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London Stock Exchange Group

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London Stock Exchange Group plc
Formerly
  • Milescreen Limited (February–November 2005)
  • LSEG Group Limited (November–December 2005)[1][2]
Company typePublic
LSE: LSEG
FTSE 100 Component
IndustryFinancial services
Founded23 June 2007; 17 years ago (2007-06-23)
HeadquartersPaternoster Square
London, England, UK
Key people
Products
RevenueIncrease £8.379 billion (2023)[3]
Increase £2.862 billion (2023)[3]
Decrease £0.948 billion (2023)[3]
Divisions
Websitelseg.com Edit this at Wikidata
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, also known as LSEG, is a global provider of financial markets data and infrastructure. 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

[edit]

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

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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

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List of former chairmen

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

List of former chief executives

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

Principal subsidiaries

[edit]

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/Italy 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

[edit]

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

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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]
Badge
Within a Circlet of Annulets interlaced a Balance Azure.

See also

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References

[edit]
  1. ^ "Privacy and Cookie Statement". London Stock Exchange Group. 7 October 2022. Retrieved 23 January 2024.
  2. ^ "London Stock Exchange Group PLC overview". Companies House. 18 February 2005. Retrieved 23 January 2024.
  3. ^ a b c "Annual Results 2023" (PDF). London Stock Exchange Group. Retrieved 29 February 2024.
  4. ^ "LSEG MillenniumIT Acquisition" (PDF). London Stock Exchange Group. Retrieved 30 November 2013.
  5. ^ a b c d "Our history". londonstockexchange.com. Archived from the original on 17 March 2015. Retrieved 20 March 2015.
  6. ^ "Warnings in vogue at French Connection". Financial Times. Retrieved 8 March 2018.
  7. ^ "Prospectus" (PDF). London Stock Exchange Group plc. Retrieved 8 March 2018.
  8. ^ "LSE rejects £2.7bn Nasdaq offer". BBC. Retrieved 20 March 2015.
  9. ^ "London Stock Exchange buys Borsa". BBC. Retrieved 20 March 2015.
  10. ^ "Latest News". millenniumit.com. Retrieved 20 March 2015.
  11. ^ "LSE jumps on TMX purchase plan". reuters.com. Archived from the original on 17 April 2016. Retrieved 20 March 2015.
  12. ^ "TSX operator, London exchange agree to merge". CBC News. 9 February 2011.
  13. ^ "FACTBOX-LSE to buy Toronto exchange". reuters.com. Archived from the original on 6 March 2016. Retrieved 20 March 2015.
  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. Retrieved 20 March 2015.
  17. ^ Shah, Palak (5 July 2012). "British bourse LSE buys 5% stake in Delhi Stock Exchange". Business Standard. Business Standard Ltd. Retrieved 4 September 2012.
  18. ^ "London Stock Exchange Group joins UN sustainable stock exchanges initiative". London Stock Exchange. London Stock Exchange. Retrieved 3 June 2014.
  19. ^ Malone, Charlotte. "London Stock Exchange joins UN sustainability initiative". Blue&Green Tomorrow. Blue&Green Tomorrow. Retrieved 3 June 2014.
  20. ^ MOSS, GAIL. "London Stock Exchange joins UN sustainable stock exchanges initiative". IPE. Investments and Pensions Europe. Retrieved 3 June 2014.
  21. ^ Walker, Ian. "London Stock Exchange to Buy U.S. Asset Manager Frank Russell for $2.7 Billion". The Wall Street Journal. Retrieved 26 June 2014.
  22. ^ "Deals of the day- Mergers and acquisitions". Reuters. Archived from the original on 8 April 2017. Retrieved 2 February 2015.
  23. ^ "London Stock Exchange and Deutsche Boerse agree merger". BBC News. 16 March 2016. Retrieved 16 March 2016.
  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. Retrieved 27 February 2017.
  25. ^ "European Commission – PRESS RELEASES – Press release – Mergers: Commission blocks proposed merger between Deutsche Börse and London Stock Exchange". europa.eu. Retrieved 21 July 2017.
  26. ^ "London Stock Exchange clinches acquisition of Refinitiv for $27bn". Financial Times.
  27. ^ "London Stock Exchange gets £32bn Hong Kong bid". BBC.
  28. ^ "London Stock Exchange rejects Hong Kong takeover offer". CNBC. 13 September 2019. Retrieved 13 February 2022.
  29. ^ Stafford, Phillip (31 July 2020). "LSE considers selling Italian assets to secure Refinitiv deal". Financial Times. Retrieved 31 July 2020.
  30. ^ "LSE engages Euronext in exclusive Borsa Italiana talks". Business Insider. 18 September 2020. Retrieved 21 September 2020.
  31. ^ "Euronext completes purchase of Italian stock exchange". The Independent. 29 April 2021. Retrieved 8 October 2021.
  32. ^ "UPDATE: London Stock Exchange to ditch Refinitiv brand completely". MorningstarUK. 3 August 2023. Retrieved 29 August 2023.
  33. ^ a b c d e Strydom, Martin (13 April 2018). "LSE picks Goldman's David Schwimmer as its new chief". The Times. Retrieved 13 April 2018.
  34. ^ a b "LSE names Gibson-Smith as chairman". The Irish Times. 8 April 2003.
  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.
  36. ^ "Annual Report 2021" (PDF). London Stock Exchange Group. Retrieved 12 March 2022.
  37. ^ "Investor relations". londonstockexchange-ir.com. Retrieved 20 March 2015.
  38. ^ "London Stock Exchange". Exchanges Journal. Retrieved 9 April 2017.
  39. ^ "LSEG Technology. The new name for our technology business".
  40. ^ "London Stock Exchange Group to acquire MillenniumIT for US$30M (£18M)". London Stock Exchange. Archived from the original on 19 October 2013. Retrieved 19 November 2013.
  41. ^ "LSE backs possible joint bid for LCH.Clearnet". reuters.com. Archived from the original on 10 April 2017. Retrieved 20 March 2015.
  42. ^ "The Monte Titoli Shareholders Approve The Financial Statement For Year 2002". Mondovisione. 17 April 2003. Retrieved 9 April 2017.
  43. ^ "BBC News – LSE reveals takeover of Turquoise". bbc.co.uk. Retrieved 20 March 2015.
  44. ^ "LSE wins shareholder backing for LCH deal". reuters.com. Archived from the original on 5 March 2016. Retrieved 20 March 2015.
  45. ^ "LSEG launches new FTSE Russell brand". London Stock Exchange Group. Retrieved 30 April 2016.
  46. ^ "London Stock Exchange adds to data service with Mergent takeover". The Telegraph. Retrieved 21 July 2017.
  47. ^ "LSEG to acquire The Yield Book and Citi Fixed Income Indices". London Stock Exchange Group. Retrieved 11 October 2018.
  48. ^ Hussain, Noor Zainab. "LSE to buy Citi's bond data and indexes business for $685 million". U.S. Retrieved 11 October 2018.
  49. ^ "LSEG Technology selected by ATOM to power the AAX digital asset exchange". London Stock Exchange Group. Retrieved 1 July 2019.
  50. ^ "AAX – Trade Digital Assets with Confidence". www.aax.com. Retrieved 1 July 2019.
  51. ^ "LSEG explores blockchain for cross-asset digital 'ecosystem'". Reuters. 4 September 2023. Retrieved 4 September 2023.
  52. ^ "September 2023 Newsletter (no. 72)". College of Arms. Retrieved 19 September 2023.
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