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London’s stock exchange hit a more bad news last week when Glencore, the mining group, saying it was thought Transfer to the main list to another exchange of finding a higher appreciation. Glencore can join an exodus of companies such as Flutter and Group CRH construction materials.
The exchange can take comfort from one thing: It is not going to lose the listing of a much larger company, the ninth most valuable in the ftse 100 with a market capitalization of £ 62bn at the start of this week. That effort turns itself over the past decade from a target target of the European Champion of a global London stock stock group.
The Gulf of Fortunes between London Stock Exchange and its parent prompts. the Flow to Disadvantages For the first unable to prevent steady increase in financial value later. Simply the explanation: Share the list and trading account 3 percent of LSEg revenues due to diversification in the last decade.
LSEG change from a stock exchange of a global hub for securities trading and clearing, with data and analytics, hard error as a defense strategy. In 2016, it agreed to be a combination equal to Deutsche Börse, but it was blocked by the EU. It is more valuable than the last today, and six times the market of Euronext, owning Amsterdam and Paris Exchange.
But LSEG’s financial story leaves it with identity trouble. The group does not think to move to the New York Stock Exchange, but more valuable when it has been done, thanks to the national businesses in the world. Another effort to have a less stressful history in the same financial position is tempted to change its name or sell the city business.
As things stand, the exchange and LSEG hit in an odd relationship. LSEG earns luster from a business starting in the 17th century, while exchange benefits from a group that cannot be interrupted to take bids. But it is simpler for both if their financial prospects are most agreeable.
Investors this week heard LSEG response if David Schwimmer, chief executive Since 2018presents its 2024 results. His predecessor Xavier Rolet began Renewal But Schwimmer, a former Goldman Sachs Banker, it was improved. He executed the Fitpest Pivot, the $ 27bn acquisition In 2019 with financial data providerivitiv.
LSEG has become refinitiv to a more powerful bloomgg challenge under the brand of workspace, aided by a Microsoft’s Alliance. Deal also gives a 51 percent stake in Tradeb markets, a US bond and fixed-income derivatives platform rapidly. It’s more popular than London’s stock exchange, but with higher income.
There is a wider lesson for exchanges and market platforms: Investors often include the highest values of the least feelings. LCH, which is one of the largest bonds in the world and stained cleaning houses, a most valued LSEg properties. While equity lists get more attention, bundle sales and cleanses quiet reliably.
The antithesis of LSEg is euroext, which depends on greater than equities. The value of the Eurone market is below but, in measurements as the total number of new listings and trading volumes of seven stock exchanges, it is beaten in London. Stéphanhane Boujnah, chief executive, claims last month That loss of New York lists is “a London problem”.
Boujnah clearly loves LSEg to lose patience in London Stock Exchange and sell it to him. That is not useful, given the importance of exchange of London as a financial center, no matter how small LSEG income. LSEG is in a better purchase position of Euronext himself, but that will raise competition issues as well as European hackles.
The fact is that the LSEg will remove himself from the ancient game of stock exchange seats, and build a wider business under a related brand. Shareholders may not appreciate it again: There are many data, analytics and trade-related operations to build or buy.
But the stock exchange of London and its parent should not be far away. While it is not important to valued LSEg finance that its original asset has a problem, the exchange remains a brand’s heart.
