London Stock Exchange Group

London Stock Exchange (LSE) is a stock exchange in the City of London, England, United Kingdom.

Categories

Financial and Banking  

#273

Rank

$58.58B

MarketCap GB

GB United Kingdom

Country

Summary

London Stock Exchange (LSE) is a stock exchange in the City of London, England, United Kingdom. As of November 2021, the total market value of all companies trading on the LSE was £3.9 trillion. Its current premises are situated in Paternoster Square close to St Paul's Cathedral in the City of London. Since 2007, it has been part of the London Stock Exchange Group (LSEG, which also lists (LSE: LSEG)). The LSE was the most-valued stock exchange in Europe from 2003 when records began until Autumn 2022 when the Paris exchange was briefly larger until the LSE retook its position as Europe's largest stock exchange 10 days later.


History

The London Stock Exchange Group was formally created in 2007 when the Exchange acquired the Milan-based -and Italian-only- Borsa Italiana for 1.6bn euro (£1.1bn; $2bn) to form the London Stock Exchange Group plc. The combination was intended to diversify 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 percent of the enlarged register. 

In 2008, the group announced a strategic partnership with Oslo Børs (Oslo Stock Exchange) which included the provision of trading services to its equities, fixed-income, and derivatives markets. In March 2009, The Board of the London Stock Exchange Group appointed Xavier Rolet as Chief Executive. Later that year, 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. In November 2010, the London Stock Exchange Group launched its charitable Foundation, which focuses on supporting selected initiatives in the communities in which it operates. 

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). The deal, subject to government approval would create the world’s largest exchange operator for mining stocks. In the UK the LSE Group first announced it as a takeover, however in Canada the deal was reported as a merger. The provisional name for the combined group would be LTMX Group plc. 

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 $3.7 billion CAD, launched in the hope of blocking the LSE Group’s takeover of TMX. The group was composed of the leading banks and financial institutions in Canada. 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”. Also in 2011, the Group signed a strategic partnership with the Mongolian Stock Exchange and London Stock Exchange Group plc acquired an outstanding 50 percent of FTSE International Limited, giving LSEG 100 percent ownership and strategic control. A year later, in July 2012, the LSE bought a 5% stake in Delhi Stock Exchange and agreed to acquire a majority stake in LCH. Clearnet Group Limited. On 2 June 2014, the LSE became the 10th stock exchange to join the United Nations’ Sustainable Stock Exchanges (SSE) initiative. 

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. 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 per unit. In March 2016, the company announced it had reached an agreement with Deutsche Börse to merge. The companies will be brought under a new holding company, UK TopCo, and will retain both headquarters in London and Frankfurt. On 25 February 2017, the London Stock Exchange Group PLC stated it wouldn’t 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. 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”. 

In August 2019, the company agreed to buy Refinitiv in an all-share transaction valuing the target at $27 billion. But shortly thereafter, on 11 September 2019, the LSE itself became the target of a £32 billion bid by the Hong Kong Exchanges and Clearing.


Mission

The mission of London Stock Exchange Group (LSEG) is to operate global financial markets and data solutions that promote sustainable economic growth and advance market efficiency, transparency, and integrity.

LSEG's core business is operating stock exchanges, including the London Stock Exchange, Borsa Italiana, and Turquoise, as well as providing financial market data and analytics through their subsidiary, Refinitiv. The company aims to provide a fair, transparent, and efficient marketplace for companies to raise capital, investors to trade securities, and for risk to be managed effectively.

In addition to this, LSEG is committed to promoting sustainable economic growth through its business practices. The company believes that sustainable economic growth is essential for long-term value creation and aims to support companies that are making a positive impact on the environment, society, and governance through their investment decisions, listing requirements, and sustainability reporting standards.


Vision

The vision of London Stock Exchange Group (LSEG) is to be the leading global financial infrastructure and data provider, creating opportunities for customers, investors, and wider society to prosper.

LSEG envisions a future where the company plays a central role in facilitating global capital flows, supporting economic growth, and enabling financial inclusion. The company aims to achieve this vision by delivering innovative and trusted solutions that meet the evolving needs of customers and investors worldwide.

The company has a key role in enabling sustainable economic development, which demands a balance of economic progress, social inclusion, and environmental protection.


Key Team

David Schwimmer (CEO)

David Warren (Group Chief Financial Officer)

Raffaele Jerusalmi (Chief Executive Officer, Borsa Italiana and Group Director of Capital Markets, LSEG)

Chris Corrado (Group COO, Group CIO)

Donald Brydon (Chairman)


Recognition and Awards
World Finance Magazine: LSEG has been named "Best Stock Exchange for Emerging Markets" by World Finance magazine. The Banker Magazine: LSEG has been named "Exchange Group of the Year" by The Banker magazine. Financial Times: LSEG has been named to the Financial Times' Diversity Leaders list for its commitment to diversity and inclusion. Environmental Finance: LSEG has been named "Exchange of the Year" by Environmental Finance for its work promoting sustainable finance. Global Investor: LSEG's subsidiary, LCH, has been named "Clearing House of the Year" by Global Investor. Risk.net: LSEG's subsidiary, UnaVista, has been named "Regulatory Reporting System of the Year" by Risk.net. Institutional Asset Manager: LSEG's subsidiary, FTSE Russell, has been named "Index Provider of the Year" by Institutional Asset Manager. Environmental, Social and Governance (ESG) Monitor: LSEG has been named to the ESG Monitor's top 50 ESG companies list for its commitment to sustainability.

Products and Services

tock Exchanges: LSEG operates several stock exchanges, including the London Stock Exchange, Borsa Italiana, and Turquoise.

Investment Services: The company provides investment services, such as custody, settlement, and clearing of securities.

Information Services: LSEG offers a range of financial market data and analytics services through their subsidiary, Refinitiv, including market data, pricing, reference data, and risk analytics.

Post Trade Services: LSEG provides post-trade services, such as clearing, settlement, and custody services.

Capital Formation Services: The company supports the capital formation process through its listing services, which enable companies to raise capital by issuing shares or other securities.

Indices: LSEG offers a range of indices, including the FTSE All-World Index and the FTSE 100 Index.

Sustainable Finance: The company is committed to promoting sustainable finance and offers a range of services to support sustainable investment, including ESG ratings and analytics.

Technology Solutions: LSEG offers technology solutions to financial market participants, including trading and risk management systems, as well as regulatory compliance solutions.


References
London Stock Exchange Group
Leadership team

Donald Brydon (Chairman)

David Schwimmer (CEO)

Industries

Financial and Banking

Products/ Services
Information Services, Capital Markets, Post Trade Services, Technology Services
Number of Employees
1,000 - 20,000
Headquarters
London, United Kingdom
Established
2007
Company Registration
SEC CIK #0001842726
Revenue
500M - 1B
Traded as
LSEG.L
Social Media

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Fri Mar 01 2024
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