London Stock Exchange Group

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London Stock Exchange Group plc
Public limited company
Traded as LSELSE
Industry Financial services
Founded 2007; 9 years ago (2007)
Headquarters 10 Paternoster Square, City of London, England, United Kingdom
Key people
Donald Brydon (Chairman)
Xavier Rolet (CEO)
Products Stock exchanges
Revenue £ 1,418.6 million (2015)[1]
£ 584.7 million (2015)[1]
£ 357.1 million (2015)[1]
Divisions Borsa Italiana
London Stock Exchange
Website LSEG.com
Paternoster Square. The LSE occupies the building that takes up much of the right side of this picture.
Former LSE premises in Threadneedle Street

The London Stock Exchange Group plc is a British-based stock exchange and financial information company. It is headquartered in London, United Kingdom. It owns the Borsa Italiana, MillenniumIT,[2] Russell Investments, FTSE International, Exactpro, majority stake in LCH, majority stake in MTS and the London Stock Exchange.

History[edit]

The London Stock Exchange was founded in Sweeting's Alley in London in 1801.[3] It moved to Capel Court the following year.[3]

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.[3] In 1995 the Alternative Investment Market was launched and in 2004 the Exchange moved again, this time to Paternoster Square.[3]

Nasdaq built up a stake of over 30% in the Exchange in 2007 in a failed attempt to acquire it. It has since sold its investment.[4]

In 2007 the Exchange acquired the Milan-based Borsa Italiana for 1.6bn euro (£1.1bn; $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.[5]

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.[6]

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).[7] The deal, subject to government approval would create the world's largest exchange operator for mining stocks.[8] In the UK the LSE Group first announced it as a takeover, however in Canada the deal was reported as a merger.[9] The provisional name for the combined group would be LTMX Group plc.[10] 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 of Canada.[11] 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".[12]

In July 2012, the LSE bought a 5% stake in Delhi Stock Exchange.[13]

On 2 June 2014, the LSE became the 10th stock exchange to join the United Nation's Sustainable Stock Exchanges (SSE) initiative.[14][15][16]

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.[17]

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.[18]

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.[19]

Principal subsidiaries[edit]

Principal subsidiaries areas follows:[20]

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:
BIt Market Services Retail information services and market technology Italy 99.99
Borsa Italiana Recognised investment exchange Italy 99.99
Cassa di Compensazione e Garanzia CCP clearing services Italy 99.99
Exactpro Quality assurance provider Russia 100
FTSE International Market indices provider UK 100
LCH.Clearnet Group CCP clearing services UK 57.80
Monte Titoli Pre-settlement, settlement and centralised custody Italy 98.86
MillenniumIT IT solutions provider Sri Lanka 100
MTS Wholesale fixed income bonds Italy 60.36
Turquoise Global Holdings Multi-lateral trading facility UK 51.36
Frank Russell Company Global asset manager and index business USA 100

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.[21]

London Stock Exchange[edit]

The London Stock Exchange is Europe's leading stock exchange and is owned by the London Stock Exchange Group plc.

Borsa Italiana[edit]

Borsa Italiana is Italy's leading stock exchange and is owned by the London Stock Exchange Group plc.

MillenniumIT[edit]

MillenniumIT was acquired by LSEG in 2009 as their technology service provider. It is offering world's fastest trading platform known as Millennium Exchange for most of leading stock markets in the world.[22]

CC&G[edit]

CC&G is the Italian Central Counterparty that the LSE purchased along with Borsa Italiana in 2007.[23]

Monte Titoli[edit]

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.

Tokyo Stock Exchange joint venture[edit]

In July 2008 the LSE and the Tokyo Stock Exchange (TSE) announced a new joint venture Tokyo-based market, which will be based on the LSE's Alternative Investment Market (AIM).[24]

Turquoise[edit]

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.[25]

LCH.Clearnet[edit]

On the 3 April 2012, LSE and LCH.Clearnet shareholders voted overwhelmingly to take up to 60 percent of the clearing operator with an offer of 20 euros per share, which values LCH.Clearnet at 813 million euros ($1.1 billion).[26]

FTSE Russell[edit]

On 18 May 2015 LSEG announced the launch of ‘FTSE Russell’, the new integrated name created for the combined businesses of FTSE Group[27] and Russell Indexes.[28]

Exactpro[edit]

On 29 May 2015 LSEG acquired a 100% interest in Exactpro. It is offering quality assurance services to exchanges, investment banks, brokers and other financial sector organisations.[29]

See also[edit]

References[edit]

  1. ^ a b c "Annual Report 2015" (PDF). London Stock Exchange Group. Retrieved 25 March 2016. 
  2. ^ "LSEG MillenniumIT Acquisition" (PDF). London Stock Exchange Group. Retrieved 30 November 2013. 
  3. ^ a b c d "Our history". londonstockexchange.com. Retrieved 20 March 2015. 
  4. ^ "LSE rejects £2.7bn Nasdaq offer". BBC. Retrieved 20 March 2015. 
  5. ^ "London Stock Exchange buys Borsa". BBC. Retrieved 20 March 2015. 
  6. ^ "Latest News". millenniumit.com. Retrieved 20 March 2015. 
  7. ^ "LSE jumps on TMX purchase plan". reuters.com. Retrieved 20 March 2015. 
  8. ^ "TSX operator, London exchange agree to merge". CBC News. 2011-02-09. 
  9. ^ "FACTBOX-LSE to buy Toronto exchange". reuters.com. Retrieved 20 March 2015. 
  10. ^ Wall Street Journal, "A Combined TMX-LSE Would Be Called LTMX Group", Ben Dummett, 1 June 2011
  11. ^ Reuters, "Maple Group goes hostile for TMX", Solarina Ho
  12. ^ "Toronto-London stock exchange merger terminated". thestar.com. 29 June 2011. Retrieved 20 March 2015. 
  13. ^ Shah, Palak (5 July 2012). "British bourse LSE buys 5% stake in Delhi Stock Exchange". Business Standard. Business Standard Ltd. Retrieved 4 September 2012. 
  14. ^ "London Stock Exchange Group joins UN sustainable stock exchanges initiative". London Stock Exchange. London Stock Exchange. Retrieved 3 June 2014. 
  15. ^ Malone, Charlotte. "London Stock Exchange joins UN sustainability initiative". Blue&Green Tomorrow. Blue&Green Tomorrow. Retrieved 3 June 2014. 
  16. ^ MOSS, GAIL. "London Stock Exchange joins UN sustainable stock exchanges initiative". IPE. Investments and Pensions Europe. Retrieved 3 June 2014. 
  17. ^ 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. 
  18. ^ "Deals of the day- Mergers and acquisitions". Reuters. Retrieved 2015-02-02. 
  19. ^ "London Stock Exchange and Deutsche Boerse agree merger". BBC News. 16 March 2016. Retrieved 16 March 2016. 
  20. ^ "LSEG Annual Report 31 December 2015" (PDF). 
  21. ^ "Investor relations". londonstockexchange-ir.com. Retrieved 20 March 2015. 
  22. ^ "London Stock Exchange Group to acquire MillenniumIT for US$30M (£18M)". London Stock Exchange. Retrieved 19 November 2013. 
  23. ^ "LSE backs possible joint bid for LCH.Clearnet". reuters.com. Retrieved 20 March 2015. 
  24. ^ London bourse outlines framework for Tokyo JV
  25. ^ "BBC News - LSE reveals takeover of Turquoise". bbc.co.uk. Retrieved 20 March 2015. 
  26. ^ "LSE wins shareholder backing for LCH deal". reuters.com. Retrieved 20 March 2015. 
  27. ^ London Stock Exchange plc completes acquisition of outstanding 50 per cent of FTSE International Limited
  28. ^ "LSEG launches new FTSE Russell brand". London Stock Exchange Group. Retrieved 2016-04-30. 
  29. ^ "London Stock Exchange acquires Exactpro Systems » Banking Technology". www.bankingtech.com. Retrieved 2016-04-30. 

External links[edit]