Strategy in action

Vision

To be the most trusted expert in global financial markets.

Strategy

To achieve this, we continue to strengthen our performance as an innovative, customer-focused and collaborative organisation, delivering high value products and services across the financial markets value chain.

Open Access, partnership approach, customer service and operational excellence remain key foundations for the Group’s growth and our activities are aligned to these principles. Delivery of our strategy is embodied within our 3 strategic pillars: driving global growth, developing our customer partnership approach and delivering best in class capabilities.

Strategy Progress - Selected Examples
Driving global growth

As a customer-focused organisation, we benefit from deep and broad relationships with market participants globally. This drives product and service innovation and, combined with our ability to respond effectively to secular trends, creates growth opportunities across the financial markets value chain

  • LSEG completed the acquisitions of both of The Yield Book and Mergent, a leading provider of company information and analysis, enhancing our data and analytics offering across asset classes and sectors

  • Our 5 year revenue run rate synergy target for the Russell Indexes transaction was achieved more than 2 years ahead of target

  • LCH launched new products to facilitate clearing for buy-side market participants, such as Sponsored Clearing in the RepoClear service and Custodial Segregated account structures working with Euroclear

  • LSEG’s Primary Markets saw a good year for IPOs; the leader for number of IPOs in Europe; we were chosen for 2 of the top 3 issuances by size worldwide, and we placed first in Europe for further issuance

  • FTSE Russell created numerous products for sustainable and emerging markets investment, with launches including the FTSE Global Climate Index Series and the FTSE ESG Index Series, and indexes for China A-shares

  • ELITE continued global expansion through agreements with China and Brazil, and agreement was reached to launch the programme across 9 countries in West Africa

  • FTSE Russell’s Blossom Japan index was selected by the Government Pension Investment Fund of Japan, the world’s largest pension fund with over US$1.3 trillion in assets, as its core ESG benchmark through its flagship fund

Developing our  customer partnership approach

LSEG is set apart in the Financial Markets Infrastructure sector through our open access philosophy and collaborative approach. This gives us maximum flexibility to develop commercial and corporate opportunities amidst ongoing industry and regulatory change

  • LSEG strengthened its holding in LCH Group to 65.9%, reflecting the strategic importance of this asset to the Group

  • CurveGlobal success continued, supported by shareholder banks, with over 2 million lots traded and reaching a record level of open interest since launch

  • LCH SwapAgent launched in partnership with major dealers, to simplify the processing, margining and settlement of non-cleared rates derivatives

  • FTSE Russell renewed its partnership with CME to launch futures and options on the Russell 2000 Index

  • Euronext and LCH S.A. agreed to extend their co-operation on derivatives and commodities clearing services for the next decade

  • UnaVista has welcomed 50 firms to its Partner Programme, aiming to increase efficiency and reduce risk for clients

  • Turquoise expanded its universe to make FTSE AIM 50 stocks available for trading, reflecting increasing customer demand for small- and mid-caps

  • ForexClear grew membership by 20% in 2017 and launched new products including G10 currency pairs

  • ELITE welcomed new strategic investors to support international expansion across Europe and Asia

Delivering best in class capabilities

We constantly seek to improve our execution capabilities, customer servicing and expertise in financial markets infrastructure. We utilise technology, our global scale and the skills of our people to innovate, manage risks and operate in the most efficient and responsive way

  • LSEG secured a leading role in engagement with governments, regulators and customers on implications of Brexit, MiFID II and EU benchmarking regulations

  • Investment continued in emerging technology with cloud strategy implemented, enterprise architecture programmes and AI and blockchain R&D

  • Borsa Italiana collaborating with IBM to develop a blockchain solution for European SMEs

  • LSEG assisted clients with readiness for MiFID II through solutions such as Turquoise Lit Auctions and UnaVista

  • BSL, our shared services company, now delivers corporate services to LCH, and the Group has developed new locations, acquired in Asia and  the US to deliver increased capabilities at lower unit cost

  • LSEG Technology was formed, combining our software companies of MillenniumIT and Gatelab; we have also completed the divestments of MillenniumIT ESP and Exactpro (post-year end)  to focus on high value technology businesses which support our core customer base

  • LSEG implemented a range of talent development initiatives including expansion of graduate recruitment for technology, introduction of  an early careers programme and multiple management development programmes

  • Information security was strengthened through technology solutions, training for all staff and investment in people and processes