| Type | Public (LSE: LSE) |
|---|---|
| Industry | Financial |
| Founded | 2007 |
| Headquarters | London, United Kingdom |
| Key people | Christopher Gibson-Smith, Chairman Xavier Rolet, CEO |
| Products | Stocks |
| Revenue | £628.3 million (2010)[1] |
| Operating income | £280.3 million (2010)[1] |
| Net income | £91.7 million (2010)[1] |
| Employees | 1,545 (2010)[1] |
| Website | www.londonstockexchangegroup.com |
The London Stock Exchange Group plc is the leading diversified stock exchange group in Europe. It owns the Borsa Italiana and London Stock Exchanges. It is a member of the FTSE 250 Index as of 21 June 2010.
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The London Stock Exchange was founded in Sweeting's Alley in London in 1801.[2] It moved to Capel Court the following year.[2]
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.[2] In 1995 the Alternative Investment Market was launched and in 2004 the Exchange moved again, this time to Paternoster Square.[2]
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.[3]
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.[4]
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.[5][6]
On Wednesday 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][8][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. A cash and stock bid of $3.7 billion CAD, in hopes of blocking the LSE Group's takeover of TMX. The group is 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 29th 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]. Even though the LSE obtained the necessary support from its shareholders, it failed to obtain the required support from TMX's shareholders.
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.[15]
The London Stock Exchange is Europe's leading stock exchange and is owned by the London Stock Exchange Group plc.
Borsa Italiana is Italy's leading stock exchange and is owned by the London Stock Exchange Group plc.
CC&G is an Italian clearing house that the LSE purchased along with Borsa Italiana in 2007.[16]
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).[17]
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.[18]
The major shareholders are now as follows:[19]
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