Glossary

AIM

The Group’s market for smaller and growing companies established in London and now extended to AIM Italia – MAC

BIt

Borsa Italiana, the Group’s Italian exchange business

CAGR

Compound annual growth rate

CC&G

Cassa di Compensazione e Garanzia S.p.A., the Group’s Italian subsidiary which manages the Italian CCP for equity, derivative and fixed income trades

CCP

Central Counterparty – stands between two parties to a trade to eliminate counterparty risk by ensuring that settlement takes place

Central Securities Depository (CSD)

An entity that enables securities to be processed, settled and held in custody

Company or LSEG

London Stock Exchange Group plc

CONSOB

Commissione Nazionale per le Società e la Borsa, Italy’s official body for regulating and supervising companies and trading infrastructure providers

CPI

Consumer Price Index which measures changes in the price of consumer goods and services purchased by households

CREST

The system for the paperless settlement of trades in securities and the holding of uncertified securities in the UK operated by Euroclear UK & Ireland Limited and regulated by the FSA and Bank of England

Dark Pool

Electronic trading networks developed by regulated venues such as Regulated Markets, MTFs and by OTC broker dealers to enable the matching of orders between buyers and sellers without being visible until the trade is complete, using exemptions permitted under MiFID and thereby creating a secure environment in which to execute larger trades

Depositary Receipts/Global Depositary Receipts (GDR)

Tradeable certificates representing ownership of a number of underlying shares, mainly for companies in developing or emerging markets

Derivatives

Tradeable financial instruments whose value is determined by the value of other underlying financial instruments

EBITDA

Earnings before interest, tax, depreciation and amortisation

ESOP

Employee Share Option Plan

ETC

Exchange Traded Commodity – simple securities that provide exposure to a range of commodities and commodity indices

ETF

Exchange Traded Fund – simple, low-cost and flexible investments that track indices and sectors

ETP

Exchange traded products including ETFs and ETCs

European Market Infrastructure Regulation (EMIR)

European legislation on regulation of clearing of derivatives, and the operation and governance of CCPs and trade repositories

FSA

Financial Services Authority, the current regulator of providers of financial services in the UK

FTSE 100 index

The index developed by FTSE and London Stock Exchange for leading UK quoted companies

FTSE Group or FTSE

FTSE International Limited and its subsidiaries, the Group’s leading global provider of index and analytics solutions

FTSE MIB index

The index developed by FTSE and Borsa Italiana for leading Italian quoted companies

FTSEurofirst 100 index

The index of leading European quoted companies developed by FTSE

Global Depositary Receipt (GDR)

Negotiable certificates issued by depositary banks which represent ownership of a given number of a company’s shares, listed and traded separately from the underlying shares.

Glossary item X

test to check that content editors can add glossary items

Group

The Company and its group undertakings

Group undertakings

Group undertakings shall be construed in accordance with s1161 of the Companies Act 2006 and, in relation to the Company, includes London Stock Exchange plc, Borsa Italiana S.p.A. and FTSE International Limited, together with respective direct and indirect subsidiaries

IDEM

The Group’s Italian Derivatives Market, trading contracts based on equities and related indices

IDEX

The Group’s Italian energy derivatives segment, trading contracts based on commodities and related indices

IOB

International Order Book – the Group’s electronic trading service for international securities

IPO

Initial Public Offering – the process whereby companies join our markets and raise capital for the first time

Latency

A measure of time delay experienced in a system, measured in milliseconds (1/1,000th of a second) or microseconds (1/1,000,000th of a second)

LCH.Clearnet or LCH.Clearnet Group

LCH.Clearnet Group Limited, our proposed partner to develop our pan-European clearing and risk management business

Main Market

The market for companies who have been admitted to trading on the London Stock Exchange’s principal market; and in Italy, the market for companies listed on Borsa Italiana’s principal MTA market

MIC

The interbank collaterised deposit market in Italy managed by CC&G

MiFID or Markets in Financial Instruments Directive

EU Directive introduced in November 2007 to harmonise cross border trading of equities, providing greater choice of trading venues

Millennium Exchange

MillenniumIT’s multi-asset trading platform, deployed for Turquoise and the UK equities market

Millennium NewClear

MillenniumIT’s post trade technology, providing trade routing and central counterparty (CCP) services across a wide range of products and markets

MillenniumIT

Millennium Information Technologies Limited, the Group’s subsidiary that is the developer of flexible, low cost, high performance trading platforms and financial markets software serving both the Group’s own businesses and third parties

Money

Cash 

Monte Titoli

Monte Titoli S.p.A., the Group’s Italian Central Securities Depository and settlement company

MOT

Mercato Obbligazionario Telematico is the Group’s Italian retail bond trading platform

MTA

Mercato Telematico Azionario is the Group’s Italian electronic market on which shares, convertible bonds, warrants and option rights are traded

MTS

Società per il Mercato dei Titoli di Stato S.p.A., the Group’s 60 per cent subsidiary which owns and operates an electronic trading platform for European fixed income securities

Multilateral Trading Facility (MTF)

Alternative electronic trading systems as categorised under MiFID

NOMAD

Nomad or Nominated Adviser is the primary regulator of an AIM company

ORB

The Group’s Order Book for Retail Bonds

OTC

Over-the-counter transactions executed away from an exchange or MTF

Proquote

The Group’s financial market software and data services provider

Regulated Market

A multilateral system which brings together multiple third party buying and selling in financial instruments in accordance with rules, authorised under provisions of MiFID

Repo

Repurchase Agreement – the process of borrowing money by combining the sale and subsequent repurchase of an asset

RNS

Regulatory News Service, the Group’s Primary Information Provider, for dissemination of regulatory and non-regulatory news to the market

RPI

The Retail Price Index which measures inflation in the UK economy

SEDOL Masterfile (SMF)

The Group’s securities identification service

SETS

The electronic order book operated by the London Stock Exchange for the most liquid securities

SOLA®

Derivatives trading platform used by Turquoise Derivatives and IDEM, supplied to the Group by TMX Group

Specialist Fund Market (SFM)

The Group’s regulated market for highly specialised investment entities that wish to target institutional, professional and highly knowledgeable investors

TARGET2-Securities (T2S)

Initiative led by the European Central Bank to provide a platform for settlement of bonds and equities traded in the Eurozone, expected to be launched 2015

TradElect

The Group’s current trading technology for Borsa Italiana equities, to be replaced with MillenniumIT technology in the first half 2012

Turquoise

The Group’s 51 per cent owned pan-European MTF trading subsidiary, a venture between the Group and 12 global investment bank clients

UnaVista

The Group’s web-based matching, reconciliation and data integration engine that provides matching of post trade data in a simple, automated process

X-TRM

The Group’s post-trade router, to manage the trade flows between two competing CCPs and onward to settlement