What Does London Stock Exchange Group Do?

By Robert Palmer

The London Stock Exchange Group (LSEG) is one of the most prominent financial institutions in the world. It provides a range of financial services and solutions to companies, investors, and other stakeholders in the global financial industry.

What is the London Stock Exchange Group?

The London Stock Exchange Group is a diversified international market infrastructure and capital markets business. It operates various exchanges, including its flagship London Stock Exchange, as well as other trading platforms across Europe and Asia. The LSEG also offers clearing, settlement, and custody services to clients.

The Business of LSEG

The core business of LSEG is to provide a platform for trading equities, bonds, derivatives and other securities. The group operates several exchanges including the London Stock Exchange (LSE), Borsa Italiana, Turquoise (a pan-European equities exchange), MTS (a European electronic fixed income trading platform), and ELITE (an international business support and capital raising program).

The group also offers a range of information services through its subsidiary FTSE Russell. FTSE Russell provides benchmarking indices for various asset classes that are used by investors worldwide.

Listed Companies

One of the primary functions of the LSE is to provide a marketplace for companies seeking to raise capital through an Initial Public Offering (IPO). The stock exchange has specific requirements for companies that wish to list their shares on the exchange. These requirements include meeting minimum size requirements for market capitalization and adhering to strict regulatory standards.

Clearing Services

In addition to providing a marketplace for buying and selling securities, the LSEG offers clearing services that allow parties to settle trades efficiently while mitigating counterparty risk.

Data Services

The LSEG provides extensive data services including real-time market data feeds that are used by institutional investors worldwide. This data includes historical prices, trading volumes, and other market statistics that are critical for making informed investment decisions.

Conclusion

The London Stock Exchange Group is a crucial player in the global financial industry. It provides a range of services that are essential for companies, investors, and other stakeholders to make informed decisions about investing in securities. With its various exchanges, clearing services, and data services, the LSEG is well-positioned to continue providing exceptional value to its clients for years to come.