UK Volume 20

lseg.com superbrands.uk.com London Stock Exchange Group Superbrands UK Annual Vol.20 London Stock Exchange Group (LSEG) is a global markets infrastructure business. It provides valuable services for a wide range of customers, focusing on Intellectual Property, Risk and Balance Sheet Management and Capital Formation . The Group plays a vital economic and social role in enabling companies to access funds for growth and development Market LSEG plays a vital economic and social role within the global economy through its interconnected businesses, enabling companies to access funding for growth and development, make informed investment decisions and manage financial risks. In turn, on a broader macro- economic basis, this provides greater efficiency in accessing and managing capital, helping to fund innovation, generate wealth and create jobs. With structural economic shifts and widespread regulatory change impacting the markets and communities served by the Group, the systemic importance of safe, transparent and trusted market infrastructure has never been more apparent. Against this background, LSEG is acutely aware of its wider responsibilities as an acknowledged global leader in the field. Product LSEG delivers the infrastructure, products and services across the financial markets infrastructure value chain to provide a platform for serving customers at each and every point and meeting a wide range of their needs. Its Information Services division provides customers with an extensive range of valuable information and data products that inform investment decisions and capital allocation, including indexes, data on pricing, trading and valuations. Through FTSE Russell, the Group is a global leader in financial indexing, benchmarking and analytic services with approximately US $16tn benchmarked to its indexes. LSEG offers a full range of central counterparty (CCP) clearing services and collateral management solutions which provide strong risk management and capital efficiency benefits. Through leading global clearing house LCH, the Group provides proven risk management capabilities across a range of asset classes. During 2018, LCH’s interest rate derivatives clearing service, SwapClear, processed over US $1 quadrillion in notional. LSEG’s primary markets provide choice and connections between a wide range of issuers and investors, enabling domestic and international companies to raise capital effectively. Through its secondary markets, it provides liquid and deep access to financial securities to enable improved price formation, transparency and trading efficiency. Among the international equity, bond and derivatives markets operated by the Group are: London Stock Exchange; Borsa Italiana; MTS, Europe’s leading fixed income market; and Turquoise, the pan-European trading platform. Nearly 2,700 companies from over 100 countries are currently listed on these markets, which offer businesses efficient access to capital while giving investors the opportunity to trade one of the world’s most diverse ranges of securities. The Group understands that ambitious small and medium-sized enterprises (SMEs) are key to growth and job creation in the real economy. AIM, launched in 1995, has raised more than £112bn in financing for these companies; and LSEG has also created ELITE, a business support and capital raising initiative for dynamic high growth private businesses across some 40 countries. The Group’s acclaimed annual celebration of UK SMEs, ‘1000 Companies to Inspire Britain’ and sister publications, ‘1000 Companies to Inspire Europe’ and ‘Companies to Inspire Africa’ continue to celebrate and support SME communities across the globe. Through LSEG Technology, the Group develops and operates high performance technology solutions, including trading, market surveillance and post trade systems for over 40 organisations and exchanges, including LSEG’s own markets. Achievements Having grown from a domestically focused national exchange, today’s LSEG is a multi-asset, multi-platform business with an increasingly global presence. The purchase of a majority stake in LCH in 2013 greatly enhanced its post- trade capabilities, while the 2014 acquisition of the US-based Frank Russell Company led to the creation of FTSE Russell. The Group offers some of the most deep and liquid markets, innovative products and services in global financial markets infrastructure – all offered, crucially, on an open access basis. Recent Developments Sustainable and green finance are becoming important issues for LSEG’s clients, both issuers and investors, and are rising up the agenda Since 1995, companies have raised more than £112bn on LSEG’s AIM DIDYOU KNOW? of governments and policymakers around the world. The Group is committed to supporting a financial ecosystem that fosters long-term investment horizons, that helps businesses across the world, specifically small and medium-sized companies, drive sustainable economic growth. In 2018 LSEG further enhanced its credentials as a global centre for green finance, expanding and diversifying the portfolio of green bonds, green ETFs, renewable investment funds and environmentally focused corporates hosted on its markets. FTSE Russell continues to release new tools, including sustainable versions of its most popular indexes that further increase investors’ ability to integrate environmental, social and governance (ESG) factors in their portfolios. The combination of client relationships and product capabilities also drives innovation, often in partnership with LSEG’s customers, in areas such as ESG. For example, FTSE Russell announced that the world’s largest pension fund, the Government Pension Investment Fund of Japan (GPIF), had selected the new FTSE Blossom Japan Index as a core ESG benchmark. In 2018, LCH compressed more than US $773tn in notional on behalf of its members and clients, estimated to have saved its customers US $39.5bn in capital. Many other recent examples can be cited of fresh thinking driving innovative change across the breadth of LSEG’s activities. One such example is Turquoise Plato, an unprecedented tie-in between Turquoise and boundary-pushing industry body Plato Partnership. Another is CurveGlobal, a groundbreaking venture that is supporting the transition from LIBOR to new SONIA futures. CurveGlobal offers increased efficiencies and lower costs in interest rate futures trading. Promotion Targeting a diverse range of audiences, the Group concentrates its activity on its four complementary business divisions: Information Services, Post Trade Services, Capital Markets and Technology Services. Recent marketing activity has included campaigns focused on AIM, LSEG’s support for the financial technology (fintech) sector, and the Group’s distinctive open access philosophy. Open access is the principle that lies at the heart of free and fair markets. The Group believes customers should have the choice of where they place their business. It provides access to all of its markets and products for a wide range of users, including those that offer competing services to parts of the Group. Access to LSEG services is not conditional on taking a suite or bundle of different services. A growing number of partnership agreements, such as the one underpinning the CurveGlobal venture, are already demonstrating the huge value of open access. Brand Values The Group is built on the core values of partnership, integrity, innovation and excellence. Convinced that collaboration is the key to long-term growth, LSEG prides itself on working with its customers as a partner, not merely a supplier. It cherishes a pioneering spirit, and a passion for delivering quality in everything it does. Finally, its motto – ‘Dictum meum pactum’ (My word is my bond) – expresses an unwavering commitment to building markets based on transparency and trust. Brand History 1698 At Jonathan’s Coffee House, John Castaing begins issuing a list of stock and commodity prices called ‘The Course of the Exchange and other things’. 1801 The first regulated exchange comes into existence in London and the modern Stock Exchange is born. 1973 The 11 British and Irish regional exchanges amalgamate with the London exchange, which also admits its first female members. 1986 The UK market is deregulated in the ‘Big Bang’. 2007 London Stock Exchange merges with Borsa Italiana, creating London Stock Exchange Group. 2009 LSEG acquires a majority stake in Turquoise, the pan-European trading platform. 2011 LSEG acquires the outstanding 50% of FTSE International, giving the Group full strategic control. 2013 LSEG completes the purchase of a majority stake in LCH Group, a leading global clearing house. 2014 LSEG completes the acquisition of Frank Russell Company and begins the integration of FTSE and Russell Indexes into FTSE Russell. 2016 CurveGlobal, LSEG’s new interest rate derivatives venture launched in partnership with major dealer banks, goes live.