LONDON STOCK EXCHANGE GROUP PLC ANNUAL REPORT 2022
Partnering with our customers at every stage of the trade lifecycle.
WHO WE ARE
LSEG is a leading global financial markets infrastructure and data provider. We play
a vital social and economic role in the world's financial system. With our trusted expertise and global scale, we enable the sustainable growth and stability of our customers and their communities.
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
2022 FINANCIAL HIGHLIGHTS
£Total income7excluding.4bnrecoveries1
2021: £6.6bn2
+5Growth in total income.7%excluding recoveries3,4
2021: +6.1%
317Adjusted earnings .per8pshare
2021: 272.4p
2022 DIVISIONAL HIGHLIGHTS
+6Data & Analytics .- Annual2%Subscription Value (excl. Ukraine/Russia)4
2021: +4.6%
$Capital Markets452bn- FX average daily trading volume
2021: $443bn
$Post Trade1,091trn- Interest rate swap notional clea ed
2021: $921trn
- Recoveries relate to fees for third-party content, such as exchange data, that is distributed directly to customers.
- Pro-forma.
- Pro-forma,constant currency. 2021 growth is as reported.
- Growth rate includes the impact of lost revenue in 2022 as a result of the Russia/Ukraine conflict
Contents
STRATEGIC REPORT
GLOBALLY ESSENTIAL:
SUPPORTING CRITICAL WORKFLOWS WORLDWIDE See page 31
MULTI-ASSET CLASS:
THE BREADTH OF OUR COVERAGE DRIVES VALUE
See page 32
SEAMLESSLY CONNECTED:
CREATING POWERFULLY INNOVATIVE SOLUTIONS See page 33
Strategic Report
Sign-off for the Strategic Report is provided in the
Directors' Report on page 142.
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Chair's statement |
04 |
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Chief Executive Officer's statement |
06 |
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A compelling investment story |
10 |
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Key performance indicators |
12 |
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Data & Analytics |
16 |
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Capital Markets |
22 |
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Post Trade |
24 |
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Market trends and our response |
26 |
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Our purpose and strategy |
30 |
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Our business model |
36 |
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Chief Financial Officer review |
40 |
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Financial review |
42 |
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Enabling sustainable growth |
50 |
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Our culture: building one LSEG |
60 |
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Board engagement with stakeholders |
64 |
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Compliance with Section 172(1) |
70 |
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Principal risks and uncertainties |
74 |
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Financial viability statement |
85 |
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Governance |
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Corporate governance introduction |
88 |
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Board of Directors |
90 |
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Corporate governance report |
94 |
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Complying with the provisions of the Code |
101 |
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Report of the Nomination Committee |
102 |
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Report of the Audit Committee |
105 |
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Report of the Risk Committee |
111 |
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Directors' Remuneration Report |
113 |
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Directors' Report |
142 |
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Statement of Directors' responsibilities |
147 |
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Financial Statements |
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Independent Auditor's Report |
150 |
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Consolidated income statement |
161 |
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Consolidated statement of comprehensive income |
162 |
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Balance sheets |
163 |
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Cash flow statements |
164 |
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Statements of changes in equity |
165 |
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Notes to financial statements |
166 |
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Shareholder Information |
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Glossary |
246 |
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Investor Relations |
250 |
Further information on London Stock Exchange Group can be found at: www.lseg.com
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London Stock Exchange Group plc |
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Annual Report 2022 |
LSEG at a glance
OUR BUSINESS
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 deep dives on pages 16-25.
OUR CUSTOMERS
We are dedicated partners to our customers across the entire trade lifecycle, with an open model and commitment to excellence.
Customers we serve
45,000+
Countries where we operate
190
Customers out of the top 100 global banks by total assets
99%
Customers out of the top 100 global asset managers by total assets
75%
Customers out of the 50 largest corporates by market capitalisation
48
OUR PEOPLE
Our 24,000+ strong workforce are based in 65 countries. The breadth of our offering requires our people to have a diverse range of specialisms, from capital markets to data, technology, clearing, risk and beyond.
GLOBAL FOOTPRINT
Revenue by geography1
3 1
2
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Americas 40%
2 APAC 15%
3 EMEA 45% - Total income including recoveries
Employees by geography
1
3 2
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Americas 12%
2 EMEA 32%
3 APAC 56%
SUSTAINABLE OFFERING
LSEG is dedicated to enabling sustainable economic growth. Given our central role in capital markets, our global footprint and presence throughout the trade lifecycle, we are uniquely positioned to play a leading role in this respect.
LSEG has a valuable combination of capabilities and assets that position us as a key partner
for customers to navigate sustainability trends and related reporting requirements. From sustainable finance investment data and analytical tools to green fundraising on our voluntary carbon market, we are embedding these services throughout our business.
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London Stock Exchange Group plc |
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Annual Report 2022 |
LSEG at a glance continued
STRATEGIC REPORT
THE TRADE LIFECYCLE
We are an integral partner for our customers across every stage of the trade lifecycle, in multiple asset classes.
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L DEPLO |
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Divisions |
Data & Analytics |
Capital Markets |
Post Trade |
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High-value data, analytics, indices, |
Venues/platforms for access to |
Clearing, risk management, |
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workflow solutions and data |
capital through issuance and |
capital optimisation and |
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management capabilities. |
secondary market trading for |
regulatory reporting solutions. |
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equities, fixed income, and |
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foreign exchange (FX). |
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Financial highlights |
Revenue |
Revenue |
Income |
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(excluding recoveries) |
£4,944m |
£1,459m |
£991m |
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Data & Analytics 67% |
Capital Markets 20% |
Post Trade 13% |
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Growth1 |
+4.2%, and +5.3% |
+9.8% |
+7.5% |
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when excluding the impacts of |
(including NTI) |
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the Ukraine/Russia conflict |
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Customer profile |
A broad range of financial market participants, including banks, buy-side and sell-side trading desks, |
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hedge funds, asset owners and managers, corporates, brokers, academics and issuers. |
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Market positions |
- #1 real-time data business. |
- Leading dealer-to-client |
- Leading global clearing house |
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- A leading global index |
FX platform (FXall) and |
with >90% global share of |
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and benchmark provider |
leading global interbank |
cleared interest rate swap |
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(FTSE Russell). |
FX venue (Matching). |
notional outstanding. |
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- Leading provider for Know |
- Leading fixed income, |
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Your Customer screening |
derivatives and ETF electronic |
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though World-Check. |
trading platform (Tradeweb). |
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1 Pro-forma growth assumes that the acquisition of Refinitiv took place on 1 January 2021 for the |
prior year comparator. Growth is on a constant |
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currency basis, excluding the impact of the deferred revenue accounting adjustment. Revenues and costs associated with the BETA divestment |
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For more detail on |
have been classified as discontinued and are |
excluded from all periods. |
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our business model - |
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refer to pages 36-39. |
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London Stock Exchange Group plc |
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Annual Report 2022 |
Attachments
Disclaimer
London Stock Exchange Group plc published this content on 24 March 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 March 2023 12:37:17 UTC.
