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Indices buoy LSE

The financial services group has developed its indices business and is building global scale
August 7, 2015

Revenue was up 90 per cent at London Stock Exchange (LSE). If it seems like there is an errant zero on that figure, you are bang on the money: take out the contribution from the for-sale Russell Investment Management business, and revenue was up 9 per cent for continuing operations, the numbers for which we have presented here.

IC TIP: Hold at 2,615p

Management is not for turning when it comes to selling this non-core business, but is defensive about how long it is taking to do so, citing a list of bidders from four continents. Expect more on that front in due course. Regardless, it is continuing to benefit from the index business left behind - Russell Indexes provided £70m in revenue, fuelling the 45 per cent growth in the information services division's turnover to £261m. There is now a whopping $389bn (£251bn) in exchange traded funds that are indexed to a Russell or FTSE-branded benchmark. Unavista, a repository to which investors can report over-the-counter derivatives trades for regulatory purposes, also grew its revenue.

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