brexit

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The London Stock Exchange now makes twice as much revenue from selling data on trades as from trading

Group, the parent company of the London Stock Exchange, Europe’s largest, released its 2018 annual results on March 1st, there was an elephant on the trading floor. During the hour-long earnings call,’s boss, David Schwimmer, mentioned Brexit just eight times. Six of those occasions came after slide 28.

Mr Schwimmer need not have been so cautious. Britain may be in political turmoil and banks may be shifting jobs and assets out of London, but Brexit is doing little to perturb. Last year the group’s revenue grew by 8% and its operating profit by 15%. Its share price is up by 22% since December.did announce 250 job cuts, 5% of its staff, but after 27 acquisitions and investments in the past decade, it has some tidying to do. It retains five different offices in New York, for example.

Some 31% of revenue comes from clearing trades. Regulators have pushed for derivatives contracts—which investors use to hedge borrowing costs, currencies or commodity prices—to be settled in clearing houses, arguing it makes the system safer. These middlemen sit between buyers and sellers, holding collateral lest either side default.

 

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England is a very strong Economy

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