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London Stock Exchange Group

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London Stock Exchange Group plc
Company typePublic limited company
LSE: LSE
IndustryFinancial services
Founded2007; 17 years ago (2007)
Headquarters10 Paternoster Square, City of London, England, United Kingdom
Key people
Donald Brydon (Chairman)
Xavier Rolet (CEO)
ProductsStock exchanges
Revenue£ 1.04 billion (2014)[1]
£ 417.6 million (2014)[1][2]
£ 273.9 million (2014)[1][3]
DivisionsBorsa Italiana
London Stock Exchange
SubsidiariesFTSE Group (100%)
WebsiteLSEG.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,[4] Russell Investments and the London Stock Exchange.

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]

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.[6]

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.[7]

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.[8]

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).[9] The deal, subject to government approval would create the world's largest exchange operator for mining stocks.[10] In the UK the LSE Group first announced it as a takeover, however in Canada the deal was reported as a merger.[11] The provisional name for the combined group would be LTMX Group plc.[12] 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.[13] 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".[14]

In July 2012, the LSE bought a 5% stake in Delhi Stock Exchange.[15]

On 2 June 2014, the LSE became the 10th stock exchange to join the United Nation's Sustainable Stock Exchanges (SSE) initiative.[16][17][18]

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.[19]

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.[20]

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.[21]

London Stock Exchange

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

Borsa Italiana

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

MillenniumIT

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

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

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.

Tokyo Stock Exchange joint venture

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

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

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 Group

London Stock Exchange Group owns the index company FTSE Group.[27]

See also

References

  1. ^ a b c http://www.lseg.com/sites/default/files/content/documents/LSEG%20Preliminary%20Results%20CY2014%20RNS%205Mar2015_1.pdf. {{cite web}}: Missing or empty |title= (help)
  2. ^ http://www.lseg.com/sites/default/files/content/documents/LSEG%20Preliminary%20Results%20CY2014%20RNS%205Mar2015_1.pdf
  3. ^ http://www.lseg.com/sites/default/files/content/documents/LSEG%20Preliminary%20Results%20CY2014%20RNS%205Mar2015_1.pdf
  4. ^ "LSEG MillenniumIT Acquisition" (PDF). London Stock Exchange Group. Retrieved 30 November 2013.
  5. ^ a b c d "Our history". londonstockexchange.com. Retrieved 20 March 2015.
  6. ^ "BBC NEWS - Business - LSE rejects £2.7bn Nasdaq offer". bbc.co.uk. Retrieved 20 March 2015.
  7. ^ "BBC NEWS - Business - London Stock Exchange buys Borsa". bbc.co.uk. Retrieved 20 March 2015.
  8. ^ "Latest News". millenniumit.com. Retrieved 20 March 2015.
  9. ^ "STOCKS NEWS EUROPE-LSE jumps on TMX purchase plan". reuters.com. Retrieved 20 March 2015.
  10. ^ "TSX operator, London exchange agree to merge". CBC News. 2011-02-09.
  11. ^ "FACTBOX-LSE to buy Toronto exchange". reuters.com. Retrieved 20 March 2015.
  12. ^ Wall Street Journal, "A Combined TMX-LSE Would Be Called LTMX Group", Ben Dummett, 1 June 2011
  13. ^ Reuters, "Maple Group goes hostile for TMX", Solarina Ho
  14. ^ "Toronto-London stock exchange merger terminated". thestar.com. 29 June 2011. Retrieved 20 March 2015.
  15. ^ Shah, Palak (5 July 2012). "British bourse LSE buys 5% stake in Delhi Stock Exchange". Business Standard. Business Standard Ltd. Retrieved 4 September 2012.
  16. ^ "LONDON STOCK EXCHANGE GROUP JOINS UN SUSTAINABLE STOCK EXCHANGES INITIATIVE". London Stock Exchange. London Stock Exchange. Retrieved 3 June 2014.
  17. ^ Malone, Charlotte. "London Stock Exchange joins UN sustainability initiative". Blue&Green Tomorrow. Blue&Green Tomorrow. Retrieved 3 June 2014.
  18. ^ MOSS, GAIL. "London Stock Exchange joins UN sustainable stock exchanges initiative". IPE. Investments and Pensions Europe. Retrieved 3 June 2014.
  19. ^ 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.
  20. ^ "Deals of the day- Mergers and acquisitions". Reuters. Retrieved 2015-02-02.
  21. ^ "Index of /". 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
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