Company:London Stock Exchange Group

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Short description: British financial services company
London Stock Exchange Group plc
Formerly
  • Milescreen Limited (February–November 2005)
  • London Stock Exchange Group Limited (November–December 2005)[1]
TypePublic limited company
LSE: [Script error: No such module "Stock tickers/LSE". LSEG]
FTSE 100 Component
IndustryFinancial services
Founded23 June 2007; 17 years ago (2007-06-23)
HeadquartersPaternoster Square
London, England, UK
Products
RevenueIncrease £7.743 billion (2022)[2]
Increase £2.728 billion (2022)[2]
Decrease £1.491 billion (2022)[2]
Divisions
Website{{{1}}}
London Stock Exchange, Capel Court, in use from 1802 to 1972
Former premises in Threadneedle Street, in use from 1972 to 2004

London Stock Exchange Group plc[3][1] (LSEG) is a United Kingdom-based stock exchange and financial information company headquartered in the City of London, England. It owns the London Stock Exchange (on which it is also listed), Refinitiv, LSEG Technology,[4] FTSE Russell, and majority stakes in LCH and Tradeweb.

History

The London Stock Exchange was founded in Sweeting's Alley in London in 1801.[5] It moved to Capel Court the following year.[5]

In 1972, the Exchange moved to a new purpose-built building and trading floor in Threadneedle Street. Deregulation, sometimes known as "big bang", came in 1986 and external ownership of member firms was allowed for the first time.[5] In 1995, the Alternative Investment Market was launched and in 2004 the Exchange moved again, this time to Paternoster Square.[5]

Between April and May 2006, having been rebuffed in an informal approach, Nasdaq built up a 23% stake in the Exchange.[6] The stake grew to 29% as a result of the London exchange's share consolidation.[7] Nasdaq has since sold its investment.[8]

In 2007, the Exchange acquired the Milan-based Borsa Italiana for €1.6bn (£1.1bn; US$2bn) to form the London Stock Exchange Group plc. The combination was intended to diversify the LSE's product offering and customer base. The all-share deal diluted the stakes of existing LSE shareholders, with Borsa Italiana shareholders receiving new shares representing 28 per cent of the enlarged register.[9]

On 16 September 2009, the London Stock Exchange Group agreed to acquire Millennium Information Technologies, Ltd., a Sri Lankan-based software company specialising in trading systems, for US$30m (£18m). The acquisition was completed on 19 October 2009.[10]

On 9 February 2011, TMX Group, operator of the Toronto Stock Exchange agreed to join forces with the London Stock Exchange Group in a deal described by TMX head Tom Kloet as a 'merger of equals' (though 8/15 board members of the combined entity will be appointed by LSE, 7/15 by TMX).[11] The deal, subject to government approval would create the world's largest exchange operator for mining stocks.[12] In the UK, the LSE Group first announced it as a takeover, however in Canada the deal was reported as a merger.[13] The provisional name for the combined group would be LTMX Group plc.[14] On 13 June 2011, a rival, and hostile bid from the Maple Group of Canadian interests, was unveiled for the TMX Group. This was a cash and stock bid of CA$3.7 billion, launched in the hope of blocking the LSE Group's takeover of TMX. The group was composed of the leading banks and financial institutions of Canada.[15] The London Stock Exchange however announced it was terminating the merger with TMX on 29 June 2011 citing that "LSEG and TMX Group believe that the merger is highly unlikely to achieve the required two-thirds majority approval at the TMX Group shareholder meeting".[16]

In July 2012, the LSE bought a 5% stake in Delhi Stock Exchange.[17]

On 2 June 2014, the LSE became the 10th stock exchange to join the United Nations' Sustainable Stock Exchanges (SSE) initiative.[18][19][20]

On 26 June 2014, the LSE announced it had agreed to buy Frank Russell Co., making it one of the largest providers of index services.[21]

In January 2015, Reuters reported that the London Stock Exchange Group planned to put Russell Investments up for sale, and estimates the sale will produce $1.4 billion.[22]

In March 2016, the company announced it had reached an agreement with Deutsche Börse to merge. The companies would have been brought under a new holding company, UK TopCo, and would retain both headquarters in London and Frankfurt.[23] On 25 February 2017, the London Stock Exchange Group PLC stated it would not sell its fixed-income trading platform in Italy to Deutsche Börse AG, to appease anti-trust concerns. The planned merger between the two exchanges, which was estimated to create the largest exchange in Europe, was subsequently described as "at risk" by The Wall Street Journal .[24] The merger attempt was blocked by EU Competition Regulator on 29 March 2017 stating that "The Commission's investigation concluded the merger would have created a de facto monopoly in the markets for clearing fixed income instruments".[25]

In August 2019, the company agreed to buy Refinitiv in an all-share transaction valuing the target at $27 billion.[26] Shortly thereafter, on 11 September 2019, LSEG itself became the target of a £32 billion bid by the Hong Kong Exchanges and Clearing, subject to abandoning its plans to buy Refinitiv.[27] LSEG rejected the takeover bid two days later.[28] In order to secure the Refinitiv deal, in July 2020, LSEG announced that it was considering selling its Italian assets including MTS, Italian bond trading venue and potentially Borsa Italiana.[29]

On 18 September 2020, LSEG entered into exclusive talks to sell the Italian Bourse to Euronext.[30] The acquisition was announced on 9 October of that same year and was completed on 29 April 2021.[31]

In August 2023, LSEG said it intends to retire the Refinitiv name across the group, starting with market-data terminal Refinitiv Workspace, which will become LSEG Workspace from the end of August 2023.[32]

Leadership

The positions of chairman and Chief Executive of the London Stock Exchange Group were founded in 2007, upon the establishment of the Group. This is not to be confused with the chairmen and Chief Executive's of the London Stock Exchange plc, which is a subsidiary of the Group. The current Chief Executive is former Goldman Sachs banker David Schwimmer, who was appointed in 2018, replacing Xavier Rolet, who was ousted in November 2017.[33] Schwimmer's most recent role at Goldman Sachs was serving as "global head of market structure and global head of metals and mining in investment banking".[33]

Senior leadership

  • Chairman: Don Robert (since January 2019)[33]
  • Chief Executive: David Schwimmer (since April 2018)[33]

List of former chairmen

  1. Chris Gibson-Smith (2007–2015)[34]
  2. Sir Donald Brydon (2015–2018)[35]

List of former chief executives

  1. Dame Clara Furse (2007–2009)[34]
  2. Xavier Rolet (2009–2017)[33]

Principal subsidiaries

Principal subsidiaries areas follows:[36]:164

Principal activity Country of

incorporation

% equity and

votes held

Held directly by the company:
London Stock Exchange Recognised investment exchange UK 100
Held indirectly by the company:
Banque Centrale De Compensation CCP clearing services France 73.45
Financial Risk and Organisation Limited IP owner UK 100
Frank Russell Company Market indices provider US 100
FTSE International Market indices provider UK 100
LCH CCP clearing services UK 82.61
Refinitiv France SAS Market and financial data provider France 100
Refinitiv Hong Kong Limited Market and financial data provider Hong Kong 100
Refinitiv Germany GmbH Market and financial data provider Germany 100
Refinitiv Asia Pte Limited Market and financial data provider Singapore 100
Refinitiv Germany GmbH Market and financial data provider Germany 100
Refinitiv Japan KK Market and financial data provider Japan 100
Refinitiv Limited Market and financial data provider UK 100
Refinitiv US LLC Market and financial data provider US 100
Tradeweb Markets LLC Multi-lateral trading facility US 51.30

Operations

Following the merger with Borsa Italiana, the group is Europe's leading equities business, with 48% of the FTSEurofirst 100 by market capitalisation and with the most liquid order book by value and volume traded.[37] Its activities include:

  • London Stock Exchange: The London Stock Exchange is Europe's leading stock exchange and is owned by the London Stock Exchange Group plc.[38]
  • LSEG Technology: LSEG Technology was acquired by LSEG in 2009 as their technology service provider. The company was originally known as MillenniumIT and was subsequently rebranded as LSEG Technology.[39] It offers a trading platform known as Millennium Exchange and is available for use at most of the leading stock markets in the world.[40]
  • Cassa di Compensazione e Garanzia ('CC&G'): CC&G provides central counterparty services. It was purchased along with Borsa Italiana in 2007.[41]
  • Monte Titoli: Monte Titoli is the Italian Central Securities Depository for Italian issued financial instruments. It performs pre-settlement, settlement and custody services for its member participants. It was created in 1978 and acquired by the Borsa Italiana in 2002 before becoming part of the LSEG.[42]
  • Turquoise: On 21 December 2009, the LSE agreed to take a 60% stake in rival trading platform Turquoise, which currently has a 7% share of the market. Turquoise will be merged with the LSE's trading facility Baikal Global.[43]
  • LCH: On 3 April 2012, LSE and LCH shareholders voted overwhelmingly to take up to 60 percent of the clearing operator with an offer of 20 euros per share, which valued LCH at 813 million euros ($1.1 billion).[44]
  • FTSE Russell: Through its acquisition of the Frank Russell Company in 2015, London Stock Exchange Group combined FTSE Group with Russell Indexes to form FTSE Russell, now one of the largest index providers in the world.[45]
  • Mergent: On 21 November 2016 LSEG announced plans to acquire Mergent Inc, provider of business and financial information on public and private companies.[46]
  • The Yield Book and Citi Fixed Income Indices: On 30 May 2017 LSEG announced the acquisition of The Yield Book and Citi Fixed Income Indices, leading providers of fixed income analytics systems, for $685 million.[47][48]
  • AAX: On 22 January 2019, LSEG announced that its Millennium Exchange matching engine technology had been selected by digital asset exchange AAX, marking the first time its solutions are applied in the digital assets economy.[49][50]
  • In September 2023, LSEG drew up plans for a new digital markets business to offer trading of traditional financial assets using blockchain technology. The new entity is expected to be launched within a year.[51]

Arms

Coat of arms of London Stock Exchange Group
Notes
Granted 26 May 2023 by the College of Arms.
Crest
None recorded
Helm
None recorded, as per usual
Escutcheon
Azure a Lion passant guardant Or armed proper surmounting the base of a Tower also Proper.
Supporters
On either side a Griffin Sable armed proper murally crowned Or.[52]

See also

References

  1. ↑ 1.0 1.1 "LONDON STOCK EXCHANGE GROUP PLC overview" (in en). 2005-02-18. https://find-and-update.company-information.service.gov.uk/company/05369106. 
  2. ↑ 2.0 2.1 2.2 "Annual Results 2022". London Stock Exchange Group. https://www.lseg.com/content/dam/lseg/en_us/documents/investor-relations/financial-results/preliminary-results/rns/lseg-preliminary-results-fy2022-rns-2mar2023.pdf. 
  3. ↑ "Privacy and Cookie Statement" (in en). 2022-10-07. https://www.lseg.com/en/policies/privacy-and-cookie-statement. 
  4. ↑ "LSEG MillenniumIT Acquisition". London Stock Exchange Group. http://www.lseg.com/sites/default/files/content/documents/lseg-millenniumit-acquisition-sep09.pdf. 
  5. ↑ 5.0 5.1 5.2 5.3 "Our history". londonstockexchange.com. http://www.londonstockexchange.com/about-the-exchange/company-overview/our-history/our-history.htm. 
  6. ↑ "Warnings in vogue at French Connection". Financial Times. https://www.ft.com/content/1a2a6a20-e024-11da-9e82-0000779e2340. 
  7. ↑ "Prospectus". London Stock Exchange Group plc. https://www.lseg.com/sites/default/files/content/documents/prospectus-may-2006.pdf. 
  8. ↑ "LSE rejects £2.7bn Nasdaq offer". BBC. http://news.bbc.co.uk/1/hi/business/6164376.stm. 
  9. ↑ "London Stock Exchange buys Borsa". BBC. http://news.bbc.co.uk/1/hi/business/6233196.stm. 
  10. ↑ "Latest News". millenniumit.com. http://www.millenniumit.com/news/index.php?def_news=95. 
  11. ↑ "LSE jumps on TMX purchase plan". reuters.com. http://uk.reuters.com/article/markets-europe-stocksnews-idUKLDE7180IV20110209. 
  12. ↑ "TSX operator, London exchange agree to merge". CBC News. 9 February 2011. http://www.cbc.ca/money/story/2011/02/09/tmx-lse-merger.html. 
  13. ↑ "FACTBOX-LSE to buy Toronto exchange". reuters.com. http://uk.reuters.com/article/tmxgroup-lse-idUKN0811349020110209. 
  14. ↑ Wall Street Journal, "A Combined TMX-LSE Would Be Called LTMX Group", Ben Dummett, 1 June 2011
  15. ↑ Reuters, "Maple Group goes hostile for TMX", Solarina Ho
  16. ↑ "Toronto-London stock exchange merger terminated". thestar.com. 29 June 2011. https://www.thestar.com/business/article/1016709--toronto-london-stock-exchange-merger-terminated. 
  17. ↑ Shah, Palak (5 July 2012). "British bourse LSE buys 5% stake in Delhi Stock Exchange". Business Standard. Business Standard Ltd. http://www.business-standard.com/india/news/british-bourse-lse-buys-5-stake-in-delhi-stock-exchange/479423/. 
  18. ↑ "London Stock Exchange Group joins UN sustainable stock exchanges initiative". London Stock Exchange. http://www.lseg.com/markets-products-and-services/our-markets/london-stock-exchange/equities-markets/raising-equity-finance/market-open-ceremony/welcome-stories/london-stock-exchange-group-joins-un-sustainable-stock-exchanges-initiative. 
  19. ↑ Malone, Charlotte. "London Stock Exchange joins UN sustainability initiative". Blue&Green Tomorrow. http://blueandgreentomorrow.com/2014/06/03/london-stock-exchange-joins-un-sustainability-initiative/. 
  20. ↑ MOSS, GAIL. "London Stock Exchange joins UN sustainable stock exchanges initiative". Investments and Pensions Europe. http://www.ipe.com/london-stock-exchange-joins-un-sustainable-stock-exchanges-initiative/10002064.article. 
  21. ↑ Walker, Ian. "London Stock Exchange to Buy U.S. Asset Manager Frank Russell for $2.7 Billion". https://online.wsj.com/articles/london-stock-exchange-to-buy-u-s-asset-manager-frank-russell-for-2-7-billion-1403767001. 
  22. ↑ "Deals of the day- Mergers and acquisitions". Reuters. http://uk.reuters.com/article/deals-day-idUKL4N0V747320150128. 
  23. ↑ "London Stock Exchange and Deutsche Boerse agree merger". BBC News. 16 March 2016. https://www.bbc.co.uk/news/business-35818997. 
  24. ↑ Dummett, Ben (27 February 2017). "London Stock Exchange Merger With Deutsche Börse at Risk Over Antitrust Issues". The Wall Street Journal (New York City). https://www.wsj.com/articles/london-stock-exchange-merger-with-deutsche-borse-at-risk-over-antitrust-issues-1488153680. 
  25. ↑ "European Commission – PRESS RELEASES – Press release – Mergers: Commission blocks proposed merger between Deutsche Börse and London Stock Exchange". http://europa.eu/rapid/press-release_IP-17-789_en.htm. 
  26. ↑ "London Stock Exchange clinches acquisition of Refinitiv for $27bn". https://www.ft.com/content/54c886d8-b420-11e9-8cb2-799a3a8cf37b. 
  27. ↑ "London Stock Exchange gets £32bn Hong Kong bid". https://www.bbc.com/news/business-49659779. 
  28. ↑ "London Stock Exchange rejects Hong Kong takeover offer" (in en). 13 September 2019. https://www.cnbc.com/2019/09/13/london-stock-exchange-rejects-hong-kong-takeover-bid.html. 
  29. ↑ Stafford, Phillip (31 July 2020). "LSE considers selling Italian assets to secure Refinitiv deal". Financial Times. https://www.ft.com/content/2dab8127-40da-4868-9713-9e3de6889223. 
  30. ↑ "LSE engages Euronext in exclusive Borsa Italiana talks". Business Insider. 18 September 2020. https://www.businessinsider.com/lse-engages-euronext-in-exclusive-borsa-italiana-talks-2020-9?r=US&IR=T. 
  31. ↑ "Euronext completes purchase of Italian stock exchange". The Independent. 29 April 2021. https://www.independent.ie/business/world/euronext-completes-purchase-of-italian-stock-exchange-40369507.html. 
  32. ↑ News, Alliance (3 August 2023). "UPDATE: London Stock Exchange to ditch Refinitiv brand completely" (in en-GB). https://www.morningstar.co.uk/uk/news/AN_1691057094361346600/http%3a%2f%2fwww.morningstar.co.uk%2fvirtual%2fSolrNews%2fAllianceNews.aspx%3fSite%3duk%26DocId%3dAN_1691057094361346600. 
  33. ↑ 33.0 33.1 33.2 33.3 33.4 Strydom, Martin (13 April 2018). "LSE picks Goldman's David Schwimmer as its new chief". The Times. https://www.thetimes.co.uk/edition/business/lse-picks-goldmans-david-schwimmer-as-its-new-chief-x0gr272pl. 
  34. ↑ 34.0 34.1 "LSE names Gibson-Smith as chairman". The Irish Times. 8 April 2003. https://www.irishtimes.com/news/lse-names-gibson-smith-as-chairman-1.471053. 
  35. ↑ "LSEG announces appointment of Donald Robert as a Non-Executive Director and then to succeed Donald Brydon as Chairman after 2019 AGM". 14 December 2018. https://www.lseg.com/resources/media-centre/press-releases/lseg-announces-appointment-donald-robert-non-executive-director-and-then-succeed-donald-brydon-chairman-after-2019-agm. 
  36. ↑ "Annual Report 2021". London Stock Exchange Group. https://www.lseg.com/sites/default/files/content/documents/lseg-annual-report-2021.pdf. 
  37. ↑ "Investor relations". londonstockexchange-ir.com. http://www.londonstockexchange-ir.com/. 
  38. ↑ "London Stock Exchange". Exchanges Journal. http://www.exchangesjournal.org/london.php. 
  39. ↑ "LSEG Technology. The new name for our technology business.". https://www.lseg.com/markets-products-and-services/technology/lseg-technology. 
  40. ↑ "London Stock Exchange Group to acquire MillenniumIT for US$30M (£18M)". London Stock Exchange. http://www.londonstockexchange.com/about-the-exchange/media-relations/press-releases/2009/london-stock-exchange-group-to-acquire-millenniumit-for-us30m-18m.htm. 
  41. ↑ "LSE backs possible joint bid for LCH.Clearnet". reuters.com. http://uk.reuters.com/article/lse-lchclearnet-idUKLK29075420090220. 
  42. ↑ "The Monte Titoli Shareholders Approve The Financial Statement For Year 2002". Mondovisione. 17 April 2003. http://www.mondovisione.com/news/the-monte-titoli-shareholders-approve-the-financial-statement-for-year-2002-net-/. 
  43. ↑ "BBC News – LSE reveals takeover of Turquoise". bbc.co.uk. http://news.bbc.co.uk/1/hi/business/8423955.stm. 
  44. ↑ "LSE wins shareholder backing for LCH deal". reuters.com. http://uk.reuters.com/article/idUKL6E8F31IP20120403. 
  45. ↑ "LSEG launches new FTSE Russell brand". http://www.lseg.com/resources/media-centre/press-releases/lseg-launches-new-ftse-russell-brand. 
  46. ↑ "London Stock Exchange adds to data service with Mergent takeover". The Telegraph. https://www.telegraph.co.uk/business/2016/11/21/london-stock-exchange-adds-data-service-mergent-takeover/. 
  47. ↑ "LSEG to acquire The Yield Book and Citi Fixed Income Indices" (in en). London Stock Exchange Group. https://www.lseg.com/resources/media-centre/corporate-announcements/lseg-acquire-yield-book-and-citi-fixed-income-indices. 
  48. ↑ Hussain, Noor Zainab. "LSE to buy Citi's bond data and indexes business for $685 million" (in en-US). U.S.. https://www.reuters.com/article/us-citigroup-m-a-lse-idUSKBN18Q0FZ. 
  49. ↑ "LSEG Technology selected by ATOM to power the AAX digital asset exchange" (in en). https://www.lseg.com/resources/media-centre/press-releases/lseg-technology-selected-atom-power-aax-digital-asset-exchange. 
  50. ↑ "AAX – Trade Digital Assets with Confidence". https://www.aax.com/en/index.html. 
  51. ↑ "LSEG explores blockchain for cross-asset digital 'ecosystem'" (in en). Reuters. 4 September 2023. https://www.reuters.com/technology/lse-group-draws-up-plans-blockchain-based-digital-assets-business-ft-2023-09-04/. 
  52. ↑ "September 2023 Newsletter (no. 72)". College of Arms. https://www.college-of-arms.gov.uk/news-grants/newsletter/item/217-september-2023-newsletter-no-72. Retrieved 19 September 2023. 

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