1 London Stock Exchange Group plc
Annual Report 2023
STRATEGIC REPORT
London Stock Exchange Group plc
Annual Report 2023
Partnering to transform
our industry
OPEN MAKES MORE POSSIBLE
OPEN MAKES MORE POSSIBLE
Partnering to transform
our industry
We build partnerships across our industry that facilitate
innovation, build trust and improve efficiency. See the case
studies on the following pages to learn more about our
partnerships in action…
18
42
24
32
Partnering to transform
our industry: Microsoft
Partnering to transform
our industry: Post Trade Solutions
Partnering to transform
our industry: BlackRock
Partnering to transform
our industry: HSBC
CASE STUDY
CASE STUDY
CASE STUDY
CASE STUDY
01 London Stock Exchange Group plc
Annual Report 2023
STRATEGIC REPORT
Contents
Strategic Report
Approval of the Strategic Report is provided in the
Directors’ Report on page 154.
LSEG at a glance 02
Our business model 04
Market trends and our response 08
Chair’s statement 10
Chief Executive Officer’s statement 12
Executive management team 14
A compelling investment story 16
Partnering to transform our industry: Microsoft 18
Key performance indicators 20
Partnering to transform our industry: BlackRock 24
Our purpose and strategy 26
Partnering to transform our industry: HSBC 32
Divisional review: Data & Analytics 34
Divisional review: Capital Markets 38
Divisional review: Post Trade 40
Partnering to transform our industry: Post Trade Solutions 42
Chief Financial Officer review 44
Financial review 48
Sustainability 58
Board engagement with stakeholders 69
Section 172(1) Statement 75
Principal risks and uncertainties 79
Financial viability statement 89
Who we are
Our purpose
Driving financial stability, empowering
economies and enabling customers to
create sustainable growth.
London Stock Exchange Group plc
10 Paternoster Square
London EC4M 7LS
Telephone: +44 (0)20 7797 1000
Registered in England and Wales
No. 5369106
Further information on London Stock Exchange Group
can be found at: www.lseg.com.
Governance
Corporate governance introduction 92
Board of Directors 94
Corporate governance report 98
Complying with the provisions of the Code 105
Report of the Nomination Committee 106
Report of the Audit Committee 109
Report of the Risk Committee 115
Directors’ Remuneration Report 117
Directors’ Report 154
Statement of Directors’ responsibilities 159
Financial Statements
Independent Auditor’s Report 162
Consolidated income statement 171
Consolidated statement of comprehensive income 172
Consolidated balance sheet 173
Consolidated statement of changes in equity 174
Consolidated cash flow statement 175
Notes to the consolidated financial statements 176
Company balance sheet 241
Company statement of changes in equity 242
Notes to the Company financial statements 243
Shareholder Information
Glossary 255
Investor Relations 259
London Stock Exchange Group plc
Annual Report 2023
02
LSEG at a glance
Our divisions
What we do
Our purpose
Our strategy
We are an integral partner for our customers across every stage of
the trade lifecycle, in multiple asset classes.
Data & Analytics
High-value data, analytics and indices, with solutions to manage risk,
workflow and data.
Capital Markets
Venues/platforms to raise or transfer capital through issuance and
secondary market trading for equities, fixed income and foreign
exchange (FX).
Post Trade
Clearing, risk management, capital optimisation and regulatory
reporting solutions.
We drive financial stability
by operating businesses that are of systemic importance, fundamental
to the financial ecosystem and critical to our customers.
We empower economies
by helping our customers to raise capital, support employment, innovate
and access global financial networks, across multiple asset classes.
We enable customers to create sustainable growth
by providing the tools and data that enable financial markets to manage
risk and make informed investment decisions.
Our long-term strategy builds on our strengths, as we invest in solutions
and services that can adapt and scale in evolving global financial
markets. We are:
Globally essential
Critical infrastructure and insight to customers required for the efficient
running of financial markets.
Multi-asset class
Across traditional and emerging asset classes, in both public and
private markets.
Seamlessly connected
Partnering with customers, enabling connectivity across the financial
markets value chain through open platforms and venues.
For more detail on our divisions –
refer to pages 34-41.
For more detail on our strategy –
refer to pages 27-30.
For more detail on our purpose –
refer to page 26.
We are leaders in data and analytics; capital formation and trade execution;
and clearing and risk management. Our businesses are discussed in depth
in our divisional reviews on pages 34-41.
03 London Stock Exchange Group plc
Annual Report 2023
STRATEGIC REPORT
LSEG at a glance continued
Total income growth excluding recoveries
2
(constant currency basis)
+8.3%
2022: +5.7%
Female representation at senior leadership
42%
2022: 40%
Adjusted EBITDA margin
47.2%
4
2022: 47.8%
Sustainable issuers
236
2022: 217
Adjusted operating profit
£2,862m
2022: £2,728m
Adjusted earnings per share
323.9p
2022: 317.8p
Reduction in carbon emissions
5
-29%
2022: -57%
Adjusted financial highlights
1,3
Sustainability highlights
Total income growth excluding recoveries
2
+7.8%
2022: +19.6%
Operating profit
£1,371m
2022: £1,417m
Basic earnings per share
138.9p
2022: 141.8p
Dividends per share
115.0p
2022: 107.0p
Financial highlights
1
How we performed
1 Continuing operations
2 Recoveries relate to fees for third-party content, such as exchange data, that is distributed directly to customers.
3 Adjusted figures exclude the impact of any non-underlying items. For more information on the criteria that constitute non-underlying items, see page 181.
4 On the basis of our c.48% EBITDA margin guidance for 2023 (excluding the impact of FX movements and the acquisition of Acadia), adjusted EBITDA margin was 48.0%.
5 Reduction of Scope 1, Scope 2 (market), Scope 3 (selected – business travel, home working, commuting, FERA) emissions vs a 2019 baseline.
For a full list of our key performance indicators –
refer to pages 20 to 23.
Our financial performance in the year, including
the below metrics, are discussed in more detail
in our financial review on pages 44 to 57.
London Stock Exchange Group plc
Annual Report 2023
We are a leading provider of financial
markets data and infrastructure
Across our business divisions we provide products and services that are
essential to financial markets. These include:
Data and distribution
Workspace provides end users with access to critical financial data, news,
our workflow platform and content from over 150k data sources. Our
real-time feeds drive trading and investment decisions across multiple
latencies, delivering data covering more than 80 million instruments
through proprietary distribution channels as well as partner applications.
Our Customer & Third-Party Risk business provides risk screening,
identity and account verification and customer onboarding services.
Our real-time data covers
>80m
instruments
Our World Check One
offering processed
176bn
screens in 2023
World-class indices
FTSE Russell provides indices supporting trillions in global assets
under management (AUM), enabling investment flow for the buy-side.
2023 FTSE Russell
ETF AUM
>$1.2tn
2023 FTSE Russell
ESG passive AUM
$262bn
Leading venues
We operate leading equities venues including London Stock Exchange
Main Market and LSE Alternative Investment Market (AIM). In FX and
in Fixed Income (through Tradeweb), we operate leading global
dealer-to-dealer and dealer-to-client venues.
2023 FX total ADV
1
$442bn
2023 Tradeweb rates – cash ADV
1
$367bn
Critical infrastructure
Through LCH, we operate a leading global clearing house with
a >90% share of cleared interest rate swap notional outstanding.
Our infrastructure underpins capital movements being made by
the largest financial institutions around the world.
SwapClear client trades in 2023
3.2m
CDS notional cleared in 2023
€4.8tn
Uniquely positioned
We are trusted by customers, partners and regulators as a provider of
critical infrastructure. This stems from decades of experience operating
trading venues, clearing systems and data and analytics infrastructure.
Bringing together this differentiated combination of capabilities is enabling
scale and new value creation as we serve financial markets. As the
boundaries between data and infrastructure blur, we will generate
new areas of opportunity and collaborative customer partnerships:
— Innovative trading and risk analytics.
— Improved workflow connectivity.
— More connected and intelligent data sets.
— New cloud-based models – Data-as-a-Service, Platform-as-a-Service,
Analytics-as-a-Service.
Our business model
1
04
LSEG is well positioned to deliver
long-term sustainable growth.
Five factors underpin the value
we deliver:
1
We are a leading provider of financial
markets data and infrastructure
2
We bring deep expertise and a trusted
reputation across the financial markets
value chain
3
We are exposed to structurally high
growth markets
4
We generate high-quality revenue that
is mostly recurring in nature
5
We consistently invest for growth
05 London Stock Exchange Group plc
Annual Report 2023
STRATEGIC REPORT
Our business model continued
2
We bring deep expertise and a trusted reputation
across the financial markets value chain
Growth
2
+7.3%
Highlights
— #1 real-time data business.
— A leading global index and benchmark
provider (FTSE Russell).
— Leading provider of Know Your Customer
screening though World-Check.
Other market participants include:
Bloomberg
S&P Global
Income
£5.3bn
Growth
2
+6.1%
Highlights
— A leading dealer-to-client FX platform (FXall)
and leading global interbank FX venue.
— A leading fixed income, derivatives and
ETF electronic trading platform (Tradeweb).
— #1 European exchange by capital raised.
Other market participants include:
CBOE Global Markets
Euronext
Income
£1.5bn
Growth
(including NTI)
2
+17.4%
Highlights
— Leading global clearing house with
>90% global share of cleared interest
rate swap notional outstanding.
Other market participants include:
CME Group
Deutsche Boerse AG
Income
£1.2bn
Share of Group income
2
66% Share of Group income
2
19% Share of Group income
2
15%
Data & Analytics
A leading provider of high-value financial
markets data, indices and analytics.
Capital Markets
A global operator of leading capital raising
and trading venues in multiple asset classes.
Post Trade
A leading provider of clearing,
risk management and capital
optimisation solutions.
1 Average daily volume.
2 Proportion of total Group income, excluding recoveries.
3 Growth is on a constant currency basis.
For more information on each of our
divisions – refer to our divisional
reviews on pages 34 to 41.
London Stock Exchange Group plc
Annual Report 2023
06
Our business model continued
3
We are exposed to structurally
high growth markets
We have built a global footprint that enables us to serve a broad range
of customers around the world.
Growing markets
We serve multiple asset classes and growing liquidity pools, including
equities, FX and fixed income markets. Through our Data & Analytics
business we are also able to capitalise on the growing demand for
data, insight and automation. We expect this demand to accelerate
further as the adoption of cloud, AI and automation continues to
increase in the coming years.
For more information on relevant
market trends and our responses
– refer to pages 08 and 09.
Diverse geographies
We have a balanced global exposure, generating 43% of income in
EMEA, 42% in the Americas and 15% in APAC. This is supported by the
distribution and diversity of our people – with 56% of our headcount
based in APAC, including our leading operations and customer
support hubs in Bengaluru, Manila and Colombo.
Significant customer relationships
We are dedicated partners to our customers across the entire trade
lifecycle, with an open model and commitment to excellence.
We are a leading partner for the financial services sector, with customers
including the world’s largest banks, buy-side and sell-side trading desks,
asset managers and owners, wealth advisers and hedge funds.
Additionally, we support critical central banking and regulatory
institutions with our solutions. We have a sizeable and growing footprint
across corporate communities, serving 47 of the 50 largest corporates
globally, with offerings including FX hedging solutions, risk management
tools and capital raising.
Customers we serve
45,000+
Customers out of the
top 100 global banks
by total assets
1
100
Customers out of the
50 largest corporates by
market capitalisation
1
47
1 As of February 2024.
Revenue by geography
1
Americas 42%
EMEA 43%
APAC 15%
1 Total income including recoveries.
Employees by geography
Americas 12%
EMEA 32%
APAC 56%
07 London Stock Exchange Group plc
Annual Report 2023
STRATEGIC REPORT
Our business model continued
4
We consistently invest
for growth
5
We are highly cash generative, allowing us to invest organically in new
products and services, continually modernise our infrastructure and
acquire businesses that are complementary to our business model and
distribution footprint. In 2023 we continued to invest in our business,
through a combination of building new products to drive organic growth,
transforming our technology and continuing to ensure our systems
are resilient and secure. We also completed the acquisition of Acadia,
supporting our development of innovative post trade solutions and
unlocking the growth potential of the business within the Group.
For more information on this acquisition, see our Post Trade 2023
highlights on page 41 and a case study on our Post Trade Solutions
offering on page 43.
Our 10-year strategic partnership with Microsoft will also help build
next-generation services that empower customers to generate business
insights, automate complex and time-consuming processes and
ultimately, do more with less. For more information on our partnership
and how we are investing in joint product development alongside
Microsoft, see page 19.
More detail on capital allocation can
be found in our Chief Financial Officer’s
review on page 46 and on our website:
www.lseg.com/investor-relations/.
We generate high-quality revenue
that is mostly recurring in nature
We generate more than 70% of our income through recurring revenue
associated with data subscriptions and licences. This business model
benefits from a consistently high level of retention, contracts that are
typically 12-24 months in duration and improving performance in our
Annual Subscription Value (ASV).
We are well positioned to capitalise on growing pools of transactional
income through our venues. This includes Tradeweb, which continues
to benefit from the electronification of rates and credit markets, and
other businesses positioned to attract liquidity flow such as FXall
(FX dealer-to-client), Matching (FX dealer-to-dealer) and LCH which
benefits from volume growth in swaps and other OTC derivative markets.
Recurring revenue
Visible revenue
Mostly subscription and licence revenue, typically 12-24 month
contract duration.
Highly diversified
Revenues are broadly based across activity, product, geography
and >45,000 customers.
Strong customer relationships
Consistently high retention.
Transactional revenue
Diversified pool of revenue, growing across Post Trade and
Capital Markets, driven by strong Tradeweb performance.
Recurring revenue 72%
Transactional revenue 24%
Net treasury income 4%
Total income excluding recoveries
London Stock Exchange Group plc
Annual Report 2023
08
Market trends
and our response
Demand for data and its integration
into workflows
Rise of new technologies
including AI
Growth in global demand for high-quality, precision time stamped and
differentiated datasets from flexible, reliable and traceable data, which
offer choice of on-premise and cloud service delivery.
What is LSEG’s response?
We continue to invest in our real-time and pricing offerings to add more
latency options and we are embracing automation to improve the quality
and breadth of our data across asset classes. We are focused on maintaining
our position as the #1 real-time data provider by offering more choice in
public and private cloud, and managed on-premise solutions.
Example of this in action
Our Real-Time Optimised service, hosted on the public cloud, provides fast
and simple access to our unparalleled content from hundreds of exchanges
and OTC markets around the world allowing our customers depth of content,
choice of service and delivering speed to market.
With increasing automation and liquidity fragmentation and evolving
regulation, there is a growing need for smarter, faster, safer trading platforms,
enabling end-to-end trading workflows, with access to liquidity, data and
execution. We can also be affected by evolving regulation ourselves.
What is LSEG’s response?
We are joining up all our workflows across multiple areas of our businesses
to create seamless and interoperable offerings for our customers. We also
continue to work closely with regulators on an ongoing basis. For example,
we have been in ongoing dialogue with the Financial Conduct Authority
(FCA) as they conduct their study into the wholesale data market. We await
their findings as they look to assess the competitive landscape of this space.
Example of this in action
We are integrating our recently acquired Order and Execution Management
System (OEMS) platform, TORA, into Workspace. This will create an
end-to-end buy-side workflow solution for traders and fund managers, with
seamless access to, and interoperability with, our datasets and analytics.
The continued global focus on growth that is sustainable in all senses
is driving increasing demand for sustainably-linked investments and products.
Investors are increasingly allocating capital to sustainable portfolios and
strategies, while market participants are integrating sustainability into
workflows and business models, in many cases driven by emerging
regulatory requirements that differ by market.
What is LSEG’s response?
We are developing new products to deliver on our commitment to
enable sustainable growth for our customers and their communities.
Example of this in action
Our new climate data package includes an expanded set of reported
data measures, sophisticated analytics, new climate emission estimate
models and third-party data from the Carbon Disclosure Project (CDP).
This solution consolidates our capabilities on climate to help our clients
manage climate risk, build investment strategies and products, and report
on climate transition.
Buy-side market participants who believe market data spending
will rise over the next 12 months
80%
Cloud-enabled business models such as Data-as-a-Service (DaaS),
Data-Management-as-a-Service (DMaaS) and Analytics-as-a-Service
(AaaS) are emerging as firms look to build new solutions and do more
with data and analytics.
What is LSEG’s response?
We are developing new and innovative data and analytics solutions
for our clients in the cloud, enabled by our multi-cloud approach.
Example of this in action
Our next-gen content offering is reinventing the data experience for our
customers and addressing the growing number of challenges they face
around handling data. This is being done in partnership with Microsoft –
for more information on this partnership, see page 19.
Process automation, machine learning and AI continue to create
opportunities for operational efficiencies, alongside the development
of new innovative products.
What is LSEG’s response?
We have been using AI and machine learning across our business for
many years and we continue to build AI functionality into our platforms
and workflows. Our peers are also investing and innovating in this evolving
space, leading to increased competition and quality of AI-powered products
and services.
Example of this in action
Two examples of AI in our offering include: 1) Content ingestion in our
Data & Analytics business, which uses natural language processing (NLP)
to automate transcripts of company webcasts, reducing average processing
time of transcript summaries into Workspace; and 2) Advanced Dealing,
our fully integrated, cloud-based FX trading environment with AI-powered,
chat-driven trading functionality.
The rise of Large Language Models (LLMs) and generative AI drives both
a need for ever more expansive data sets and the opportunity for businesses
to access more data, in faster, more efficient and trusted ways.
What is LSEG’s response?
We are using generative AI to further modernise our business, enhance
customer productivity and unlock operational efficiencies. We aim to be the
trusted provider of financial services data for usage by AI models across
financial services, leveraging our data breadth, quality and auditability.
Example of this in action
We have a bespoke AI framework, tailored using our data and IP, to generate
insights and create intelligent workflows. Furthermore, in partnership with
Microsoft we are developing AI-powered copilots and solutions to be
delivered through Microsoft platforms, which will ease discoverability
and usage of our data.
Proportion of financial service firms actively adopting
AI technology
62%
09 London Stock Exchange Group plc
Annual Report 2023
STRATEGIC REPORT
Electronification and digitisation
of trading
Regulation, risk management and
the need for capital optimisation
Electronification of financial markets continues to drive trading volume
growth, improve efficiency and enable access to liquidity. This trend is
expected to continue as many asset classes are far from reaching maturity
in adoption of electronic and automated trading.
What is LSEG’s response?
Tradeweb is continuously innovating to remain the platform of choice as
fixed income trading becomes increasingly electronic.
Example of this in action
Tradeweb launched improvements to its Automated Intelligent Execution
(AiEX) tool, where clients can link their order management systems directly
to the Tradeweb platform, fully automating the execution of the trade.
Tradeweb has continued to evolve the technology, adding asset classes
and new trading protocols, such as click-to-trade, Request-for-Market (RFM)
and portfolio trading.
The rise in the use of – and demand for – digital assets across both
retail and institutional investors as well as with central authorities and
asset managers and custodians is driving increased customer demand
for associated financial markets infrastructure, data and analytics.
What is LSEG’s response?
Expanding the coverage of our asset classes whilst adhering to our high
risk standards is key to ensuring we fully support customers navigating
emerging drivers of market volatility, such as the failure of FTX Trading.
Example of this in action
We announced our intention to partner with GFO-X to provide a regulated
crypto future trading and clearing infrastructure.
Digital platforms are unlocking growth across multiple segments
including digital exchanges, digital payments, online banking and retail
wealth, driving greater demand for efficiency across the trade lifecycle.
What is LSEG’s response?
Our vision is to create the first global digital market infrastructure that
provides an open access, all-to-all solution for transferring securities:
any asset class, anywhere in the world, at any time and end-to-end,
from issuance to post trade processing.
Example of this in action
We announced plans for a new digital market infrastructure, which will
facilitate capital market transactions using distributed ledger technology.
Share of US investment grade corporate bonds traded electronically
(doubled since 2020)
40%
Market volatility highlights the importance of trusted venues and secure
clearing houses that are capable of meeting demand spikes. Cases of
extreme volatility can ultimately lead to the consolidation of some of
our customers, as we saw in 2023 with Credit Suisse.
What is LSEG’s response?
Our market infrastructure businesses play a key role in helping participants
to navigate major events, such as the collapse of Silicon Valley Bank in March
2023. Heightened market volatility is a positive driver of revenue for parts
of our business, e.g. our OTC Derivatives clearing business in 2023.
Example of this in action
LCH is a global business; our FX, IRS, CDS, equities and repo markets are all
cross-border markets, enabling us to provide clearing services to customers
in over 60 countries.
A combination of regulatory and capital requirements and pressure
to improve operational efficiency is driving heightened need for our
customers to manage capital and cost. Many are seeking ways to automate
and streamline post trade workflows for cleared and uncleared OTC
derivatives and optimise how their balance sheets are utilised.
What is LSEG’s response?
We are bringing the benefits of our clearing house and OTC derivatives
know-how to the uncleared space, working alongside our partners to
support their regulatory compliance and capital optimisation needs.
Example of this in action
We are consolidating three assets to create Post Trade Solutions:
1) SwapAgent, our clearing house for bilateral derivatives; 2) Quantile,
which provides financial resource optimisation solutions; and 3) Acadia,
providing standardised collateral and multi-asset class workflow capabilities
for uncleared OTC derivatives. For more information on Post Trade Solutions,
refer to page 43.
The impacts of accelerated digitisation, including open banking, emerging
regulations, the growth in digital payments and increased cross-border
business operations, have created new risks for our clients and their
customers. Firms are seeking ways to manage these risks by better
understanding their customer base/supply network (Know Your Customer
– KYC and Know Your Third Party – KY3P) and minimising incidences of
fraud and illicit activity through anti-money laundering solutions and digital
customer identification.
What is LSEG’s response?
We help our clients comply with mandatory KYC, anti-bribery and corruption,
and associated legislation, and support them in detecting money laundering,
and account and payment fraud. We also help them counter the financing
of terrorism, human trafficking, modern day slavery and green crime.
Example of this in action
Our globally recognised World Check database helps clients to meet their
due diligence obligations and identify potential financial criminal activity.
The importance of this service has been heightened in a year of significant
geopolitical tension.
Additional capital required by European banks to adhere to the
regulatory requirements of Basel IV
€120bn
Market trends and our response continued
Growth in adjusted operating profit
1
+7.9%
2022: +4.6%
Total dividend per share for 2023
115p
2022: 107p
Returned to shareholders via buybacks since August 2022
£1.5bn
Chair’s statement
1 Growth is on a constant currency basis.
LSEG delivered a strong
performance as we continue
to transform our business and
deliver on our strategy to be the
leading global financial markets
infrastructure and data provider.
Don Robert
Chair
London Stock Exchange Group plc
Annual Report 2023
10
11 London Stock Exchange Group plc
Annual Report 2023
STRATEGIC REPORT
Overview
In 2023, LSEG delivered a strong performance as we continue to
transform our business and deliver on our strategy to be the leading
global financial markets infrastructure and data provider. Total income
excluding recoveries was £8.0 billion, up 8.3% on a constant currency
basis, while adjusted operating profit was £2.9 billion, up 7.9% on
a constant currency basis and adjusted EPS grew 1.9%.
With over 70% of revenues recurring, we remain highly cash generative
and continue to carefully manage our capital allocation. We completed
a £750 million directed share buyback in Q3 and have now returned
a total of £1.5 billion to shareholders via buybacks since August 2022.
We have also announced plans to return £1 billion to shareholders
via further share buybacks during 2024.
We have seen significant evolution in our shareholder base, with the
Blackstone-led consortium making excellent progress in selling their
shares to existing and new institutional investors. The Blackstone
holding has reduced from over 34% to around 11% over the year.
At our Capital Markets event in November 2023, we outlined our
new medium-term guidance. We expect mid to high single-digit organic
revenue growth, accelerating after 2024, as customers begin to benefit
from investment in our platforms and our partnership with Microsoft.
We also expect our EBITDA margin to increase over time, while capital
expenditure will decline to a high single-digit percentage of income. We
also expect cumulative free cash flow to exceed adjusted profit after tax.
The Board is proposing a final dividend of 79.3 pence per share,
representing a total dividend of 115.0 pence per share, a 7.5% increase.
Governance
The Board seeks to operate to and maintain the highest governance
and ethical standards. Further detail is available in the Board’s
governance report from page 92.
In February 2023, Scott Guthrie joined the Board as a Non-Executive
Director in connection with LSEG’s strategic partnership with Microsoft.
Scott’s long-standing career at Microsoft, including running the Microsoft
Cloud and AI Group business, and deep technology expertise provides
a unique and valuable perspective to the Group as we continue to
deliver on our ambition.
Erin Brown and Doug Steenland stepped down as Non-Executive
Directors of the Board, following the sales of shares by the Blackstone-
led consortium. I’d like to thank them both for their contributions to the
Group since the acquisition of Refinitiv in 2021 and wish them all the
best in their future endeavours.
In November 2023, we announced that Michel-Alain Proch had
been appointed Chief Financial Officer and a member of the Board of
LSEG plc. This followed Anna Manz’s decision to step down in order
to assume another CFO role. Anna has been a valued member of the
LSEG Board and I would like to thank her for the key role she has played
in the successful delivery of the Group’s strategy over the last three
years. I would also like to welcome Michel-Alain to the Board and look
forward to working with him.
I am pleased to confirm that we meet the Parker Review
recommendations, and that we meet all recommendations set out by
the FTSE Women Leaders Review. Two of the four senior positions in the
Company outlined in the Listing Rules are currently held by women and
two of the Board’s Directors are from a minority ethnic background.
At the end of 2023, the Board was over 40% female, however, following
Anna’s departure and Michel-Alain’s arrival, this will drop to below 40%.
As part of our commitment to visit one international office per year to
engage with colleagues, the Board visited the Paris office to hear more
from them and learn about our customers in the region.
Sustainability
As described in the Sustainability section of the Strategic Report
(pages 58 to 68), LSEG has many initiatives in place to deliver our
commitment to be a strategic enabler of sustainable economic growth.
Given our central role in capital markets, our global footprint and
presence throughout the trade lifecycle, LSEG is uniquely positioned
to play a leading role in this respect.
LSEG’s role in sustainability, and tackling climate change in particular,
is very important to the Board, as well as the Group’s shareholders,
employees, customers and regulators. The Board is committed to
meeting the expectations of our shareholders and other stakeholders
in this regard.
We remain committed to our ambition to reach net zero by 2040 and
to our Climate Transition Plan which we published in 2022, the first
global exchange group to do so. Our primary near-term target is to
reduce all of our operational emissions
1
by 50% by 2030, from a 2019
baseline. By the end of 2023, we had achieved a 29% reduction in
these emissions (2022: 57%). Like many companies, we saw a steep
reduction in our carbon emissions during the Covid-19 pandemic and
emissions have naturally increased over the past two years as physical
activity levels normalise. We remain well on track to achieve all of our
Science-Based Target initiative (SBTi)-approved targets.
Remuneration policy
The Board and Committee believe it is essential to reset our Executive
Director pay, adjusting the three core elements — salary, annual bonus,
and long-term incentive provisions — to closely align the overall pay
quantum with the median of our global sector peer pay. The proposed
revisions to the Policy address our desire to reinforce a pay-for
performance philosophy as the majority of the quantum reset is
performance-based. We will continue to set stretching targets to ensure
bonus and LTIP vesting is warranted only when underlying performance
and shareholder value creation is strong. We are considering CEO
compensation in the very specific circumstances of David Schwimmer,
taking into account his outstanding past performance and strategic
direction. The revised remuneration policy, as outlined from page 118,
will be subject to shareholder approval at the 2024 AGM.
Summary
It has been another year of strong progress in 2023. We will continue
to invest in our global talent and growing our global businesses,
in partnership with our customers, to drive revenue growth and
increased profitability.
On behalf of the Board, I’d like to thank our colleagues across the world
for their continued commitment throughout the year. I look forward to
working with the Board and LSEG’s Executive Committee to achieve
our strategic objectives as we transform the financial services industry.
Don Robert
Chair
28 February 2024
Chair’s statement continued
1 We aim to reduce operational emissions (Scope 1, Scope 2 (market based) and selected
Scope 3 for FERA, business travel, home working, commuting) by 50% vs a 2019 baseline.
For more information on our Climate Transition Plan and all of our climate-based targets,
refer to page 63 of this report and to our 2023 Sustainability Report.
London Stock Exchange Group plc
Annual Report 2023
12
Growth in total income excluding recoveries
1
+8.3%
2022: +5.7%
Growth in adjusted earnings per share
+1.9%
2022: +16.7%
Chief Executive
Officer’s statement
The breadth and depth of
our offering is a true strategic
differentiator. Customers recognise
that because we serve them across
so many different parts of their
business, our relationship is
not that of a typical supplier.
Through investment, innovation
and partnership, we will shape
the future of our industry.
David Schwimmer
Chief Executive Officer
London Stock Exchange Group plc
Annual Report 2023
12
1 Growth is on a constant currency basis.
13 London Stock Exchange Group plc
Annual Report 2023
STRATEGIC REPORT
Introduction
In 2023, we continued to deliver for our customers and shareholders
despite an uncertain macroeconomic environment, with ongoing interest
rate rises and recession risks impacting markets around the world.
The actions that LSEG has taken to transform and diversify our business
over the past three years have positioned us well to capitalise on
powerful industry trends and meet the evolving needs of our customers.
How did LSEG perform in 2023?
We delivered another year of strong revenue growth, with good
contributions from all of our business divisions. In Data & Analytics,
we’re innovating to improve our customer offering on many fronts
and this helped to drive revenue growth of 7.3%
1
in 2023. Revenue
benefits from higher customer satisfaction were also reflected in Annual
Subscription Value growth, which reached 6.7% by the end of the year.
Businesses that historically had been underperforming and losing
market share, such as Trading & Banking, are now achieving consistent
healthy growth, building on our deep and broad customer relationships.
Our Enterprise Data business is growing well. We are seeing strong
demand for our data sets, including from investors deploying capital
through AI- and quant-driven strategies. A great example of this is Tick
History, our comprehensive database of historical pricing information
and one of our many proprietary datasets. It gives customers access
to over 87 trillion ticks of data, spanning 100 million instruments, across
over 500 trading venues dating back more than 25 years of Tick History
Data. By combining this with our PCAP – or Packet Capture data –
we offer a very powerful subset of historical pricing information
with precise, nanosecond timestamps.
We’re also accelerating innovation in our Investment Solutions business,
where we’re going to market much faster with new index products
thanks to our investment in the systems that drive the business. In Post
Trade, volumes in interest rate swaps clearing and other products, as
well as the expansion of our business into the uncleared space, drove
total income up by 17.4%
1
. Capital Markets achieved revenue growth
of 6.1%
1
, largely driven by Tradeweb as the team continues to innovate
while benefiting from the ongoing electronification of fixed income
markets. In equities, 2023 was a poor year globally for IPOs, but looking
ahead, the pipeline in 2024 is encouraging.
Our adjusted EBITDA margin was slightly lower than in 2022,
reflecting investment in the Microsoft partnership, the in-year impact
of acquisitions and some FX-related items. We’re continuing to improve
our underlying profitability and excluding these impacts, we delivered
adjusted EBITDA margin expansion of 110bps in 2023.
The strong income growth we delivered, coupled with ongoing cost
discipline and strong delivery of Refinitiv-related synergies, helped
drive growth in our adjusted operating profit of 7.9%
1
.
We’re continuing to strengthen and unify the LSEG business. Our brand
campaign clarifies how we show up to the market, bringing cohesion
and simplicity to what was once a confusing image of over 20 branded
products. At the same time, we’ve created a new culture focused on
driving collaboration across our Group.
In December 2022, we announced an exciting strategic partnership
with Microsoft and we’ve made excellent progress over the past year.
We are beginning the rollout of new products in the first half of 2024
with a steady drumbeat of pilots, launches and ongoing enhancements
developed in partnership with some of our biggest customers.
What differentiates LSEG’s business?
LSEG is a truly global business with operations in over 60 countries and
providing services into more than 170 countries. We span multiple asset
classes and we provide services throughout the entire trade lifecycle.
None of our competitors has the breadth of offering or the global reach
of LSEG. This in turn, supports genuine long-term partnerships built
on trust. From a financial perspective, the nature of our services, the
markets we are aligned to and relationships we have, mean that the
quality and visibility of our earnings are very high and not correlated
to a single driver.
The breadth and depth of our offering is a true strategic differentiator.
Customers recognise that because we serve them across so many
different parts of their business, our relationship is not that of a typical
supplier. We are a strategic partner. We are increasingly working in
partnership with our customers’ leadership teams to solve problems
and create opportunities. We help them simplify their business, reduce
their reliance on multiple other vendors and drive growth, innovation
and efficiency. We have competitors in each segment, but our
customers really value our breadth and the benefits that it brings them.
What are the drivers for future growth?
LSEG is operating in growing markets and the range of our products
and services brings diverse revenue streams. In addition, our
partnership with Microsoft means we will be able to address new
markets, which will offer us additional opportunities for growth.
Other opportunities for long-term growth include expansion into new
industry verticals. As well as the investment we’re making with Microsoft,
products in areas like Risk Intelligence have broad applications. Our
expertise in data management is second to none and as companies
across industries become increasingly data driven, they will look to
experts to help them manage their data. We are well-positioned to play
that role. In private markets, we are investing in developing a trading
venue for private companies to create a funding continuum between
private and public markets. We are also looking in more detail at digital
markets infrastructure in partnership with Microsoft and others.
Chief Executive Officer’s statement continued
1 Growth rates are on a constant currency basis.
London Stock Exchange Group plc
Annual Report 2023
14
Executive management team
Day-to-day management of the Group is led by the CEO David
Schwimmer, supported by the Executive Committee. The team meets
regularly to review a wide range of business matters, including financial
performance, investment and projects, corporate culture, development
and implementation of strategy, and setting and monitoring of
performance targets.
Profiles of the Executive team are provided as at January 2024.
For further information on David Schwimmer, as well as our outgoing
CFO, Anna Manz and our incoming CFO, Michel-Alain Proch, who are
also members of the Board of Directors, see our Board of Directors
overview on pages 94 to 97.
Changes to the Executive Committee
Tim Jones left LSEG in January 2023 and was replaced on the
Executive Committee by our new Chief People Officer, Erica Bourne.
Ron Lefferts joined the Executive Committee in April 2023.
Satvinder Singh joined LSEG as Head of Data & Analytics in July 2023,
at which time he also joined the Executive Committee.
Brigitte Trafford left LSEG in December 2023.
Upon his retirement, Anthony McCarthy was replaced on the
Executive Committee by our new Chief Information Officer, Irfan Hussain,
in January 2024.
Anna Manz will leave LSEG on 29 February 2024 and will be replaced
on the Executive Committee by our new CFO, Michel-Alain Proch.
In January 2024, David Shalders announced that he would be leaving
LSEG during 2024.
Appointment of a new Chief Financial Officer
In May 2023, Anna Manz announced she would be leaving LSEG to
take the CFO role at Nestlé.
Michel-Alain Proch joined LSEG as CFO on 26 February 2024 and
becomes CFO and Executive Director on 1 March 2024. Previously,
Michel-Alain was Group CFO of Publicis Groupe SA where he led
the global finance team across 100 countries.
Michel-Alain Proch
Group Chief Financial Officer-designate
Chief Executive Officer’s statement continued
What are LSEG’s priorities for 2024 and beyond?
In less than three years we have transformed LSEG into a leading
financial markets infrastructure and data business, trebling the growth
rate of the Refinitiv Data & Analytics businesses we acquired and
beating the growth targets we had set, line by line. However, the real
opportunity still lies in front of us. As we enter the next phase of growth,
we will develop our leading businesses across the financial markets
lifecycle to create seamless workflows within and across asset classes.
We will provide our customers with new AI-driven insights based on our
trusted and validated data, combined with straight-through execution,
risk management and capital efficiency across their businesses.
Through investment, innovation and partnership we will shape the future
of our industry. We expect growth to accelerate over the medium term.
Margins will expand and our strong cash generation will further improve,
creating opportunities for reinvestment in growth and continued
shareholder returns. We will build on our differentiated customer
proposition to affirm our position as the partner of choice across the
financial markets value chain.
Throughout this process, our people will be central to our success.
Our corporate values of integrity, partnership, excellence and change
form the basis for how we approach everything we do and encourage
an inclusive culture that values a range of perspectives and embraces
diversity of every kind. On behalf of the Executive Committee, I would
like to thank all our people for their hard work and commitment in
delivering another year of transformation for LSEG.
David Schwimmer
Chief Executive Officer
28 February 2024
For more information on our CEO and CFO, refer to
our of Board of Directors’ profiles on pages 94 to 97.
Chief Executive Officer’s statement continued
David Schwimmer
Group Chief Executive Officer
Joined LSEG in 2018
Irfan Hussain
Chief Information Officer
Joined LSEG in January 2024
Irfan leads LSEG’s technology
team, driving innovation in global
financial markets. In a 28-year
career at Goldman Sachs, Irfan
held many senior positions
including, most recently, Chief
Operating & Strategy Officer
in the Engineering division.
David Shalders
Chief Operating Officer
and Head of Integration
Joined LSEG in 2019. Due to
leave LSEG at the end of 2024.
David oversees operational
activities at LSEG and was
responsible for the integration
of Refinitiv. Previously Group
Operations and Technology
Director at Willis Towers Watson,
David also spent 19 years at RBS
in a number of senior operations
and technology roles.
Anna Manz
Group Chief Financial Officer
(outgoing)
Joined LSEG in 2020, and will
leave on 29 February 2024.
Satvinder Singh
Head of Data & Analytics
Joined LSEG on 3 July 2023
Satvinder leads LSEG’s Data &
Analytics division, serving over
45,000 customers globally. He
has over 28 years of experience
leading global businesses in data
and analytics, capital markets,
post trade services, payments
and technology.
Daniel Maguire
Head of Post Trade,
CEO, LCH Group
& Chief Strategy Officer
Joined LCH in 2008
Daniel has 24 years of experience
in risk and default management,
product management and
regulatory strategy, with over
20 years spent at LSEG. As well
as heading up Post Trade,
Daniel assumed the role of
Chief Strategy Officer in 2023.
Murray Roos
Head of Capital Markets
Joined LSEG in 2020
Murray oversees LSEG’s Equities,
FX and Fixed Income divisions
and has 26 years’ experience in
developed and emerging markets,
including Executive roles at
Citigroup and Deutsche Bank.
Balbir Bakhshi
Chief Risk Officer
Joined LSEG in 2021
With 29 years of experience at
global financial institutions, Balbir
oversees risk management at
LSEG, including risk identification
and mitigation. Previously Head of
Non-Financial Risk Management
at Deutsche Bank.
Ron Lefferts
Head of Sales & Account
Management
Joined LSEG in January 2021
Ron leads LSEG’s global sales
team to drive the growth of our
products and solutions. Ron’s 25
years of experience include senior
leadership roles with IBM and,
most recently, Global Leader of
Technology Consulting at Protiviti.
Erica Bourne
Chief People Officer
Joined LSEG in January 2023
As CPO, Erica leads LSEG’s HR
policies and programmes. With
15 years of experience, Erica has
held a number of leadership and
executive roles across technology,
consulting and financial services
and previously led the People
function at Burberry Group.
Catherine Johnson
General Counsel
Joined LSEG in 1996
Catherine manages a global
team of lawyers and compliance
professionals, advising the Board
and senior executives on key
legal and compliance issues and
strategic initiatives. Catherine
qualified as a lawyer in 1993 and
has held a number of senior roles
in her career at LSEG.
Executive management team left to right
15 London Stock Exchange Group plc
Annual Report 2023
STRATEGIC REPORT
A compelling
investment story
With market-leading positions built
on trusted partnerships and orientated
to attractive long-term trends,
and a highly cash-generative and
visible financial model, LSEG offers
a compelling investment story.
London Stock Exchange Group plc
Annual Report 2023
16
We are globally essential
— We provide services in more than 170 countries, with operations
in over 60.
— Many of our competitors are heavily focused on single markets
or regions.
We are multi-asset class, with leading market positions
— We have leading data, trading and clearing franchises in equities,
foreign exchange and fixed income.
— We also have a growing presence in commodities and derivatives,
and are investing to grow in private markets and digital assets.
We are seamlessly connected, operating across the trade lifecycle
— We are leaders in pre-trade research, counterparty risk management,
execution, benchmarking and clearing.
— We are increasingly building connections between our businesses,
developing innovative new services and improving workflow
for our customers.
We are a trusted, long-term partner
— The depth, breadth and quality of our data is deeply trusted to
power the processes of major institutions globally.
— We operate and grow a number of key platforms that were
once owned and developed by our customers – for example
The London Stock Exchange, London Clearing House and Tradeweb.
— We are open – customers can easily combine our data with theirs,
or access third-party platforms through us.
What differentiates our business
for our customers…
Countries we serve
170+
Countries where we operate
60+
For more information on our business
model – refer to pages 04 to 07.
Find out more about our products
and services in our divisional
reviews on pages 34 to 41.
STRATEGIC REPORT
London Stock Exchange Group plc
Annual Report 2023
STRATEGIC REPORT
A compelling investment story continued
17
We operate in growing markets and have diverse revenue streams
— All of our addressable markets have a healthy growth profile –
at least mid-single digit % growth or better.
— Through the Microsoft partnership we can address new markets
offering significant additional growth opportunities.
— Our revenue is diversified by product, market and customer –
with our top 250 customers only accounting for c.55% of revenue.
Our revenue is high quality and high visibility
— 72% of our revenue is subscription-based and benefits from
long-term customer relationships. Our services are vital to our
customers’ businesses.
— Our transactional revenue, which comes mainly from Tradeweb
and Post Trade, is very high quality – with strong existing positions
and long-term growth drivers.
— Post Trade total income CAGR was 10% 2019-2023 and Tradeweb’s
revenue CAGR was 15%.
We generate uncorrelated growth
— We are not over-exposed to any single macroeconomic or industry
measure – be it GDP growth, debt issuance, volatility or equity
markets performance.
— We have achieved consistent mid to high single digit organic
revenue growth since 2018 despite significant and unforeseen
factors – including the Covid-19 pandemic, the Russia/Ukraine War
and the rapid increase in inflation and interest rates.
Our cash generation is strong and we have reinvested
for growth successfully
— We generated £1.8 billion of free cash flow in 2023, and expect
our cumulative free cash flow to exceed net income over the
medium term.
— This allows us to invest in organic growth, grow the dividend,
fund M&A and return excess capital to shareholders.
— Our AEPS and dividend CAGRs over the last 20 years have been
15% and 18% respectively.
…is also good for our shareholders
Subscription-based revenue
72%
Equity free cash flow generated in 2023
£1.8bn
Satvinder Singh (left) and Nick Parker (President,
Industry and Partnerships, Microsoft) taking
questions at a recent event between LSEG and
Microsoft that took place at our offices in London.
The event brought together over
500 employees from across
the two firms for a series
of workshops, presentations
and product development
discussions.
1818
CASE STUDY
London Stock Exchange Group plc
Annual Report 2023
Partnering to transform
our industry: Microsoft
19 London Stock Exchange Group plc
Annual Report 2023
STRATEGIC REPORT
Partnering with Microsoft continued
Partnering to transform the financial services industry
In December 2022, we launched a 10-year partnership with Microsoft
to deliver next-generation data, analytics and cloud infrastructure
solutions that will change the way financial markets participants interact,
collaborate and derive insight. By integrating Workspace with Microsoft’s
productivity suite, we will deliver an enhanced workflow experience
that offers seamless Microsoft Teams communication and Microsoft 365
interoperability with built-in compliance. Plus, with Microsoft’s cutting-
edge generative AI technology and by migrating our data platform
and other key technology infrastructure to the Microsoft Azure
environment, we will make it easier for our customers to discover,
manage, share and analyse petabytes of unstructured data.
A meaningful growth opportunity
Today, we estimate that our Data & Analytics total addressable market
(TAM) stands at around £35 billion. However, this only represents spend
on third-party providers and is under half of the market’s total outlay
on data and analytics. There is a further c.£50 billion of spend that is
currently taken in-house to perform manual activities such as cleaning,
validating and storing data, and we hear a clear message from our
customers that they want to outsource these activities. By combining
our data management expertise with Microsoft’s cloud infrastructure
and suite of AI applications, we’re positioning ourselves to address this
incremental TAM. Over time, we expect the partnership will meaningfully
increase revenue growth for LSEG.
Delivering ahead of schedule
We have hundreds of people working across the partnership to build
these products and through our Design Partner Programme, we are
working alongside some of our largest customers to understand their
desires and pain points, ensuring these are factored into key product
development decisions. We are making excellent progress and we now
expect that the first solutions will become available in the first half of
2024 – ahead of our original expectations. Solutions will initially be
made available through pilot programmes – starting with some
productivity tools and O365 interoperability – before a steady
drumbeat of updates begins to hit the market.
Potential data management TAM, currently taken in-house
c.£50bn
First products due to launch ahead of schedule in
H1 2024
Partnering with Microsoft to revolutionise
workflows for financial markets participants
LSEG’s datasets and analytics
products, as well as the deep
partnerships and trust they have
established across the financial
services industry, is unique.
The combination of LSEG’s data
platform and Microsoft’s AI
capabilities will unlock tremendous
new potential for our customers.
Scott Guthrie
Executive Vice President, Cloud and AI Group, Microsoft
LSEG Board Member
Our partnership with Microsoft
is one of the many reasons
I’m excited about the future
for Data & Analytics.
We are co-innovating solutions that
will transform the financial services
industry. Using our collective
strengths, we will change how our
customers discover and experience
our trusted breadth and depth
of data. We will deliver clear value
to customers by helping them
do more: quickly and simply,
and across a much broader
addressable market.
Satvinder Singh
Head of Data & Analytics, LSEG
London Stock Exchange Group plc
Annual Report 2023
20
2023 Financial KPIs
We are focused on delivering consistently
strong financial performance and achieving
the targets we have set.
These core financial KPIs demonstrate
the value we are delivering for both our
customers and shareholders and they
show that our strategy is working.
These KPIs align to our Group
Strategic Objectives (GSOs) which
help determine Executive Director
remuneration and performance-
related pay for all employees.
Further detail on the GSO performance
assessment can be found in our
Directors’ Remuneration Report
on pages 139 to 141.
Key performance
indicators
1 Constant currency income growth, excluding recoveries.
2 2022 growth excludes the impact of the Russia/Ukraine War.
3 For more information on the criteria that constitute non-underlying items, see page 181.
4 Our 2023 EBITDA margin guidance of “around 48%” was set on the basis of a £1 = $1.21
exchange rate and excluded any impact of the Acadia acquisition. For more information,
refer to page 49 of our Financial Review.
Definition
Income growth, independent
of FX movements.
Why this is important for LSEG
Income growth is a key measure
of our success since we operate
in growing markets and aim to
hold or grow market share. For
2023, we guided to total income
growth (excluding recoveries)
of 6-8%, excluding new M&A.
Going forward, we expect to
deliver mid to high single-digit
organic income growth,
accelerating after 2024.
Analysis
We delivered total income growth
1
of 8.3% in 2023. Excluding the
impact of the Acadia acquisition,
we delivered growth of 7.7%,
towards the upper end of our
6-8% guidance range.
All divisions contributed to this
growth. We continued improving
product retention in Data &
Analytics by investing in and
expanding our content and
capabilities, also realising a higher
price review in 2023. In Post
Trade, uncertainty around global
interest rates drove robust client
clearing activity at SwapClear
and we translated this into
strong growth. In Capital
Markets, Tradeweb continued to
innovate and drive expansion in
international markets, as structural
electronification tailwinds persist.
Total income growth
1
+8.3%
2022: +6.6%
2
2023
2022
2021
8.3%
6.6%
6.1%
Link to strategic objectives
This KPI aligns to our Growth
objective, to drive sustainable
value creation and accelerate
growth; and support delivery
of transformational growth.
Definition
A point in time measure of
our book of recurring contracts
vs 12 months ago.
Why this is important for LSEG
>70% of our revenues are
subscription-based with a high
degree of visibility. ASV growth
measures the year-on-year growth
of that recurring book of business
at a point in time. ASV growth
should act as a leading indicator
for subscription revenue growth
and has three key drivers:
retention, new sales and
price increases.
Analysis
Our year-end ASV growth of
6.7% represents an acceleration
of 370bps since the acquisition
of Refinitiv. This reflects the
significant progress we have
made strengthening our offering
through a combination of: better
execution, a greater focus on
our customers and targeted
investment in our products
and services.
In 2023, we delivered
approximately 100bps of
incremental ASV growth through
higher price reviews. On the
whole, we had positive price
review conversations with our
customers as the incremental
value we have added to our
offering is recognised.
ASV growth
+6.7%
2022: +6.2%
2
2023
2022
2021
6.7%
6.2%
4.6%
Link to strategic objectives
ASV growth aligns to our
Growth objective, indicating
the rate of expansion of our
subscriptions book.
Total income
growth
1
Annualised Subscription
Value (ASV) growth
21 London Stock Exchange Group plc
Annual Report 2023
STRATEGIC REPORTSTRATEGIC REPORT
Key performance indicators continued
Definition
EBITDA – excluding non-
underlying items
3
– over total
income (excluding recoveries).
Why this is important for LSEG
We are building a more efficient,
scalable business and expanding
underlying profitability over time.
Excluding FX impacts related
items we had guided to an
EBITDA margin of around 48%
in 2023. Longer term, we expect
to increase our EBITDA margin
over time.
Analysis
We delivered a 2023 adjusted
EBITDA margin of 47.2%, with the
year-on-year decline of 60bps
primarily reflecting the full-year
impact of recent acquisitions,
costs relating to development
of products with Microsoft and
FX-related items.
Excluding FX-related items, we
delivered an adjusted EBITDA
margin of 47.7% (2022: 46.9%). We
drove this underlying expansion
through continued improvements
in efficiency and scalability, in
particular through modernisation
of the infrastructure that supports
our Data & Analytics offering.
Excluding Acadia and movements
in FX rates, our EBITDA margin
was in line with guidance
4
.
Adjusted EBITDA margin
47.2%
2022: 47.8%
2023
2022
2021
47.2%
47.8%
47.8%
Link to strategic objectives
Expansion of our EBITDA margin
is driven by income growth
(Growth objective) and cost
efficiencies (Efficiency objective).
Definition
Earnings per share,
adjusted to remove any
non-underlying items.
3
Why this is important for LSEG
A key financial metric that is
both central to our valuation
and a significant element of
employees’ performance-related
remuneration. Growth in our
AEPS reflects our degree of
success in driving strong top-line
performance, as well as managing
costs including tax and interest,
and capital allocation.
Analysis
Adjusted earnings per share
(AEPS) from continuing operations
was 323.9 pence. The 1.9%
increase in AEPS year-on-year
reflected growth in underlying
profitability, partly offset by higher
net finance expense due to
additional interest expenses on
floating rate borrowing and growth
in depreciation which reflected
our ongoing investment in the
business and delivery of our
synergy programmes.
Our adjusted effective tax rate
was a little higher year-on-year,
principally driven by the impact
of a higher UK corporate tax rate
from 1 April 2023. Share buybacks
also reduced the average share
count in 2023, which acted as
a tailwind for AEPS.
Adjusted earnings per share
323.9p
2022: 317.8p
2023
2022
2021
323.9p
317.8p
272.4p
Link to strategic objectives
Earnings per share growth is
driven by income growth (Growth
objective) and cost efficiencies
(Efficiency objective).
Definition
Annual incremental revenue
delivered through synergies
from the Refinitiv integration.
Why this is important for LSEG
By harnessing Refinitiv data to
build new products and through
cross-sell and distribution
opportunities, we are
demonstrating the value generated
by the Refinitiv acquisition.
In March 2023, we raised our
target for runrate revenue
synergies from £225 million to
£350-400 million by the end of
2025, incurring £550-600 million
in costs to achieve.
Analysis
By the end of 2023, we had
delivered £158 million of runrate
revenue synergies, exceeding
our target to double the 2022
year-end figure of £68 million.
We have continued delivering
synergies against three key
categories. We’re cross-selling
data products to new customers,
such as the underlying pricing
data behind FTSE Russell indices;
enhancing existing products, for
example by delivering enhanced
analytics through Workspace;
and utilising our data to build
new products. We launched 72
synergy-related products in 2023.
We have also launched our
ecommerce platform, which
we expect to deliver synergies
through new sales.
Annual runrate revenue synergies
£158m
2022: £68m
2023
2022
2021
£158m
£68m
£15m
Link to strategic objectives
Revenue synergies contribute to
income growth, so this KPI aligns
to our Growth objective.
Definition
Annual incremental cost savings
delivered as a result of synergies
from the Refinitiv integration.
Why this is important for LSEG
By successfully delivering against
our cost synergy programme,
we are demonstrating that the
integration of Refinitiv has helped
us build a more streamlined
and efficient Group. In 2022,
we increased our target
from £350 million to at least
£400 million of runrate cost
synergies by the end of 2025.
Analysis
By the end of 2023, we had
delivered £442 million of runrate
cost synergies, surpassing our
£400 million target two years
ahead of schedule. To date,
we have incurred total costs
to achieve these synergies of
£564 million, though there are a
few more synergies to deliver in
2025 to close out the programme.
We primarily delivered these
savings by consolidating our
property footprint, closing data
centres, renegotiating supplier
agreements and deduplicating
roles where appropriate.
Even though the Refinitiv cost
synergy programme is now largely
complete, we will continue to
deliver cost efficiencies as we
improve profitability further.
Annual runrate cost synergies
£442m
2022: £297m
2023
2022
2021
£442m
£297m
£151m
Link to strategic objectives
Cost synergies help us to manage
our expenses, so achievement
against this KPI aligns to our
Efficiency objective.
Adjusted EBITDA
margin
Runrate revenue
synergies
Adjusted earnings
per share
Runrate cost
synergies
London Stock Exchange Group plc
Annual Report 2023
22
Key performance indicators continued
2023 Non-Financial KPIs
At LSEG, we’re committed to creating
an environment where diverse talent can
thrive, and to driving the growth of a green
and sustainable economy.
These five core non-financial KPIs measure
our progress, but also help us highlight the
areas where we can still improve.
These KPIs align to our Group
Strategic Objectives (GSOs) which
help determine Executive Director
remuneration and performance-
related pay for all employees.
Further detail on the GSO performance
assessment can be found in our
Directors’ Remuneration Report
on pages 139 to 141.
For more detail on LSEG’s sustainability
targets, including Equity, Diversity
& Inclusion targets, refer to pages
58 to 68.
1 Our 2023 Sustainability Report can be found on our website at www.lseg.com/en/
sustainability-strategy/disclosures-and-reports.
2 We have developed a new methodology to help us review our Equity, Diversity & Inclusion
goals to ensure that they remain relevant and appropriate. More details can be found on
page 61. LSEG collects ethnicity and gender data from our executive management and
company board based on individual’s voluntary self-disclosure and their consent for the use
of this data in company reporting. All company board and executive management gender
data is collected on a global basis. Global ethnicity representation only includes colleagues
based in countries where we collect ethnicity information.
3 The Green Economy Mark recognises London-listed companies and funds that derive more
than 50% of their revenues from products and services that are contributing to environmental
objectives such as climate change mitigation and adaptation, waste and pollution reduction
and the circular economy.
4 Reduction of Scope 1, Scope 2 (market based) and selected Scope 3 (business travel, home
working , commuting, FERA) emissions vs a 2019 baseline. For 2023 reporting, we have
expanded this metric to apply to all of the emissions within scope of our Climate Transition
Plan (CTP). For more information on our CTP, refer to pages 63 and 64.
Definition
Our engagement index reflects
employee satisfaction, specifically
the likelihood that colleagues
would recommend LSEG as
a great place to work.
Why this is important for LSEG
We recognise the importance of
establishing a diverse, inclusive
workplace where opinions can
be openly shared, contributions
recognised and individual and
team achievements celebrated.
Analysis
We saw stronger participation
in this year’s Group-wide
engagement survey, LSEG
Engage, with 88% of colleagues
taking part. The results showed
engagement remained at the high
levels seen in 2022, with a score
of 75 (out of 100). The survey
showed an improvement in our
colleagues’ understanding of
LSEG’s strategy, opportunities to
learn and develop and support
from their people leaders. Going
forward, we need to continue
addressing barriers to execution
to better enable our employees.
See page 24 of our 2023
Sustainability Report
1
for more
information on the actions we
are taking.
LSEG Engage engagement index
75
2022: 75
2023
2022
2021
75
75
73
Link to strategic objectives
This KPI aligns to our
Culture objective: to cultivate
leadership capability and
embed values to foster
a diverse and inclusive culture.
Definition
The proportion of female
representation in senior
leadership roles.
Why this is important for LSEG
We strongly believe in promoting
diverse gender representation
across our organisation, ensuring
we provide equal opportunity
to progress to leadership roles,
regardless of gender. We are
committed to building a leadership
team that incorporates a broad
range of perspectives and
management styles in order to
make LSEG a better business.
Analysis
In 2023, we were proud to
continue increasing female
representation at senior
leadership level to 42%. Our goal
now is to maintain this level of
representation above a minimum
level of 40% over the next
four-year period to 2027.
One of the key elements to
our philosophy on diversity is to
create equitable and inclusive
processes that enable the
attraction, retention and promotion
of a global diverse pipeline
of talent and this will remain
an important area of focus
going forward.
Female rep at senior leadership
42%
2022: 40%
2023
2022
2021
42%
40%
33%
Link to strategic objectives
Promoting diversity aligns to
our Culture objective.
Engagement index Gender diversity
in leadership
2
23 London Stock Exchange Group plc
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STRATEGIC REPORT
Key performance indicators continued
Definition
The proportion of ethnically
diverse representation in
senior leadership roles.
Why this is important for LSEG
We are committed to building a
richly diverse team of leaders,
recognising exceptional talent
from a wide range of different
backgrounds. This enables us
to foster an environment where
a blend of different perspectives
goes into making the most
important decisions for
our business.
Analysis
With respect to underrepresented
ethnic and racial groups, we did
not achieve our goal of 20%
representation within the leadership
community, reaching 14% by the end
of 2023. However, we remain firmly
focused on closing this gap through
a range of measures. We are
continuing to grow the global
Leadership Development
programmes that we launched in
2022 (eg Illuminate – targeted
towards black and Latinx colleagues
– and APAC Accelerator) and we
introduced inclusive hiring training
for all people leaders in 2023.
Our revised goal is to ensure 25%
of senior leadership roles are held
by those from underrepresented
groups by 2027.
Minority rep at senior leadership
14%
2022: 15%
2023
2022
2021
14%
15%
16%
Link to strategic objectives
Promoting diversity aligns to
our Culture objective.
Definition
The total number of issuers
across the Green Economy Mark
3
,
the Sustainable Bond Market
and the Voluntary Carbon Market.
Why this is important for LSEG
Stimulating the green economy is
central to our purpose. We can
measure the progress we are
making here by tracking the
overall level of issuer engagement
in sustainable finance across the
London Stock Exchange, with
the goal of growing the number
of issuers over time.
Analysis
In 2023, we continued to facilitate
increasing sustainable investment
and growth in the green economy.
As at the end of the year, we have
236 total issuers across our
Sustainable Bond Market and
Voluntary Carbon Market or
that proudly display the Green
Economy Mark
2
, (2022: 217). In
total, £232 billion has now been
raised on our Sustainable Bond
Market since inception.
FTSE Russell has also launched
the UK ESG-Risk Adjusted Index
Series and the FTSE Fixed Income
EU Climate Benchmarks series
to help investors integrate
sustainability into their
investment strategies.
Number of sustainable issuers
236
2022: 217
2023
2022
2021
236
217
217
Link to strategic objectives
This KPI aligns to our Sustainability
objective: to support the Group’s
ambition to establish LSEG as
a strategic enabler of sustainable
economic growth.
Definition
The change in the amount of
carbon emissions we produce as
a direct result of Group activities,
relative to our 2019 baseline.
Why this is important for LSEG
We are a member of the United
Nations Climate Change ‘Race to
Zero’ and we have set science-
based targets to reduce our
carbon emissions with an ambition
of reaching net zero by 2040.
We aim to halve our operational
emissions by 2030 from
a 2019 baseline.
Analysis
By the end of 2023, we had
reduced our carbon emissions
(Scope 1, Scope 2 (market based)
and selected Scope 3) by -29%
from a 2019 baseline.
Like many companies, we saw
a steep reduction in our carbon
emissions in 2020 and 2021,
driven in large part by lockdowns
and travel restrictions
implemented as a result of the
Covid-19 pandemic. As we have
emerged from the pandemic
and as the Group continues to
grow, emissions have naturally
increased, but we remain fully
committed to our target to halve
these emissions vs a 2019
baseline by 2030.
Reduction of Scope 1, 2, 3 (FERA)
4
-29%
2022: -57%
2023
2022
2021
-29%
-57%
-77%
Link to strategic objectives
This KPI aligns to our
Sustainability objective.
Ethnic diversity
in leadership
2
Carbon emissions
4
Sustainable issuers
London Stock Exchange Group plc
Annual Report 2023
242424 London Stock Exchange Group plc
Annual Report 2023
Partnering to transform
our industry: BlackRock
CASE STUDY
Left
Satvinder Singh
Head of Data & Analytics
LSEG
Right
Joseph Chalom
Managing Director
BlackRock
Left
Dmitri Sedov
Head of Data Intelligence
LSEG
Right
Cornelia Andersson
Head of Sustainable Finance
& Investment, Data & Analytics
LSEG
In the meeting pictured here, BlackRock and
LSEG’s data intelligence and sustainability
teams come together to discuss business
strategies and roadmaps for the upcoming year.
We meet with BlackRock regularly, in order to
keep up to date on progress and opportunities
across our respective firms.
25 London Stock Exchange Group plc
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STRATEGIC REPORT
Partnering with BlackRock continued
A strategic partner to data and workflow providers
Although we often supply our data and analytics services to customers
directly, we can also reach a significantly broader market by working
with third-party data and workflow providers to help power their
offerings. This is particularly relevant in the asset management
industry, where there is a major structural trend towards the adoption
of centralised enterprise technology platforms, such as Portfolio
Management systems (PMS) and Enterprise Data Management (EDM)
platforms. These platforms centralise many important, complex trading
and investment operations and give management a better overarching
view of their business. Naturally, they rely on the redistribution of
high-quality content and that is where LSEG can be a trusted partner.
Powering BlackRock’s workflow and ETF offering
One such example is BlackRock’s Aladdin, which has become the
industry leader in the PMS space, combining sophisticated risk analytics
with comprehensive portfolio management tools to power end-to-end
workflows for over 100,000 investment professionals globally. LSEG
is a key partner in the Aladdin ecosystem, and is the preferred data
source for Fixed Income, Equity and public reference data. Meanwhile,
BlackRock’s iShares suite has been a leader in the ETF marketplace
for over 20 years. Through FTSE Russell, LSEG partners with BlackRock
to help drive growth, providing key benchmarks, indices and ETFs.
Today, there is over $430 billion in AUM tied to over 125 FTSE Russell
products that help power the iShares suite.
Significant expansion potential
Third-party data distribution is a growing source of revenue for us,
in particular because of the breadth of content and services that we’re
now able to offer as a combined group. Historically, we have only
maintained a handful of these partnerships with a small number of global
providers. However, as we build out a cloud-based data architecture
that lends itself more to redistribution, we’ll be looking to create many
more of these relationships to power a growing number of partner
applications worldwide.
LSEG is the preferred data source for Fixed Income, Equity and
public reference data in Aladdin
No.1
AUM tied to FTSE Russell products through iShares
>$430bn
Unlocking new potential with BlackRock
and other channel partners
We’ve built a true working model
strategically aligning across the
two firms and having our teams
work together to create a shared
roadmap of innovation and new
product development for the
benefit of our mutual clients.
We believe that the future of
investment management and the
future of technology are highly
aligned, and our collaboration
with LSEG is a core component
of how we will ultimately deliver
for client needs.
Sudhir Nair
Head of Aladdin, BlackRock
Our purpose and strategy
London Stock Exchange Group plc
Annual Report 2023
26
Our purpose
LSEG is a key participant in the global
economy as a leading financial markets
infrastructure and data provider.
Our purpose is driving financial stability,
empowering economies and enabling
customers to create sustainable growth.
We drive financial stability
…by operating businesses that are of systemic
importance, fundamental to the financial
ecosystem and critical to our customers.
We empower economies
…by helping our customers to raise capital,
support employment, innovate and access
global financial networks, across multiple
asset classes.
We enable customers to create
sustainable growth
…by providing the tools and data that
enable financial markets to manage risk
and make informed investment decisions.
This purpose underpins everything
we do and sets the foundation for
our strategy, our operations and
our culture.
27 London Stock Exchange Group plc
Annual Report 2023
STRATEGIC REPORT
1
Globally essential
A global player that provides critical
infrastructure and insight to customers,
required for the efficient running of financial
markets. We deliver value to customers
in all the major economies of the world.
Why is this important?
Our customers and their demands are
increasingly borderless and complex.
Our global coverage and comprehensive
offering underpins our customers’ critical
workflows and supports the allocation of
capital across international financial markets.
Our purpose and strategy continued
Case study
Our global customer base, critical
infrastructure and regulatory footprint
We are truly a global business, providing
services to over 45,000 customers in over
170 countries, with differentiated engagement
models tailored to support their needs.
These customers include 100 of the top
100 global banks and 78 of the top 100 asset
managers, with more than 400,000 end users.
We provide solutions (many of which are highly
regulated) that solve business critical issues
for our customers, as we seek to create safer,
more efficient and more liquid markets, and to
reduce risk. As a result, we are overseen
by regulators across the globe, and have
built deep, long-standing relationships with
these regulators. This allows us to better
support our customers as they navigate
complex regulatory environments and
ever-changing requirements.
End users
>400k
2
Multi-asset class
A leader across traditional and emerging asset
classes, in both public and private markets.
We provide liquidity and asset-class agnostic
insight for our customers across the world.
Why is this important?
Trading and investment strategies are
incorporating a greater mix of asset classes,
broadening the data and information required
to manage portfolios and execute transactions.
The extent of our coverage in both established
and emerging asset classes creates value for
our customers by simplifying workflows and
critical processes.
Case study
Scope of asset class coverage within
FTSE Russell
We are a world-class provider of benchmark
and index solutions, serving customers
throughout the investment ecosystem.
We provide globally recognised indices
across several asset classes, including
Equities, FX, Fixed Income, Sustainable
Investment and Digital Assets. We are
continuing to invest in our established asset
classes, while leveraging our expertise from
across the Group to selectively explore new
asset classes – for example, our in private
markets and in digital asset clearing.
Number of new indices delivered in 2023
1,951
3
Seamlessly connected
A trusted partner for customers, enabling
connectivity across the financial markets
value chain. We provide access to open
platforms and venues which integrate
seamlessly across the workflows that
matter, from pre-trade decision-making,
to trade execution and clearing.
Why is this important?
Financial markets continue to evolve.
The adoption of new technologies and
changes in regulation impact the complexity
and scope of our customers’ needs. By
providing integrated solutions across the
value chain, we are building deeper customer
relationships and working in partnership to
help customers address this complexity in
a way that few other providers can.
Case study
NDF Trading and Clearing
Our new NDF Matching platform combines
LSEG’s capabilities across our three divisions;
a Central Limit Order Book (CLOB) for FX
trading via LSEG Workspace that is fully
integrated with LCH ForexClear. This delivers
multiple benefits for our clients, including
a genuine all-to-all market, improved
transparency via a “cleared price” for the
market, margin saving and capital benefits,
safer and more accurate credit management
and simpler administration. Hosting the venue
in Singapore, brings customers latency
improvements, leading to improved access
to liquidity and delivery of the trading GUI
in Workspace. We are delivering a more
connected and efficient FX workflow for our
clients via integration with LSEG’s capabilities
in Data & Analytics. For more information on
this and other initiatives in our Capital Markets
division, see pages 38 and 39.
Improved latency speed by a factor of
10
Our strategy
LSEG’s long-term strategy builds on our strengths as a Group. We are investing in solutions
and services that can adapt and scale in evolving global financial markets, often driving that
evolution ourselves.
London Stock Exchange Group plc
Annual Report 2023
Improving executionOur progress in 2023
Continuing delivery of Group Strategic Programmes
We are moving from integration to transformation with greater focus
on growth, scaling our platforms and delivering customer outcomes.
We have made steady progress across our transformation agenda:
migrating customers to our strategic platforms, e.g. Workspace and
Real-Time Optimised, improving order management, modernising our
network and reducing time to market for the creation of new indices.
Progressing on resilience and cyber security initiatives
We continue to invest in the resiliency and security of our products and
infrastructure, ensuring we uphold our duty to provide stability to the
global financial ecosystem. This is embedded in our risk culture and
reflective of our deep market infrastructure heritage. Our investment
in resilience has seen technology key risk events reduce by ~58% in
the last two years. It remains a key priority to minimise these events,
such as the outages on the London Stock Exchange in 2023.
Delivering on the Sales Transformation journey
We have introduced a new solution selling team and targeted sales
specialists for our high-touch customers, alongside actively developing
our ecommerce strategy for our low-touch customers. Our account teams’
active engagement has resulted in 74%
1
of customers connecting with
us on new products and services, among whom we see better product
satisfaction (+11pp)
2
and higher likelihood to recommend (+73pp)
3
.
Embedding a high-performance culture
We created and launched new LSEG values to underpin our purpose
and outline how we work with our customers, partners and together.
Our senior leaders participate in masterclasses on high-performance,
and our career navigator tool, launched globally this year, empowers
development and progression. With refreshed EDI ambitions, priorities
and practices, we are building belonging and inspiring our people to
perform at their best.
Improving the customer experience
We have invested in and simplified our Data & Analytics offering,
consolidating our product portfolio into integrated workflow solutions
and moving from over 30+ legacy desktop variants down to just a
handful for Workspace. Customer satisfaction scores have increased
across a range of metrics including “powerful analytics” (+11pp)
4
,
“ease of sharing news/analysis” (+13pp)
4
and “functionality across
multiple devices” (+11pp)
4
.
% of customers who have discussed new or existing product features,
functionality or content in the last 12 months
74%
1
Our purpose and strategy continued
28
1 Covers top 250 customers and managed accounts, i.e. customers who are serviced
on a 1:1 basis who have had contact with their account teams (Jan 2023 to Dec 2023).
2 % of customers who returned 9 or 10 (out of 10) for product satisfaction (customers who
have had a discussion with their account team vs those who have not). As at Dec 2023.
3 % of customers who returned a 9 or 10 (out of 10) for our NPS question (customers who
have had a discussion with their account team vs those who have not). As at Dec 2023.
4 % of Trading & Banking users who gave a 9 or 10 rating (out of 10) against the specified
metrics (Workspace vs Eikon). As at Jun 2023.
29 London Stock Exchange Group plc
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STRATEGIC REPORT
Investing in better products Harnessing our integrated offering
to create value greater than the
“sum of the parts”
Deploying Workspace across the Data & Analytics business
We have made significant improvements to our Workspace offering,
integrating key customer workflow solutions including Advanced
Dealing, TORA and SDC Platinum. We have also sent Eikon end
of life letters to our customers, notifying them of the sunsetting of
Eikon in 2025.
Unlocking business growth by investing in technology
We are investing in the infrastructure of our world-class indices business
through an index refactoring programme (IRF) and automation to
facilitate speed to market and meet market demands for customisation.
We are also enhancing our distribution capabilities to enable our
customers to receive data in the way that best meets their needs
(API and cloud solutions).
Partnering with customers to develop “next-gen” products
We launched our Design Partner Programme (DPP), where together
with Microsoft we are collaborating with some of our largest customers
to design and build products which address their pain points and
support their key workflows.
Pivoting toward agile commercial models to support shift to cloud
For some of our largest customers we are replacing product-level
agreements with enterprise-wide agreements, creating cost benefits
for them, whilst driving value for both our customers and LSEG.
See page 33 for more on how this is coming to life with one of our
largest strategic partners, HSBC.
Sunsetting Eikon in
2025
Driving value creation through aligned user experience
We have simplified our global branding, making it easier for our
customers to discover and access the full range of capabilities that
we offer through improved awareness. This involved retiring our
Refinitiv brand and creating six new sub brands: LSEG Data & Analytics;
LSEG Risk Intelligence; FTSE Russell; London Stock Exchange; LSEG FX;
and LSEG Post Trade. This unification of branding will allow us to better
cross-sell across our customer base and create more holistic, deeper
client relationships.
Executing on the LSEG Microsoft Partnership, enabling new growth
and scale
We have made excellent progress in mobilising our people to work
effectively in cross-firm teams with Microsoft and to build innovative
products together. We expect that our first solutions will become
available in the first half of 2024. For more information on our
partnership with Microsoft, see page 19.
Exploring innovation in high growth areas
We announced our ambition to be the first global exchange group to
deliver a seamless funding continuum, by supporting private and public
markets through a globally connected market infrastructure and being
a trusted partner in providing access to data and insights. This year,
we have focused on two key aspects: 1) our continuing partnership
with fintech Floww to establish our presence in the private markets
space; and 2) our work towards the creation of a new market under UK
regulation that makes it easier for private companies to raise funding.
New unified LSEG sub brands
6
Our purpose and strategy continued
London Stock Exchange Group plc
Annual Report 2023
30
Evolving priorities for 2024 and beyond
Our purpose and strategy continued
We continue to be well positioned to capitalise
on the strong underlying growth drivers of
our business.
In 2024, our priorities will evolve as we
continue our transformation and start to
realise the opportunities created by it:
Executing on the transformation
To execute on the transformation, we are focused on the continued
delivery of our Group Strategic Programmes, including upgrading our
tech platforms and the progression of our cloud migration. As our sales
transformation journey continues to take shape in 2024, we are also
transforming the organisational and operational structure of our
Data & Analytics businesses, separating out FTSE Russell and Risk
Intelligence. Underlying all this Group-wide change is a continued
focus on ensuring cost and capital discipline.
Monetising the integrated business
We are focused on the delivery of our commercial transformation and
continued price realisation of our integrated business, whilst continuing
to unify and improve the customer experience. We are bringing together
our FX capabilities across pre-trade, at-trade and post-trade in a more
connected and seamless offering for customers, all under the LSEG
FX brand. We are institutionalising this ‘One LSEG’ approach across
other asset classes and focusing on driving synergies with Tradeweb
through continued collaboration.
Launching new products and creating
new markets
Across the Group we are constantly looking for areas where we
can create new products and services. Through our partnership with
Microsoft we have three strategic initiatives in Workspace, Analytics
and Data Intelligence, enabling product development within these areas.
Moreover, in 2024 our vision for Post Trade Solutions will start to come
to life, helping customers drive down cost of capital and trading. We are
expanding our presence in private markets, and building asset-agnostic,
interoperable, digital market infrastructure to drive efficiencies across
the trade lifecycle.
Our strategy is clear as we look
ahead to the next phase of our
transformation in 2024 and
beyond. We will continue to put
our customers at the centre of how
we grow, partnering with them to
create innovative products and
services, allowing us to make
more possible together.
There is still work to do,
but through the actions we have
taken we are now well positioned
to deliver sustainable growth
into the future, unlocking exciting
opportunities in partnership
with our customers to create
shared value.
Daniel Maguire
Head of Post Trade, CEO, LCH Group
& Chief Strategy Officer
Our purpose and strategy continued
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