LSEG third-quarter income rises as Tradeweb boosts rates business

London Stock Exchange Group reported higher third-quarter income and gross profit, with growth led by Tradeweb-related interest-rate revenue in its fixed income and derivatives operations. MarketWatch data showed LSEG shares up 0.72% alongside the update.

The company said gross profit increased 8.5% to £1.92 billion, equivalent to about $2.5 billion. Total income excluding recoveries rose 7.7% to £2.12 billion, while organic growth was 8.7%, according to the group.

LSEG, whose business extends well beyond the London equity market, generates more revenue from data and analytics than from the exchange that carries its name, according to MarketWatch. That mix makes the company’s results relevant not only to equity-market activity in London, but also to demand for financial data, analytics, trading venues and post-trade services used by institutional clients globally.

Chief Executive David Schwimmer said in a company statement that LSEG had “delivered a particularly strong quarter,” citing growth in subscriptions and performance in businesses linked to trading volumes.

Tradeweb lifts fixed income and derivatives

The strongest growth came from the fixed income and derivatives segment, where LSEG reported 27.3% organic growth. The company attributed that performance to interest-rate revenue from Tradeweb.

Tradeweb operates in electronic trading markets, and the revenue contribution cited by LSEG reflects activity in interest-rate products within a volume-sensitive business line. In such businesses, revenue is tied to customer trading activity rather than only to recurring subscriptions, which means periods of heavier market activity can have a direct effect on reported income.

The company’s comment also points to the balance within LSEG’s model: subscription businesses can provide recurring revenue, while transaction-linked businesses can add growth when market activity is strong. Schwimmer’s statement referred to “healthy growth” in subscriptions and “very strong performance” in high-quality volume-based operations.

LSEG did not provide additional divisional figures in the cited update beyond the fixed income and derivatives growth rate. The company also did not give, in the reported statement, a detailed breakdown of the contribution from the London Stock Exchange venue itself compared with data, analytics or Tradeweb.

The update places Tradeweb at the centre of the quarter’s acceleration, particularly through interest-rate markets. For investors and market operators, the figures show how LSEG’s earnings base is influenced by both recurring data demand and activity in electronic fixed-income and derivatives trading.

This story draws on original reporting from MarketWatch.