The London Stock Exchange (LSE) today reported a strong performance for the five months to the end of August.

The amount of capital raised on the markets rose 35 per cent from £17 million to £22 million and the number of new issues rose nearly 20 per cent, from 77 to 92.

Trading in both UK and Italian markets was boosted by busier than normal summer months, with average UK daily equity volumes up 12 per cent, though the value of trades remained at £5 billion a day.

Chief executive Xavier Rolet said: ‘Following strong first quarter results, the business has continued to perform well and we saw increases in trading volumes across our cash equities, derivatives and fixed income businesses.’

The exchange also said its clearing volumes rose by 5 per cent and derivatives trading was up 11 per cent.

Rolet has been keen to diversify away from the main share trading business since his 2009 appointment and claimed this diversification strategy was paying off.

He said: ‘We remain absolutely focused on growth opportunities, driving innovation, strong cost control, working with our customers and delivering results.

‘We expect the group to report good first half results.’

The LSE is closing in on a deal to acquire a majority stake in London-based clearing house, LCH.Clearnet.

The deal, coming after a failure earlier this year to merge with  
Canadian exchange operator TMX Group, values the clearing house at €1 billion (£869 million), despite pre-tax profits last year of only €32 million (£27.8 million).

The half-year results up to 30 September 2011, are expected to be announced on 16 November.