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Summary
- The London Stock Exchange has successfully completed its $27-billion deal with Refinitiv, as it aspires to transform into a major financial data provider.
- This acquisition would empower and transform the London Stock Exchange, which represents the City of London as a top global financial centre.
London Stock Exchange Group Plc (LON: LSEG) has successfully completed the acquisition of Refinitiv, the global provider of financial market data. This is an important milestone in the history of London Stock Exchange as the transaction shall act as a catalyst in combining two highly complementary global businesses with a shared commitment to an Open Access philosophy.
The client base of London Stock Exchange Group can expect ease of access to critical information, trading tools, analytics and risk mitigation tools spanning various financial geographies. The London Stock Exchange is well poised to attain long-term sustainable growth in a dynamic landscape of financial markets across the globe.
In a bid to keep up with competitors including Bloomberg, the London Stock Exchange has successfully completed its $27-billion deal with Refinitiv as it aspires to transform into a major financial data provider.
(Image Source: © Kalkine Group 2021)
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From another perspective, the acquisition would empower and transform the London Stock Exchange, which represents the City of London as a top global financial centre. The UK has reiterated many times that it wants London to retain its position as a global financial hub. However, Brexit has led to the disintegration of the financial sector from the European Union. This transaction carried out by London Stock Exchange Group is expected to boost the image of London’s financial markets.
As the data is the new oil, and with the new algorithm-based trading programs in place, the data has certainly become a necessity to make informed decisions within a stipulated time. There is severe competition in the data services industry, and every business aspires to capture the opportunity that comes its way to gain an edge over traditional rivals in supplying data.
Additionally, the 300-year-old LSE is currently facing quite a few challenges. In the wake of Brexit, Brussels is exerting pressure on eurozone banks to shift their derivatives clearing business to Eurex from the LSE. Also, Brussels is currently reviewing the decision to grant long-term clearing access to LSE.
Furthermore, the British government is expected to review UK listing rules to attract more tech businesses listings on the LSE that will help it in competing with the global stock exchanges such as New York.
Shares of the LSEG were marginally down by 0.14 per cent and was trading at GBX 8,608 at GMT 11:01 AM+1 on 29 January.
