London Stock Exchange Group plc
Annual Report 2024
Make more possible
To read about how we ‘make more possible’,
please see the customer case studies on
the following pages:
Making more possible with... Dow Jones
Page 16
Making more possible with... Barclays
Page 22
Making more possible with... ICD
Page 30
Making more possible with... Microsoft
Page 40
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.
01 London Stock Exchange Group plc
Annual Report 2024
Strategic Report
Our purpose
Driving financial stability, empowering
economies and enabling customers to
create sustainable growth.
The services we provide as a leading global
financial markets infrastructure and data
provider are critical for economies around the
world. The vital social and economic role we
play enables sustainable growth for customers,
partners and the communities we all live in.
Strategic Report
Approval of the Strategic Report is provided in the
Directors’ report on page 148.
LSEG at a glance 02
Our business model 04
Market trends and our response 06
Chair’s statement 08
Chief Executive Officer’s statement 10
Executive management team 12
A compelling investment story 14
Making more possible with Dow Jones 16
Key performance indicators 18
Making more possible with Barclays 22
Our purpose and strategy 24
Making more possible with ICD 30
Divisional review: Data & Analytics 32
Divisional review: FTSE Russell 34
Divisional review: Risk Intelligence 35
Divisional review: Capital Markets 36
Divisional review: Post Trade 38
Making more possible with Microsoft 40
Chief Financial Officer review 42
Financial review 44
Sustainability 56
Board engagement with stakeholders 73
Section 172(1) statement 78
Principal risks and uncertainties 81
Financial viability statement 91
Governance
Corporate governance introduction 94
Board of Directors 96
Corporate Governance Report 100
Complying with the provisions of the Code 109
Report of the Nomination Committee 110
Report of the Audit Committee 114
Report of the Risk Committee 120
Directors’ Remuneration Report 122
Directors’ Report 148
Statement of Directors’ responsibilities 153
Financial Statements
Independent Auditor’s report 156
Consolidated income statement 164
Consolidated statement of comprehensive income 165
Consolidated balance sheet 166
Consolidated statement of changes in equity 167
Consolidated cash flow statement 168
Notes to the consolidated financial statements 169
Company balance sheet 238
Company statement of changes in equity 239
Notes to the Company financial statements 240
Shareholder Information
Glossary 252
Investor relations 255
Who we are
Contents
London Stock Exchange Group plc
Annual Report 2024
02
LSEG at a glance
Our business
What we do
With capabilities in data, indices and analytics, capital formation, trade execution, clearing
and risk management, we operate at the heart of the world’s financial ecosystem and enable
the sustainable growth and stability of our customers and their communities.
Our purpose and values
Our strategy
We drive financial stability by operating
businesses that are of systemic importance,
fundamental to the financial ecosystem and
serving our customers’ critical needs.
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.
At LSEG, our values are Integrity, Partnership,
Excellence and Change. Underpinning our
purpose, our values articulate how we work
with customers, partners and each other.
For more detail on our purpose –
refer to page 24; and on our values –
refer to page 59.
We are a global, multi-asset class financial
markets infrastructure (FMI) and data provider,
serving our customers across the trade
lifecycle. A number of aspects of our business
are strategically differentiating:
— We are trusted to deliver services meeting
business-critical needs.
— We build and maintain deep partnerships
with our customers.
— We support an open ecosystem.
— We offer integrated solutions.
— We operate a best-in-class data machine
and distribution.
For more detail on our strategy –
refer to pages 25 to 29.
Together, our five business divisions – Data &
Analytics, FTSE Russell, Risk Intelligence,
Capital Markets and Post Trade – offer
customers seamless access to global financial
markets, across the trading lifecycle.
Data & Analytics
Open platform with high-value data and
analytics, providing information, insights and
workflow to enable customers to execute
critical investing, trading and risk decisions.
FTSE Russell
Benchmarks, indices and data solutions with
multi-asset capabilities. Our indices help inform
asset allocation, support portfolio construction
and enable risk and performance analysis.
Risk Intelligence
Suite of solutions to help organisations
efficiently navigate risks, avoid reputational
damage, reduce fraud and ensure legal and
regulatory compliance around the globe.
Capital Markets
Venues and infrastructure to raise or transfer
capital through the issuance and secondary
markets trading for equities, fixed income
and foreign exchange.
Post Trade
Clearing, risk management, capital optimisation
and regulatory reporting solutions to help
clients manage scarce resources, mitigate
risks and navigate regulation.
For more detail on our divisions –
refer to pages 32 to 39.
How we performed
LSEG at a glance continued
Financial
highlights
Total income growth
including recoveries
2
+5.7%
2023: +8.2%
EBITDA
£3,945m
2023: £3,514m
Operating profit
£1,463m
2023: £1,371m
Basic earnings per share
128.8p
2023: 138.9p
Dividends per share
130.0p
2023: 115.0p
Adjusted financial
highlights
1,3
Total income growth excluding recoveries
2
(organic, constant currency basis)
+7.7%
2023: +7.1%
Adjusted EBITDA margin
48.8%
2023: 47.2%
Adjusted operating profit
£3,165m
2023: £2,862m
Adjusted earnings per share
363.5p
2023: 323.9p
Our financial performance in the year,
including the above metrics, are discussed
in more detail in our Financial review
on pages 44 to 55.
Sustainability
highlights
Female representation at
senior leadership
41%
2023: 42%
Sustainable issuers
235
2023: 236
Reduction in carbon emissions
4
-54%
2023: -34%
5
For a full list of our key performance
indicators – refer to pages 18 to 21.
Strategic Report
03 London Stock Exchange Group plc
Annual Report 2024
1 Continuing operations.
2 Recoveries relate to fees for third-party content, such as exchange data, that is distributed directly to customers.
They represent low margin pass-through revenues and are offset in cost of sales. We exclude recoveries in our
performance commentary when trying to convey the best sense of underlying business performance.
3 Adjusted figures exclude the impact of any non-underlying items. For more information on the criteria that constitute
non-underlying items, refer to page 175.
4 Reduction of Scope 1, Scope 2 (market), Scope 3 (selected – business travel, home working, commuting,
fuel- and energy-related (FERA)) emissions vs a 2019 baseline.
5 Our 2023 emissions figure has been retrospectively revised to reflect corrections for historical errors in calculation.
London Stock Exchange Group plc
Annual Report 2024
04
Our business model
We are a leading provider of
financial markets infrastructure
and data. We bring deep
expertise across the financial
markets value chain.
We are a leading partner
to the financial services sector
and have a sizeable and
growing footprint across
corporate communities.
Our five divisions provide
products and services that
span the trade lifecycle...
…with offerings that span
multiple asset classes,
and cash and derivatives.
We are a dedicated partner
to our customers globally…
…and are developing our
channels to serve customers
better and broaden our reach.
Post-trade and
capital optimisation
Trade lifecycle
Serving customers pre-trade, at trade and post-trade
1 Excluding Russian banks.
2 Exchange-traded fund assets under management.
3 Europe, the Middle East and Africa.
4 Asia-Pacific.
5 Total income excluding recoveries.
Ecommerce
Self-service
model
High-touch
Dedicated
in-market
coverage
Partners
Sales and
support through
partner network
Low-touch
Central hub
service model
Microsoft
10-year strategic
partnership
EMEA
3
43% Group income
5
Americas
42% Group income
5
APAC
4
15% Group income
5
Foreign
exchange (FX)
Equities Commodities
and alternatives
Fixed income Multi-asset
class
Risk
Intelligence
Key products:
— World-Check
Data &
Analytics
Key products:
— Workspace
— Real-time data
Capital Markets
Key products:
— London Stock
Exchange (LSE)
— Tradeweb
— FXall
FTSE
Russell
Key products:
— FTSE Series
— Russell Series
Post
Trade
Key products:
— SwapClear
— Post Trade
Solutions
Investment
banks and sales
and trading
Wealth
management
Retail and
commercial
banks
Buy-side
institutions
Corporates
and other
Customers served
>44,000
Customers in the Top 100
global banks
1
100
Customers in the Top 50
largest corporates
48
Our real-time data covers
100m instruments
2024 FTSE Russell ETF AUM
2
$1.4tn
SwapClear client trades in 2024
4.0m
Locations globally
>60
Employees globally
>26,000
Countries we provide services in
>170
Workspace users
>300,000
Ecommerce launched
2024
Partners
>1,700
Equity capital raised in 2024
£25bn
2024 FX total average daily
volume (ADV)
$479bn
Trades on Tradeweb
since launch
>$3.0 quadrillion
Trade
execution
Capital formation
and issuance
Pre-trade and
liquidity discovery
05 London Stock Exchange Group plc
Annual Report 2024
Strategic Report
Our business model continued
Our business divisions
In 2024, we revised our reporting structure to better reflect our business.
Data & Analytics FTSE Russell Risk Intelligence Capital Markets Post Trade
Income
1
£4.0bn
Income
£0.9bn
Income
£0.5bn
Income
£1.8bn
Income
£1.2bn
Share of Group income
1
47%
Share of Group income
1
11%
Share of Group income
1
6%
Share of Group income
1
22%
Share of Group income
1
14%
What we do
High-value financial
markets data, workflows
and analytics.
What we do
Benchmarks, indices,
analytics and
data solutions.
What we do
Solutions to protect
against fraud and
financial crime.
What we do
Capital raising and
trading venues in
multiple asset classes.
What we do
Clearing, risk management
and capital optimisation
solutions.
Revenue model
— Mix of enterprise-wide
and product-level
agreements
— 1–2-year typical
contract length
— Annual price reviews
(for most subscription
products), usually
on 1 January
Revenue model
— Mix of subscription-
based (licence fees)
and asset-based
(proportional to
AUM) revenues
— 3-year typical contract
length for data
subscription business
— Price reviews
on renewal
Revenue model
— Mix of enterprise-wide
and product-level
agreements
— 1–2-year typical
contract length
— Annual price reviews,
usually on 1 January
Revenue model
— Recurring revenue
largely driven by
Tradeweb access
fees and LSE annual
listing fees
— Transactional revenue
driven by trading fees
for Tradeweb, LSE,
Turquoise
and FXall/Matching
Revenue model
— Most members pay
annual clearing fees
(based on volume tiers).
Clients (non-members)
pay fees per transaction
— We charge handling
fees on non-cash
collateral and secure
cash in short-term,
ultra-low-risk instruments
Main areas of
cost/investment
— Data
— Workspace capability
enhancements
— Infrastructure
modernisation
Main areas of
cost/investment
— Technology and
platform transformation
Main areas of
cost/investment
— Screening data
— Global account
verification
Main areas of
cost/investment
— Increasing resiliency
— Product development
— New business initiatives
(e.g., Digital Market
Infrastructure)
Main areas of
cost/investment
— Regulatory and
resiliency spend
— Post Trade Solutions
— Product development
— New business initiatives
(eg DigitalAssetClear)
— People cost — People cost — People cost — People cost — People cost
Key customer types
3
— Buy-side institutions
— Investment banks and
sales and trading
Key customer types
3
— Buy-side institutions
— Wealth management
Key customer types
3
— Corporates and others
— Retail and
commercial banks
Key customer types
3
— Corporates and others
— Investment banks and
sales and trading
Key customer types
3
— Investment banks and
sales and trading
— Buy-side institutions
Other market
participants include:
— Bloomberg
— S&P Global
— FactSet
Other market
participants include:
— S&P Global
— MSCI
Other market
participants include:
— RELX
— Dow Jones
— Moody’s
Other market
participants include:
— MarketAxess
— CBOE Global Markets
— Euronext
Other market
participants include:
— CME Clearing
— Eurex Clearing
— OSTTRA
1 Income excluding recoveries.
2 Recurring revenue as a proportion of Post Trade income including Net Treasury Income.
3 Key focus for division – not exhaustive. Our divisions hold relationships with a range of customer types.
Recurring
revenue 98%
Recurring
revenue 77%
Recurring
revenue 28%
Recurring
revenue 36%
2
Recurring
revenue 100%
London Stock Exchange Group plc
Annual Report 2024
06
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,
with a choice of on-premises 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 deliver data how customers want it, while embracing
automation to improve the quality and breadth of our data. We are enhancing
our proposition as the number one real-time data provider by offering more
choice in public and private cloud, and managed on-premises solutions.
Example of this in action in Data & Analytics
This year, we launched DataScope Warehouse, providing cloud-based
access to our cross-asset pricing and reference data, enabling easier
access to LSEG’s full catalogue of fixed income and legal entity data
as well as query data for global exchange-traded instruments.
With increasing automation, 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.
What is LSEG’s response?
We are joining up workflows across multiple areas of our businesses to
create interoperable offerings for our customers.
Example of this in action in Data & Analytics and Capital Markets
We are integrating the trading capabilities of FXall into LSEG Workspace to
create an end-to-end workflow on one open, intuitive platform. FXall users
within Workspace benefit from a seamless FX trading workflow.
The continued demand for datasets and products covering sustainable
finance and investing, commodities, private markets and other alternative
asset classes, which can unlock insights and enhance workflows and
business models, as investors continue to diversify portfolios and strategies.
What is LSEG’s response?
We are enhancing our content and developing new products across these
data categories to support emerging customer needs.
Example of this in action in FTSE Russell
We launched two new fixed income indices in an expansion of our existing
partnership with the Transition Pathway Initiative (FTSE Fixed Income TPI
Climate Transition Index Series and the FTSE Fixed Income TPI Focused
Glidepath Index Series). These indices are designed to help meet the
growing demand of investors and offer a fixed income solution to manage
climate risks and support their climate commitments.
Market participants who believe market data spending will increase
over the next 12 months
>70%
Cloud-enabled business models such as Data-as-a-Service (DaaS),
Managed Data Services
1
and Analytics-as-a-Service 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 in Data & Analytics
Our DaaS offering, enabling on-demand data access to accelerate
decision-making, entered general availability in 2024, starting
with environmental, social and governance (ESG) data. This is part of our
strategic partnership with Microsoft – refer to pages 40–41 for more detail.
Process automation, machine learning and artificial intelligence (AI)
continue to enable operational efficiencies, with generative AI (Gen AI)
creating opportunities for further innovation.
What is LSEG’s response?
We have been using more primitive forms of AI and machine learning across
our business for many years and we are starting to build more advanced
AI functionality into our internal processes.
Example of this in action in Group Operations
Using AI and process automation within Content Operations to source and
extract data, we can efficiently expand the breadth and depth of content,
while improving data accuracy and timeliness; in 2024, we delivered
a 40–50% reduction in time taken to process unstructured documents
for fixed income and sustainable finance content sets.
The rise of Gen AI creates opportunities to improve and enhance customer
propositions, alongside a growing customer need for expansive, high-quality
datasets for use in AI models.
What is LSEG’s response?
We are starting to use Gen AI to further modernise our business and
enhance customer productivity. Our future vision is to be a trusted provider
of data for usage by AI models across financial services.
Example of this in action in Data & Analytics
Two examples of Gen AI in our offering: (i) AI Insights API, which leverages
LSEG’s proprietary data and analytics to summarise large volumes of
information using natural language prompts; and (ii) Financial Meeting Prep,
which is an AI-driven Microsoft Teams application powered by LSEG data
and news enabling customers to generate reports about public companies
ahead of client meetings – for more detail on our partnership with Microsoft,
refer to pages 40–41.
Proportion of financial service firms actively adopting AI technology
75%
1 Previously known as Data-Management-as-a-Service.
07 London Stock Exchange Group plc
Annual Report 2024
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 in Capital Markets
Tradeweb launched an enhanced functionality for request-for-quote trading
in US credit markets (RFQ Edge), providing a greater level of market insight
to enable clients to make better-informed trade decisions.
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?
We are expanding the coverage of our asset classes while adhering to
our rigorous risk standards to support customers navigating emerging
drivers of market activity.
Example of this in action in Post Trade
We received regulatory approval to clear Bitcoin index derivatives traded
on GFO-X through LCH’s new DigitalAssetClear service, demonstrating our
commitment to bringing the benefits of clearing to this growing asset class
and expanding LCH’s services.
Digital platforms are unlocking growth across multiple segments including
digital exchanges, digital payments, online banking and retail wealth, driving
greater demand for efficiency and financial security across the trade lifecycle.
What is LSEG’s response?
In partnership with customers, we are building solutions to protect and
grow their businesses as the rapid pace of technological change presents
new challenges.
Example of this in action in Risk Intelligence
This year, we launched Global Account Verification as part of our Digital
Identity & Fraud offering, which helps organisations protect their customers
by enabling real-time verification of bank accounts and ownership across
an initial 22 countries – for more detail, refer to page 35.
Increase in electronic trading of US corporate bonds
over the last 5 years
180%
Market volatility, seen throughout 2024, highlights the importance of
trusted venues and stable clearing houses that are capable of meeting
demand spikes.
What is LSEG’s response?
Our market infrastructure businesses play a key role in helping participants
to navigate major events. Heightened market volatility tends to be a positive
driver of revenue for parts of our business, such as our Post Trade business
and Tradeweb.
Example of this in action in Post Trade
Our LCH business continued to provide a platform for customers to manage
risk effectively throughout volatility in 2024. We maintained our position as
a global leader in over-the-counter (OTC) interest rate swaps clearing with
our SwapClear offering (12% year-on-year growth); this year SwapClear saw
particular growth across geographies such as the United States (US), APAC and
European Union (EU) due to local market dynamics and product expansion.
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 using our expertise in clearing to drive innovation in the uncleared
space, working alongside our partners to support their regulatory compliance
and capital optimisation needs.
Example of this in action in Post Trade
Our Post Trade Solutions suite brings the benefits of clearing to currently
uncleared trades and consolidates processing across cleared and bilateral.
We have seen good traction in 2024, particularly across the cross-currency
and swaptions market, with SwapAgent adding 10 members and seeing
record volumes (39% increase year-on-year). We have also strengthened
our capabilities with the acquisition of Axoni post-trade technology –
for more detail on Post Trade Solutions, refer to page 39.
The impacts of accelerated digitisation have created new risks for our
clients and their customers. Firms are investing in mitigating these risks,
seeking to better understand their customer base/supply network 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 Know Your Customer (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 in Risk Intelligence
We are investing in the next generation of World-Check, to transform the
underlying data platform so as to improve content curation processes,
increase the speed of customer data updates and enable customers to
better segment data structures.
Share of market participants who have increased spending on
AML/CTF
1
compliance in the past 24 months
2
65%
1 Anti-Money Laundering/Counter Terrorist Financing.
2 Based on a survey of EMEA financial institutions.
Market trends and our response continued
London Stock Exchange Group plc
Annual Report 2024
08
Chair’s statement
Growth in adjusted operating profit
1
+9.5%
2023: +7.9%
Total dividend per share for 2024
130.0p
2023: 115.0p
Returned to shareholders via buybacks in 2024
£1bn
1 Growth is on a constant currency basis.
2024 has been another strong year
for LSEG. Continued revenue growth,
an expanding shareholder base and
consistent returns have strengthened
our position as a leading global
financial markets infrastructure
and data provider.
Don Robert CBE
Chair
London Stock Exchange Group plc
Annual Report 2023
0808
09 London Stock Exchange Group plc
Annual Report 2024
Strategic Report
Chair’s statement continued
Overview
LSEG delivered a strong performance in 2024, as we continued to
transform our business and deliver on our strategy. Total income excluding
recoveries reached £8.5 billion, up 8.4% on a constant currency basis.
Reported operating profit grew 6.7% while reported earnings per share
(EPS) fell 7.3%, reflecting the impact of higher depreciation, amortisation
and impairment and tax charges. Adjusted operating profit rose to
£3.2 billion, up 9.5% on a constant currency basis and adjusted EPS
increased 12.2% as a result of ongoing revenue growth and improving
efficiency. Equity free cash flow rose to £2.2 billion, demonstrating the
strength of our performance.
We have continued our very active approach to capital allocation.
In 2024, we acquired further minority stakes in LCH, taking our ownership
to over 94%, and completed the acquisition of Institutional Cash
Distributors (ICD) through Tradeweb. In the first half, we completed
£1 billion of share buybacks, and in the process supported the final exit
of the consortium of former Refinitiv shareholders, led by Blackstone and
Thomson Reuters, from the LSEG register, bringing further diversification
to our shareholder base. We also divested our 4.92% stake in Euroclear.
The Board is proposing a final dividend of 89.0 pence per share, bringing
the total to 130.0 pence per share, a 13.0% increase.
Governance
The Board seeks to operate to and maintain high governance and
ethical standards. Further detail is available in the Corporate
Governance Report from page 100.
In February 2024, Ashok Vaswani stepped down as Non-Executive
Director of the Board, following his appointment as CEO of Kotak
Mahindra Bank, and I would like to thank him for his contribution.
As announced in November 2023, LSEG’s new CFO, Michel-Alain Proch,
was appointed to the Board in March 2024, subsequent to joining
the Group in February. Michel-Alain brings extensive financial
leadership experience and his deep experience across global financial
infrastructure and IT data solutions firms is proving to be invaluable as
we deliver the next stage of LSEG’s strategic growth. In December, we
announced that Lloyd Pitchford will join the Board as a Non-Executive
Director and member of the Audit, Risk and Nomination Committees, with
effect from 30 April 2025. For more information on Lloyd’s appointment,
please refer to the Nomination Committee report on page 110.
Our Board seeks to meet the various goals on gender and ethnic
diversity set out in the Financial Conduct Authority’s UK Listing Rules,
Parker Review and FTSE Women Leaders Review. I am pleased to
confirm that we meet the Parker Review recommendations, with one
of the Board’s Directors being from a minority ethnic background.
One of our four senior Board positions is held by a woman, consistent
with the recommendations outlined in the Listing Rules and FTSE
Women Leaders Review. At the end of 2024, as four of our eleven
Board members were women, we fell slightly below the target of
40% female representation on the Board. We recognise, however,
that as the Board refreshes its composition to ensure the right mix
of experience and tenures, this may result in periods of time where it
does not fully meet its diversity ambitions, but we will seek to ensure
that these are met in due course. For more information on Board
diversity and the process followed in relation to Board appointments,
please see the Nomination Committee report from page 110.
As part of our commitment to visit one international office per year to
engage with colleagues, the Board visited LSEG’s offices in New York
City to hear more from them and learn about our customers in the
region. The Board also participated in four virtual sessions with
colleagues around the world throughout the year.
Sustainability
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 supporting the transition to a sustainable future. As described in the
Sustainability section of the Strategic Report pages 56 to 72, our
sustainability strategy sets out how we work with our customers, colleagues,
partners, communities and policymakers to support this transition.
Addressing climate change is a priority for the Board, stakeholders and
shareholders. We have two targets that commit us to reducing our
operational emissions by 50% by 2030, from a 2019 baseline. By the end
of 2024, we had reduced our Scope 1 and 2 emissions by 83% against
the baseline, and reduced our Scope 3 emissions (FERA, business travel
and colleagues commuting) by 49% against the baseline. We also have
a target to ensure that 67% of Scope 3 emissions from purchased goods
and services are covered by science-based targets by the end of 2026.
We closed the year at 51%. We remain on track to achieve all of our
Science-Based Target Initiative-approved targets.
2025 will mark the LSEG Foundation’s 15th anniversary as a vehicle
for community investment and engagement. We work with charity and
non-governmental organisation (NGO) partners to deliver a range of
programmes to enable economic empowerment through education,
employment and enterprise. Our goal is to impact one million people
by 2030, and it is encouraging to see that, in 2024 alone, the work of
the Foundation impacted over 260,000 people.
Capital markets reform
The Board is fully supportive of the ongoing reform agenda across
the United Kingdom’s capital markets. As a member of the Capital Markets
Industry Taskforce (CMIT), the London Stock Exchange is playing a leading
role to ensure that the UK remains competitive on the international stage
and an attractive place to do business. In July 2024, the Financial Conduct
Authority (FCA) delivered the largest set of reforms to our Listing Rules in
decades, and we will continue to work closely with the UK Government
and regulators to help drive the flow of domestic capital to back UK private
and public companies through pension reform and the Mansion House
Compact, among others.
Remuneration policy
As part of this work to ensure UK capital markets’ competitiveness, the Board
recognises the strategic importance of aligning Executive Director pay with
company performance in ensuring a competitive market in the UK. We were
pleased that our proposed revisions to the Directors’ Remuneration Policy,
which is based on a pay-for-performance philosophy, passed with the
overwhelming support of our shareholders with 89% votes in favour at the
2024 AGM. Our clear focus as a Board has not changed: we will continue to
ensure our approach to remuneration drives LSEG’s growth and rewards high
performance. Our Directors’ Remuneration Report on pages 122 to 147 sets out
how we have implemented the policy in 2024 and our approach for 2025.
Summary
2024 has been another strong year for LSEG. Continued revenue
growth, an expanding shareholder base and consistent returns
have strengthened our position as a leading global financial markets
infrastructure and data provider. Our investments in governance, global
talent and the power of technology to reimagine markets are driving
further transformation in our industry, and we remain well positioned
to deliver on our strategic objectives.
On behalf of the Board, I want to thank our teams worldwide for their
commitment and I’m looking further to continuing to build on our
success in the coming year.
Don Robert CBE
Chair
26 February 2025
The commentary in this section includes references to adjusted
performance measures that provide supplemental data relevant to an
understanding of the Group’s financial performance. For more information
on these measures, please refer to our glossary on page 252.
London Stock Exchange Group plc
Annual Report 2024
10
Chief Executive
Officer’s statement
Growth in total income excluding recoveries
(organic, constant currency basis)
+7.7%
2023: +7.1%
Growth in adjusted earnings per share
+12.2%
2023: +1.9%
In 2024, we continued to make
good progress in the commercial
and strategic transformation of
our business.
LSEG is maintaining a rapid pace
of innovation as we strengthen our
solutions across the business, and we
remain well positioned to benefit
from powerful industry trends and
drive change across financial markets.
David Schwimmer
Chief Executive Officer
London Stock Exchange Group plc
Annual Report 2024
10
11 London Stock Exchange Group plc
Annual Report 2024
Strategic Report
Introduction
In 2024, we continued to make good progress in the commercial
and strategic transformation of our business. LSEG is maintaining
a rapid pace of innovation as we strengthen our solutions across the
business, and we remain well positioned to benefit from powerful
industry trends and drive change across financial markets.
Following the acquisition of Refinitiv four years ago, we have
transformed LSEG from a European regional exchange group to
a diversified, global leader in financial markets infrastructure and
data services. Alongside our heritage in capital markets, LSEG is the
world’s number one real-time data business, the leading global provider
of KYC and AML background check information and a leading global
index and benchmark provider; in addition, our clearing house is
super-systemic. LSEG is headquartered in London, and we operate
in every major financial centre, with over 26,000 people serving over
44,000 customers in over 170 countries.
The contributions from people across our business are driving the
transformation of LSEG and the wider industry. We have an ambition
to become one of the world’s great companies and I am proud of what
we have accomplished this year in pursuit of that goal.
Performance in 2024
2024 was another year of strong, broad-based growth across the Group.
Total income excluding recoveries increased 7.7% on an organic, constant
currency basis, reflecting the strength of our proposition and the depth of
our relationships with customers. Annual Subscription Value (ASV) growth
at the year end was 6.3%, consistent with guidance.
In our Data & Analytics division, we drove growth through innovative
products and significant new features on our Workspace platform.
We also integrated news from Dow Jones publications and increased
our private market data coverage following an enhanced agreement
with Dun & Bradstreet. We made further progress on the migration to
Workspace and remain on track to sunset Eikon by the end of the first
half of 2025.
In our Data & Feeds business, we significantly expanded the coverage
of our real-time data offering, adding over 100 new feeds and supplying
data from over 35 new venues from around the world. We also launched
cloud distribution of our full tick Real Time offering, to meet needs from
compliance, risk and market surveillance teams for comprehensive full tick
data. Customers using our DataScope product can now use Snowflake
to access data, with more cloud providers scheduled to be rolled out
through 2025. And we launched our Data-as-a-Service (DaaS) initiative,
which we have been building as part of our strategic partnership with
Microsoft, to customers following external pilots.
We have a powerful Analytics offering with around 300 models covering
a broad range of asset classes. Historically, our offering was fragmented
across multiple distribution platforms and user interfaces, making it hard
for customers to find or access many of our analytics. In the first half
of 2024, we launched AI Insights, a single, consolidated distribution
channel via API, making it quicker and easier for customers to find
the information they need.
At FTSE Russell, we have seen strong demand from customers for
our differentiated climate and multi-asset class solutions and have
won a number of awards for our innovation in this area. Alongside these
innovative new products, we are driving growth by increasing areas of
collaboration between FTSE Russell and different parts of the Group.
Data from both Tradeweb and Post Trade is being used to enhance
benchmark pricing and support new index products.
Risk Intelligence performed well over the year, with strong business
momentum and customer demand in our screening business,
World-Check. Trends such as digitisation, increasing payment fraud
and evolving regulation continue to build demand for our digital identity
verification and fraud-prevention businesses. Risk Intelligence has
started using our ecommerce platform which offers smaller customers
a self-serve capability when buying our products for the first time.
Our Capital Markets business is growing well, driven by a particularly
strong year for Tradeweb. Tradeweb’s innovation in new trading
protocols and execution tools like Portfolio Trading is aiding the
electronification of interest rate and credit markets. As this trading
evolves, it creates the need for new risk management tools, like
Tradeweb’s automated pricing engine. The acquisitions of r8fin and
ICD during the year further expanded Tradeweb’s capabilities and
customer channels. Tradeweb works with our other businesses across
the industry lifecycle, from the integration of FXall into the Tradeweb
platform to the government bond price benchmarks provided by FTSE
Russell. Tradeweb is a great example of our focus on partnership and
the power of our end-to-end business model, but we are still in the
early stages of realising the full opportunity there.
After a challenging start to the year, given the globally subdued IPO
and equities trading environment, our equities business grew in the
second half as the London Stock Exchange gained market share in
trading against a backdrop of strong market activity. In July, the FCA
implemented changes to the UK Listing Rules designed to ensure
the future competitiveness of the UK market. We also launched the
new Main Market on the London Stock Exchange. The London Stock
Exchange is by far the largest capital-raising venue in Europe with
£25 billion total capital raised on our markets in 2024. Our FX
businesses returned to growth as increased volatility, driven by
geopolitical uncertainty, spurred a boost in volumes.
Following a very strong 2023, Post Trade continued to see growth
despite the impact of the termination of the clearing contract with
Euronext. We grew our core clearing businesses, adding new
SwapClear and ForexClear members and expanding credit default
swap (CDS) clearing in the US. The industry is also demanding common
standards and greater capital efficiencies in the uncleared space.
We now have five banks using our Smart Clearing Service helping
to optimise their capital and margin in FX forwards. And we continue
to work closely with our industry partners to build out our broader suite
of Post Trade Solutions, providing trade compression and optimisation,
risk management, margining and collateral services across the
uncleared markets.
Partnering to transform global financial markets
Our strategic transformation enables us to play a critical role in shaping
the future of financial markets.
Our partnership with Microsoft was formed in 2022 with the goal of
reshaping global finance. We’re now beginning to see the initial results,
with the first products entering into commercial availability at the end
of 2024. For example, Financial Meeting Prep is designed to enhance
efficiency by providing a Gen AI-driven capability to prepare for
meetings. LSEG AI Insights leverages LSEG’s proprietary data and
analytics to help summarise large volumes of information using natural
language capabilities. These products are great examples of how we
have combined LSEG’s depth and breadth of high-quality data with
Microsoft’s technological expertise to create the transformative solutions
our customers need. We expect to see further products launch in 2025,
including a next-generation Workspace experience using AI, a new
Workspace application in Teams and a new Workspace add-in for Excel.
Chief Executive Officer’s statement continued
The commentary in this section includes references to adjusted
performance measures that provide supplemental data relevant to an
understanding of the Group’s financial performance. For more information
on these measures, please refer to our glossary on page 252.
London Stock Exchange Group plc
Annual Report 2024
12
Executive management team
Day-to-day management of the Group is led by the Chief Executive
Officer, 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, talent
development, corporate culture, implementation of strategy,
and setting and monitoring of performance targets.
Profiles of the Executive team are provided as at January 2025.
For further information on David Schwimmer, as well as our Chief
Financial Officer, Michel-Alain Proch, who are also members of the
Board of Directors, see our Board of Directors overview on page 96.
Changes to the Executive Committee
Upon his retirement, Anthony McCarthy was replaced on the
Executive Committee by our new Chief Information Officer,
Irfan Hussain, in January 2024.
Anna Manz (Chief Financial Officer) left LSEG in February 2024 and
was replaced on the Executive Committee by Michel-Alain Proch.
Murray Roos (Head of Capital Markets) left LSEG in April 2024.
Daniel Maguire took on leadership of Capital Markets in an expanded
role as Head of LSEG Markets.
David Shalders (Chief Operating Officer) left LSEG in June 2024 and
was replaced on the Executive Committee by Pascal Boillat in July 2024.
Satvinder Singh (Head of Data & Analytics) left LSEG in December 2024.
For more information on the interim management of Data & Analytics,
refer to our Divisional review on page 32.
Chief Executive Officer’s statement continued
We also welcomed the UK Government’s confirmation that it will
proceed with implementing the necessary regulation to allow for
a new Private Intermittent Securities and Capital Exchange System
(PISCES). The creation of this new crossover market could be significant
for UK capital markets. PISCES will provide private companies with
choice in how and when they access liquidity and gives shareholders
opportunities to enter and exit investments. We look forward to
engaging with the UK Government, regulators and all stakeholders
to develop a regulatory framework and expect to launch our venue
in 2025.
Multi-year growth potential
The depth and breadth of our offering is a strategic differentiator.
We span multiple asset classes, provide services throughout the
trade lifecycle, and our model is aligned with powerful growth trends
that are shaping the financial services sector. In a business as diversified
as ours, we are not immune to consolidation in our customer base,
such as the cancellation of Credit Suisse contracts in 2024, following
their acquisition by UBS, but we continue to see opportunities for
long-term growth.
These include new product launches as part of our partnership with
Microsoft. Developments in our products, including enhancements
using Gen AI, and our continued investment and innovation are
improving distribution and opening new markets. Our superior data
capabilities position us well to capitalise on increasing demand for data.
We are investing in both our data coverage and distribution to ensure
that customers can access the data they need, in a way that suits them.
The electronification and digitisation of trading present significant
opportunities for Tradeweb and our Post Trade businesses.
We have consistently been delivering on the guidance we set out at
our Capital Markets Day in 2023: accelerating growth, improving margin
and improving our already-strong cash conversion. We have or are
building leading businesses across capital markets, and we will continue
to enhance our customer proposition to become the partner of choice
across the financial markets value chain.
All of this is made possible by our exceptional colleagues around the
world. Our values of Integrity, Partnership, Excellence and Change
guide everything we do and support the creation of a high-performing,
inclusive culture that welcomes diverse perspectives. On behalf of the
Executive Committee, I would like to extend my thanks to all our people
for their continued hard work and dedication as we transform LSEG and
shape the future of the financial markets.
David Schwimmer
CEO, LSEG
26 February 2025
For more information on our CEO – refer to our
Board of Directors’ profiles on pages 96 to 99.
13 London Stock Exchange Group plc
Annual Report 2024
Strategic Report
Chief Executive Officer’s statement continued
David Schwimmer
Group Chief Executive Officer
Joined LSEG in 2018
Michel-Alain Proch
Group Chief Financial Officer
Joined LSEG in February 2024
Irfan Hussain
Chief Information Officer
Joined LSEG in January 2024
Irfan leads LSEG’s technology
and engineering 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.
Daniel Maguire
Head of Markets and CEO,
LCH Group
Joined LSEG in 2008
Daniel has held various senior
roles across LCH and LSEG,
with 25 years of experience
in capital markets, risk and
default management, product
management and regulatory
strategy, and over 20 years spent
at LSEG across two tenures.
Balbir Bakhshi
Chief Risk Officer
Joined LSEG in 2021
With 30 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 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, he was
Global Leader of Technology
Consulting at Protiviti.
Erica Bourne
Chief People Officer
Joined LSEG in 2023
As CPO, Erica leads LSEG’s
HR policies and programmes.
With over 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.
Pascal Boillat
Chief Operating Officer
Joined LSEG in July 2024
Pascal oversees operational
activities at LSEG, bringing over
35 years’ experience in senior
operational and technology roles
for global financial services firms.
Most recently, he was Group
Executive, Enterprise Services
& Chief Information Officer at
Commonwealth Bank of Australia
(CBA) where he managed
technology, operations and
data management.
Executive management team seen left to right
Daniel Maguire, Erica Bourne, Irfan Hussain, Michel-Alain Proch, David Schwimmer,
Ron Lefferts, Balbir Bakhshi, Pascal Boillat, Catherine Johnson
13 London Stock Exchange Group plc
Annual Report 2024
London Stock Exchange Group plc
Annual Report 2024
14
With market-leading
positions built on trusted
partnerships and aligned
to attractive long-term
trends, LSEG’s highly
cash-generative, well-
diversified financial model,
driven by growing and
largely recurring revenue,
offers a compelling
investment story.
A compelling
investment story
We are globally essential
— We provide services in more than 170 countries,
with operations in over 60.
— Unlike many of our competitors, we are not heavily
focused on any single market or region.
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…
15 London Stock Exchange Group plc
Annual Report 2024
Strategic Report
A compelling investment story continued
We operate in growing markets and have diverse
revenue streams
— All of our divisions operate in addressable markets with 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.45% of revenue.
Our revenue is high quality and high visibility
— Over 70% of our income is recurring in nature 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 compound annual growth rate (CAGR)
was 12% 2019 – 2024 and Tradeweb’s revenue CAGR was 18%.
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 growing, and we continue
to reinvest actively
— We generated £2.2 billion of free cash flow
1
in 2024, 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 mergers and acquisitions (M&A) and return excess capital
to shareholders – including £2.5 billion of share buybacks in
the last three years.
— Our adjusted earnings per share (AEPS) and dividend CAGRs
over the last 20 years have been 15% and 18% respectively.
— If we continue to deliver on our guidance of mid to high single-
digit organic income growth, improving margins and decreasing
capital intensity, free cash flow is set to grow substantially.
1 For a reconciliation to statutory free cash flow, refer to our Financial review
on page 54.
…is also good for our shareholders
Recurring revenue (as a % of total income incl. recoveries)
74%
Equity free cash flow generated in 2024
£2.2bn
For more information on our business
model – refer to pages 4 to 5.
Find out more about our products and
services in our Divisional reviews on
pages 32 to 39.
Countries we serve
170+
Countries where we operate
60+
London Stock Exchange Group plc
Annual Report 2024
16 London Stock Exchange Group plc
Annual Report 2024
16
Making more possible with Dow Jones
Our partnership is enabling
Dow Jones to benefit from
our world-class data and
analytics capabilities to support
a data-driven newsroom
across all of its channels.
David Schwimmer
CEO
LSEG Group plc
By combining the strength
of both brands, we are
serving the needs of
LSEG Workspace users and
enhancing our newsrooms.
Almar Latour
CEO of Dow Jones and Publisher of The Wall Street Journal
17 London Stock Exchange Group plc
Annual Report 2024
Strategic Report
17 London Stock Exchange Group plc
Annual Report 2024
Strategic Report
In July 2024, we announced a multi-year data, news and
analytics partnership with Dow Jones, bringing significant
benefits to both companies and their customers.
The partnership is another clear example of how we are
committed to providing the leading news and analytics
platform for customers, while also becoming a critical
data partner to one of the world’s leading providers of
trusted financial news and insight. Combined with our
long-term agreement to be the exclusive distributor
of Reuters news to the financial community, this gives
LSEG one of the most comprehensive and relevant
news offerings in the market.
Highlights of the partnership include:
— The enhancement of LSEG Workspace with integrated
news and commentary from Dow Jones’s leading
news brands, which include The Wall Street Journal,
Barron’s, Dow Jones Newswires and MarketWatch;
in addition, Dow Jones’s Chinese, German and
Japanese-language news now available in
Workspace, all at no additional cost;
— The deployment of LSEG’s Data & Analytics tools
across Dow Jones newsrooms, including LSEG
Workspace, Datastream, Fundamentals & Estimates,
StarMine models, and Pricing and Reference
data, along with pre-eminent deals data, insights
and league tables delivered through our SDC
Platinum service;
— The use of LSEG’s world-class Data & Analytics
capabilities – including more than 40 years of deals
data, insights and league tables for M&A advisory
and capital markets – across Dow Jones’s leading
digital and print properties; and
— The co-development of an enhanced news
experience within Workspace, curated by
Dow Jones senior editors to showcase the top
news from across the full range of Dow Jones
news brands, individually tailored to meet the
needs of the Workspace audience.
In addition, the combination of real-time,
industry-leading news from Dow Jones newsrooms
and LSEG’s cutting-edge classification, tagging and
search capabilities will result in expanded feed offerings.
LSEG offers its existing subscribers access to Dow
Jones’s text feeds and this content contributes to the
ongoing enhancement of the Group’s news analytics
services, complementing its award-winning real-time
news, news archive and news analytics feed services.
Making more possible with Dow Jones continued
London Stock Exchange Group plc
Annual Report 2024
18
2024 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.
Key performance
indicators (KPIs)
Definition
Income growth, independent
of FX movements and any impact
from acquisitions or disposals.
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.
At our Capital Markets Day in
2023, we outlined that we expect
to deliver mid to high single-digit
organic income growth over
the medium term.
Analysis
We delivered organic income
growth of 7.7% in 2024, with a
good performance across all five
of our divisions. Growth in Data &
Analytics accelerated through the
year as we further leverage the
cloud to enhance access to our
data and drive higher penetration
of Workspace. In Capital Markets,
Tradeweb delivered an
exceptional year, with strong
market activity across asset
classes and making further
share gains. In 2025, we expect
organic constant currency
growth in total income excluding
recoveries of 6.5–7.5%, including
an acceleration in Data & Analytics
organic growth and more
normalised growth at Tradeweb.
Organic income growth
1
+7.7%
2023: +7.1%
2021
2022
2023
2024
7.7%
7.1%
6.3%
2
5.8%
Link to strategic objectives
Income growth is key in delivering
against adjusted operating
profit (AOP) targets, which carry
a 60% weighting in determining
performance-related pay.
Definition
A point-in-time measure of
our book of recurring contracts
vs 12 months ago.
Why this is important for LSEG
A high proportion of our revenues
across Data & Analytics, FTSE
Russell and Risk Intelligence 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
We achieved ASV growth of 6.3%
as at December 2024, in line with
our guidance of around 6% and
supported by a positive Net Sales
performance, partly offset by the
impact from Credit Suisse-related
cancellations during the year.
We have made significant
progress since the acquisition
of Refinitiv, accelerating ASV
growth by 330 basis points (bps).
By building stronger customer
relationships and making targeted
investments in our offering,
we have driven better retention
and increased our price yield
by around 100bps.
ASV growth
+6.3%
2023: +6.7%
2021
2022
2023
2024
6.3%
6.7%
6.2%
2
4.6%
Link to strategic objectives
ASV growth can be an indicator
of future income growth. Delivery
against Future Growth KPIs carries
a 15% weighting in determining
performance-related pay.
Organic income
growth
1
Annual Subscription
Value (ASV) growth
These KPIs align with 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 134 to 135.
1 Organic 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 175.
4 Based on an equivalent perimeter of the Group as in 2023.
5 To calculate capex intensity, we use cash capital expenditure,
excluding sales commissions.
19 London Stock Exchange Group plc
Annual Report 2024
Strategic Report
Key performance indicators (KPIs) 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,
demonstrating the intrinsic
operating leverage of the Group.
As we accelerate our revenue
growth while modernising our
technology infrastructure and
streamlining our cost base,
improving margin allows us
to reinvest for future growth.
Analysis
We delivered a 2024 adjusted
EBITDA margin of 48.8%, an
improvement of 160bps year-on-
year. This reflects strong progress
in accelerating top-line growth
while modernising our technology
infrastructure and shifting to
a more efficient allocation of
resource. This also included
benefits relating to fair value
movements on embedded
derivative contracts. Excluding
these items, EBITDA margin
was 48.4%, a constant-currency
improvement of 80bps. Across
2023–2026, we expect to
increase adjusted EBITDA margin
by c.250bps
4
as the benefit from
top-line growth more than offsets
underlying inflation and our
reinvestments in growth.
Adjusted EBITDA margin
48.8%
2023: 47.2%
2021
2022
2023
2024
48.8%
47.2%
47.8%
47.8%
Link to strategic objectives
EBITDA margin performance is
a key factor in determining Group
AOP, while also aligning with our
Efficiency objective.
Definition
Earnings per share, adjusted to
remove any non-underlying items.
3
Why this is important for LSEG
AEPS is 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 363.5 pence. The 12.2%
increase in AEPS year-on-year
was driven by growth in
underlying profitability, partly
offset by higher depreciation
– reflecting our continued
investment in technology and
product, as well as amortisation
of capex to deliver Refinitiv
synergies – and higher net
finance expenses due to
increased interest rates. Our
adjusted effective tax rate also
increased year-on-year, driven
by a higher UK corporate tax
rate from 1 April 2023. Share
buybacks reduced the average
share count in 2024, which
acted as a tailwind for AEPS.
Adjusted earnings per share
363.5p
2023: 323.9p
2021
2022
2023
2024
363.5p
323.9p
317.8p
272.4p
Link to strategic objectives
Earnings per share growth is
a reflection of profitability, linked
to Group AOP and aligning
with our Efficiency objective.
Definition
Capital expenditure
5
as
a proportion of total income
excluding recoveries.
Why this is important for LSEG
We have been addressing historic
underinvestment in Refinitiv’s
infrastructure and investing to
deliver appropriate synergies from
the integration. We still have a
wide range of growth initiatives
to pursue, but as the bulk of the
Refinitiv integration investment
ends, we expect capex intensity
to reduce from 11–12% in 2024 to
a high single-digit percentage of
revenue over the medium term.
Analysis
Capex intensity in 2024 was
11.3%, 160bps lower than in
2023. Cash capex
4
in the year of
£957 million reflected ongoing
investment in key growth
programmes, including Workspace
product development with
Microsoft, Post Trade Solutions
infrastructure, and continued
investment in Tradeweb. In
addition, we continued to invest
in the integration of acquired
businesses, the vast majority of
which related to delivering the
revenue and cost synergies from
the Refinitiv acquisition. We expect
total capex of around 10% of total
income excluding recoveries
in 2025.
Capex intensity
11.3%
2023: 12.9%
2021
2022
2023
2024
11.3%
12.9%
13.0%
11.5%
Link to strategic objectives
Falling capex intensity is a product
of both accelerating growth and
disciplined investment, in line
with our Efficiency objective.
Definition
Annual incremental revenue
delivered through synergies
from the Refinitiv integration.
Why this is important for LSEG
By harnessing our vast data
to build new products, and
through cross-sell and distribution
opportunities, we are generating
value from 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 2024, we had
delivered £292 million of runrate
revenue synergies and we remain
on track to achieve our target of
£350–400 million by the end of
2025. We are delivering synergies
against three key categories. We
are cross-selling data products
to new customers, such as the
underlying pricing data behind
FTSE Russell indices, and utilising
our data to enhance existing
products and build new products.
We have also launched our
ecommerce platform, which is
beginning to deliver synergies
through new sales. With the
Refinitiv integration now largely
complete, and synergy delivery
ahead of original targets, we will
end detailed monitoring of the
synergy programme going forward.
Runrate revenue synergies
£292m
2023: £158m
2021
2022
2023
2024
£292m
£158m
£68m
£15m
Link to strategic objectives
Revenue synergies contribute
to income growth, which is an
important factor in determining
Group AOP.
Adjusted EBITDA
margin
Capex
intensity
Adjusted earnings
per share (AEPS)
Runrate revenue
synergies
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Annual Report 2024
20
Key performance indicators (KPIs) continued
2024 non-financial KPIs
At LSEG, we’re committed to creating
a merit-based 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.
Definition
Our engagement index reflects
employee responses to questions
on overall satisfaction and
likelihood to recommend LSEG
as a place to work.
Why this is important for LSEG
We recognise the importance
of establishing an inclusive
workplace where opinions can
be openly shared, contributions
recognised, and individual and
team achievements celebrated.
Analysis
Our overall engagement score
remains relatively stable at 74,
one point lower than in 2023.
Almost 21,000 colleagues (81%)
shared feedback via LSEG
Engage, a survey that offers
colleagues the opportunity
to provide feedback and
improvement points on a range of
topics. The survey revealed that
most colleagues feel supported
by their People Leader and can
successfully balance work and
personal life, though some
areas for improvement were also
identified, such as communication
from senior management.
For more information, refer to
the Sustainability section of this
report on page 59.
Engagement index
74
2023: 75
2021
2022
2023
2024
74
75
75
73
Link to strategic objectives
This aligns with our Culture
objective: to leverage embedded
values to drive an inclusive,
high-performance culture.
Definition
The proportion of female
representation in senior
leadership roles.
Why this is important for LSEG
We strongly believe in promoting
a merit-based diverse and
inclusive organisation, which
ensures 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
At the end of 2024, we
maintained our female
representation with 41% of women
in senior leadership positions.
We will continue to focus on
merit-based inclusive hiring and
progression at senior leadership
level, monitoring progress through
our business-unit specific action
plans around talent acquisition
and talent management practices.
For more information on gender
diversity at LSEG, refer to page 60.
Gender diversity in leadership
41%
2023: 42%
2021
2022
2023
2024
41%
42%
40%
33%
Link to strategic objectives
This KPI aligns with
our Culture objective.
Engagement
index
Gender diversity
in leadership
These KPIs align with our Group Strategic
Objectives (GSOs). Further detail on the
GSO performance assessment can be found
in our Directors’ Remuneration Report on
pages 134 to 135.
For more detail on LSEG’s sustainability approach,
including Equity, Diversity and Inclusion goals,
refer to the Sustainability section of this report
on pages 56 to 72.
1 Reduction of Scope 1, Scope 2 (market-based) and selected
Scope 3 (business travel, home working, commuting, FERA)
emissions vs a 2019 baseline. This metric applies to all of the
emissions within scope of our Climate Transition Plan (CTP).
For more information on our CTP, refer to pages 66.
2 Our 2023 emissions figure has been retrospectively revised to
reflect corrections for historical errors in calculation.
3 Like many companies, we saw a steep reduction in our emissions
during the Covid-19 pandemic, driven by lockdowns and travel
restrictions. As we have emerged from the pandemic and as the
Group continues to grow, emissions have naturally increased,
but we remain fully committed to deliver on our targets.
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Key performance indicators (KPIs) continued
Definition
The proportion of ethnically
diverse representation in
senior leadership roles.
Why this is important for LSEG
We are committed to providing
merit-based opportunity,
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
At the end of 2024, we increased
our ethnic minority representation
in senior leadership positions
by two percentage points to 16%.
We will continue to focus on
merit-based inclusive hiring and
progression at senior leadership
level, monitoring progress through
our business-unit specific action
plans around talent acquisition
and talent management practices.
For more information on ethnic
diversity at LSEG, refer to page 60.
Ethnic diversity in leadership
16%
2023: 14%
2021
2022
2023
2024
16%
14%
15%
16%
Link to strategic objectives
This KPI aligns with
our Culture objective.
Definition
The total number of issuers across
the Green Economy Mark, 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 2024, we continued to promote
sustainable investment and
growth in the green economy.
As at the end of the year, we had
235 total issuers across our
Sustainable Bond Market and
Voluntary Carbon Market or
that proudly display the Green
Economy Mark. This was relatively
in line with the prior year. In 2024,
£57 billion was raised through 143
transactions on our Sustainable
Bond Market, taking the total
raised since inception to almost
£300 billion. We also co-launched
a Climate Aware index series
that incentivises investment in
companies with robust plans on
how to successfully navigate
the climate transition. For more
information, refer to page 34.
Sustainable issuers
235
2023: 236
2021
2022
2023
2024
235
236
217
217
Link to strategic objectives
This KPI aligns with 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 2024, we had
reduced our total carbon footprint
by 54% from a 2019 baseline.
The reduction compared with
2023 was driven in part by a fall in
business travel. Over 90% of our
total carbon footprint is made of
Scope 3 emissions, the majority of
which relate to purchased goods
and services. In order to reduce
these, we are actively engaging
with our supply chain to support
them in setting their own
emissions reduction targets.
We have a separate target to
ensure that 67% of Scope 3
emissions from purchased goods
and services are covered by
science-based targets by the end
of 2026, and we are on target to
achieve this, closing the year at 51%.
Reduction of Scope 1, 2, 3 (FERA)
1
-54%
2023: -34%
2
2021
2022
2023
2024
-54%
-34%
2
-57%
-77%
3
Link to strategic objectives
This KPI aligns with our
Sustainability objective.
Ethnic diversity
in leadership
Carbon
emissions
1
Sustainable
issuers
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22
Making more possible with Barclays
Over the past three years, LSEG and
Barclays have continued strengthening our
longstanding relationship. Driven by the
confidence and support between our two
organisations, Barclays is proud to use the
power of LSEG’s wide range of capabilities
to further enhance the workflows across
both our Investment Banking and Global
Markets businesses – which is critical in
helping us continue to deliver exceptional
client outcomes.
Stephen Dainton
President
Barclays Bank PLC
For customers like Barclays, our focus
is on making sure we are a true strategic
partner rather than just a vendor.
The key to our strong relationship
is mutual trust and ensuring we have open
channels for transparent and honest
communication, and the progression
of that relationship over the past two to
three years has been quite incredible.
Daniel Maguire
Head of LSEG Markets and CEO, LCH Group
Executive Committee sponsor for LSEG’s relationship with Barclays
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Making more possible with Barclays continued
Building deep strategic partnerships
with our customers
The breadth of our business is a key competitive
differentiator. With products and services along the whole
trade lifecycle, across multiple asset classes and with
global reach, we are a natural partner to large banks and
asset managers. Increasingly for our largest customers,
we are building our partnerships around LSEG Data
Access agreements (LDAs). These multi-year agreements
give our customers access to a broad selection of our
products and services in a single contract, removing
barriers to consumption and providing more certainty
on cost. Typically, we see significant improvements in
customer engagement and satisfaction when we launch
relationships like this. On average, overall likelihood to
recommend
1
LSEG among LDA customers rises 10% in
the first 12 months after signing.
Cost avoidance and savings achieved by Barclays via an LDA with LSEG
c.$90m
Average incremental growth on an LSEG account after signing an LDA
>500bps
1 Based on the percentage of customers who are net promoters of LSEG 12 months
after signing an LDA (i.e., returned a score of 9 or 10 out of 10 when asked how likely
they would be to recommend LSEG).
2 Based on average incremental growth across accounts that have signed an LDA,
when compared with growth before the LDA was signed.
Supercharging our relationship with Barclays
In 2023, we signed an LDA with Barclays, building on
our longstanding relationship and including a wide range
of capabilities to support Barclays across their business.
Since signing the agreement, our partnership has moved
from strength to strength. We have enhanced the
workflow experience for many of Barclays’ private
banking and wealth users, and, more broadly, we
continue to drive adoption of solutions such as LSEG
AI alerts, a service that promotes relevant news and
significant developments on companies of interest
through Microsoft Teams, adapting to user interests
based on activity trends.
We have also integrated productivity tools into
Workspace, allowing Barclays users to seamlessly feed
our data and analytics into applications such as Microsoft
Excel and PowerPoint. Outside of workflows, we have
scaled up our data footprint with Barclays, delivering low
latency feeds from multiple global exchanges to their
traders and giving them access to query our vast historic
pricing database to back-test trading algorithms, tapping
into our data directly rather than having to store the
petabytes of data themselves. By helping Barclays scale
up their usage while displacing incumbent vendors to
streamline their data supply chain, we have supported
the delivery of significant cost savings for the customer.
In this case, we estimate that our relationship has helped
Barclays achieve c.$90 million in cost saves.
Delivering growth for LSEG
As well as delivering value for our customers, these
partnerships also generate attractive commercial results
for LSEG. We often find that these deals create a platform
for further value creation as we look for ways to build
on the initial partnership through cross-sell opportunities.
On average, we see over 500bps of incremental growth
on an account
2
after an LDA is implemented. In aggregate
across our offering, Barclays has now grown to become
one of our largest overall accounts in the EMEA region.
London Stock Exchange Group plc
Annual Report 2024
24
Our purpose
and strategy
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
ecosystems and critical to our customers.
We empower economies
By helping our customers to raise and allocate
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 market participants 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.
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Our purpose and strategy continued
Our strategy
Our strategy is providing customers with
a global, multi-asset class financial markets
infrastructure and data ecosystem operating
across the trade lifecycle.
A number of aspects of our business
are strategically differentiating.
Trusted to deliver
services meeting
business-critical
needs
Our longstanding
heritage of playing
a vital role in global
financial markets
remains at the core
of what we do; our
customers trust and
rely on us to serve
critical needs.
Deep partnership
with our customers
Our level of relevance
to our customers
creates the
opportunity for strong
partnership. From
developing our
clearing houses to
now building new
products powered by
AI, we partner with
our customers to
transform industries.
Open
ecosystem
Interoperability is in
our DNA. When other
exchange groups
focused on vertical
integration of trading
and clearing, we
championed open
access – and stay
true to this philosophy
today with our market
infrastructure and
our data.
Global, multi-asset
class, across
the trade lifecycle
What was aspirational
prior to the acquisition
of Refinitiv is now
real and building
momentum. We serve
ever more of our
customers’ needs
pre-, at and
post-trade, across
asset classes and
geographies.
Integrated
solutions
Where it helps to
reduce friction in our
customers’ workflows,
we will now offer
them seamless
integration between
different elements of
our product offering.
Best-in-class
data machine
and distribution
To enhance our ability
to enrich our leading
data offering and
better monetise it,
we are investing in
our ‘data funnel’,
from content
ingestion through to
data management
and distribution –
accelerated by
our partnership
with Microsoft.
Trusted to deliver
services meeting
business-critical
needs
Integrated
solutions
Open
ecosystem
Best-in-class
data machine
and distribution
Deep
partnership with
our customers
Global, multi-asset
class, across the
trade lifecycle
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26
Our purpose and strategy continued
Our strategy – looking forward
Trade lifecycle Serving customers pre-, at- and post- trade
Data value chain Serving Financial Services and new customer segments
As our business and the needs of our
customers evolve, we are increasingly
serving needs beyond the trade lifecycle.
Looking forward, our business will grow
to support customers across both the
trade lifecycle and the data value chain,
as these become increasingly intertwined.
We will bring our trusted heritage in financial
markets infrastructure and internal expertise in
data management to partner and grow with
our customers as their data needs expand.
Post-trade and
capital optimisation
Capital formation
and issuance
Pre-trade and
liquidity discovery
Trade
execution
Distribution
Data
sourcing
Data management
and transformation
Models and
analytics
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Executing on the transformation
Our progress in 2024
Delivery of Group Strategic Programmes (GSPs), including
modernising data distribution and network infrastructure
Our GSPs are a portfolio of initiatives to drive the transformation agenda,
with dedicated senior sponsorship, a strong focus on end-to-end
management of investments and enhanced visibility into progress.
For example, one GSP is focused on investing in our global core
network, increasing capacity in line with growth in demand for market
data and upgrading to a software-defined infrastructure. This will
improve overall resilience, remove dependencies on existing ageing
infrastructure and future-proof service for our customers, while also
driving operating efficiencies.
Progressing on cloud migrations, including within the
LSEG-Microsoft partnership
We are migrating applications to the cloud to enhance scalability
and improve resiliency: for example, this year we released Historical
Analytics via Snowflake, which provides customers access to
approximately 20 years of analytics in their preferred delivery
mechanism. We are also focused on ensuring resiliency in our
venues: for example, LCH Ltd has commenced migration of key
datasets and services to the cloud, such as Collateral Management.
Sales transformation
We have empowered our teams to effectively deliver a more integrated
offering, incentivising solution selling and increasingly focusing on
customer communities with our go-to-market approach. As we move
towards our target operating model, we are reallocating resource
to ensure that we are servicing customers appropriately and in line
with their scale. This has been supported through more self-service
and automation: for example, enhancement of our digital capabilities,
with initial sales completed through our self-service ecommerce
channel, and expansion of our central hub service model to support
>10,000 customers using a low-touch approach.
Delivering organisational and operational transformation of
Data & Analytics, FTSE Russell and Risk Intelligence
We have restructured our business divisions as we shift towards a more
product-led internal operating framework. This enables us to better
identify underlying trends in products and usage. Data & Analytics has
been organised into Workflows, Data & Feeds and Analytics; FTSE
Russell and Risk Intelligence (previously known as Customer & Third
Party Risk) now operate as stand-alone divisions, with heads of division
and dedicated leadership teams in place for both.
Ensuring cost and capital discipline
We have increased focus on prioritisation of capital investments to
enable divisions to continue to invest in our business while maintaining
capital discipline. We implemented a Zero-Based Budgeting approach
for the 2025 budgeting process, to provide a greater level of
transparency and support an increase in margin.
Our purpose and strategy continued
London Stock Exchange Group plc
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28
Our purpose and strategy continued
Monetising the integrated business Launching new products and creating
new markets
Continuing to unify and improve customer experience
We went live with Smart Clearing for ForexClear, part of our broad
FX offering. This uses Quantile’s portfolio optimisation tools to devise
more capital-efficient clearing solutions for customers, with five new
customers onboarded this year. Our collaboration with Tradeweb
continues to grow our Fixed Income footprint across the Group, with
initiatives including comprehensive distribution of Tradeweb data by
our Data & Feeds business and inclusion of Tradeweb’s benchmark
closing prices in FTSE’s global fixed income indices, including its
premiere World Government Bond Index.
Positioning Workspace as the integrated store front for
LSEG products
We continue to integrate LSEG’s leading content and workflows
with our flagship product LSEG Workspace, to offer our customers
a seamless end-to-end experience. For example, customers can now
access FXall, FTSE Russell indices and LCH data all through Workspace.
Progressing product development with Microsoft across Workflows,
Data & Feeds and Analytics
We are progressing our partnership with Microsoft in line with the
timetable we set out at our Capital Markets Day in 2023, including
the general availability of Financial Meeting Prep, interoperability
between MS Office and Workspace and DaaS at the end of 2024.
For more detail on our partnership with Microsoft, refer to pages 40–41.
Commercialising Post Trade Solutions, helping customers drive
down the cost of capital and trading
We are bringing together Quantile, Acadia, SwapAgent and TradeAgent
as an integrated business to support the OTC derivatives market. As
part of this we are growing our clearing house for bilateral derivatives,
SwapAgent, with 10 new members and new trade average daily volume
(ADV) up 39% versus prior year. We launched TradeAgent in March,
our solution to enable trade confirmation, cash flow calculation
and settlement services, with the first customer going live in July,
and we continue to build out key functionality.
Expanding our presence in private markets, both in data and
market infrastructure
We announced a multi-year strategic collaboration with Dun & Bradstreet
to broaden access to private market information, covering financial
information and ownership insights for millions of companies globally.
We continue to consult with a diverse range of market participants and
the UK Government to drive regulatory reform and innovation in private
markets with the UK’s proposed new regulated crossover market,
PISCES, expected to launch in 2025.
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Strategic Report
Our purpose and strategy continued
Evolving priorities for 2025 and beyond
We continue to be well positioned to capitalise
on the strong underlying growth drivers of
our business.
We know what we need to deliver on in 2025
and beyond to realise our vision and strategy.
Modernising our platforms and processes
We are optimising our business to enable scalable growth and cost
reduction, and embedding a product-led operating model. We are
simplifying delivery and increasing speed-to-market for products –
for example, reducing time to market for the creation of new indices,
and sunsetting legacy systems and products to free up capacity,
including the upgrade of clients from Eikon to Workspace. We are also
decommissioning data centre equipment to address infrastructure
inefficiencies and reduce emissions – see page 21 for more detail
on our emissions objectives.
Delivering reliably and resiliently for the markets and our customers
We are driving risk awareness and management and improving
infrastructure and processes for long-term resilience and regulatory
compliance to enable safe and sustainable growth for the markets and
our customers. This includes progressively improving the maturity of
our business risk management and driving risk culture, plus a focus
on decreasing the number of risk events and timely closure of critical
risk issues.
Monetising our integrated business
Our goal is to deliver the best value possible to our customers by
offering our integrated products and solutions across the trade lifecycle
and data value chain. We are bringing together our multi-asset class
capabilities to offer customers a more connected experience and
shifting sales focus from individual products towards solution selling.
We are simplifying and joining up our commercial policies, and driving
growth through initiatives such as targeted retention campaigns and
accelerating cross-sell and upsell.
Launching new products and creating new markets
We are creating value through transformational opportunities. Delivery
of the 2025 LSEG-Microsoft partnership roadmap remains a key priority
and we are executing on our vision for Post Trade Solutions. We are
expanding our presence across the funding continuum, and building
asset-class agnostic, interoperable, digital market infrastructure to drive
efficiencies across the trade lifecycle.
Improving operating leverage
We are managing cost increases as we grow, with guidance that
our underlying EBITDA margin will increase over the medium term.
In 2025, we will drive realisation of efficiencies identified through
our Zero-Based Budgeting process and other operating efficiencies,
such as automation of content collection and ingestion across Data &
Analytics, FTSE Russell and Risk Intelligence. We are optimising staff
costs – our largest expense – for example, by reducing our reliance
on third-party contractors.
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Making more possible with ICD
Acquiring ICD further diversifies
our customer and business
mix, advancing our track
record of expanding into
adjacent markets to improve
customer workflows.
Billy Hult
CEO
Tradeweb
The combined offering delivers
even more of what corporate
treasury wants, and together,
we are able to unlock the full
potential of our technology.
Tory Hazard
CEO
ICD
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Making more possible with ICD continued
In August, Tradeweb completed the acquisition of
Institutional Cash Distributors LLC (ICD), an institutional
investment technology provider which leverages a
powerful, proprietary platform for corporate treasury
organisations trading short-term investments such as
money market funds. This transaction brings a number
of significant benefits to Tradeweb and its customers.
A fourth customer channel for Tradeweb
ICD brings a new and fast-growing customer channel
serving corporate treasury professionals, complementing
Tradeweb’s existing focus on institutional, wholesale and
retail clients. Established in 2003, ICD enables more than
500 corporate treasury organisations, from growth and
blue-chip companies across 65 industries and more
than 45 countries, to invest in money market funds
and other short-term products to manage liquidity.
Additional depth and scale in money
markets and rates
ICD is one of the largest US institutional money market
fund portals, and in 2023 had average daily balances of
more than $230 billion. The ICD Portal is a one-stop shop
to research, trade, analyse and report on investments
across more than 40 available investment providers,
primarily offering money market funds and access
to other short-term products including deposits,
fixed-term funds and separately managed accounts.
Significant cross-sell and growth opportunities
As part of Tradeweb, ICD provides a comprehensive
solution for corporate treasurers and asset managers
worldwide to manage short-term liquidity needs and
FX risk, and to optimise yield and duration via Tradeweb’s
existing suite of products. ICD clients retain the ability
to fully integrate their workflows with leading third-party
treasury management and accounting systems and
ICD’s portfolio analytics solution.
In addition to opportunities to cross-sell Tradeweb’s
products to ICD’s clients, Tradeweb is aiming to
accelerate ICD’s growth and expansion by leveraging
Tradeweb’s international presence and offering money
market funds to Tradeweb’s existing network of clients
globally. It also provides opportunities for other
businesses within LSEG, such as our FX platforms
and Risk Intelligence, to penetrate further into the
corporate market.
Average daily balances held on the ICD platform in 2023
>$230bn
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Annual Report 2024
32
We have made great strides in Data
& Analytics in 2024. We accelerated growth
through the year and made significant progress
in terms of product delivery, upgrading and
integrating key functionality in Workspace,
deepening our content – particularly in private
markets and news – and leveraging the cloud
to expand and enhance access to our highly
valuable market and pricing data.
We also launched our first few products
with Microsoft in 2024, with much more
in the pipeline, and we enter 2025 with
real momentum.
Divisional review
Data & Analytics
Following Satvinder Singh’s departure from LSEG in 2024, responsibility
for interim management of Data & Analytics (D&A) is jointly held by
Dean Berry (Head of Workflows, pictured right), Kamla Hatwar-Eckstein
(Chief Operating Officer, D&A, pictured left) and Prabha Viswanathan
(Head of Finance, D&A), with direct oversight from David Schwimmer.
Irfan Hussain (Group Chief Information Officer) continues as the
Executive Committee sponsor of the LSEG-Microsoft partnership.
A recruitment process for a new permanent Head of Data & Analytics
is under way and is making good progress.
We enable customers to draw crucial insights through data, feeds,
analytics, AI and workflow solutions. The quality, depth and integrity
of our data give our customers the confidence to make critical decisions,
identify opportunities and drive automation and efficiencies across
their operations.
Our Data & Analytics division is split into three areas, each addressing
different customer needs:
Workflows
User-facing end-to-end workflows across trading, banking, investment
management and wealth communities, providing access to an
open ecosystem of differentiated data, analytics and AI tools.
Structural market trends driving growth:
— Electronification of workflows and demand for customised solutions
— Adoption of Gen AI and cloud technology
— Increasing demand for higher-quality insight from data
Performance:
+2.9% with an acceleration in growth over the course of the year
reflecting the value of continued enhancements to Workspace, including
the expansion of our news and private markets content, and the
development of FXall and TORA capabilities in Workspace, allowing
for a more seamless end-to-end workflow for our customers. We saw
particularly good growth in the FX and Commodities communities,
which offset the impact of cancellations from Credit Suisse, following
their merger with UBS.
Data & Feeds
Serving the entire spectrum of business-critical data needs across asset
classes, latencies (the speed of data delivery) and delivery mechanisms,
including real-time data and news, text, reference and legal entity data.
Structural market trends driving growth:
— Rising importance of data trust across front, middle and back-office
applications and risk management use cases
— Increasing demand for higher-quality data to meet regulatory
requirements
— Customers outsourcing data management due to cost and complexity
Performance:
+6.2% reflecting the continued enhancement and expansion of our
content, as we added over 35 venues to our Real Time Direct offering,
alongside launching cloud-based distribution capabilities for Datascope
and full tick data in Real Time. Performance was partly impacted by
Credit Suisse cancellations in the year.
Analytics
Cross-asset models and analytics solutions for a diverse set of customer
needs, including risk, regulatory and historical analysis. Key products
include Yield Book fixed income analytics, StarMine sentiment analysis
and Lipper fund performance data.
Revenue split
Analytics
£220m 5%
Workflows
£1,910m 48%
Data & Feeds
£1,880m 47%
Revenue profile
1
Transactional
revenue 2%
Recurring
revenue 98%
Performance commentary growth rates are provided on an organic constant currency basis.
1 Data & Analytics recurring vs transactional revenue profile includes recoveries.
33
Strategic Report
London Stock Exchange Group plc
Annual Report 2024
Data & Analytics continued
Structural market trends driving growth:
— Adoption of Gen AI and cloud technology
— Increasing demand for higher-quality insight from data
Performance:
+4.9% primarily driven by the increased usage of Yieldbook’s fixed
income analytics and loan data. Our historical analytics were also
made available via Snowflake, giving customers additional flexibility
in generating analytics.
2024 highlights
LSEG Workspace moving from strength to strength
We have continued to make good progress with the rollout of
Workspace, our next-generation data and workflow solution that uses
the latest technology to deliver market-leading data, analytics, insights
and news. In line with our plans, we materially completed the rollout
in 2024 and will be permanently switching off the legacy product,
Eikon, in 2025. Workspace continues to receive positive feedback from
customers. Among our customers who use multiple desktop products
(LSEG + competitors), our data shows that the proportion of customers
who use Workspace as their primary platform has risen more than 10%
when compared with Eikon. We have also driven a 200bps acceleration
in organic growth in the Workflows business over the last three years,
partially through higher penetration of Workspace.
We are consistently enhancing the Workspace experience for our
customers. In 2024 alone, we launched over 500 updates to the
product. Key milestones included:
— Platform modernisation: Significant improvements in the stability
and performance of core Workspace apps, including Chart, News
and Monitor
— Expanded breadth of content: For example, trusted news from
Dow Jones’ newsrooms now available in Workspace, including
Barron’s, MarketWatch and The Wall Street Journal. For more
information, see page 16
— Integrated trade execution: Launched FX trading capabilities
via FXall, our leading multibank platform for foreign exchange
— Enhanced productivity: Added Macabacus workflow solutions
into Workspace, a leading provider of Microsoft 365 productivity
and brand compliance solutions
Partnering to expand our private market data coverage
In 2024, we announced a multi-year strategic collaboration with
Dun & Bradstreet to broaden access to private market information.
Dun & Bradstreet’s trusted private market data provides visibility
on firmographic data, officers and directors, ownership insights
and financial information for millions of companies globally and LSEG
Workspace users will be able to access this alongside our own capital
markets data, including deals, private equity, news and research.
The partnership helps to further establish Workspace as a valued
central data portal for our customers, and will enable investment and
capital market firms to drive better data-driven financial assessments
and decisions.
The industry-recognised Dun & Bradstreet D-U-N-S® Number, a unique
nine-digit identifier for over half a billion public and private companies,
will now be available to LSEG Workspace customers. Using the D-U-N-S
Number as the key to unlock data about a business, LSEG Workspace
users can now easily search for and download private company data
to improve mapping, discoverability and interoperability of content on
public and private companies globally.
The partnership is also supportive of our efforts to develop a new
private market data feed, which is expected to be available for
customers in 2025. Going forward, we will continue to work with Dun &
Bradstreet to explore additional use cases and distribution opportunities.
Driving consumption of our data through cloud delivery
Facilitating greater consumption of our data is absolutely core to our
strategy, and central to this is the expansion of our cloud distribution
capabilities. We made great strides in this direction in 2024, exemplified
by two particular product milestones:
Launched DataScope Warehouse via Snowflake
Our DataScope product provides customers with access to our
comprehensive Pricing and Reference database, including coverage
of fixed income, bank loans and legal entity data, as well as global
equities, derivatives and funds from more than 180 exchanges
worldwide. In September, we launched full cloud-based access to
this database. Known as DataScope Warehouse, this service will
initially be delivered via Snowflake cloud infrastructure, with more
cloud providers scheduled to be rolled out through 2025.
Delivered access to full tick market data in the public cloud
We also launched cloud distribution of our full tick Real Time offering,
meeting a need from compliance, risk and market surveillance teams
for comprehensive full tick data, but with the ease of cloud distribution.
Our full tick data solution delivers tick-by-tick pricing data on over
90 million instruments globally, and our customers can now choose
to receive this data via an on-premises location, or via public or
private cloud.
London Stock Exchange Group plc
Annual Report 2024
34
Divisional review
FTSE Russell
Our FTSE Russell offering comprises index and benchmark solutions
that enable customers to accurately measure performance and ensure
consistency in investment strategy and asset allocation decisions.
Structural market trends driving growth:
— Growth in passive investing
— Growing sophistication in fixed income indexing
— Multi-factor investing
Performance:
+10.9% reflecting strong subscription and asset-based revenue growth.
Subscription growth was driven by continued demand for our flagship
equity indices and benchmarks, complemented by commercialisation of
new products, including the Hong Kong Treasury Markets Association’s
interest rate and foreign exchange benchmarks (see below for more
information). Asset-based revenue growth reflected favourable
year-on-year market trends, particularly in US equities, and good
inflows driving record AUM levels.
2024 highlights
Leveraging our powerful data to enhance our fixed
income benchmarks
The strategic partnership between FTSE Russell and Tradeweb is
helping us leverage our high-quality data to enhance our fixed income
index offering. In June, we launched Tradeweb/FTSE US Treasury
Closing Prices, derived from executable pricing quotes collected
through the Tradeweb platform, mirroring the methodology that is
already in place for UK Gilts and European Government Bonds.
We have also now announced that we will include these benchmark
prices as part of FTSE Russell’s global fixed income indices, including
our flagship World Government Bond Index (WGBI). This will go live
in March 2025 and will ensure our indices continue to incorporate
transparent, representative datasets across the diverse universe
of fixed income markets that they track.
A trusted partner to global financial institutions
As a trusted global index provider, financial institutions look to partner
with us to add rigour to their product suite and to leverage our
strong brand and reputation. In 2024, the Treasury Markets Association
(TMA) in Hong Kong appointed FTSE Russell as the official licensing
entity for two of its interest rate benchmarks: CNH Hong Kong Interbank
Offered Rate (CNH HIBOR) and HKD Overnight Index Average (HONIA),
as well as two key spot FX benchmarks: USD/HKD Spot Rate and
USD/CNY(HK) Spot Rate. Since going live in June, early uptake has
been strong, with over 200 customers signed up across the four
benchmarks. The products are also available on our recently launched
ecommerce platform.
Partnering to promote sustainable investment
We have partnered with Phoenix Group to launch a bespoke Climate
Aware index series. The indices, which focus on both national and
regional markets, aim to protect policyholder portfolios against the
risk of climate change by reducing exposure to companies which
might face negative impacts for lacking well-developed plans on how
to successfully navigate the climate transition. The index series went
live in June with over £30 billion of initial seed capital allocated.
In recognition of our innovation in this area, we were awarded
Climate Index Provider of the Year in the 2024 Environmental
Finance Sustainable Investment Awards.
We are building on FTSE Russell’s strong
and diversified franchise, and continued to
accelerate growth in 2024. The business is
well positioned with strong structural tailwinds
providing multiple opportunities for growth
across a range of established and emerging
asset classes.
We are driving growth through partnership
with clients across the entire investment
community, building solutions that address
their critical needs and helping them
grow so that we can grow together.
Fiona Bassett
Head of FTSE Russell
Revenue split
Asset-based fees
£307m 33%
Subscriptions
£611m 67%
Revenue profile
Transactional
revenue 0%
Recurring
revenue 100%
Performance commentary growth rates are provided on an organic constant currency basis.
35 London Stock Exchange Group plc
Annual Report 2024
Strategic Report
Divisional review
Risk Intelligence
Our Risk Intelligence offering comprise solutions that help regulated
businesses and corporate organisations conduct due diligence,
meet Know Your Customer (KYC) and Know Your Third Party (KY3P)
commitments, and manage the risk of identity and payment fraud.
Structural market trends driving growth:
— Rising focus on reputational risk
— Digitalisation
— Regulation and ESG
— Digital currency growth
Performance:
+11.3% as we continue to see strong regulatory and risk-driven customer
demand for Anti Money-Laundering (AML) and Know Your Customer
(KYC) solutions in our screening business, World-Check. Our digital
identity and fraud business saw good volume growth and a strong
pipeline of product delivery including the launch of document and
biometric verification and global account verification services to defend
against fraud (see below for more information). Performance was
partially offset by continued weakness in our due diligence business.
2024 highlights
Helping customers fight fraud and protect against financial crime
with LSEG World-Check
As regulatory demands increase and new laws are introduced globally,
organisations face the burden of assessing, monitoring and disclosing
risk – all while having to remain competitive. Over 10,000 organisations
– including many of the world’s largest financial institutions, corporates
and government agencies – rely on our World-Check’s KYC database
to help them manage third-party relationships and make day-to-day
onboarding and monitoring decisions. World-Check’s comprehensive
coverage includes over five million records on sanctioned and politically
exposed entities and individuals in every inhabited country and territory
worldwide, and we apply strict quality control criteria to ensure ongoing
accuracy and relevance. In 2024, we updated over 1.1 million records
and created almost 500,000 new records, covering breaking events
throughout the year.
We are continuously innovating the product, and by hosting the data in
the cloud and recently launching API distribution capabilities, we have
allowed customers to more effectively incorporate World-Check into
their everyday screening processes. In 2024, we were proud to be
recognised as a leading innovator and service provider in the space,
with World-Check ranked as category leader for Name and Transaction
Screening Solutions and Adverse Media Monitoring Solutions by Chartis
Research, highlighting best-in-class capabilities for data methodology.
Innovating to tackle new and emerging risks
As technology evolves rapidly, it’s important that we partner closely
with our customers to understand new challenges they are facing and
that we adapt our offering appropriately. This year, we added two new
products to our Digital Identity & Fraud offering, designed to enhance
financial security for our customers:
— With payment fraud a growing problem for many companies and
£200 million lost by UK companies in the first half of 2024 alone,
1
our Global Account Verification (GAV) product will help customers
make payments with confidence, by verifying account information
and highlighting discrepancies in real time.
— As synthetic media such as deepfakes become increasingly
commonplace, our new Document and Biometric Verification (DBV)
leverages AI capabilities to confirm customer identities and prevent
fraud, calling on over 16,000 biometric data and government-issued
documents from over 220 countries.
It was an exciting year for Risk Intelligence as
we stood up one of LSEG’s fastest growing
businesses into its own division, demonstrating
the importance of our solutions in an
environment of complex and ever-changing
technology and regulation.
The popularity and reputation of World-Check
remain strong as ever, and we are constantly
innovating, leveraging AI to protect customers
from the threats of synthetic media and
to help them make digital payments
with confidence.
David Wilson
Head of Risk Intelligence
Revenue split
Risk Intelligence
£531m 100%
Performance commentary growth rates are provided on an organic constant currency basis.
1 Based on UK Finance Ltd’s Half-Year Fraud Report 2024.
Revenue profile
Transactional
revenue 23%
Recurring
revenue 77%
London Stock Exchange Group plc
Annual Report 2024
36
We delivered a strong performance this year in
our Capital Markets division. Our fixed income
platform, Tradeweb, outperformed a buoyant
market, making further share gains through
product innovation. We saw good growth in
our foreign exchange platforms and we also
welcomed significant UK capital markets
reform this year with the launch of the new
London Stock Exchange Main Market.
Looking ahead, we’re continuing to invest in
modernising and enhancing our platforms,
reflecting our ongoing commitment to deliver
truly world-class financial markets infrastructure.
Daniel Maguire
Head of LSEG Markets and CEO, LCH Group
Divisional review
Capital Markets
We offer our customers extensive access to capital markets and liquidity
across multiple asset classes. We operate a broad range of international
markets across equities, fixed income, exchange-traded funds and
products and foreign exchange. We are home to several capital
formation and execution venues: the London Stock Exchange, AIM,
Turquoise, FXall, Matching and Tradeweb. The division is split into
three areas:
Equities
Capital raising and trading on the London Stock Exchange, including
equity and debt capital markets. A trusted long-term partner to the
market and the number one exchange by capital raised in Europe.
Structural market trends driving growth:
— Globalisation
— Electronic trading
— Pipeline of private equity-backed businesses seeking next stage
of investment
Performance:
+4.6% driven by improving market conditions. In secondary trading,
average daily value traded was up 13.5% against the prior period.
Fixed Income, Derivatives & Other
Electronic marketplaces for rates, credit, equities and money markets
products, built and operated through Tradeweb.
Structural market trends driving growth:
— Electronification of fixed income markets
— Expanding global markets
Performance:
+23.1%, with an additional benefit of 5.3% from acquisitions in the
year. Average daily volume across all asset classes was $2.2 trillion,
a 55.8% increase on 2023, representing strong market activity across
Tradeweb’s global asset classes and share gains in credit. For a detailed
review of Tradeweb’s performance in 2024 – refer to page 37.
FX
A market leader in dealer-to-client and dealer-to-dealer FX trading,
we provide electronic trading, workflow and data to the institutional
foreign exchange community through FXall and FX Matching.
Structural market trends driving growth:
— Access to liquidity
— Cross-border trading and business globalisation
Performance:
+6.1% with both platforms, FXall, our dealer-to-client platform, and FX
Matching, our dealer-to-dealer platform, seeing growth in the year
from greater volumes driven by higher volatility in the market.
Revenue split
Foreign Exchange
£258m 14%
Equities
£236m 13%
Fixed Income,
Derivatives & Other
£1,334m 73%
Revenue profile
Transactional
revenue 72%
Recurring
revenue 28%
Performance commentary growth rates are provided on an organic constant currency basis.
37 London Stock Exchange Group plc
Annual Report 2024
Strategic Report
London Stock Exchange Group plc
Annual Report 2024
Capital Markets continued
2024 highlights
An outstanding year for Tradeweb
Tradeweb, our electronic marketplace business for fixed income
products, had an exceptional year, delivering 23.1% organic revenue
growth year-on-year and making continued share gains. Tradeweb
achieved record ADV across rates, credit and money markets in 2024,
and total ADV for the year of $2.2 trillion represented an increase of
36.6% vs the prior period, excluding the ICD acquisition.
Throughout the year, Tradeweb has worked closely with customers to
help them navigate a remarkable period of macroeconomic uncertainty
and rates volatility. However, organic expansion and continued
innovation have been central to ongoing strong performance and have
enabled Tradeweb to gain share in the fast-growing electronic fixed
income trading market. For example, adoption of Tradeweb’s Portfolio
Trading solution has been strong. Portfolio Trading gives a broad range
of customers the ability to put together a basket of bonds and trade
them all together as a single package deal, generating cost savings,
mitigating operational risk and reducing market slippage.
Tradeweb is also continuing to develop innovative new trading
protocols, such as RFQ Edge, an enhanced functionality for request-for-
quote (RFQ) trading in US credit markets, which provides customers
access to real-time trading data and analytics and customised charting
functionality. RFQ Edge calls upon other Tradeweb innovations
such as Tradeweb Ai-Price, which provides real-time prices for nearly
30,000 corporate bonds, to more accurately identify and compare
which bonds to trade. Notably, Tradeweb has also delivered strong
volume growth in credit – fully electronic US credit ADV rose 24.5%
in 2024 – where optionality across multiple pools of liquidity continues
to prove favourable with customers.
Recent acquisitions have also played an important part in Tradeweb’s
ongoing success. As well as closing the acquisition of r8fin in January
– a technology provider that specialises in algorithmic-based execution
for US Treasuries and interest rate futures – Tradeweb also completed
the acquisition of ICD in August. ICD is a leading multi-fund investment
platform for corporate treasury professionals, adding a fourth client
channel for Tradeweb alongside institutional, retail and wholesale and
presenting attractive cross-sell opportunities across LSEG. For more
information, see page 30.
Launching the new London Stock Exchange Main Market
This year, we celebrated a groundbreaking moment in the evolution
of the UK’s capital markets: the launch of the new London Stock
Exchange Main Market. After years of collaboration between HM
Treasury, the FCA, the London Stock Exchange and many more
industry stakeholders, the FCA announced a new set of Listing Rules,
representing the largest UK primary markets reform in a generation.
The new rules remove significant points of friction in the capital-raising
process, simplifying the listing eligibility requirements, taking a more
flexible approach to dual-class share structures and making it easier
for companies to execute M&A transactions by adjusting shareholder
approval requirements.
In our view, these reforms are key in ensuring that London remains
a highly competitive global destination to raise capital, reinforcing our
position as the largest exchange in Europe by capital raised and one
of the leading exchanges globally. Going forward, we continue to
support efforts to make the UK a leading destination for companies
and investors both directly and through bodies like the Capital Markets
Industry Taskforce (CMIT).
Driving strong capital-raising activity in fixed income
We continued to see strong growth in capital-raising activity across
the London Stock Exchange’s fixed income markets in 2024. A wide
range of global borrowers raised over £750 billion through more than
14,500 issues on our fixed income primary markets, an increase of 31%
by capital raised and 152% by number of issuances vs 2023, including
£57 billion through 143 transactions on the Sustainable Bond Market.
In the last two years, we have significantly increased the number of debt
and debt-like securities listed across the Main Market and International
Securities Market, up to over 24,000 as of January 2025.
London Stock Exchange Group plc
Annual Report 2024
38
We are continuing to build strong momentum
in Post Trade. In 2024, we once again
demonstrated our robustness as a critical
financial markets infrastructure provider,
partnering with customers to help them
manage risk as geopolitical and economic
uncertainty persisted.
As well as delivering another strong
performance in our core swaps franchise,
we are seeing very good traction across other
products and geographies, as we lay the
foundation for long-term growth.
Daniel Maguire
Head of LSEG Markets and CEO, LCH Group
Divisional review
Post Trade
We operate global, critically important clearing infrastructure, serving
customers in more than 60 countries and clearing across multiple asset
classes and in 27 currencies. We help customers optimise financial
resource consumption, satisfy their regulatory reporting obligations and
manage and optimise credit risk, while reducing operational complexity
and cost.
We are well positioned in the context of key structural market growth
trends: increasing regulation for our customers and rising demand
for both risk management and capital optimisation solutions. Market
volatility is also an important driver of performance, and recent
uncertainty around central bank activity has contributed to heightened
clearing volumes. We continue to drive strong underlying performance,
in part through the expansion of our global network, and we are
enhancing our product offering to secure long-term growth.
The division is split across four reporting segments:
OTC Derivatives
Clearing and capital optimisation solutions for OTC Derivatives,
including interest rate swaps, foreign exchange and credit default
swaps. The largest of these services is SwapClear, which is responsible
for over 90% of the interest rate swap notional cleared globally.
Performance:
+10.8% driven by greater clearing activity resulting from the higher
volatility stemming from the macroeconomic environment, and price
increases in SwapClear. ForexClear also performed well in the year,
with the service growing 12%.
Securities & Reporting
Securities clearing, capital optimisation and regulatory reporting solutions.
Performance:
-6.3% reflecting the impact of the termination of the Euronext clearing
agreement, with the last of the products – listed derivatives – migrating
in September 2024. For more information – refer to page 39.
Meanwhile, RepoClear continued to see good growth driven by
higher volumes.
Non-Cash Collateral
Fees are earned from handling non-cash collateral balances.
Performance:
+4.9% as clearing members optimised their collateral positions from
cash to non-cash.
Net Treasury Income (NTI)
Income earned on cash deposited with LCH as margin and default
funds as part of the risk management process.
Performance:
-6.3% as average cash collateral balances declined by 16.4%, reflecting
collateral optimisation by customers. This was partially offset by higher
treasury margins.
Revenue split
Non-cash Collateral
£111m 9%
Net Treasury Income
£266m 22%
OTC Derivatives
£582m 49%
Securities & Reporting
£235m 20%
Income profile
Transactional and
interest income
1
64%
Recurring
revenue 36%
Performance commentary growth rates are provided on an organic constant currency basis.
1 Transactional and interest income includes Net Treasury Income.
39 London Stock Exchange Group plc
Annual Report 2024
Strategic Report
London Stock Exchange Group plc
Annual Report 2024
Post Trade continued
2024 highlights
Increasing our ownership stake in LCH Group
We significantly increased our stake in LCH Group in 2024, reinforcing
our commitment to the business and further evidencing our confidence
in the growth outlook for our Post Trade division. In Q1, we increased
our stake by 3.2%, and in Q4 we acquired a further 8.3% for
consideration of €433 million, taking LSEG’s total share to 94.2%.
The purchase reinforces LSEG as a constructive controlling shareholder,
providing liquidity to our banking partners when required and
delivering assurance for customers who rely on LCH’s critical
clearing infrastructure.
Continuing to build out Post Trade Solutions
LCH remains a deeply trusted, multi-asset global clearing partner.
However, only 52% of the $18 trillion notional traded in OTC derivatives
markets in 2023 was cleared, with the remaining 48% traded bilaterally.
Deep inefficiencies persist in the bilateral OTC derivatives market, with
differing opinions on margin valuation, on what constitutes appropriate
collateral and on contract terms. There is a growing demand from our
customers for LSEG to help standardise this space and deliver similar
capital efficiencies to those currently available in the cleared market,
such as through trade compression.
With our Post Trade Solutions suite, we are answering this call and
almost doubling the market opportunity for Post Trade. In 2024,
we onboarded five banks to FX Smart Clearing, a service that helps
customers determine the most capital efficient strategy when
deciding which trades to clear. We also acquired Axoni’s reconciliation
management platform for equity swaps, Veris, expanding the
multi-asset coverage of our capabilities. We expect a gradual ramp-up
in usage of Post Trade Solutions over the next few years, supported
by an increasingly complex regulatory environment for our customers.
We are building a strong customer pipeline and are excited about the
next stage of development.
Ensuring market continuity during the migration of equity and
derivatives clearing services
As a provider of critical financial markets infrastructure, resilience is
a top priority for us and is key to delivering a reliable clearing service.
We pride ourselves on the fact that we have successfully managed
a number of significant market events with no service interruption for
our customers, including the default of Lehman Brothers in 2008,
as well as major deleveraging and liquidity stresses at the onset of the
Covid-19 pandemic. Following the 2021 divestment of Borsa Italiana to
Euronext as part of our acquisition of Refinitiv, Euronext subsequently
announced its intention to move its equity and listed derivatives clearing
activity in-house, away from LCH. Any error during a volume transition
of this magnitude and complexity could have resulted in significant
inconvenience and even financial cost to our customers. With the
final volumes having rolled off in Q3 2024, we are pleased to have
supported this migration in a manner that ensured total market
continuity at all times.
Laying the foundations for future growth
We continue to expand our presence across a range of new markets
and geographies, as we look to deliver our long-term growth strategy
in Post Trade:
— This year, we received regulatory approval to clear cash-settled
Bitcoin index futures and options contracts through our
DigitalAssetClear service, allowing customers to clear crypto
derivatives in a regulated environment and demonstrating our
commitment to bringing the benefits of clearing to this growing
asset class.
— We continue to build out our clearing presence in credit default swaps
(CDS), extending our existing footprint in the EU and establishing our
presence in the US with a growing network of members and clients.
— We are further expanding our presence in Asian markets, adding
more members in the region, as clearing activity there continues
to grow. In 2025, we will expand our eligible collateral to include
euro and dollar-denominated Chinese Government bonds.
— We are acting as clearing partner to FMX Futures, a new venue for
interest rate derivatives contracts. The exchange launched trading
for Secured Overnight Financing Rate (SOFR) futures in September,
with US treasury futures to follow in Q1 2025. By trading with FMX
and clearing with LCH, customers can access significant efficiency
benefits by cross-margining their positions across asset classes,
including with our SwapClear portfolio of swaps.
We were proud to receive the title of Clearing House of the Year at
the 2025 Risk awards. Informed by our members, this award recognises
our stability and resilience during a year of heightened market volatility
and geopolitical uncertainty. In addition, we continue to be recognised
by the industry for our innovation and quality of service. Our FX Smart
Clearing service won Collateral Management and Optimisation Product
of the Year, SwapClear’s Margin Calculator tool was awarded the
title of CCP Risk/Margin Product of the Year and our Regulatory
Reporting service was named Best Regulatory Reporting Solution
by WatersTechnology Asia.
London Stock Exchange Group plc
Annual Report 2024
40 London Stock Exchange Group plc
Annual Report 2024
40
Making more possible with Microsoft
Our partnership brings together
LSEG’s data and analytics with Microsoft’s
trusted cloud and AI solutions to build
next-generation services that empower
our customers to generate business
insights, automate complex processes
and analyse data faster than ever before.
Scott Guthrie
Executive Vice President, Cloud + AI Group, Microsoft
LSEG Board Member
Together with Microsoft, we’re innovating
at scale to transform how financial
organisations discover, deliver and manage
LSEG’s trusted data and analytics. With new
products like the recently launched
Financial Meeting Prep, we’re simplifying
workflows for our customers, delivering
powerful insight and enabling them to
enhance productivity.
Irfan Hussain
Chief Information Officer, LSEG
Executive Committee sponsor for the LSEG-Microsoft partnership
41 London Stock Exchange Group plc
Annual Report 2024
Strategic Report
41 London Stock Exchange Group plc
Annual Report 2024
Strategic Report
Making more possible with Microsoft continued
Shaping the future of financial services
Our strategic partnership with Microsoft underpins our
ambition to transform financial services by developing
next-generation data, analytics and cloud infrastructure
solutions. We are leveraging our significant breadth and
depth of trusted data and analytics with Microsoft’s cloud
and AI capabilities to deliver:
— Interoperable workflows across LSEG Workspace,
Microsoft Teams and 365 applications
— Enhanced data discovery through cloud delivery
and generative AI (Gen AI)
— Collaboration tools for the financial services community
We have been working closely with a number of our
global customers to inform our product development.
Known as the Design Partner Programme, this helps
us to ensure that the solutions we deliver to market
are meaningful and solve our customers’ needs.
Strong delivery to date
We have made significant progress over the last year,
hitting our product development milestones. Our key
achievements in 2024 include the following.
— Interoperability to enable data sharing from LSEG
Workspace in Microsoft Teams, and single sign-on
across Workspace and the Microsoft 365 suite
— This interoperability has facilitated the launch of
Financial Meeting Prep, an application that uses
Gen AI and data from LSEG Workspace to produce
insightful briefing reports for meetings
— Introduction of our Analytics API for Financial
Services which pulls together all LSEG Analytics
solutions into a single feed
— Migration of key datasets and other key technology
infrastructure into Microsoft Azure, launching the
first release of Data-as-a-Service (DaaS) with
ESG datasets via Microsoft Fabric
Key developments planned for 2025
In the coming year, LSEG Workspace Microsoft Teams
will be generally available, where customers can
access Open Directory – a fully compliant cross-firm
communications tool and collaboration network within
Microsoft Teams, enriched with LSEG’s data and analytics.
We will also continue to transform and personalise the
Workspace user experience using Gen AI-powered
navigation and data discovery, and we’ll be making more
datasets available via Microsoft Fabric. As we continue
the product rollout, we anticipate this partnership will
significantly streamline workflows and data discovery
for our customers, leading to deeper and faster insights
as well as valuable productivity gains.
London Stock Exchange Group plc
Annual Report 2024
42
Chief Financial
Officer review
As I look ahead, I am excited by the
opportunity to accelerate growth
over the medium term, and the plans
under way to improve margins and
equity free cash flow, which together
culminate in the delivery of our
medium-term financial targets.
Michel-Alain Proch
Chief Financial Officer
Michel-Alain Proch joined LSEG on 26 February 2024 and joined the
Board as Chief Financial Officer (CFO) on 1 March 2024. He brings deep
experience across global, financial infrastructure and IT data solutions
firms from his previous roles, which is key as the Group delivers its
next stage of transformation and growth.
Why did you decide to join LSEG?
From the outset, what attracted me to LSEG was the great portfolio
of assets within the Group, providing products and services which solve
our customers’ business-critical issues. Given the timing, with the Group
completing its integration, and now really pivoting to the execution
phase, I felt this was definitely the time where I could add value to
the delivery, based on my track record and skillset.
What has stood out to you the most in your first 10 months in the role?
Since joining, I’ve been impressed by how deeply engrained our
products are with clients, and the strong customer relationships
and engagement across the business. Our services are critical to
our clients’ decision-making, workflows and risk management.
I’ve been struck by the resilience of colleagues across the Group.
Having been part of an exceptional level of change since the Refinitiv
acquisition, they remain open to new ideas and new ways of doing
things, and actively embrace change.
What gives you encouragement that you can achieve your guidance?
Our businesses are well positioned, and underpinned by structural
growth drivers. The investments and improvements the Group has been
making across the product set are resonating with our customers and
reflected in our performance, giving me encouragement in the trajectory
for top-line growth.
Turning to margins, capex and cash conversion – this is something I have
delivered before and am confident we can deliver at LSEG. Over the last 10
months, I have set up the structure and processes to deliver EBITDA margin
expansion and reduce capex intensity over the medium term. These,
combined with top-line acceleration, will lead to improving cash conversion.
2024 performance
LSEG performed well in 2024, achieving reported total income
excluding recoveries growth of 6.1%, and 7.7% on an organic, constant
currency basis, despite a number of anticipated headwinds. Organic
revenue growth has now accelerated each year since completing the
Refinitiv acquisition in 2021. In 2024, we delivered adjusted EBITDA
margin expansion of 80bps excluding FX fair value gains and impacts,
alongside an increase of 13.0% in the total dividend, and returned
£1 billion of excess capital to shareholders via share buybacks.
Basic earnings per share (EPS) of 128.8 pence was down 7.3% in the
year due to higher tax charges and non-underlying depreciation,
amortisation and impairments offsetting the strong income growth.
Adjusted earnings per share was up 12.2% to 363.5 pence driven by
income growth and underlying profitability. More detail on our financial
performance can be found in our financial review from page 44.
As I look ahead, I am excited by the opportunity to accelerate growth
over the medium term, and the plans under way to improve margins
and cash flow conversion, which together culminate in the delivery
of our medium-term targets from the Capital Markets Day in 2023.
2025 guidance
We are confident of further growth and improvement in our EBITDA margin
in 2025, leading to strong growth in equity free cash flow. Alongside
our medium-term guidance, specific 2025 guidance is as follows:
— Organic constant currency growth in total income excluding
recoveries of 6.5–7.5%, including an acceleration in Data & Analytics
organic growth and more normalised growth at Tradeweb
This section includes references to adjusted
performance measures that best reflect the
underlying performance of our business (e.g., equity
free cash flow). For more information on these
measures – refer to our glossary on page 252.
43 London Stock Exchange Group plc
Annual Report 2024
Strategic Report
Chief Financial Officer review continued
— An improvement in constant currency EBITDA margin of 50–100bps
— Capex intensity of c.10% of total income excluding recoveries
— Equity free cash flow of at least £2.4 billion, based on foreign
exchange rates of £1 = $1.28 and €1.18
— Underlying effective tax rate of 24–25%
Operational leverage and cost discipline
The opportunity for operational leverage in our business is very clear.
Excluding FX impacts, this year we have delivered an underlying
improvement of 70bps in adjusted EBITDA margin alongside a 10bps
improvement driven by the growth in the Euroclear dividend. I have
put in place reinforced cost control through process and discipline
alongside top-line growth, to drive the margin improvement mainly
through two overarching principles.
The first is the resource equation – this is the cost of our own staff plus
our external contractors. The opportunity here is to have the total of
these two costs decreasing as a percentage of income over time.
This will initially be delivered through two key initiatives:
— Alongside Irfan Hussain, our Chief Information Officer, we have started
a large insourcing programme of around 2,000 of our external
technology contractors in order to enhance our engineering expertise
and create a strong product culture. This not only drives cost
efficiencies, but also improves the quality of our engineering.
— We are optimising the mix of our resources between our high-cost
locations and our global delivery and excellence centres, while
delayering across the organisation.
The second is the opportunity to operate more efficiently and effectively
across our strategic programmes to ensure that we are running fewer,
bigger programmes, with impact on growth and opex, and clearer
prioritisation of capex over time.
To deliver this, I have introduced an enhanced investment process
through the newly established Group Investment Committee (GIC),
which is chaired by David Schwimmer and me. The GIC operates in
close partnership with Irfan Hussain, Pascal Boillat (Chief Operating
Officer) and Balbir Bakhshi (Chief Risk Officer). We meet regularly
to review all the major projects under way across the Group, which
amounted to £986 million of investment spend in 2024.
Setting the frameworks for these two key initiatives has been my first
priority this year. These initiatives go alongside the existing ongoing
property portfolio rationalisation programme and the migration of
our technology infrastructure to the cloud on Microsoft Azure.
As part of our standard annual balance sheet review processes,
we have taken a £235 million asset impairment charge through
non-underlying depreciation, amortisation & impairment. The non-cash
impairment charge was made up of three things:
— £186 million relating to software assets no longer in use. Following
a change in strategy and leadership, we impaired two projects,
and the balance of the charge reflects our increased focus on
fewer, bigger programmes
— £16 million relating to right-of-use property assets as we continue
to streamline our property portfolio
— £33 million relating to an impairment of an investment in associate
Capital allocation
Our goal is to invest for growth using the cash we generate, building
a platform for long-term capital appreciation while rewarding investors
today through a progressive dividend, growing broadly in line with
AEPS. We allocate capital within appropriate leverage bounds for our
earnings profile, with a target leverage range of 1.5–2.5x operating net
debt to adjusted EBITDA before foreign exchange gains and losses.
Our intention is to maintain business-as-usual leverage around the
middle of this range. Leverage at the end of December 2024 was
1.7x (December 2023: 1.8x).
LSEG generated £2.2 billion of equity free cash flow after having
dedicated £957 million to capex or £986 million on an accrued, constant
currency basis. Total cash capex intensity (as a percentage of total
income excl. recoveries) was 11.3%, 160 basis points lower than 2023.
Key growth programmes ongoing during 2024 included Workspace
product development with Microsoft, Post Trade Solutions infrastructure and
continued investment in Tradeweb. In addition, we continued to invest in
the integration of acquired businesses, the vast majority of which related
to delivering the revenue and cost synergies from the Refinitiv acquisition.
We have redefined equity free cash flow to now reflect repayments
under leases of £156 million (2023: £156 million) and interest charges
on commercial paper of £72 million (2023: £29 million). 2023 equity free
cash flow has been re-presented to be consistent with this new definition.
During the year, we allocated capital as follows:
Acquisitions and disposals – £807 million
Tradeweb closed its acquisition of r8fin Holdings LP (r8fin) in January.
r8fin is a technology provider specialising in algorithmic-based execution
for US Treasuries and interest rate futures, further expanding Tradeweb’s
trading capabilities. The total consideration paid was $91 million
(£71 million) in cash and $37 million (£29 million) in Tradeweb shares.
LSEG acquired an incremental 11.6% of LCH Group Holdings Limited
across two transactions in the year. The stakes were acquired from
minority shareholders for a total of €601 million (£507 million), taking
LSEG’s ownership of LCH Group Holdings Limited to 94.2%.
In August, Tradeweb acquired Institutional Cash Distributors LLC (ICD),
an institutional investment technology provider for corporate treasury
organisations. This acquisition adds a new client channel for Tradeweb,
further diversifying their client and business mix, as well as providing
cross-sell opportunities for the Group. The total consideration paid
was $794 million (£614 million) in cash and $3 million (£3 million) in
Tradeweb shares.
In the year, we disposed of our 4.92% Euroclear stake for €455 million
(£377 million), and a small client onboarding solutions business in
Risk Intelligence with proceeds of £8 million.
Dividend – £642 million
The total cash outflow for the year was £642 million, comprising the
2023 final dividend and the 2024 interim dividend.
The proposed final dividend for 2024, subject to shareholder approval, is
89.0 pence – giving a total for the year of 130.0 pence, up 13.0% on 2023.
This is consistent with our simplified dividend policy effective from 2024 and
reflects a payout ratio of 35.8% of AEPS, in line with our range of 33–40%.
Share buyback – £1.0 billion
We remain very focused on capital discipline and will, from time to time,
return excess capital to shareholders to the extent that we stay within our
target leverage range. We returned £1 billion to shareholders via share
repurchases in 2024 at an average price of £88.43. This was executed
via two directed share buybacks of £500 million each, in March and May,
through the acquisition of shares directly from the former Refinitiv
shareholders (entities owned by certain investment funds affiliated with
Blackstone, an affiliate of Canada Pension Plan Investment Board, an
affiliate of GIC Special Investments Pte Ltd, and Thomson Reuters).
We plan to execute a share buyback of £500 million by July 2025,
and will provide a further update at our 2025 first half results depending
on other uses of capital.
London Stock Exchange Group plc
Annual Report 2024
44
Financial review
All growth rates are expressed on an organic constant currency basis, unless otherwise stated.
Reported
2024
£m
2023
£m
Variance
%
Constant
currency
variance
%
Organic
constant
currency
variance
%
Data & Analytics 4,010 3,931 2.0% 4.4% 4.5%
FTSE Russell 918 844 8.8% 10.9% 10.9%
Risk Intelligence 531 492 7.9% 10.1% 11.3%
Capital Markets 1,828 1,546 18.2% 21.3% 17.8%
Post Trade 1,194 1,167 2.3% 3.7% 2.4%
Other 13 29 (55.2%) (54.5%) (54.5%)
Total income (excl. recoveries) 8,494 8,009 6.1% 8.4% 7.7%
Recoveries
1
364 370 (1.6%) 0.6% 0.6%
Total income (incl. recoveries) 8,858 8,379 5.7% 8.0% 7.4%
Cost of sales (1,173) (1,143) 2.6% 5.3% 4.9%
Gross profit 7,685 7,236 6.2% 8.4% 7.8%
Reported
EBITDA 3,945 3,514 12.3%
Operating profit 1,463 1,371 6.7%
Profit before tax 1,258 1,195 5.3%
Basic earnings per share
2
(p) 128.8 138.9 (7.3%)
Dividends per share (p) 130.0 115.0 13.0%
Adjusted
3
Operating expenses before depreciation, amortisation and impairment (3,560) (3,474) 2.5% 7.4% 6.4%
EBITDA 4,148 3,777 9.8% 9.6% 9.1%
EBITDA margin 48.8% 47.2%
Depreciation, amortisation and impairment (983) (915) 7.4% 9.8% 9.6%
Operating profit 3,165 2,862 10.6% 9.5% 9.0%
Net finance expense (195) (170) 14.7%
Profit before tax 2,970 2,692 10.3%
Taxation (713) (625) 14.1%
Profit for the year 2,257 2,067 9.2%
Equity holders 1,934 1,775 9.0%
Non-controlling interests 323 292 10.6%
Earnings per share
2
(p) 363.5 323.9 12.2%
The financial review contains revenues, costs and earnings and key performance indicators (KPIs) for the twelve months ended 31 December 2024. FY 2024 is compared against FY 2023 on
a statutory basis. Constant currency variances are calculated on the basis of consistent FX rates applied across the current and prior year period (GBP:USD 1.243 GBP:EUR 1.150). Organic growth
is calculated on a constant currency basis, adjusting the results to remove disposals from the entirety of the current and prior year periods, and by including acquisitions from the date of
acquisition with a comparable adjustment to the prior year. Within the financial information and tables presented, certain columns and rows may not cast due to the use of rounded numbers
for disclosure purposes.
1 Recoveries relate to fees for third-party content, such as exchange data, that is distributed directly to customers.
2 Weighted average number of shares used to calculate basic earnings per share and adjusted basic earnings per share is 532 million (2023: 548 million).
3 The Group reports adjusted operating expenses before depreciation, amortisation and impairment, adjusted earnings before interest, tax, depreciation, amortisation and impairment (EBITDA),
adjusted depreciation, amortisation and impairment, adjusted operating profit and adjusted basic earnings per share (EPS). These measures are not measures of performance under IFRS and
should be considered in addition to, and not as a substitute for, IFRS measures of financial performance and liquidity. Adjusted performance measures provide supplemental data relevant to
an understanding of the Group’s financial performance and exclude non-underlying items of income and expense that are material by their size and/or nature. Non-underlying items include:
amortisation and impairment of goodwill and purchased intangible assets, incremental amortisation and impairment of the fair value adjustments of intangible assets recognised as a result of
acquisitions, significant impairment of software and other non-current assets linked to a change in strategy or operating model, tax on non-underlying items and other income or expenses not
considered to drive the operating results of the Group (including transaction, integration and separation costs related to acquisitions and disposals of businesses), as well as restructuring costs.
45 London Stock Exchange Group plc
Annual Report 2024
Strategic Report
Financial review continued
Organic, constant currency growth rates
Q1
2024
Q2
2024
Q3
2024
Q4
2024
FY
2024
Workflows 1.7% 3.1% 3.2% 3.4% 2.9%
Data & Feeds 6.8% 5.5% 6.1% 6.4% 6.2%
Analytics 6.5% 3.8% 5.2% 4.2% 4.9%
Data & Analytics 4.3% 4.3% 4.6% 4.8% 4.5%
Subscriptions 6.2% 13.2% 13.1% 8.8% 10.3%
Asset-based 16.4% 14.1% 1.8% 16.0% 11.9%
FTSE Russell 9.5% 13.5% 9.2% 11.2% 10.9%
Risk Intelligence 12.5% 10.4% 10.4% 12.0% 11.3%
Equities 1.6% 6.2% 8.5% 2.1% 4.6%
Fixed Income, Derivatives & Other 21.3% 27.9% 27.3% 17.2% 23.1%
FX (2.2%) 3.9% 12.8% 10.1% 6.1%
Capital Markets 14.4% 20.6% 22.4% 14.3% 17.8%
OTC Derivatives 0.1% 6.6% 18.4% 19.0% 10.8%
Securities & Reporting (0.5%) 2.5% (11.1%) (15.9%) (6.3%)
Non-Cash Collateral 6.5% 5.4% 5.3% 2.5% 4.9%
Net Treasury Income (2.6%) (14.7%) (5.5%) (1.5%) (6.3%)
Post Trade (0.1%) 0.1% 4.8% 5.0% 2.4%
Other (43.9%) (48.6%) (75.1%) (52.6%) (54.5%)
Total income (excl. recoveries) 6.4% 7.8% 8.7% 7.7% 7.7%
Total income excluding recoveries of £8,494 million grew 8.4% on a constant currency basis, and included a 70 basis points benefit from acquisitions
during the year. Growth on a reported basis was 6.1%. Total income including recoveries of £8,858 million was up 8.0% in constant currency,
and 5.7% higher on a reported basis. This growth was driven by a positive performance across all five divisions.
Growth rates are on an organic, constant currency basis.
1 Growth rate for total income excluding recoveries.
2 Total income excluding recoveries.
3 Includes the impact of other revenues.
£8,009m
+4.5%
+10.9%
+11.3%
+17.8%
+2.4%
£8,494m
Capital
Markets
Post
Trade
M&A FX and
other
3
2024
2
Organic growth
1
7.7%
2023
2
Data &
Analytics
FTSE
Russell
Risk
Intelligence
Strong income growth across divisions
London Stock Exchange Group plc
Annual Report 2024
46
Financial review continued
Reported operating expenses before depreciation, amortisation and impairment of £3,771 million included £211 million of non-underlying operating
expenses which largely related to acquisition-related costs. Adjusted operating expenses before depreciation, amortisation and impairment of
£3,560 million included a £41 million benefit from FX-related items (2023: £42 million expense). Constant currency cost growth of 7.4% includes
a 100 basis points contribution from the in-year impact of acquisitions. Organic cost growth of 6.4% reflects benefits from our workforce insourcing
programme, Refinitiv-related synergies and other efficiency gains.
Adjusted
1
2024
£m
2023
£m
Variance
%
Constant
currency
variance
%
Organic
constant
currency
variance
%
Staff costs 2,226 2,085 6.8% 9.3% 8.1%
Third-party services 396 404 (2.0%) 0.6% 0.6%
Total resource costs 2,622 2,489 5.3% 7.9% 6.9%
As % of total income ex recoveries 30.9% 31.1%
IT costs 636 607 4.8% 7.6% 7.5%
Other costs 343 336 2.1% 3.2% 1.4%
Fair value movements on embedded derivative contracts
and foreign exchange (gains)/losses (41) 42 n/m n/a n/a
Adjusted operating expenses before depreciation, amortisation
and impairment 3,560 3,474 2.5% 7.4% 6.4%
1 Adjusted excludes the impact of non-underlying items. A full reconciliation to total operating expenses before depreciation, amortisation and impairment can be found in note 4 to the
financial statements.
Our main costs relate to our people, with adjusted staff costs of £2,226 million (2023: £2,085 million) and adjusted third-party services of
£396 million (2023: £404 million). These two lines together make up the total resource costs for the organisation of £2,622 million, and account
for 74% of the total adjusted operating expense base. The resource equation, which looks at resource costs as a percentage of total income
excl. recoveries, has improved by 20 basis points, or 30 basis points on a constant currency basis, driven by strong cost control and the workforce
insourcing programme implemented in 2024.
Underlying operating leverage
+70bps
Resource costs
+30bps
Other costs
+40bps
2023
EBITDA
margin
FX-related
items
1
Rebased
FX
2
2023
comparable
Third-
party
services
IT costs Other
3
Growth in
Euroclear
dividend
2024
underlying
FX-related
items
1
2024
EBITDA
margin
47.2%
+50bps -10bps
-10bps
+40bps
+10bps
+30bps
+10bps
48.4%
+40bps 48.8%
47.6%
1 FX-related items represent fair value movements on embedded derivative contracts and foreign exchange (gains)/losses (2024: £41m gain, 2023: £42m loss).
2 2023 rebased for 2024 FX rates.
3 “Other” includes recoveries revenue, cost of sales, other operating expenses and share of loss of associates.
Delivering adjusted EBITDA margin expansion
47 London Stock Exchange Group plc
Annual Report 2024
Strategic Report
Financial review continued
Within EBITDA, income from equity investments was £27 million in 2024,
up 81.7% from the prior year following a meaningful increase in dividend
receipts from Euroclear. Following the disposal of the Euroclear stake in
December, from 2025 Euroclear dividend receipts will cease.
Adjusted EBITDA of £4,148 million increased by 9.1%. The adjusted
EBITDA margin increased to 48.8% (2023: 47.2%). The increase included
a 70 basis points performance-related improvement in margin and
10 basis points from the increase in the Euroclear dividend in 2024.
The remaining 80 basis points increase was driven by FX-related items
comprising fair value movements on embedded derivative contracts
(2024: £40 million benefit, 2023: £10 million cost) and foreign exchange
gains and losses (2024: £1 million benefit, 2023: £32 million cost),
partially offset by translational FX impacts.
Reported depreciation, amortisation and impairment of £2,482 million
(2023: £2,143 million) includes £1,499 million (2023: £1,228 million) of
non-underlying amortisation and impairment which largely relates to
the amortisation of purchased intangible assets (mainly Refinitiv) as well
as £235 million of asset impairment taken in the year (see below for
more detail). Excluding this, adjusted depreciation, amortisation and
impairment of £983 million grew by 9.6%. The growth in depreciation
and amortisation reflects our continued investment in technology and
product and amortisation of capex associated with achieving the
Refinitiv synergies.
Reconciliation of Adjusted Operating Profit to Reported
Operating Profit
2024
£m
2023
£m
Adjusted operating profit 3,165 2,862
Non-underlying items
Transaction cost credit/(cost) 15 (85)
Integration, separation
& restructuring costs (226) (247)
Profit on disposal & remeasurement gains 8 69
Depreciation, amortisation and impairment
of intangibles and other assets (1,499) (1,228)
Operating Profit 1,463 1,371
Reported operating profit of £1,463 million grew by 6.7% on a reported
basis and adjusted operating profit of £3,165 million grew 9.0%, driven
by strong income growth and cost discipline highlighted above, partially
offset by higher depreciation and amortisation.
Transaction costs mainly relate to fees and other charges incurred from
acquisition activity, as well as awards and incentive plans linked to
previous acquisitions. These acquisition-related costs were more than
offset in the year by the benefit from a fair value gain on contingent
consideration and a benefit related to changes in the Tradeweb Tax
Receivable Agreement liability.
Integration, separation and restructuring costs have mostly been
incurred in relation to the integration of Refinitiv and are in line with
previous guidance.
The disposal of a small client onboarding solutions business within
Risk Intelligence resulted in an £8 million profit on disposal.
Depreciation, amortisation and impairment of intangibles and other
assets of £1,499 million mainly arose from the Refinitiv acquisition,
with some additional amortisation associated with recent acquisitions.
The increase from the prior year is driven by £235 million of impairment
charges relating to intangibles and other assets. These non-cash
impairment charges comprised £186 million related to software assets
no longer in use as a result of a change in strategy, £16 million related
to property portfolio reviews and £33 million related to an impairment
of an investment in an associate.
Net Finance Expense/Tax/Non-Controlling Interest
Adjusted net finance expense were £195 million (2023: £170 million),
and £205 million (2023: £176 million) on a reported basis.
Higher interest rates drove greater interest income on cash and
cash equivalents during the period. This was more than offset by
higher net debt, greater interest expense on floating rate debt and
new debt issued in the year which was at a higher rate than the debt
maturing. In December, we completed a tender offer to repurchase
$250 million of LSEG bonds which resulted in a gain of £24 million
within net finance expense.
Reported profit before tax increased 5.3% on a headline basis, to
£1,258 million (2023: £1,195 million) as higher income was partly
offset by an increase in operating expenses and a higher depreciation,
amortisation and impairment expense. Adjusted profit before tax
increased by 10.3% in the year to £2,970 million on a headline basis
(2023: £2,692 million), as EBITDA growth was partly offset by the
increase in adjusted depreciation, amortisation and impairment.
The Group’s adjusted effective tax rate was 24.0% (2023: 23.2%),
with the increase reflecting the full impact of the higher UK corporate
tax rate which came into effect on 1 April 2023, partially offset by
movements in uncertain tax positions and prior year submissions. The
reported tax charge in the period of £337 million (2023: £247 million)
represents an effective tax rate of 26.8% (2023: 20.7%), and was
impacted by a legislative rate change applicable to the surplus on
one of the Group’s defined benefit pension schemes resulting in
a £44 million expense (2023: £44 million credit).
Adjusted profits attributable to non-controlling interests, mainly in
Tradeweb and LCH, totalled £323 million for the year, an increase of
10.6% on a headline basis from 2023 reflecting the strong performance
of Tradeweb, partially offset by the increase in our ownership of
LCH Group.
London Stock Exchange Group plc
Annual Report 2024
48
Financial review continued
Earnings per share
Basic earnings per share was 128.8 pence (2023: 138.9 pence) with the decrease from last year mainly reflecting the higher depreciation,
amortisation and impairment and tax charges.
1 Statutory AEPS, as re-presented in the 2022 Annual Report.
272.4p
1
317.8p
323.9p
363.5p
3
2
3-year CAGR
+10.1%
2021 2022 2023 2024
Adjusted earnings per share
+12.2%
2023-2024
Adjusted basic earnings per share (AEPS) was 363.5 pence (2023: 323.9 pence). The 12.2% increase in AEPS year-on-year was driven by growth
in underlying profitability partly offset by the higher depreciation, amortisation and impairment and an increased tax rate.
Dividend
The Board is proposing a final dividend of 89.0 pence per share, which together with the interim dividend of 41.0 pence per share paid to
shareholders in September 2024, results in a 13.0% increase in the total dividend to 130.0 pence per share. The final dividend of 89.0 pence per
share will be paid on 21 May 2025 to all shareholders on the share register at the record date of 22 April 2025, subject to shareholder approval.
Data & Analytics
2024
£m
2023
£m
Variance
%
Constant
currency
variance
%
Organic
constant
currency
variance
%
Workflows 1,910 1,903 0.4% 2.6% 2.9%
Data & Feeds 1,880 1,810 3.9% 6.2% 6.2%
Analytics 220 218 0.9% 4.9% 4.9%
Total revenue (excl. recoveries) 4,010 3,931 2.0% 4.4% 4.5%
Recoveries 364 370 (1.6%) 0.6% 0.6%
Total revenue (incl. recoveries) 4,374 4,301 1.7% 4.1% 4.2%
Cost of sales (809) (810) (0.1%) 2.6%
Gross profit 3,565 3,491 2.1% 4.4%
Adjusted operating expenses before depreciation,
amortisation and impairment (1,817) (1,874) (3.0%) 2.5%
Adjusted EBITDA 1,748 1,617 8.1% 6.5%
Adjusted depreciation, amortisation and impairment (573) (560) 2.3% 4.6%
Adjusted operating profit 1,175 1,057 11.2% 7.4%
Adjusted EBITDA margin 43.6% 41.1%
49 London Stock Exchange Group plc
Annual Report 2024
Strategic Report
Financial review continued
Data & Analytics provides customers with high value data, analytics, workflow solutions and data management capabilities. The division is split into
three areas addressing different customer needs.
Total revenue excluding recoveries of £4,010 million grew by 4.5%, driven by broad-based strength across business lines. Annual Subscription Value
growth (ASV)
1
at December 2024 was 6.3%, demonstrating good underlying growth from strong retention and new sales, partly offset by the impact
of Credit Suisse cancellations as expected.
Workflows revenue of £1,910 million increased by 2.9% with good growth in FX and Commodities communities offsetting the impact of Credit Suisse.
The continued enhancements to Workspace are adding value to customers, as is evidenced by the acceleration in growth over the course of the
year. We significantly strengthened our news content with the integration of Dow Jones news and expanded our private markets data through the
Dun & Bradstreet partnership. The addition of Macabacus’ productivity tools and the expansion of FXall and TORA capabilities in Workspace allow
for a more seamless end-to-end workflow for our customers.
As planned, we completed the substantial majority of migrations to Workspace by the end of 2024 and we are on track to sunset Eikon by
June 2025.
Data & Feeds revenue of £1,880 million grew by 6.2% with the underlying performance partly impacted by the Credit Suisse cancellations.
We continued the enhancement and expansion of our content, adding over 35 venues to our Real Time Direct offering, alongside launching
cloud-based distribution capabilities for DataScope and full-tick data in public cloud. The first 8 datasets which include ESG, Fundamentals and
Industry Classification are available in our Data-as-a-Service (DaaS) offering built in partnership with Microsoft.
Analytics revenue of £220 million was up 4.9% primarily driven by the increased usage of Yield Book’s fixed income analytics and loan data.
Our historical analytics were made available via Snowflake, giving customers additional flexibility in generating analytics.
Cost of sales of £809 million reflects the cost of purchased content and royalties, including news, specialist data and exchange data, which are
required for the Data & Analytics products. Growth at 2.6% on a constant currency basis was below that of revenues.
Adjusted operating expenses before depreciation, amortisation and impairment of £1,817 million grew 2.5% on a constant currency basis.
Careful management of staff costs and the ongoing delivery of synergies related to the Refinitiv acquisition meant cost growth was below that
of revenues despite ongoing investment in the Microsoft partnership and other product development initiatives.
Adjusted EBITDA of £1,748 million was up 6.5% on a constant currency basis and the adjusted EBITDA margin increased 250 basis points to 43.6%
from the operational leverage generated and the FX benefit from the fair value gain on embedded derivative contracts. Adjusted operating profit
was up 7.4% on a constant currency basis.
Subscription revenue KPIs
2024 2023
Annual subscription value growth (%)
1
6.3% 6.7%
Subscription revenue growth (%)
1,2
5.9% 7.1%
1 ASV metric is based on subscription revenues in Data & Analytics, FTSE Russell and Risk Intelligence. Organic, constant currency variance.
2 12-month rolling.
London Stock Exchange Group plc
Annual Report 2024
50
Financial review continued
FTSE Russell
2024
£m
2023
£m
Variance
%
Organic,
constant
currency
variance
%
Subscriptions 611 563 8.5% 10.3%
Asset-based 307 281 9.3% 11.9%
Total revenue 918 844 8.8% 10.9%
Cost of sales (63) (60) 5.0% 7.0%
Gross profit 855 784 9.1% 11.2%
Adjusted operating expenses before depreciation, amortisation and impairment (264) (259) 1.9% 8.0%
Adjusted EBITDA 591 525 12.6% 12.6%
Adjusted depreciation, amortisation and impairment (63) (60) 5.0% 6.7%
Adjusted operating profit 528 465 13.5% 13.4%
Adjusted EBITDA margin 64.4% 62.2%
FTSE Russell provides customers with index and benchmark solutions across asset classes and investment objectives.
Total revenue of £918 million grew by 10.9% driven by strong performances across both subscription and asset-based revenues.
Subscriptions revenue of £611 million increased by 10.3% driven by continued strong demand for our flagship equity indices and benchmarks.
There has been good sales momentum across our equity products and commercialisation of new products, including the Hong Kong Treasury
Markets Association’s interest rate and foreign exchange benchmarks.
Asset-based revenue of £307 million grew by 11.9% reflecting favourable year-on-year market trends, particularly in US equities, and good inflows
driving record AUM levels.
Cost of sales of £63 million grew 7.0% and consists of third-party data costs and payments related to revenue share agreements.
Adjusted operating expenses before depreciation, amortisation and impairment increased to £264 million. Adjusted EBITDA of £591 million grew
12.6%, and the adjusted EBITDA margin of 64.4% saw an improvement of 220 basis points on the prior year driven by a strong top line performance
and good cost control through the reorganisation of the division.
KPIs
2024 2023
Variance
%
Index – ETF AUM ($bn)
— Period end 1,433 1,245 15.1%
— Average 1,340 1,108 20.9%
51 London Stock Exchange Group plc
Annual Report 2024
Strategic Report
Financial review continued
Risk Intelligence
2024
£m
2023
£m
Variance
%
Constant
currency
variance
%
Organic
constant
currency
variance
%
Total revenue 531 492 7.9% 10.1% 11.3%
Cost of sales (46) (43) 7.0% 11.0%
Gross profit 485 449 8.0% 10.0%
Adjusted operating expenses before depreciation, amortisation and
impairment (199) (215) (7.4%) 1.0%
Adjusted EBITDA 286 234 22.2% 17.5%
Adjusted depreciation, amortisation and impairment (43) (44) (2.3%) (1.0%)
Adjusted operating profit 243 190 27.9% 21.6%
Adjusted EBITDA margin 53.9% 47.6%
Risk Intelligence provides businesses with screening tools for customers and third parties, digital identity and fraud verification, and enhanced
due diligence solutions.
Total revenue of £531 million grew 11.3%. We continue to see strong regulatory and risk-driven customer demand for Anti Money-Laundering (AML)
and Know Your Customer (KYC) solutions in our screening business, World-Check. Our digital identity and fraud business saw good volume growth
and a strong pipeline of product delivery including the launch of document and biometric verification and global account verification to defend
against fraud. These were partially offset by continued weakness in our due diligence business.
In April, we disposed of a small client onboarding solutions business which generated £8 million in revenue in 2023.
Cost of sales of £46 million, comprising data and content costs, increased 11.0% on a constant currency basis, broadly in line with revenue.
Adjusted operating expenses before depreciation, amortisation and impairment of £199 million increased by 1.0% on a constant currency basis,
reflecting strong cost control in the period.
Adjusted EBITDA was £286 million, and the adjusted EBITDA margin increased 630 basis points to 53.9% driven by the strong top line performance,
cost control and 75 basis points FX benefit from the fair value gain on embedded derivative contracts. Adjusted operating profit was up 21.6% on
a constant currency basis.
London Stock Exchange Group plc
Annual Report 2024
52
Financial review continued
Capital Markets
2024
£m
2023
£m
Variance
%
Constant
currency
variance
%
Organic
constant
currency
variance
%
Equities 236 227 4.0% 4.6% 4.6%
Fixed Income, Derivatives & Other 1,334 1,068 24.9% 28.4% 23.1%
FX 258 251 2.8% 6.1% 6.1%
Total revenue 1,828 1,546 18.2% 21.3% 17.8%
Cost of sales (40) (35) 14.3% 15.7%
Gross profit 1,788 1,511 18.3% 21.4%
Adjusted operating expenses before depreciation, amortisation
and impairment (846) (715) 18.3% 21.8%
Adjusted EBITDA 942 796 18.3% 21.0%
Adjusted depreciation, amortisation and impairment (167) (128) 30.5% 34.3%
Adjusted operating profit 775 668 16.0% 18.5%
Adjusted EBITDA Margin 51.5% 51.5%
Capital Markets provides businesses with access to capital through issuance, and offers secondary market trading for equities, fixed income,
interest rate derivatives, foreign exchange (FX) and other asset classes.
Total revenue of £1,828 million grew 17.8% with the increase primarily driven by Fixed Income, Derivatives & Other.
Equities revenue of £236 million increased 4.6% driven by improving market conditions. In secondary trading, average daily value traded was
up 13.5% against the prior period.
Fixed Income, Derivatives & Other revenues primarily comprised Tradeweb, a global operator of electronic marketplaces for rates, credit, equities
and money markets. Revenue of £1,334 million was 28.4% higher including a 5.3% benefit from acquisitions in the year. Average daily volume across
all asset classes was $2.2 trillion, a 36.6% increase on 2023, excluding the ICD acquisition, representing strong market activity across Tradeweb’s
global asset classes and share gains in credit.
Tradeweb completed two acquisitions in the year: r8fin, a provider of algorithmic-based execution for US Treasuries and interest rate futures;
and ICD, a cash management platform for corporate treasurers.
FX revenue of £258 million increased 6.1%. Both our platforms, FXall, our dealer-to-client platform, and FX Matching, our dealer-to-dealer platform,
saw growth in the year, driven by higher volatility in the market.
Cost of sales increased 15.7%, on a constant currency basis, to £40 million. These costs primarily reflect expenses within the Tradeweb business
relating to data feeds, and approximately half of the increase related to the in-year impact of the acquired businesses.
Adjusted operating expenses before depreciation, amortisation and impairment of £846 million were up 21.8% on a constant currency basis, again
driven by the strong revenue growth and corresponding investment at Tradeweb, alongside additional costs from the r8fin and ICD acquisitions.
Adjusted EBITDA rose to £942 million, growing 21.0% on a constant currency basis, as a result of the top line growth at Tradeweb. Adjusted EBITDA
margin was constant at 51.5% (2023: 51.5%) as Tradeweb’s top line outperformance was balanced with performance-linked variable compensation
and investments made for the future.
53 London Stock Exchange Group plc
Annual Report 2024
Strategic Report
Financial review continued
KPIs
2024 2023
Variance
%
Equities
Secondary Markets – Equities
Average daily value traded (£bn) 4.2 3.7 13.5%
SETS yield (bps) 0.69 0.71 (2.8%)
FX
Average daily total volume ($bn) 479 442 8.3%
Fixed income, Derivatives and Other
Tradeweb Average Daily Volume ($m)
Rates – cash 483,627 366,586 31.9%
Rates – derivatives 783,269 529,757 47.9%
Credit – cash 16,040 12,376 29.6%
Credit – derivatives 17,653 14,030 25.8%
Post Trade
2024
£m
2023
£m
Variance
%
Constant
currency
variance
%
Organic
constant
currency
variance
%
OTC Derivatives 582 517 12.6% 13.9% 10.8%
Securities & Reporting 235 254 (7.5%) (6.3%) (6.3%)
Non-Cash Collateral 111 107 3.7% 4.9% 4.9%
Total revenue 928 878 5.7% 7.0% 5.2%
Net Treasury Income 266 289 (8.0%) (6.3%) (6.3%)
Total income 1,194 1,167 2.3% 3.7% 2.4%
Cost of sales (215) (195) 10.3% 13.0%
Gross profit 979 972 0.7% 1.8%
Adjusted operating expenses before depreciation, amortisation
and impairment (432) (403) 7.2% 7.6%
Adjusted EBITDA 547 569 (3.9%) (2.3%)
Adjusted depreciation, amortisation and impairment (137) (123) 11.4% 13.7%
Adjusted operating profit 410 446 (8.1%) (6.7%)
Adjusted EBITDA Margin 45.8% 48.8%
London Stock Exchange Group plc
Annual Report 2024
54
Post Trade provides clearing, risk management, capital optimisation
and regulatory reporting solutions. Total revenue of £928 million grew
7.0% on a constant currency basis, and 5.2% organically. Total income,
including Net Treasury Income, was £1,194 million, up 2.4% year-on-year.
OTC Derivatives revenue increased to £582 million, up 13.9% on
a constant currency basis, partly reflecting the in-year benefit of the
Acadia acquisition. Organic growth of 10.8% was driven by greater
clearing activity resulting from the higher volatility stemming from
the macroeconomic environment, and price increases in SwapClear.
ForexClear also performed well in the year, with the service
growing 12%.
Securities & Reporting revenue of £235 million declined 6.3% reflecting
the impact of the termination of the Euronext clearing agreement, with
the last of the products, listed derivatives, migrating in September 2024.
RepoClear continued to see good growth driven by higher volumes.
Non-Cash Collateral revenue of £111 million grew 4.9% as clearing
members optimised their collateral positions from cash to non-cash.
Net Treasury Income (NTI) of £266 million decreased 6.3% as average
cash collateral balances declined by 16.4%, reflecting collateral
optimisation by customers. This was partially offset by higher
treasury margins.
Cost of sales of £215 million (2023: £195 million) increased 13.0%
on a constant currency basis, largely driven by revenue share
arrangements primarily relating to the SwapClear business.
Adjusted operating expenses excluding depreciation, amortisation and
impairment of £432 million grew 7.6%, and includes the annualisation
impact of Acadia’s operating expenses, after the acquisition closed in
March 2023.
As a result, adjusted EBITDA of £547 million decreased 2.3% on
a constant currency basis. The adjusted EBITDA margin declined to
45.8% (2023: 48.8%), impacted by the loss of revenue related to the
Euronext migration, annualisation of Acadia, and the net decline in
income generated from collateral. We continue to focus on new areas
of growth and increased efficiency to mitigate the impact of the loss
of revenue from Euronext.
LSEG acquired a further 11.6% of the share capital in LCH Group
Holdings Limited from certain minority shareholders over two
transactions during the year. This took LSEG’s ownership of
LCH Group Holdings Limited to 94.2%.
From 2025, Capital Markets and Post Trade will be reported under
a single Markets division, reflecting management reporting lines.
There is no change to individual revenue lines, which will continue to
be reported on the same basis.
KPIs
2024 2023 Variance %
OTC
Interest rate swap –
notional cleared ($trn) 1,601 1,319 21.4%
Interest rate swap –
client trades (‘000) 3,990 3,172 25.8%
FX – notional cleared ($bn) 36,617 27,320 34.0%
FX – ForexClear members 39 38 2.6%
Securities & Reporting
EquityClear trades (m) 1,024 1,471 (30.4%)
Listed derivatives
contracts (m) 153.8 218.9 (29.7%)
RepoClear – nominal
value (€trn) 309.9 304.9 1.6%
Collateral
Average non-cash
collateral (€bn) 200.6 180.8 11.0%
Average cash collateral (€bn) 109.0 130.4 (16.4%)
Cash Flow
Cash Flow
1
2024
£m
2023
£m
Operating cash flow 3,971 3,223
Net interest paid
2
(180) (93)
Other items
3
(99) (118)
Net taxes paid (395) (217)
Capex (957) (1,031)
Lease payments
2
(156) (156)
Equity free cash flow
2
2,184 1,608
Disposals
4
385 –
Acquisitions
5
(1,173) (618)
Acquisitions and disposals of financial assets (17) 223
Dividends to LSEG shareholders (642) (611)
Net borrowings 360 1,157
Share buybacks (1,052) (1,235)
Other (92) (37)
Net cash flow (47) 487
1 Group cash flow does not include cash and cash equivalents held by the Group’s Post Trade
operations on behalf of the Group’s clearing members for use in their operations as
managers of the clearing and guarantee systems. These balances represent margins and
default funds held for counterparties for short periods in connection with these operations.
Movements in net clearing member balances include interest paid and received thereon.
2 Equity free cash flow is the cash generated before M&A, returns to shareholders and
financing activities. We have redefined equity free cash flow to deduct principal repayments
under leases of £156 million (2023: £156 million) and interest charges on commercial paper
of £72 million (2023: £29 million).
3 Includes dividends received, dividends paid to non-controlling interests and sales
commissions paid.
4 Disposals include the proceeds from the Euroclear stake sale (£377 million) and a small
client onboarding solutions business in Risk Intelligence (£8 million).
5 Acquisitions is the net of cash paid for purchase consideration less cash and cash
equivalents held by the acquired entity.
Financial review continued
55 London Stock Exchange Group plc
Annual Report 2024
Strategic Report
The Group’s business continued to be strongly cash generative during
the year, with operating cash flow of £3,971 million (2023: £3,223 million).
The £748 million increase from the previous year reflects a strong
top line performance, improving profitability and a lower working
capital outflow.
Cash outflows for capex (purchases of property, plant and equipment
and intangibles) amounted to £957 million (2023: £1,031 million),
which includes our business-as-usual investment programmes as
well as investments related to the Refinitiv integration.
Equity free cash flow was £2,184 million (2023: £1,608 million),
representing 113% conversion of profits attributable to LSEG
shareholders, an increase of 22% from the prior year (2023: 91% on
a consistent basis). During the year the Group deployed £1,173 million
on the acquisitions of ICD and r8fin, and the incremental 11.6% of LCH
Group purchased from the minority interests. Dividends paid to LSEG
shareholders during the year were £642 million, with the increase from
last year reflecting the continued strong growth in dividends per share,
partly offset by the lower share count. £1,052 million was spent on share
buybacks which consists of £1.0 billion share buybacks undertaken by
LSEG, £47 million undertaken by Tradeweb as part of their ongoing
share repurchase programme and other associated fees. The LSEG
share buyback was conducted over two off-market purchases of
£500 million each, from the former Refinitiv shareholders.
Disposals include the sale of the Group’s 4.92% stake in Euroclear for
£377 million.
Net cash outflow, after organic and inorganic investments and other
normal course payment obligations, was £47 million. When combined
with foreign exchange translation, this contributed to the 2.9% year-on-
year decline of cash and cash equivalents to bring the total to £3,475
million as at 31 December 2024 (31 December 2023: £3,580 million).
Net Debt/Leverage/Ratings
Net Debt
At 31 December
2024
£m
2023
£m
Gross borrowings 9,965 9,699
Cash and cash equivalents (3,475) (3,580)
Net derivative financial assets (36) (23)
Net debt 6,454 6,096
Less lease liabilities (634) (636)
Regulatory and operational amounts 1,358 1,348
Operating net debt 7,178 6,808
At 31 December 2024, the Group had operating net debt of £7,178
million (31 December 2023: £6,808 million) after setting aside £1,358
million for regulatory and operational amounts. The increase was driven
by acquisitions made by the Group and the share buyback programme,
partially offset by operational cash generation and the disposal of the
Euroclear stake.
At 31 December 2024 leverage
1
was 1.7x, reducing slightly compared
to the previous year (2023: 1.8x). The Group remains well positioned
within its targeted leverage range of 1.5x-2.5x times operating net
debt to adjusted EBITDA before foreign exchange gains and losses.
The Group has access to committed revolving credit facilities of
£3.0 billion, consisting of a £1,925 million facility and a £1,075 million
facility, both maturing in December 2027. In addition Tradeweb has
a $500 million facility expiring in November 2028. No drawings were
outstanding under either the Group facilities or the Tradeweb facility
as at 31 December 2024 (31 December 2023: £nil).
As part of the ongoing financing of the Group, in March 2024, LSEG
issued $1.25 billion of 3-year and 10-year bonds, using the proceeds to
repay maturing bonds and commercial paper. In September, we raised
€600 million through a bond issuance and a further $100 million through
a private placement, both with 3-year maturities.
In December 2024, the Group completed a tender offer to repurchase
$250 million of the $1,250 million bond maturing in 2031.
LSEG is rated A with stable outlook by Standard & Poor’s and A3
with stable outlook by Moody’s. LCH Limited and LCH SA are rated
AA- with stable outlook by Standard & Poor’s.
Foreign Exchange
The majority of LSEG revenues and expenses are in US dollars followed
by sterling, euro and other currencies.
USD GBP EUR Other
2024 Total Income¹ 58% 16% 17% 9%
2024 Underlying
Expenses² 52% 24% 9% 15%
2024 Total Income
by division USD GBP EUR Other
Data & Analytics
1
62% 8% 15% 15%
FTSE Russell 70% 22% 3% 5%
Risk Intelligence 63% 9% 16% 12%
Capital Markets 62% 16% 20% 2%
Post Trade 26% 40% 32% 2%
1 Total income includes recoveries.
2 Underlying expenses includes cost of sales and adjusted operating expenses.
Spot/Average Rates
Average
rate 12
months
ended
31-Dec-24
Closing
rate at
31-Dec-24
Average
rate 12
months
ended
31-Dec-23
Closing
rate at
31-Dec-23
GBP : USD 1.278 1.251 1.243 1.275
GBP : EUR 1.181 1.205 1.150 1.154
For definitions of technical terms – refer to the Glossary from page 252.
Financial review continued
1 Leverage is calculated as operating net debt (i.e. net debt before lease liabilities and after
excluding amounts set aside for regulatory and operational purposes) to adjusted EBITDA
before foreign exchange gains and losses.
Sustainability
Our approach to sustainability
Enabling sustainable growth is a strategic
objective of the Group and is embedded in
our purpose. This means we play our role
in supporting the transition to a sustainable
economy. While our customers continue
to integrate sustainability into many
aspects of their business we note that
geopolitical tensions and political changes
could affect the pace of change in some
markets. Despite this, strong policy and
market forces continue to drive the
long-term direction and evolution of
the global economy.
How we report our progress
We make sustainability-related disclosures across three main
publications: this section of our Annual Report, our Sustainability
Report and our Sustainability Databook. We recommend that
readers who want to understand the entirety of our approach
to sustainability read these publications together. We also
publish additional sustainability-related materials on our website:
www.lseg.com/en/sustainability-strategy/disclosures-and-reports
LSEG is preparing to report in line with the EU Corporate
Sustainability Reporting Directive (CSRD) from the 2025 financial
year and the IFRS Sustainability Disclosure Standards in future.
As such, the way in which we report on sustainability information
will evolve in accordance with these regulations.
London Stock Exchange Group plc
Annual Report 2024
56
57 London Stock Exchange Group plc
Annual Report 2024
Strategic Report
Sustainability continued
Our strategic framework for sustainability
Full details on our sustainability strategy can be found in our 2024
Sustainability Report. This section of our Strategic Report (pages 56
to 72) provides information on the topics required to be included
in our Non-Financial and Sustainability Information Statement.
Our approach to sustainability is guided by LSEG’s purpose to
drive financial stability, empower economies and enable customers
to create sustainable growth. This shapes everything we do and
helps us to deliver long-term value for our stakeholders. One of LSEG’s
Group Strategic Objectives (GSOs) is to establish LSEG as a strategic
enabler and steward of sustainable economic growth. This strategic
objective is embedded in the business, as each division and function
is required to set an aligned divisional objective in support of the
GSO, with KPIs attached.
The pursuit of sustainable economic development and related transition
to a sustainable global economy demands genuine partnership and
collaboration. Our sustainability strategy sets out how we work with
our customers, colleagues, partners, communities and policymakers
to support the transition to a sustainable future.
Our strategic framework for sustainability
How we deliver
Our objective
To be a strategic enabler and steward of sustainable
economic growth
Our values
Everything we do is grounded in our values
of integrity, partnership, excellence and change
Key sustainability themes
Sustainable
finance
market
engagement
and policy
advocacy
Transforming
our own
operations
Sustainable
finance
products and
solutions
Empowering
communities
Climate
transition
Growth of the
green economy
Inclusive
economic
opportunity
Our sustainability strategy is shaped around the sustainability macro
trends and more specific issues which are most relevant to our business
and our customers. The sustainable macro trends most relevant to our
business include:
— Climate transition – the decarbonisation of traditional industries and
sectors through reduction in carbon emissions, energy efficiency
and transition to renewable sources of energy
— Growth of the green economy – creation and scaling of new
products, solutions and technologies that address environmental
and social challenges
— Inclusive economies – equality, social inclusion and protection of
human rights to underpin sustainable development
Specific sustainability issues, most relevant to our particular business,
are determined through a materiality assessment. We commissioned
an independent materiality assessment in 2021, details of which can
be found on page 8 of our 2021 Sustainability Report, and a double
materiality assessment in 2024, aligned with the requirements of the
CSRD. This identified issues which are deemed material due to the
associated financial risk or opportunity for LSEG, and/or due to the
impact our organisation has on people or the environment. This will
form the basis of our reporting from FY2025 onwards.
We deliver on our objective to be a strategic enabler of sustainable
economic growth in four core ways:
— Sustainable finance products and solutions: We partner with
our customers, providing market data, insights and infrastructure,
to help them adapt to, manage and benefit from the transition
to a sustainable economy.
— Sustainable finance market engagement and policy advocacy:
We engage with market participants and policymakers to create
standards, practice and policy that underpin a sustainable
financial market.
— Transforming our own operations: We are embedding sustainability
into our business operations, managing sustainability risk, reducing
our environmental footprint and supporting equity, diversity
and inclusion (EDI).
— Empowering communities: We engage with communities across the
world helping to create economic opportunity through education,
enterprise and employment.
To help us pursue our objective we have set ourselves goals. More
detail about these can be found in our 2024 Sustainability Report.
They relate to our greenhouse gas (GHG) emissions, supplier
engagement, EDI, sustainable finance and volunteering.
London Stock Exchange Group plc
Annual Report 2024
58
Sustainability continued
Sustainability governance at LSEG
The LSEG Board has ultimate oversight of the sustainability strategy,
including its management of climate-related risks, opportunities
and our Climate Transition Plan. Typically, the Board agenda includes
sustainability at least twice a year.
The Audit Committee oversees applicable sustainability-related
reporting requirements, while the Board Risk Committee oversees
and advises the Board on the current risk exposures and profile of
the Group including sustainability risks, emerging risks and future
risk strategy and risk culture.
The Executive Committee, led by the Group CEO, is responsible for
setting the Group’s sustainability ambition and strategy and monitoring
sustainability progress.
The Sustainability Committee (an Executive Committee subcommittee)
provides direction and oversight of the Group’s overall sustainability
strategy and programmes, including LSEG’s Climate Transition Plan.
The Sustainability Committee is responsible for approving the Group’s
sustainability reporting. The Sustainability Committee, chaired by the
Chief Risk Officer, meets at least four times a year, and reports to the
Executive Committee quarterly.
The Executive Risk Committee is responsible for the consideration and
oversight of risk matters, including those which relate to sustainability.
More information on our sustainability governance structure and
Committee details can be found on pages 12, 13 and 57 of the 2024
Sustainability Report.
Board and Executive Committee sustainability skills and experience
It is essential that the Board and Executive Committee effectively
oversee and challenge the Group’s sustainability strategy and its
execution. The skills and expertise needed to perform this function
are developed through a mix of sustainability knowledge, and the
provision of tailored briefings and educational resources.
All members of the Board and Executive Committee have access to
Sustainability Unlocked, an online sustainability learning portal with
tailored learning pathways. This includes recommended content
suitable for Non-Executive Directors.
A Board effectiveness review is carried out annually in line with the
UK Corporate Governance Code with a review being externally
facilitated every three years. These reviews incorporate sustainability
considerations. More details on the latest review can be found on
page 106 of this report.
More information on our sustainability
governance structure and Committee
details can be found on pages 12, 13 and 57
of the 2024 Sustainability Report:
www.lseg.com/en/sustainability-strategy/
disclosures-and-reports
Our sustainability risk management
Sustainability is a strategic risk in the Group Risk Taxonomy and is
embedded in the Enterprise Risk Management Framework (ERMF).
The Sustainability Risk Framework builds on the ERMF and provides
further detail on the required control environment for sustainability-
related risk, which specifically defines roles and responsibilities to
deliver expected outcomes in relation to sustainability risks. The
dedicated Sustainability Risk team is responsible for developing a
Group-wide view of the management and status of sustainability risks
and provides second line support to the business to review and
challenge its sustainability risk profile. The Sustainability Risk team
reports to the Non-Financial Risk Committee (NFRC) when specific
issues arise, and to the Board Risk Committee no less than annually
and as needed.
LSEG’s Internal Audit team incorporates sustainability into its audit
schedule, embedding sustainability as part of other audits, or by
undertaking specific sustainability-focused audits.
Non-financial and sustainability information statement
Under Sections 414CA and 414CB of the Companies Act 2006, we
are required to include in our Strategic Report a non-financial and
sustainability information statement. This section of our Strategic Report
(pages 56 to 72) provides information on the following topics required to
be included in our non-financial and sustainability information statement:
environmental matters; our employees; social matters; human rights;
and anti-corruption & bribery. Other required information can be found
across the rest of this Annual Report, with locations and page numbers
summarised below.
Details of relevant policies, due diligence processes and the outcomes
of these policies and processes are contained throughout this
Sustainability section of the Strategic Report. Further detail on
all of these topics can be found within our broader Sustainability
Report. More information on our policies can also be found here:
www.lseg.com/en/sustainability-strategy/governance
Non-financial and sustainability information statement content index
Business model description Pages 4 to 5
Principal risks and how they are managed Pages 81 to 90
Non-financial key performance indicators Pages 20 to 21
Climate-related financial disclosures aligned to the
Taskforce on Climate-related Financial Disclosure
(TCFD) requirements Pages 68 to 71
Environmental matters Pages 64 to 72
Company employees Pages 59 to 61
Social matters Page 62
Respect for human rights Page 63
Anti-corruption and bribery matters Page 63
Further detail on all of these
topics can be found within our
2024 Sustainability Report.
More information on our policies can also
be found here: https://www.lseg.com/en/
sustainability-strategy/governance
59 London Stock Exchange Group plc
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Strategic Report
Sustainability continued
Inclusion and development
LSEG’s colleagues are central to our ability
to contribute to a sustainable future and
achieve our purpose. We aim to create a
culture of belonging, a workplace that is truly
representative of all sections of society and our
customers, and that is fair and inclusive for all.
Engaging our colleagues
Our LSEG Engage survey took place again in 2024, offering an
opportunity for all colleagues to provide feedback and ideas on
achievements and improvement points at LSEG. Almost 21,000
colleagues (81%) shared feedback via the Engage survey, sharing
20,509 comments, with key themes focused on culture, feedback,
communication, recognition and careers. Our overall engagement score
remains stable at 74, one point lower than 2023. The engagement score
is a combined measure of responses to questions on colleague
satisfaction and likelihood to recommend LSEG as a place to work.
The survey revealed that most colleagues feel supported by their
People Leader and can successfully balance work and personal life.
While engagement has improved across some areas, other areas
were identified for improvement, including customer focus, valuing
perspectives at all levels and communication from senior leaders.
In addition to the LSEG Engage survey, we continued other forms
of colleague engagement, such as Global and Divisional townhall
meetings, as well as conversations between colleagues and Board
members, and colleagues and Executive Committee members.
These conversations involve small groups of colleagues, providing
management with an opportunity for listening, feedback and discussion.
In 2024, four conversations with Board members and 11 conversations
with Executive Committee members were held.
Learning and development
Enabling our colleagues to broaden their skills and experience,
grow their careers and perform at their best is crucial to our success.
We use Career Navigator, a personalised platform that enables
colleagues to explore potential career paths, identify gaps in skills and
competencies and search for internal roles. To date, 56% of colleagues
have used Career Navigator. In 2024, we piloted an approach to
promotion that included People Leaders using insights from Career
Navigator to assess the competency of an individual against specific
skills required of the role. This pilot successfully informed round 1 of the
2024 promotion cycle. The percentage of vacancies filled internally at
LSEG also continues to improve. At the end of 2024, 42% of total hires
were filled internally (in comparison with 36% in 2023).
With respect to sustainability education we offer all colleagues access
to resources via Sustainability Campus, which is a central information
hub to help colleagues build their sustainability knowledge at their own
pace. Additionally, a dedicated learning portal provided by Sustainability
Unlocked is available to 2,000 colleagues who need to develop
a deeper level of sustainability knowledge relevant for their role.
LSEG’s values
In September 2024, we celebrated one year since our new
values were launched. See page 33 of our 2024 Sustainability
Report for more information.
Change
We embrace change.
We combine human
ingenuity, technology, risk
management, and insight
to create the products and
services that lead and
shape the industry.
Excellence
Our breadth of capabilities
sets us apart, globally.
We achieve industry-leading
outcomes by combining
unique, diverse
perspectives and
knowledge across markets.
Partnership
Our open model is integral
to how we do business.
We forge long-term
relationships; we work
together to solve evolving
needs and deliver
strategic outcomes.
Integrity
We stand by our
principles and deliver on
our promises. We earn trust
by acting responsibly .
Colleague health and wellbeing
It is important for us to create a healthy and resilient organisation where
colleagues can perform at their best and are motivated to contribute
to organisational success. Day-to-day management of colleague
wellbeing rests with the Group Head of Total Reward, Performance
& EDI, who reports to the Chief People Officer. Our approach to
wellbeing covers four pillars: emotional, physical, financial, and social
wellbeing. All colleagues have access to the Employee Assistance
Programme (EAP), a free, anonymous service available 24/7. We also
have a range of services and policies to support colleagues with topics
including: physical and mental health, family planning, menopause,
bereavement and flexible working. More information on our wellbeing
approach can be found on our website.
In 2024, as part of our commitment to create a truly inclusive culture,
we updated our Global Parental Leave Policy for all new parents at
LSEG with at least one year’s continuous service. These colleagues are
now entitled to at least 26 weeks paid leave, and the option to return
to work on a phased basis, working 80% of their normal hours for eight
weeks, all while keeping their full pay. Additional leave is also available
to any colleagues whose baby requires neonatal care.
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60
Sustainability continued
An inclusive workplace
We continued to focus on creating a culture of belonging and
a workplace that is representative of all sections of society and our
customers. In 2024, we further evolved our EDI strategy. Our ambition
can be distilled into four key aspects:
— Create a culture of belonging for all
— Build a global and diverse leadership team that is held accountable
for creating an inclusive culture
— Create merit-based equitable processes, enabling attraction,
retention and promotion of a global, diverse pipeline of talent
— Lead the industry in promoting equality of opportunity for all
During 2024, we continued to work, through merit-based hiring and
promotion, towards our goals of maintaining at least 40% women in
senior leadership
1
and of 25% ethnic minority representation in senior
leadership
1
by 2027.
As at the end of 2024, we maintained our female representation with
41% of women in senior leadership positions and increased our ethnic
minority representation by two percentage points to 16%.
In 2025, we will continue to focus on merit-based inclusive hiring and
progression at senior leadership level, monitoring progress through our
business-unit specific action plans around merit-based talent acquisition
and talent management practices.
In 2024, we launched five e-learning modules to help everyone
across LSEG understand why EDI matters and why it forms a key
part of our values. By the end of 2024, 68% of colleagues have
completed the modules.
We operate a zero-tolerance policy against any form of racism,
discrimination, prejudice or harassment, and our approach to this
is set out in our EDI Policy available here: www.lseg.com/en/
sustainability-strategy/governance
More detail on our gender and ethnicity data
can be found in our 2024 Sustainability
Report and 2024 Sustainability Databook.
2022
40%
42%
41%
2023 2024
Women in senior leadership roles
15%
14%
16%
Ethnic minority representation in senior leadership roles
2022 2023 2024
In accordance with Section 414C(8)(c) and Section 414C(9) & (10) of the Companies Act 2006, we have disclosed the gender diversity of Directors,
senior managers and employees at LSEG in the table below.
Scope Unit 2024 2023 2022
Gender
Women on LSEG plc Board Global Number/
Percentage
4/36% 5/42% 6/46%
Men on LSEG plc Board 7/64% 7/58% 7/54%
Women in senior leadership roles (ExCo and Group Leaders) Global Number/
Percentage
39/41% 41/42% 42/40%
Men in senior leadership roles (ExCo and Group Leaders) 56/59% 57/58% 64/60%
Women People Leaders Global Number/
Percentage
1,503/35% 1,488/36% 1,388/35%
Men People Leaders 2,847/65% 2,672/64% 2,568/65%
Women in workforce Global Number/
Percentage
11,135/42% 10,928/43% 10,513/43%
Men in workforce 15,116/58% 14,680/57% 13,783/57%
1 Executive Committee and Group Leaders.
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Sustainability continued
Our approach to pay equity and pay equity data
LSEG is committed to building an equitable and inclusive environment
for all, including ensuring that the pay colleagues receive is free from
bias. This includes pay equity which ensures there are no discrepancies
in pay resulting from differences in personal characteristics, such as
gender, ethnicity, disability, sexual orientation, age or nationality.
To understand and reach pay equity, we review the ‘Raw pay gap’
which is the comparison of the mean and median pay between
gender/ethnicity groups across LSEG. From this, statistical analysis
is used to calculate both the ‘Identifiable’ pay gap and the
‘Non-Identifiable’ pay gap. The ‘Identifiable’ pay gap shows the
gap in pay between two groups that can be attributed to explainable
and objective factors. For example, seniority, job role, location,
business sector, experience and performance. The ‘Non-Identifiable’
pay gap shows the remaining pay gap once identifiable factors have
been accounted for. The remaining pay difference is unexplained by
the factors considered in our modelling.
The scope of our 2024 pay equity review included gender-related
pay data in all the 64 countries where we have colleagues, and
ethnicity-related pay data where we are able to collect sufficient
amounts of information, which is the UK and US.
We are focused on reducing all pay gaps with the goal of bringing the
Non-Identifiable gaps to below 1%. The results of our 2024 pay equity
review are detailed in the graphs on this page.
Our pay and performance policies apply globally and are regularly
reviewed by LSEG’s Executive Committee and Remuneration
Committee. Responsibility for analysis and reporting of pay equity
ultimately rests with the Group Head of Total Reward, Performance
& EDI, who reports to the Chief People Officer.
For a more detailed breakdown of our
Pay Equity data and reporting in 2024,
see our 2024 Sustainability Report.
Non-
Identifiable
1.4%
Raw
29.0%
Identifiable
27.6%
Non-
Identifiable
1.2%
Raw
29.2%
Identifiable
28.0%
2023 2024
The charts show the Raw gender pay equity gap reduced
in 2024 (in favour of males) and the percentage that is
attributed to Indentifiable and Non-Identifiable factors.
Gender pay gap
Non-
Identifiable
-0.3%
Raw
14.5%
Identifiable
14.9%
Non-
Identifiable
-0.8%
Raw
13.4%
Identifiable
14.2%
2023 2024
The charts show the Raw ethnicity pay equity gap increased
slightly in 2024 (in favour of white ethnic groups) and the
percentage that is attributed to Identifiable and Non-Indentifiable
factors (data from UK and US only).
Ethnicity pay gap
Ethnicity Scope Unit 2024 2023 2022
Underrepresented ethnic groups on LSEG plc Board Global Number/Percentage 1/9% 2/17% 2/15%
Underrepresented ethnic groups in senior leadership roles (Exco and Group Leaders) Global Number/Percentage 15/16% 13/14% 14/15%
Underrepresented ethnic groups as people leaders UK and US Number/Percentage 503/26% 494/26% 401/26%
Underrepresented ethnic groups in workforce UK and US Number/Percentage 2,214/33% 2,256/32% 1,933/33%
London Stock Exchange Group plc
Annual Report 2024
62
Sustainability continued
Investing in our communities
The LSEG Foundation is a grant-making
charity which helps people from underserved
communities access economic opportunities
and build a financially secure and
independent future.
The LSEG Foundation is the main channel for our community investment
and engagement and is an independent charity partner registered
with the Charities Commission for England and Wales. The LSEG
Foundation is overseen by a Trustee Board, including six internal
and two independent trustees. The Trustee Board is chaired by
the LSEG Chief People Officer.
The Foundation is a key part of LSEG’s ambition to create inclusive
and sustainable communities, as part of our sustainability strategy.
Working with charity and NGO partners, the Foundation delivers a range
of programmes across the globe enabling economic empowerment
through education, employment and enterprise. During 2024, the LSEG
Foundation granted £4,091,349 to 134 charity partners in its portfolio,
in 35 delivery countries. In terms of impact, the LSEG Foundation
has supported 263,695 people in 2024. Charity partners were also
supported through colleague volunteering, with 6,899 colleagues
using their paid annual volunteering days in 2024.
More detail about the LSEG Foundation,
its grant making and impact in 2024 can be
found in the 2024 Sustainability Report and
on the LSEG website: www.lseg.com/en/
about-us/lseg-foundation
LSEG Foundation at work
LSEG Foundation funding for Skills builder partnership continued
to focus on expanding its Global Accelerator Programme in 2024
to over 50 schools across the world, including skills learning
integration into national curriculums and providing direct local
teacher support, including the featured school in Bengaluru, India.
The LSEG Foundation partnered with Amigos Dos Bem,
supporting a group of socially vulnerable students in the
northeastern dryland region of Alagoas in Brazil, through
a transformational educational programme providing quality
teaching, transportation, food security and classroom materials.
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Sustainability continued
Operating our business responsibly
Integrity is one of LSEG’s values and operating
responsibly is simply how we do business.
This enables our stakeholders to trust us
to treat them fairly and we hold those same
stakeholders accountable to high standards
of behaviour.
Embedding responsible business conduct
LSEG’s Code of Conduct represents our personal and professional
commitment to hold ourselves to the highest standards. All colleagues
are required to complete mandatory training on our Code of
Conduct, and in 2024 99.9% of colleagues completed the training.
Some of the remaining 0.1% represents colleagues on long-term
leave e.g. parental leave.
LSEG’s Speak Up Policy and process exists to enable colleagues to
raise concerns about adherence to our Code of Conduct, relevant
laws and regulations or conduct which is potentially unethical or
harmful. LSEG’s Speak Up Policy outlines how concerns can be raised
confidentially while offering protection from retaliation and confidence
that colleague concerns will be assessed and thoroughly investigated.
Reports can be made anonymously if preferred via the 24-hour Speak
Up hotline which is independent from LSEG. All whistleblowing reports
are reviewed by a Speak Up triage team and reported to the Audit
Committee. In 2024, there were 201 reports made. All reports are
investigated fully, and action taken as appropriate.
The Group has zero tolerance for financial crime as it undermines
the rule of law, democratic processes, and the wellbeing and human
rights of citizens. It also distorts free trade and competition. Our
Financial Crime Policy sets out requirements to minimise financial crime,
which encompasses, but may not be limited to, money laundering,
terrorist financing, international sanctions, bribery and corruption, fraud
and false accounting, insider trading, market abuse, theft or misuse
of confidential information or other malpractice. Mandatory online
training on identifying and preventing financial crime is an annual
requirement for all colleagues.
Respecting human rights
Our Human Rights Statement, Modern Slavery Statement, Code of
Conduct and Supplier Code of Conduct set out the ways in which
we respect human rights across our business and supply chain.
With respect to LSEG colleagues and contractors, our Human Rights
Statement specifically commits us to: uphold the freedom of association
and the effective recognition of collective bargaining; eliminate all forms
of forced and compulsory labour; abolish child labour; and eliminate
discrimination in respect of employment and occupation.
These documents are all publicly available on our website:
www.lseg.com/en/sustainability-strategy/governance
In 2024, we evolved our human rights approach, as we engaged
a specialist consultancy to conduct an assessment of our salient human
rights to identify actual and potential human rights impacts relevant
to LSEG. The outputs of the assessment will inform the continued
development of processes to prevent negative human rights impacts
associated with LSEG’s business activity.
Maintaining high standards in our supply chain
LSEG has high standards and expectations that must be met by any
supplier. As part of our third-party risk management approach, we
assess prospective suppliers before we engage in business with them.
We apply comprehensive due diligence and screening processes to
check suppliers meet our high standards – for example, in relation to
cyber security, governance, risk management and sustainability.
Once onboarded, all suppliers are required to comply with our Supplier
Code of Conduct, which sets the standards and practices we expect
our suppliers to uphold, wherever they are in the world. The Code
covers bribery and corruption, payment of taxes, labour and human
rights, modern slavery, diversity and inclusion, and environmental
management. The template for our supplier contracts contains standard
clauses regarding many of these and other sustainability matters, as well
as the requirement to adhere to LSEG’s Supplier Code of Conduct.
London Stock Exchange Group plc
Annual Report 2024
64
Sustainability continued
Managing our climate impact
This section sets out LSEG’s approach to
climate change, including the related risks,
opportunities and impacts. Here, we also
set out targets in relation to our emissions.
This section responds to disclosure
requirements under UK Listing Rule 6.6.6R(8)
for reporting in line with the Taskforce for
Climate-related Financial Disclosure (TCFD)
and the Companies (Strategic Report)
(Climate-related Financial Disclosure)
Regulations 2022. Summary-level information
is presented in this section, while further detail
can be found in the 2024 Sustainability Report.
Climate-related risks, opportunities and impacts
Climate change presents both actual and potential risks and
opportunities, which impact LSEG in a number of ways over different
timeframes and varying magnitudes.
When identifying and assessing climate-related risks and opportunities
we consider these across the short term (0-3 years), medium term
(3-10 years) and long term (10-30 years), taking into account the
likelihood of occurrence and magnitude of impact.
We identify risks or opportunities that could have a ‘substantive financial
or strategic impact’ on LSEG, which have a potential impact over
£10 million. These risks and opportunities are those that could impact
business strategy and operations, our product portfolio, or our customer
relationships. We also consider emerging risks, which cannot yet be
fully assessed but that could, in the future, have substantive impact.
We categorise climate-related risk in two main ways: transition risks
which arise from the transition to a low-carbon economy, and physical
risks associated with the impacts of climate change.
Transition risk and opportunity
Relevant LSEG transition-related risks and opportunities are listed below.
These map back to LSEG’s principal risks (as disclosed on pages 81 to
90 of the Strategic Report).
— Policy and legal: Introduction of regulation, such as those related
to disclosure, impacts LSEG as we are required to comply with
international and national reporting requirements, or those associated
with climate-related products and services. These can introduce new
director duties, increase operational and compliance costs, and
impact the management of our climate-related risks and opportunities.
These regulatory changes also affect our customers, which in turn
creates an opportunity for LSEG to support them with appropriate
market data and infrastructure.
— Technology: We rely on technology to provide LSEG’s products
and services to customers, including data management in
data centres. Changes to technology, energy prices or carbon
costs could potentially impact LSEG’s operations and are
a sustainability-related impact.
— Market: As we transition towards a net zero economy our
customers’ needs are changing. There is growing demand for
sustainability-related market data and infrastructure that help to
inform investors, companies and financial institutions in terms of their
decision-making around strategy, capital raising and allocation and
investment. LSEG provides a large and growing range of sustainable
financial investment products and services to its customers.
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Sustainability continued
Transition-related risks occur across short, medium and long-term
time horizons, depending on the specific risk under consideration.
Policy-related risk is ever-present; we see implemented and proposed
sustainability regulation across global jurisdictions. Whereas technology
and market-related risks manifest over medium to longer-term
time horizons, as new technologies develop and customer
preferences evolve.
In 2023, we conducted analysis of transition risk specifically looking
at the potential costs of carbon under three recognised climate
scenarios from the Network for Greening the Financial System (NGFS).
This transition risk analysis can be found in the 2023 Sustainability
Report (pages 16 & 17).
In November 2024, the NGFS scenarios were updated with current
economic and climate data (Phase V update). The updates also
included: revised policy commitments which reflect new country-level
commitments to reach net-zero emissions; and up-to-date trends in
renewable energy technologies and key mitigation technologies and
broader geopolitical developments.
In line with the NGFS updates, we have updated our carbon pricing
scenario analysis against two scenarios, stress-testing our resilience
and projected financial exposure, across short, medium and long-term
time horizons. The scenarios we have updated our analysis against
are the following:
Net Zero 2050
This is an ambitious scenario that limits global warming to 1.5°C by
2100 through stringent climate policies and innovation, reaching net
zero emissions around 2050. This assumes ambitious, immediate and
smooth policy action and fast technological change. This scenario
results in an orderly transition.
Delayed Transition
This assumes global annual emissions do not decrease until 2030
and new climate policies are not introduced until then. The level
of action differs across countries and regions based on current
implemented policies. In this scenario there is a higher carbon
price than in the Net Zero 2050 scenario. This scenario results in
a disorderly transition.
While the results are broadly similar to our initial analysis conducted in
2023, the latest scenarios increase our exposure in the short term while
reducing medium-term financial impact. In the long-term, these results
do not change our initial assessment of impact materiality; under the
Net Zero 2050 scenario: if we fail to reduce our emissions as planned,
the annual cost could exceed $30 million over the longer-term time
horizon, and in the context of our Enterprise Risk Management
Framework, this is categorised as a significant financial risk. This
reinforces the need to reduce our emissions in line with our targets.
We will continue to model our financial exposure to carbon pricing
scenarios as NGFS scenarios are refined, on a yearly basis.
Physical risk
Physical climate risks arise from changing weather patterns associated
with climate change; examples of those that affect LSEG are as follows:
— Acute physical risks: The notable increase in the frequency and
severity of extreme weather events, such as floods, windstorm and
drought, are relevant to LSEG’s international property portfolio.
Extreme weather events could adversely impact our properties,
data centres, colleagues or surrounding infrastructure, which could
cause business interruption.
— Chronic physical risks: Increasing global average temperatures could
negatively impact LSEG. Some parts of our international property
portfolio are at greater risk of extreme temperatures which in turn
could require greater cooling to ensure business continuity, which
adds to operational costs.
In 2023, we conducted an analysis of physical risks to LSEG by using
recognised climate scenarios from the Intergovernmental Panel on
Climate Change (IPCC). From this analysis we concluded that, due to the
nature of LSEG’s business and operations, physical risks from climate
change present a lower threat to LSEG in comparison with the transition
risks. The vast majority of our buildings are leased, limiting our financial
exposure to long-term climate-related physical risks. The financial
impact of physical climate risks like flooding and windstorm are currently
considered in the ‘limited’ range of LSEG’s Enterprise Risk Management
(ERM) risk severity impact scale, increasing to ‘moderate’ under the high
emissions scenario. Further information about this analysis can be found
in the 2023 Sustainability Report, on pages 18 to 19.
The results of our updated carbon pricing scenario analysis are as follows:
Time frame
Scenario: Net Zero 2050 Scenario: Delayed Transition
Carbon price
$/tnCO
2
Reduced
emissions
profile
annual cost,
$m
BAU profile
annual cost
$m
Cum.
exposure
from 2025,
$m
Carbon price
$/tnCO
2
Reduced
emissions
profile
annual cost,
$m
BAU profile
annual cost
$m
Cum.
exposure
from 2025,
$m
Short 70 4.6 7.6 3.0 – – – –
Medium 104 4.8 13.2 33.0 – – – –
Long 183 0.8 31.2 225.1 128 0.5 21.8 109.7
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Annual Report 2024
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Sustainability continued
Our Climate Transition Plan
In 2022, we published our first Climate Transition Plan, with quantifiable
emission reduction pathways covering properties, data centres, travel,
commuting, working from home and purchased goods and services.
This plan received almost 99% support from shareholders when they
were invited to vote at our AGM in April 2022.
1
The document brought
together our operational climate targets and set out how we intend to
respond to and contribute to the transition to a low-carbon economy.
Since then, we have published our Climate Report in 2023, containing
progress updates against the original plan. This document is aligned
with the Transition Plan Taskforce (TPT) framework. More recently in
2024, we published our Climate Goals document in relation to our
products and services. This 2024 document sets goals with respect to
our role operating a stock exchange as well as our provision of data
analytics and indexes.
We have set science-based emission reduction targets, aligned with
the goal of the Paris Agreement. These meet the criteria of the Science
Based Targets initiative (SBTi) and use the Greenhouse Gas Protocol.
Targets are approved and validated by the SBTi and reflect a 1.5C
pathway to:
— Reduce absolute Scope 1 and 2 GHG emissions 50% by 2030
from a 2019 base year
— Reduce absolute Scope 3 GHG emissions from fuel and energy-
related activities (FERA), business travel, and colleague commuting
50% by 2030 from a 2019 base year
— Ensure that 67% of Scope 3 emissions from purchased goods and
services are covered by science-based targets by the end of 2026
While we have an ambition to reach net zero by 2040 we have not set
a formal, SBTi-approved target in respect of this date as we have been
prioritising work on our near-term targets. In future we will review
whether, and if so when, LSEG should formalise our net zero ambition
into a SBTi-approved target.
The following sections summarise progress against the operational
aspects of our Climate Transition Plan, set prior to 2024. Progress
relating to the additional climate goals associated with our products and
services set in 2024 can be found in a separate index available online:
www.lseg.com/en/sustainability-strategy/disclosures-and-reports.
Progress relating to the additional climate
goals associated with our products and
services set in 2024 can be found in
a separate index available online:
www.lseg.com/en/sustainability-strategy/
disclosures-and-reports.
1 We acknowledge that the 2022 resolution had envisaged further advisory votes on the
Climate Transition Plan every three years; however, this is no longer considered appropriate
given that commentary on our Climate Transition Plan is incorporated as part of our annual
TCFD disclosures, as mandated in UK Listing Rule 6.6.6R.
2022
37%
67%
44%
51%
2023 2024 2026
Target
Target: Ensure that 67% of Scope 3 emissions from purchased goods and
services are covered by science-based targets by end of 2026
2019
Base year
-50%
-83%
-90%
-55%
2022 2023 2024 2030
Target
Target: Reduce absolute Scope 1 and 2 GHG emissions 50%
by 2023 from a 2019 base year
2019
Base year
-50%
-49%
-25%
-69%
2022 2023 2024 2030
Target
Target: Reduce absolute Scope 3 GHG emissions from fuel and
energy-related activities (FERA), business travel, and colleague
commuting 50% by 2030 from a 2019 base year
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Managing and reporting our emissions
In 2024, LSEG conducted a review of our emissions data management
to ensure continuous improvement of greenhouse gas reporting in line
with the Greenhouse Gas Protocol. This exercise resulted in the
recategorisation of specified emissions and contributed to the reduction
in LSEG’s carbon footprint in 2024. Details of the recategorisation are
outlined on page 26 of our 2024 Sustainability Report. We have not
revised any prior year figures and will review our position with regard
to our baseline greenhouse gas emissions.
In 2024, our M&A due diligence process was updated to incorporate
climate risks and opportunities, and ensure that any new emissions are
efficiently incorporated into LSEG’s emissions inventory.
Progress against our operational climate targets
In 2024, our Group carbon footprint decreased by 47% relative to 2023.
This is partly due to the 2024 GHG emissions recategorisation exercise
where we have not revised any prior period figures. As a result of this
exercise, purchased goods and services saw several spend categories
excluded to prevent double counting of GHG emissions. This year our
Scope 1 and 2 emissions saw a 72% increase year-on-year compared
with 2023. This is driven by an expanded scope of fugitive emissions
reporting and an increase in market-based emissions, which are residual
emissions after the purchase of energy attribute certificates. With
respect to our target on Scope 1 and 2 (market) emissions, we closed
the year having achieved an overall reduction of 83% against our 2019
baseline. For our target on Scope 3 emissions from FERA, business
travel and colleague commuting, we closed the year having reduced
49% against our 2019 baseline and having reduced 32% in comparison
with 2023. This is driven by both a reduction in LSEG’s business travel
emissions and the removal of FERA from business travel data, and also
by methodology changes when calculating employee commuting
emissions. Considered together, this progress meant that, by the end
of 2024, we had reduced our carbon emissions addressed by our
Climate Transition Plan by 54% from a 2019 baseline.
Scope 3 emissions account for over 90% of our total carbon footprint
and 79% of this is from purchased goods and services alone. To reduce
these emissions, we are focused on engaging with our supply chain to
support them in setting their own emissions reduction targets. Our target
is to ensure that 67% of Scope 3 emissions from purchased goods and
services are covered by science-based targets by the end of 2026.
We are on target to achieve this, closing the year at 51%.
We publish comprehensive data regarding our GHG emissions in
our 2024 Sustainability Databook. We also publish a more detailed
description of progress against our operational climate targets in our
2024 Sustainability Report. In line with The Companies (Directors’
Report) and Limited Liability Partnerships (Energy and Carbon Report)
Regulations 2018, we publish our Streamlined Energy and Carbon
Report (SECR) table on page 72.
Our response to biodiversity loss
LSEG is an early adopter of the Taskforce for Nature-related Financial
Disclosures (TNFD). In 2024 we continued our engagement with an
external third party to identify and assess baseline nature-related
dependencies, impacts, risks and opportunities. In alignment with the
TNFD recommendations, we used an internal due diligence approach
called LEAP to conduct the assessment. Details of this assessment
and its findings can be found within the 2024 Sustainability Report.
We are committed to enhancing disclosure across the TNFD
recommendations over the coming years, along with integrating
industry advancements and best practices.
TCFD/CFD Statement of Compliance
LSEG has made disclosures against the four Task Force on
Climate-related Financial Disclosures (TCFD) recommendations and
the 11 recommended disclosures set out in Figure 4 of Section C of the
report entitled “Recommendations of the Task Force on Climate-related
Financial Disclosures” published in June 2017 by the TCFD. The
disclosures have been prepared and reported for LSEG, excluding
all Tradeweb entities, due to transitional challenges in meaningfully
reconciling Tradeweb’s data with the broader LSEG group, due to
differing data-gathering methodologies. For all recommended
disclosures, further work is under way to align data collection and
methodology to enable the appropriate inclusion of Tradeweb.
We aim to focus on this in 2025 to enable LSEG to prepare fully
consistent TCFD reporting in 2026. Please see page 17 of our
2024 Sustainability Databook for further information.
The climate-related financial disclosures made by LSEG plc comply
with the requirements of the UKLR 6.6.6R(8) and the Companies Act
2006 as amended by the Companies (Strategic Report) (Climate-related
Financial Disclosure) Regulations 2022 (CFD). Please see the TCFD
and CFD summary table for an overview of our approach.
Further detail about our Climate Transition Plan, including progress
against targets, can be found in our 2024 Sustainability Report and
comprehensive climate data is in our Sustainability Databook. We have
adopted this approach due to the comprehensive and technical content
of the climate-related financial disclosures and are better able to
provide comprehensive and decision-useful reporting in our 2024
Sustainability Report.
Sustainability continued
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68
Sustainability continued
TCFD and CFD disclosure table
Climate-related Financial Disclosure – TCFD and CFD
Cross-reference to
CFD requirements
Governance
Disclose the
organisation’s
governance around
climate-related risks
and opportunities.
The Board’s oversight of climate-related risks and opportunities
The LSEG Board has ultimate oversight of the organisation’s sustainability strategy and performance,
including its management of climate-related risks and opportunities and its Climate Transition Plan,
ensuring the long-term success of the Company and that stakeholders’ expectations are understood
and met.
During 2024, sustainability was on the Board agenda four times. The Audit Committee is responsible
for overseeing climate-related reporting. The Board Risk Committee is responsible for overseeing
the Group approach on sustainability risks and opportunities, including those arising from climate.
The Board is responsible for holding executive management to account for the delivery of its
sustainability strategy.
Management’s role in assessing and managing climate-related risks and opportunities
Sustainability is a strategic risk in the Group Risk Taxonomy and is embedded in the Enterprise
Risk Management Framework (ERMF). LSEG’s dedicated Sustainability Risk Team is responsible for
developing a Group-wide view of the management and status of sustainability risks and provides
second line support to the business to review and challenge its sustainability risk profile.
The Sustainability Risk Team reports to the Non-Financial Risk Committee when specific issues arise,
and to the Board Risk Committee no less than annually and as needed. The Board Risk Committee
is responsible for overseeing the Group approach on sustainability risks, including those arising from
climate. Climate-related risks and opportunities are also discussed at the Sustainability Committee as
appropriate. The Sustainability Committee is chaired by the Chief Risk Officer and meets four times
a year or more frequently as required. It reports to the Executive Committee quarterly and to the
Board at least annually.
The Climate Transition Steering Committee provides strategic direction and oversight of the Group’s
climate transition strategy. The Committee also addresses ongoing and future climate-related risk
exposure, and reports into the Sustainability Committee.
Further detail on sustainability governance and risk management can be found on page 58 and in
our 2024 Sustainability Report on pages 12 to 14 and 57.
The governance
arrangements in relation
to assessing
and managing
climate-related risks and
opportunities (414C – a)
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Sustainability continued
Climate-related Financial Disclosure – TCFD and CFD
Cross-reference to
CFD requirements
Strategy
Disclose the actual
and potential impacts
of climate-related risks
and opportunities on
the organisation’s
businesses, strategy
and financial planning
where such
information is material.
The climate-related risks and opportunities we have identified over the short, medium
and long term
Identifying risks is an ongoing process performed by the first line of defence. When a new risk
is detected, it must be evidenced and logged within the internal risk management tool, with
documented controls to manage and mitigate the risk. A Risk and Control Assessment (RCA) is
performed annually which assesses the design and operational effectiveness of our controls;
it generates risk profiles of all the risks that arise as a consequence of pursuing business objectives
and provides awareness of those that are within, near or outside appetite.
We also conduct a Group-wide materiality assessment which defines our impacts, risks and
opportunities. This exercise is conducted in full every three to five years and the outputs of the
latest assessment is reviewed annually.
Risks and opportunities arise from regulatory, technology and market changes as we transition to
a low-carbon economy, as well as acute and chronic physical risks from a changing climate. These
map back to LSEG’s principal risks, as disclosed on pages 81 to 90 of the Strategic Report. We have
evaluated actual and potential impacts of climate-related risks and opportunities which helps us
understand the resilience of our strategy, taking into consideration different climate-related scenarios.
In 2023, we updated analysis of physical risks associated with our property and datacentre portfolio.
This year, we updated our assessment of transition risks under Network for Greening the Financial
System (NGFS) scenarios, including the financial quantification of risks. From a transitional perspective,
carbon pricing could have a significant financial impact over the longer term if our Climate Transition
Plan is not effectively executed. From a physical risk perspective, a third of our locations are exposed
to a high level of heat stress, predominantly those located in Southeast Asia and the Middle East.
When looking at longer-term exposure to 2050, drought and fire risks substantially increase in
a 4°C world. The physical risk assessment is updated every three years (unless there is a material
change to the business in the interim), with carbon pricing scenarios based on NGFS projections
updated annually.
Further detail on the 2024 updated scenario analysis can be found on page 65.
The principal
climate-related risks
and opportunities
arising in connection
with the Company’s
operations and the time
periods they are
assessed (414C – d)
The impact of climate-related risks and opportunities on our businesses, strategy and
financial planning
Relevant LSEG transition-related risks and opportunities are: Policy and Legal; Technology;
and Market. These map back to LSEG’s principal risks (as disclosed on pages 81 to 90 of
the Strategic Report).
For more detail on transition-related risks and opportunities see pages 64 and 65.
In 2023, we conducted an analysis of physical risks to LSEG by using recognised climate scenarios
from the Intergovernmental Panel on Climate Change (IPCC). From this analysis we concluded that,
due to the nature of LSEG’s business and operations, physical risks from climate change present
a lower threat to LSEG in comparison with the transition risks. The vast majority of our buildings are
leased, limiting our financial exposure to long-term climate-related physical risks. The financial impact
of physical climate risks, like flooding and windstorm, are currently considered in the ‘limited’ range
of LSEG’s Enterprise Risk Management (ERM) risk severity impact scale, increasing to ‘moderate’
under the high emissions scenario. Further information about this analysis can be found in the
2023 Sustainability Report, on pages 18 to 19.
In our analysis we used the predicted carbon price in each NGFS scenario in the short, medium and
long term to estimate the potential costs associated with LSEG’s three possible emission pathways,
assuming we pay for all emissions in scope of the analysis. The results show that significant costs
associated with carbon pricing could be avoided through the implementation of our planned
decarbonisation pathway, reducing our emissions in line with our SBTi targets. Conversely, if LSEG
fails to achieve its targets, significant costs would be associated with a business-as-usual scenario
in a world that is trending towards net zero in 2050.
Looking ahead, we remain fully committed to acting as a strategic enabler of sustainable economic
growth, in line with our purpose statement (see page 24 of this report). Throughout 2025, we will
continue developing our product offering in sustainable finance, in areas such as our climate indices,
our multi-asset class sustainability data and analytics and our solutions to support issuers with
sustainable capital raising.
Actual and potential
impacts of the principal
climate-related risks
and opportunities on
the Company’s business
model and strategy
(414C – e)
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Sustainability continued
Climate-related Financial Disclosure – TCFD and CFD
Cross-reference to
CFD requirements
Strategy continued
Disclose the actual
and potential impacts
of climate-related risks
and opportunities on
the organisation’s
businesses, strategy
and financial planning
where such
information is material.
The resilience of our strategy, taking into consideration different climate-related scenarios,
including a 2°C or lower scenario
We have disclosed the assessment of climate-related risks and opportunities on the business, and
how it pertains to our science-based targets and decarbonisation trajectory. We have quantified
across short-, medium- and long-term time horizons the impact of transitional risk as assessed
against NGFS carbon pricing scenarios, as well as our physical risk exposure. This assessment
includes a 2°C or lower scenario under both physical and transitional analysis.
This analysis re-emphasises the need to continue to deliver on our Climate Transition Plan, as
our decarbonisation initiatives will mitigate the impact of potential carbon pricing on the business.
From a physical risk perspective, the output of our scenario analysis will feed into our location
strategy, ensuring climate change is considered when thinking through longer-term strategic location
plans. The physical risks we face are also mitigated by the fact that the majority of our locations
are leased, and we have robust business interruption plans in place.
Further detail on the 2024 updated scenario analysis can be found on page 65.
Further detail on the 2023 scenario analysis can be found in our 2023 Sustainability Report,
pages 15 to 19.
Analysis of the
resilience of the
Company’s business
model and strategy,
taking into account
consideration of
different climate-related
scenarios (414C – f)
Risk management
How we identify,
assess and manage
climate-related risks.
Our processes for identifying and assessing climate-related risks
Page 69 discusses our process for identifying, assessing and managing risks.
Climate risks are specifically assessed as part of climate risk modelling activities. We use scenario
analysis to identify and assess climate-related risks, using NGFS scenarios for transition risk and
IPCC for physical risk. This analysis re-emphasises the need to continue to deliver on our Climate
Transition Plan, as our decarbonisation initiatives will mitigate the impact of potential carbon pricing
on the business. From a physical risk perspective, the output of our scenario analysis will feed into our
location strategy, ensuring the evolution in climate is considered when thinking through longer-term
strategic location plans. The physical risks we face are also mitigated by the fact that the majority of
our locations are leased, and we have robust business interruption plans in place. Revenues are not
location or site dependent to a large degree.
Our processes for managing climate-related risks
Climate risks identified in the risk taxonomy are managed through the ERMF. Responsibility for
management, mitigation and adaptation of climate-related risks rests with the business units and
corporate functions. This process is supported by the Group Risk function and by the governance
groups which provide oversight, independent assessment and, as appropriate, challenge back to
the business.
Risks and opportunities with a potential substantial impact will be raised and factored into business
strategy and operations. Principal risks are those considered to have the highest potential financial
or strategic impact and are defined based on the magnitude of financial costs to the Group as well
as reputational impact. In addition to ongoing assessment, climate risks are specifically assessed as
part of climate risk modelling activities.
How the Company
identifies, assesses
and manages
climate-related risks and
opportunities (414C – b)
How our processes for identifying, assessing and managing climate-related risks are integrated
into overall risk management
The Group is subject to a variety of risks which may have an impact on our ability to deliver our
strategic plan. These include sustainability-related risks which have been integrated into LSEG’s
risk-management processes and procedures and are reflected in our risk taxonomy and ERMF.
Sustainability is a specific strategic risk, manifesting in product risk strategy (the risk that the products
we create do not meet customers’ needs and expectations), greenwashing, worsening ESG ratings
and a failure to deliver on our climate transition targets. Sustainability risks are also embedded within
a wide range of other existing strategic and non-strategic risks within our risk taxonomy, including
operational resilience; people; regulatory, compliance, legal and corporate disclosure; and financial
and model risks.
Further information can be found on page 58 and pages 81 to 90 of this report and in our
2024 Sustainability Report on page 14.
How processes for
identifying, assessing
and managing
climate-related risks are
integrated into overall
risk management
(414C – c)
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Strategic Report
Sustainability continued
Climate-related Financial Disclosure – TCFD and CFD
Cross-reference to
CFD requirements
Metrics and targets
The metrics and
targets used to assess
and manage relevant
climate-related risks
and opportunities
where such
information is material.
The metrics used to assess climate-related risks and opportunities in line with our strategy and
risk management process
Metrics used to assess climate-related risks include our operational emissions footprint (tonnes of
CO
2
e), number of suppliers with science-based targets, actual and potential cost of carbon and
physical risk exposures (including total value insured and value at risk).
Metrics used to assess climate-related opportunities relate to our suite of sustainable finance and
investment products and services.
Further information and data relating to these metrics can be found on page 67, in our 2024
Sustainability Report on pages 25 to 30 and in our 2024 Sustainability Databook on pages 4 to 6.
KPIs used to assess
progress against targets
used to manage
climate-related risks and
realise climate-related
opportunities and a
description of the
calculations on which
those KPIs are based
(414C – h)
Scope 1, Scope 2 and, if appropriate, Scope 3 GHG emissions, and the related risks
We disclose our Scope 1, Scope 2 and some Scope 3 emissions, which can be found in our
2024 Sustainability Databook on pages 4 to 6.
Further detail about progress against our emissions targets can be found in our 2024 Sustainability
Report on pages 25 to 30.
The targets used by
the Company/LLP to
manage climate-related
risks and to realise
climate-related
opportunities and of
performance against
those targets (414C – g)
The targets used to manage climate-related risks and opportunities and performance
against targets
With respect to our operational emissions, we have set science-based targets, aligned with the goal
of the Paris Agreement, approved by the Science Based Targets initiative (SBTi) as described on the
preceding pages. These targets include our Scope 1 and 2 emissions, and Scope 3 emissions from
FERA, business travel and employee commuting. We also have a supplier engagement target which
relates to Scope 3 emissions from purchased goods and services.
While decarbonisation is the primary focus to reduce our operational emissions we also recognise
the need to take responsibility for the emissions we are generating from our day-to-day activities.
We offset our Scope 1, 2 and 3 (FERA, business travel and employee commuting) by buying carbon
credits which meet recognised quality standards. We have a work programme in place to monitor,
manage and reduce our emissions covered by these targets.
This programme is organised into four key glidepaths: Places, People, Travel and Procurement.
We have summarised progress towards these targets on page 67 of this report and further detail
can be found in our 2024 Sustainability Report and the Sustainability Databook.
We have also published climate goals in relation to our products and services. Progress relating
to these goals can be found in a separate index online.
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72
Sustainability continued
Streamlined Energy and Carbon Reporting (SECR) requirement
LSEG calculates all available emissions sources required under The Companies (Directors’ Report) and Limited Liability Partnerships (Energy and
Carbon Report) Regulations 2018 and these emissions sources are reported globally. LSEG calculates GHG emissions to cover all material sources
of emissions for which the Group is responsible. The methodology used was that of the Greenhouse Gas Protocol: A Corporate Accounting and
Reporting Standard (revised edition 2015). Responsibility for emissions sources was determined using the operational control approach.
Throughout 2024 we have undertaken various projects to enhance energy efficiency and reduce LSEG’s emissions. For example, we have
optimised the energy efficiency of our offices by implementing lighting controls and TV timers and upgraded ventilation and air conditioning (HVAC)
equipment at certain sites. At our London head office, water heating has been electrified and back-up generators now operate on hydrotreated
vegetable oil (a biofuel known as HVO) rather than diesel. In our data centres, we have continued to reduce the density of our server and network
hardware population. We also continue our journey of moving Application Workloads to the Cloud, where we can more efficiently control and
consume our consumption of capacity.
Unit 2024
1
2023 2022 2021 2020 2019
% change
vs 2023
Total Energy consumption (kWH) Kilowatt-hours 177,915,551 164,011,741 164,955,639 262,134,466 276,810,614 371,895,033 8%
UK Energy consumption (kWH) Kilowatt-hours 50,283,841 51,699,028 56,452,497 54,401,256 80,552,486 118,956,031 -3%
Scope 1 Metric tonnes 283 209 458 556 716 1,381 36%
Scope 2 – Market based Metric tonnes 0 7 612 422 577 153 -63%
Scope 2 – Location based Metric tonnes 10,307 10,438 10,672 10,908 17,758 27,805 -1%
tCO
2
e/HC
(Scope 1 and 2 Location based)
Metric tonnes 2 2 3 2.53 4.07 6.75 6%
tCO
2
e/HC
(Scope 1 and 2 Market based)
Metric tonnes 0.24 0.05 0.24 0.22 0.28 0.35 412%
EMEA Energy consumption (kWH) Kilowatt-hours 5,301,787 5,495,228 5,646,972 12,353,859 14,077,652 42,882,337 -4%
Scope 1 Metric tonnes 141 100 7 4 5 34 42%
Scope 2 – Market based Metric tonnes 273 38 71 586 755 1,082 626%
Scope 2 – Location based Metric tonnes 2,499 1,917 2,061 4,928 4,709 9,043 30%
Americas Energy consumption (kWH) Kilowatt-hours 87,033,618 69,943,043 73,162,491 155,778,235 130,961,747 158,530,000 24%
Scope 1 Metric tonnes 524 444 547 187 450 393 18%
Scope 2 – Market based Metric tonnes 27 164 3,188 1,786 2,431 6,550 -84%
Scope 2 – Location based Metric tonnes 41,378 39,175 40,476 77,060 63,969 80,463 6%
APAC Energy consumption (kWH) Kilowatt-hours 35,296,306 36,874,442 29,674,070 39,189,207 49,521,785 48,161,602 -4%
Scope 1 Metric tonnes 787 161 438 253 788 356 390%
Scope 2 – Market based Metric tonnes 32 78 297 343 2,729 2,405 -58%
Scope 2 – Location based Metric tonnes 19,704 21,393 16,627 13,670 25,208 25,895 -8%
1 For more information on the recategorisation of specified emissions conducted in 2024,
see page 67 of this report and page 26 of our 2024 Sustainability Report.
73 London Stock Exchange Group plc
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Strategic Report
Board engagement
with stakeholders
Our Board recognises the importance
of engaging with our key stakeholders
throughout the year.
The Board’s approach to meaningful
engagement includes a two-way dialogue
that provides the Board with an
understanding of our stakeholders
including: their interests, needs and
concerns relevant to the Company’s
success; their influence on the operation
of the business model; and their
understanding of the delivery of strategy
and decision-making. These factors are
considered by the Board when making
decisions and promote better outcomes
for the success of the Group.
The following pages set out how the Board has engaged with,
and sought to understand the views of, our key stakeholders:
Customers
Workforce
Policymakers, regulators and supervisors
The Board engages our stakeholders through a combination of
direct engagement by Directors and indirect engagement by
senior leadership, who are in continuous engagement with our
stakeholders. The content and outcomes of these interactions
are incorporated into our business planning processes and
routinely reported to the Board.
The Board recognises that the Company’s shareholders are
a key stakeholder and seeks to interact with them throughout
the year. The views and interests of shareholders influence the
decisions and actions taken by the Board. Further detail about
the Board’s engagement with the Company’s shareholders
during the year is provided in the Corporate Governance
Report on page 101.
The Board will seek to continue its engagement with
stakeholders throughout 2025.
Read more about the activities of the Board
in the Corporate Governance Report beginning
on page 92.
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74
Board engagement continued
Customers
Customer partnership is at the heart of our
diversified global business and helps us
deliver value across each of our divisions.
Aligning our strategy, services and products
to the needs and interests of our customers
is central to driving sustainable long-term
value growth.
Customers we serve
44,000+
How the Board has engaged
Feedback from our customers allows the Board to understand their
views on our Group’s products and services, including opportunities
to improve our offering, and are used to influence strategic planning.
Customer engagement meetings held with the Board and management
provide a deeper understanding of our customers’ needs and
strengthen strategic relationships.
The Group CEO, the Group CFO and other executives engaged with
customers in a number of ways during the year, including: an extensive
global outreach programme to key customers; individual meetings with
particular emphasis on strengthening relationships, product offerings,
technology transformation and operational resilience; and attendance
at various round tables and conferences, including the World Economic
Forum and the FTSE Russell World Investment Forum to meet asset
owners and asset managers in person.
In 2024, the Board met with a strategic customer during the Board’s
visit to our New York office, to gain a greater understanding of their
priorities and ambitions and how LSEG could continue to partner
with them across our diverse service and product offering.
The Board understands that many of our shareholders are also
customers and benefits from receiving informal customer feedback
through investor outreach programmes.
Key matters for stakeholder group
Our discussions with customers throughout the year centred on several
key areas: our product offerings; driving product innovation; focusing on
digitisation and transformation; managing and reducing costs; ensuring
system stability; and fostering strategic partnerships.
How this engagement influenced Board discussions
and decision-making
Customer feedback is regularly communicated to the Board by the
Group CEO, the Group CFO and members of the Executive team and
this is taken into account when decisions and actions are made which
could impact customers. A specific agenda item is also included at each
Board meeting focusing on a particular customer relationship or issue.
Delivering on the commitments announced as part of the strategic
partnership with Microsoft has been a key focus area for Board
discussions during 2024. The LSEG-Microsoft partnership is a standing
Board agenda item and serves as a mechanism for the Board to receive
real-time customer feedback and insights. Board members also
attended regular meetings with management outside of Board meetings
to allow them to gain a deeper understanding of the Partnership and
how key partnership initiatives are progressing.
The Board received updates on the LSEG-Microsoft partnership Design
Partner Programme, which engages with global customers to help
inform product development. The Design Partner Programme entered
a new phase of engagement with customers, transitioning from design
discussions to market readiness and product releases. The Board
noted engagement with selected customers to help test products
and participate in pilots resulting in bespoke insights on areas for
development. Engagement during the Design Partner Programme has
also demonstrated the significance of understanding the needs and
interests of our customers. The Board considered the expansion of the
Design Partner Programme beyond the initial design partners and the
impact on product calibration ahead of general release.
During the year, the Board reviewed the Group’s sales and account
management strategy, in particular the approach taken to provide
solutions to customers by aligning customer needs with product
offering. The Board discussed case studies highlighting the engagement
process taken to identify opportunities to deepen the relationship
with key customers by delivering tailored services that support
their objectives.
The Board recognises that digitisation and ease of access are an
important feature of our customer journey. The Board explored the
outcomes for customers following the expansion of an ecommerce pilot
that enables customers to access seamless self-service digital buying,
learning, support and resources. The main benefits to customers
included a reduction in resolution times due to a streamlined process
to request and access the appropriate resources. The Board reviewed
feedback from customers which highlighted the need for a simplified
purchase journey. The Board discussed management’s proposals to
enhance the ecommerce service, addressing the insights gained from
customer feedback.
The Board received updates on brand and customer marketing,
including efforts to increase stakeholder awareness and clarity around
the LSEG brands. During 2024, the Group built on the successes of the
brand transformation programme launched in 2023 and brand and
marketing campaigns were launched for LSEG businesses, including
LSEG Data & Analytics, LSEG Risk Intelligence, London Stock Exchange
and FTSE Russell.
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Strategic Report
Board engagement continued
Workforce
Our Group has over 26,000 people in more
than 60 countries. Our diverse workforce is
fundamental to our success and is strengthened
by the global exposure and customer base of
our Group. Regular interactions with our people
at every level ensure that there is meaningful
dialogue between the Board and our workforce.
Group workforce
26,000+
How the Board has engaged
The Board seeks to engage with a wide cross-section of employees
to better understand their perspectives on the business. In 2024,
the Board’s interactions with our employees included formal and
informal meetings, an annual employee engagement survey and
townhall meetings. During their visit to the New York office, the Board
met with our people located there in a Meet the Board townhall led
by the Chairman, which included discussions on the Board’s role, the
LSEG-Microsoft partnership, mergers and acquisitions, scalability and
product management. In addition, the Board received presentations
from Americas-based management on the Group’s operations in
the region and also had the opportunity to meet management more
informally over lunches and dinners.
In April, the Board hosted an employee lunch with colleagues based in
the UK. The participating employees represented the different divisions
and functions of our UK businesses, and the event served as a further
opportunity for employees to interact directly with the Board. Employees
were encouraged to share opinions on their experience at LSEG and
voice areas for improvement.
During the year, Non-Executive Directors continued to engage our
people through four employee forums, which were held virtually in
key regional locations across the world. Participating colleagues were
encouraged to express their own views and canvass views from other
employees to share with Board members, which provided Board
members with an opportunity to gain insight into the culture and ideas
or concerns at different levels of the business. Directors provided
feedback to the rest of the Board at the next Board meeting and the
outputs of the engagements were shared with the wider workforce
via intranet articles. These engagements included:
— Don Robert, Tsega Gebreyes and William Vereker meeting with
colleagues from the North and Southeast Asia region.
— Cressida Hogg and Kathleen DeRose meeting with colleagues
from the EMEA region.
— Dominic Blakemore and Kathleen DeRose meeting with colleagues
in the South Asia region.
— Scott Guthrie, Val Rahmani and William Vereker meeting with
colleagues from the Americas region.
Regular townhalls were held at Group and Divisional levels in 2024 led
by the CEO and members of the Executive Committee, with discussion
topics tailored to the different audiences and incorporating interactive
Q&A sessions. In addition, a global streaming event served as an
opportunity to collectively recognise the Group’s progress during the
financial year. During this event, colleagues heard first hand from our
Chair, Don Robert, and a customer on how LSEG was driving change
for their business and were given the opportunity to directly engage the
Executive Committee in a Q&A session. Colleagues also participated in
two global townhalls to hear from senior leaders about how the Group
was delivering against its strategy and for senior leaders to answer
questions on business performance, culture and pay.
Colleagues from across the Group’s global locations had the opportunity
to attend smaller, informal in-person and virtual engagement sessions
hosted by Board members, the Group CEO and the Group CFO
(together with other members of the Executive Committee) to discuss
topics of interest to colleagues. These sessions provided colleagues
with a chance to have a two-way dialogue with Board and Executive
Committee members about life at LSEG and helped the Board and
management to better understand employee sentiment around topics
such as learning, technology, and culture.
The annual LSEG Engage employee survey provided colleagues
with an opportunity to share their views on working at LSEG. A total
of 81% of our colleagues participated, sharing over 20,500 comments,
representing a significant level of participation and engagement.
The results of the survey and management’s actions to address
any concerns were then discussed by the Board.
More information on employee engagement
can be found on pages 59 to 61 of the
Strategic Report.
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Board engagement continued
Key matters for stakeholder group
The key themes arising from the Board conversations and other
engagements with our workforce included:
— Customers – questions on the progress of the strategic partnership
with Microsoft and how it will enable the delivery of products and
services for our customers.
— Operational efficiency – suggestions on how to increase speed of
execution and simplify processes.
— Change – comments on change management, including balancing
the need for stability with the adoption of new strategies.
— Culture and values – expressions of pride in our values-driven
culture and the positive impact of this on the working environment.
— Equity, diversity, and inclusion – discussion of strategies to further
increase awareness and understanding of equity, diversity and
inclusion issues and the value of inclusion networks.
— Communications – continued emphasis on the importance of regular
and mindful communication, including receiving updates on Group
change projects and business performance.
— Learning and career development – colleagues highlighted the
need to attract the right talent to the organisation and their desire
for learning and development opportunities within the Group.
— Sustainability – requests to understand more about the Board’s
strategy on sustainability and plans to achieve net zero.
How this engagement influenced Board discussions and
decision-making
The results of the LSEG Engage survey were presented to the Board
as part of the annual presentation of People strategy and culture by the
Chief People Officer. The Board reviewed employee feedback and
noted insights around what was working well and what could be
improved. The Board discussed management actions to address
concerns highlighted by colleagues including the need for: clearer
communication of the Group’s strategy and purpose; a focus on
continuing to embed LSEG leadership behaviours; and further
development of a product-led approach to enable teams to solve
customer problems and simplify processes.
The Board also reviewed actions taken in response to themes
highlighted in the 2023 LSEG Engage survey, such as the need to
embed and put the Group’s values into action within all areas of life
at LSEG. The Board received updates on work undertaken to embed
the values into the organisation, such as Values in Motion events,
workshops to upskill leaders to assess and give feedback against
our values, and refreshed mandatory Code of Conduct training.
Board conversations with colleagues
provide a channel for the Directors to
glean unique insights about the culture
at LSEG and empower our colleagues
to openly express their views on the
topics that matter to them.
David Schwimmer
Group Chief Executive Officer
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Board engagement continued
Policymakers, regulators
and supervisors
The Board recognises the importance of
maintaining an open and cooperative
relationship with policymakers and regulators
on matters that affect our Group, industry,
customers and people. The Group manages
a significant number of regulated entities
around the world, which are supervised at the
legal entity level. Our primary regulators interact
with the boards of those regulated entities
rather than the Board of the Company.
Countries we serve
170+
How the Board has engaged
The Board considers policy, regulation and supervisory guidance
that may affect the Group’s business in its discussions and in making
decisions. These considerations may affect operations at the Group,
division, region and market level and the Board encourages the boards
of its group entities to proactively engage with relevant regulators.
Regulatory matters are also discussed as part of the Chairs’ Forum
(composed of the Chair of the Group Board and the chairs of a number
of key regulated subsidiaries and attended by the Group CEO),
the outputs of which are provided by the Chair to the Board at
subsequent meetings.
Key matters for stakeholder group
Key matters include: market competitiveness, including the
attractiveness of the UK as a global financial centre; data issues
including localisation, privacy, sovereignty and regulation; sustainability
and governance matters; innovation and technology, including artificial
intelligence and digital assets; and resilience and financial stability,
including clearing, cloud and operational resilience.
How this engagement influenced Board discussions and
decision-making
In the course of its discussions and when making decisions, the Board
considered the priorities and focus areas of policymakers, regulators
and supervisors. This included discussions on setting strategy and
assessing the delivery of key objectives and in relation to matters such
as M&A. The Group CEO provided the Board with regular updates on
the views and priorities of regulators and policymakers during the year.
Suppliers
The Board recognises that our third-party suppliers are important
stakeholders of the Group. Key suppliers such as Microsoft and
Dow Jones play a dual role as strategic and news and analytics
partners. They support the Group’s execution of its strategy and
delivery of products and services for our customers. Given the
significance of our suppliers, management regularly reassesses
the tiering of our suppliers based on factors including the degree
of criticality of the goods/services being provided to LSEG,
financial spend, strategic fit and risk.
The Board maintains oversight of the Group’s key suppliers.
The Board approves any supplier contracts with a financial value
of £50 million or more (over the lifetime of the contract), and
receives updates on the management of, and relationships with,
third-party suppliers where appropriate. The Risk Committee
provides oversight of the risk relating to third-party suppliers
to ensure that these arrangements are managed within risk
appetite and any issues are appropriately remediated.
In addition to the procurement and ongoing management of
suppliers, a number of the Group’s subsidiaries are required
to report their supplier performance and policies as part of the
Small Business, Enterprise and Employment Act 2015. All payment
terms and conditions are negotiated with our suppliers, and
we ensure that purchase orders are raised and receipted in
accordance with the Group’s policies.
Certain Group entities support the Prompt Payment Code,
a voluntary code of practice for businesses, administered by
the Office of the Small Business Commissioner on behalf of the
Department for Business and Trade. It sets standards for payment
practices between organisations of any size and their suppliers.
Each year we publish a statement setting out the Group’s
approach to managing its supply chain. More information
on the Group’s approach to managing its supply chain,
including the Group Modern Slavery Statement, can be found at:
www.lseg.com/en/sustainability-strategy/disclosures-and-reports.
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Section 172(1) statement
Section 172 of the Companies Act 2006
(Section 172) requires a director of a company
to act in the way he or she considers, in good
faith, would most likely promote the success
of the company for the benefit of its members
as a whole.
Read more about the activities of the Board
in the Corporate Governance Report starting
on page 92.
This section forms our Section 172 disclosure, detailing how the
Directors considered the matters set out in Section 172 (1) (a) to (f)
of the Companies Act 2006 when performing their duty to promote
the success of the Company.
The Board’s engagement with our stakeholders provides the Directors
with an understanding of the impact of the Group’s strategy on our key
stakeholders, as well as their interests and views. This understanding
of stakeholder views better allows the Directors to comply with their
Section 172(1) obligations, as well as enabling robust discussion and
informed decision-making. While the Directors have consideration for
stakeholder views, they also acknowledge that each decision may not
necessarily result in a positive outcome for all our stakeholders.
Following an assessment, the Board identified our key stakeholders as:
customers; workforce; policymakers, regulators and supervisors; and
shareholders. In the process, the Board recognised our third-party
suppliers as important stakeholders of the Group. Further details on
the Board’s engagement with our stakeholders can be found on
pages 73 to 77.
The following principal decisions have been identified as being of
strategic importance to the Group, or are significant to our stakeholders.
They demonstrate the Directors’ consideration of different stakeholder
interests and impacts in making decisions that best promote the
long-term success of the Company.
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Section 172(1) statement continued
Set out below are some examples of how the Directors have had regard to the matters set out in Section 172.
Key matter Decision Stakeholders
considered
Capital
allocation
The Board reviews and approves the approach to capital allocation across the Group and its
business divisions, within the context of current market conditions and the macroeconomic
outlook. The Board seeks to optimise the use of capital resources taking into account applicable
regulatory requirements, strategic objectives and LSEG’s risk appetite. LSEG’s capital allocation
approach focuses on: (i) investing organically within the business; (ii) investing in inorganic
opportunities in line with the Group’s strategy; and (iii) returns to investors. The Group continues
to manage capital expenditure in line with strategic ambitions of growth and resilience. The Board
considered the impact of the following capital allocation decisions for key stakeholders, such as
customers, employees and shareholders.
Dividend
In 2024, the Group transitioned to a simplified dividend policy focusing on paying progressive
dividends, a targeted c.33-40% payout based on expected full-year AEPS, and a split of
approximately one third/two thirds between the interim and final dividends.
As a result of the Group’s strong performance in 2024, the Board is recommending a final ordinary
dividend of 89 pence per share, bringing the total ordinary dividend for 2024 to 130 pence per
share, a 13% increase on 2023 (2023: total dividend 115.0 pence per share).
During decision-making on dividends, the Board considered the expectations of shareholders
alongside overall capital allocation requirements and longer-term implications for the Group.
Dividends paid in respect of financial performance during 2024 were in line with the dividend
policy and the Group’s approach to capital allocation.
Directed share buyback
During 2024, the Group executed directed share buybacks targeting shares held by the former
Refinitiv shareholders
1
which returned £1 billion to shareholders. The Board had regard to
competing stakeholder interests when reviewing proposals for the directed share buybacks.
Board discussions considered matters such as the efficiency of available mechanisms to deliver
the share buybacks, investor sentiment, appropriate timings for execution, impact on the Group’s
targeted leverage range, capital demands, and implications for defined benefit pension schemes.
More information about the directed share buyback is included in the Chief Financial Officer
review on page 43 and in the Directors’ Report on page 150.
M&A: Tradeweb acquisition of Institutional Cash Distributors
In August 2024, Tradeweb completed a $797 million acquisition of ICD an investment technology
provider for corporate treasury organisations trading short-term investments. The transaction
represented a strategic opportunity to enhance Tradeweb’s product offering by including
corporate treasury professionals as an additional client channel and unlocking access to an
estimated $2 billion market.
During decision-making, the Board examined the strategic rationale for the acquisition including
the potential long-term consequences of the transaction and opportunities to diversify Tradeweb’s
customer base and business mix. The transaction also demonstrates the execution of an inorganic
investment opportunity in line with the Group’s strategy.
M&A: Increasing ownership of LCH Group
The Board approved two rounds of minority stake acquisitions in LCH Group, executed in
February and October 2024, respectively. In total, LSEG acquired an additional 11.6% stake in
LCH Group for €601 million, increasing our ownership of LCH Group to 94.2%. When approving
the acquisition, the Board considered the likely consequences of the decision in the long term
as well as ensuring that the acquisition was consistent with the Group’s disciplined approach to
the allocation of capital.
— Employees
— Regulators
— Shareholders
1 Entities owned by certain investment funds affiliated with Blackstone, an affiliate of
Canada Pension Plan Investment Board, an affiliate of GIC Special Investments Pte. Ltd,
and Thomson Reuters.
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Section 172(1) statement continued
Key matter Decision Stakeholders
considered
Financing
activities
US Bond Issuance
In March 2024, the Group issued $1,250 million of three-year and ten-year bonds in the US public
market. The proceeds were used to repay maturing bonds and commercial paper. The Board
considered the diversification of the Group’s debt portfolio, its presence in the sterling and euro
bond markets, and the need to maintain an active presence in the dollar bond markets. The Board
gave regard to the s172 factors when approving the bond issuance, in particular the likely benefits
to shareholders and the promotion of the long-term success of the Company.
Euro Medium-Term Note (EMTN)
In March 2024, the Company completed its annual update of the EMTN programme, which
allowed the Group to retain efficient access to the Euro and Sterling bond markets. Access to
the U.S. Dollar, Euro and Sterling public bond markets provides the Group with diversified funding
options and the financial flexibility to take advantage of strategic opportunities. In September
2024, the Group issued two debt instruments each with three-year maturities: a €600 million
Eurobond with a 2.75% coupon; and a $100 million private placement with a 4.00% coupon.
The increased headroom facilitated the acquisition of an additional 8.3% stake in LCH Group
from minority shareholders.
Repurchase of bonds
As part of a review of the Group’s debt structure, the Board approved a bond repurchase
transaction of $250 million of its U.S. $1,250 million 2.50% bonds due in 2031. The Board agreed
that the tender offer represented an opportunity to proactively manage the debt capital structure
of the Group while also providing liquidity to bondholders in the context of the interest rate
environment and the Group’s liquidity position. The Board considered the likely benefits to
shareholders and the promotion of the long-term success of the Company when approving
the bond repurchase.
— Customers
— Regulators
— Shareholders
Strategic
partnership
with Microsoft
The Group has continued to make strong progress with its strategic partnership with Microsoft.
The Board dedicated regular time to discussing the progress of the strategic partnership, both
during Board meetings and in meetings with executives outside of Board meetings. The Board
reviewed key partnership initiatives, and received product demonstrations to better appreciate
new products from a customer perspective. Engagement with specific customers, as part of the
Design Partner Programme, provided unique insights, which informed Board discussions and
strengthened decision-making around product development.
Dialogue at Board level considered key stakeholder interests, and s172 factors, including the
need to foster the Company’s business relationships with suppliers and customers.
Further information on the LSEG-Microsoft partnership, including key achievements in 2024
and planned developments in 2025, can be found in the Strategic Report on page 40.
— Customers
— Employees
— Shareholders
— Suppliers
Sustainability
LSEG remains committed to being an enabler of sustainable growth for our customers, partners,
and the communities we operate in. During 2024, the Board considered sustainability on four
occasions, covering LSEG’s external sustainability reports, the EU Corporate Sustainability
Reporting Directive (CSRD), LSEG’s Climate Transition Plan, LSEG’s Sustainability Policy and
a review of progress in 2024. With respect to CSRD, the Board was briefed on the key implications
for LSEG and the Group’s programme of work to adhere to the new reporting regulations. With
respect to our Climate Transition Plan, the Board reviewed LSEG’s management of climate risks,
opportunities and impacts. This included our targets associated with operational emissions and
our supply chain, which were part of our inaugural Climate Transition Plan published in 2022,
and commitments associated with our products and services.
When discussing the effectiveness of the Climate Transition Plan, the Board was invited to
consider the implications of climate change within the strategic planning process and
opportunities to enhance oversight of the plan. The Board reviewed progress achieved in 2024
against the sustainability strategy and was briefed on the areas for continued development in
2025. The Board also reviewed and approved the Sustainability Policy, which is designed to
ensure that the Group meets regulatory requirements and stakeholder expectations, notably
with our customers, shareholders, employees and suppliers, as well as our interaction with the
communities and the environment in which we operate.
More details on LSEG’s approach to sustainability can be found in the Sustainability section of
this report on page 56 and in the separate 2024 Sustainability Report.
— Customers
— Employees
— Regulators
— Shareholders
— Suppliers
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Principal risks
and uncertainties
Managing risk is fundamental to the
successful execution of our strategy
and the resilience of our operations.
Our risk management approach is described below and includes
an overview of our risk governance structure, as well as our
Group Risk Appetite. Additionally, we describe our principal risks
faced by the Group, together with the Executive leads and our
mitigation activities.
As well as our principal risks, we continue to identify and monitor
emerging external risks, which are difficult to quantify due to
their remote or evolving nature. In most cases, the mitigation
for such emerging risks is to establish appropriate contingency
plans and monitor the development of the risks until they can
be quantified and removed or included as a principal risk.
Risk management
We maintain a robust Enterprise Risk Management Framework
(ERMF), which sets out our approach to risk management and
our appetite for taking risks. Our regulated entities, including
Central Counterparties (CCPs), manage their risks in line with
both local regulation and internal risk and investment policies.
Risk culture
A strong risk culture requires everyone to understand and
embrace their role in managing risks, as this is critical to the
effective embedding of the ERMF.
Risk culture is a key enabler of the three lines of defence model,
used to manage risk internally, and is promoted by the ERMF in
three ways:
1. It sets expectations by articulating risk appetite and desired
behaviours through policies.
2. It ensures that risk is considered in key business decisions
through frameworks and tools.
3. It ensures that risk is made transparent and included in
accountability and performance management.
Three lines of defence
The three lines of defence model provides appropriate
segregation of duties and clear roles and responsibilities
across our divisions, corporate functions, Risk, Compliance
and Internal Audit. It clearly defines roles and responsibilities,
with accountability for risk management sitting within the first
line of defence.
LSEG risk governance
Overview of principal risks
Strategic
Global economic and geopolitical risk
Sustainability
Reputation/Brand/IP
Transformation
Financial risks
CCP
Model
Emerging risks
Disruptive technology
Non-financial risks
Technology
Information and cyber security
Business continuity
Third-party
Data
People and talent
Regulatory change and compliance
Principal risks and uncertainties continued
Risk management approach
The ERMF manages risk throughout the full risk lifecycle. It supports
the ongoing and systemic identification, evaluation, management,
monitoring and reporting of the significant risks faced and the
mitigating controls in place against them. This process is supported
by robust risk governance, designed to give a coherent view of
risk across our businesses.
In order to maintain a risk management system that applies
effectively and consistently across all areas of the business,
we have in place a Group Risk Taxonomy. This is an inventory of
all types of risk that are identified as inherent in business strategies
and objectives, including strategic, non-financial and financial risks.
These risks are reflected in our Group Risk Appetite Statements and
are managed through principles set out in our Group policies. Risk
assessments determine whether risks are within the risk appetite set
by the Board and are reported to senior management and the Board.
Risk governance
Risk governance and oversight is enabled through an effective
governance structure comprising Board-level committees
(Board, Audit and Risk) and Executive-level committees to
promote active discussion and resolution of risk issues.
The risk framework defines the risk roles, responsibilities and
governance structure, which ensures the appropriate expertise
and overall input in order to adequately oversee and challenge
the risk positions across the organisation.
Risk committees, subcommittees and relevant working groups
are embedded within the overall governance structure of the
organisation. Our Group and Divisional committee structure provides
risk oversight with escalations between forums as needed.
Please see the diagram below.
Group-level committees include: an overall Group Executive
Risk Committee, and Group-level subcommittees, including the
Financial, Technology, Cyber and Resilience, and Non-Financial
Risk Committees, all of which meet on a regular basis. Other
subcommittees, such as the Reputational or New Product and
Market Committee, meet on an ad hoc basis, as required.
Each of our risk committees has detailed Terms of Reference,
approved by the Board or their parent committee, setting out their
respective roles and responsibilities.
Group risk appetite
Risk appetite is the level of risk that we will accept in pursuit of our
strategic objectives. The risk appetite is a central pillar of the ERMF
and is used as a benchmark for both risk assessment and monitoring,
with regular reporting of aggregated risks to both the Board Risk
Committee and Group Executive Risk Committee.
The Board approves our risk appetite annually. This is cascaded
throughout the organisation with divisions and functions establishing
more detailed risk appetite statements and monitoring their risk
profile against the agreed appetite levels.
Risks that are outside Risk Appetite are escalated to Executive
Committee members and to the appropriate Risk Committee
and Boards.
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82
Risk governance structure
Board Risk Committee
Group Executive Risk Committee
Group Executive Risk Committee subcommittees
Divisional risk committees
Financial Risk Committee
LCH Ltd and
SA Risk
Committees
Technology, Cyber and
Resilience Risk Committee
Markets Risk
Committee
FTSE Risk
Committee
Risk
Intelligence
Risk
Committee
Non-Financial
Risk Committee
Data &
Analytics
Risk
Committee
Escalation as needed
Escalation as needed
Escalation as needed to relevant Group ERC subcommittee
Escalation of cross-divisional and/or material items
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Strategic Report
Principal risks and uncertainties continued
Risk category Risk Mitigation
Global
economic and
geopolitical
Executive lead
Chief Executive Officer
Risk trend
Risk overview
While our business is well diversified, global economic
underperformance or the influence of geopolitics on
global financial markets or regional stability could have an
adverse impact on our people, divisions, operations and
financial performance.
Risk description
We operate in a broad range of equity, fixed income, foreign
exchange and derivative markets, servicing customers who
increasingly seek global products and innovative solutions.
Slower economic growth could lead to reduced activity in our
markets and, in turn, to lower revenues. Central banks have
recently taken steps to counteract inflationary pressures,
and financial markets have been affected, resulting in uneven
global economic performance and weak growth prospects.
This has heightened the risk of recession in advanced
economies and the risk of default in some emerging
economies. An environment that exposes banks’ weaknesses
and leads to sector consolidation may also lead to lower
revenues. More broadly, growing adversarial geopolitical
relations – such as the ongoing conflicts in Ukraine and the
Middle East and Western relations with China – continue
to influence global trade flows, growth, financial markets,
supply chains, energy security and regional stability.
Our income streams are highly diversified by region and
customer, helping to mitigate the exposure to localised
economic and credit downturns. Furthermore, a significant
proportion of our income consists of subscription-fee-based
recurring revenues, limiting our exposure to shorter-term
movements in the global economic cycle. In conditions of
volatility, our businesses benefit from exposure to trading
volumes and pricing movements through Capital Markets
and Post Trade divisions.
We also regularly monitor and assess the potential impacts
of market price and volume movements. We also monitor
and manage exposures to the market through hedging
both foreign exchange and interest rate risks, tracking key
risk indicators and stress-testing financial resilience.
We also regularly monitor external threats and emerging
risks including geopolitics and we incorporate the output
into business continuity and strategic plans. In addition,
our Financial Risk Committee monitors and reviews
multiple financial metrics and scenarios including response
to changes in macroeconomic conditions, with mitigating
actions agreed.
Sustainability
Executive lead
Chief Executive Officer,
Divisional Group Heads
Risk trend
Risk overview
Sustainability risk includes environmental, social or governance
events or conditions that may cause significant negative
financial or non-financial impact on our operations. Sustainability
risk also includes opportunities that may arise as a result of
changing social, economic, environmental or regulatory factors.
Risk description
Sustainability risk encompasses a wide variety of risks, from
the risk of incorrect regulatory reporting, inadequate diversity
and inclusion policies, through to greenwashing and failing
to achieve our net zero ambitions. Sustainability remains an
area of policy development, impacting on financial market
participants and corporates, bringing with it reputational,
regulatory and potential litigation risks. Climate risk
encompasses both physical and transitional risks. Physical
risks are acute and chronic risks which may impact our people
and our global property portfolio. Transitional risks include
product availability, policy, regulatory and market-related
developments that may affect our business as the world
transitions to a Paris-aligned carbon emission trajectory.
The management of sustainability-related risks is
embedded within our Sustainability Risk Management
Framework, which was approved by the Board in 2023,
and is integrated within our Group Risk Taxonomy.
Additionally, three of the four strategic sustainability risks
(greenwashing, ESG ratings and net zero) were considered
as part of the annual risk and control assessment process
in 2024.
With regards to climate change, we have taken steps to
assess both the risks and opportunities. We aim to reinforce
our resilience to both physical and transitional risks,
including how the transition will impact demand for our
financial products and services. We also conducted an
in-depth assessment of climate risk-related impacts via
a scenario analysis exercise in 2023, which can be found
in our 2023 Sustainability Report on pages 18 and 19, and
utilising Network for Greening the Financial System (NGFS)
scenarios to understand our potential exposure to carbon
pricing. The NGFS climate scenarios are often used by
policymakers, regulators and investors to assess climate
change risk, and their latest scenarios were released in Q4
2024. In 2024, we updated our view of financial exposure
to carbon pricing as defined by the latest NGFS scenarios,
with results presented in our climate-related financial
disclosures on pages 68–71 of this report.
Strategic risks
Strategic risks are risks that could impact the
successful execution of our strategy.
Risk trend key
Increasing
Stable
Decreasing
For more information on our approach to Sustainability, refer to
pages 56 to 72 of this report, and to our 2024 Sustainability Report
at www.lseg.com/en/sustainability-strategy/disclosures-and-reports.
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Principal risks and uncertainties continued
Risk category Risk Mitigation
Reputation/
Brand/IP
Executive lead
Chief Executive Officer
Risk trend
Risk overview
Our globally recognised and trusted brands, now unified under
a single brandname, face the risk that an event or incident could
damage their value or our reputation.
Risk description
The strong reputation of our businesses is valuable for our
credibility with regulators and our attractiveness to customers
and potential workforce. As these businesses are now more
closely aligned under one group, there is greater potential for
a single event or incident to damage the reputation and value
of our brand and also impact our branded products. Some
of our products and processes may also include material
which are not subject to intellectual property protection, and
competitors may develop or otherwise protect similar or the
same products or processes. This could result in reputational
damage, impacting our ability to attract new or retain existing
business and could cause us to incur financial costs to defend
or enforce intellectual property rights.
We actively monitor the use of our brands to identify,
address and prevent any infringements. Policies and
procedures including brand guidelines are in place to
ensure the appropriate use of our brands and to manage
the integrity of our reputation. Where material reputational
issues arise, they are discussed at relevant committee
meetings. Further, corporate affairs, marketing and
corporate responsibility plans are in place to govern
internal and external stakeholder engagement. Our values
outline the way we work with our customers, our partners
and each other, and our Code of Conduct continues to
support the protection of our reputation. In addition,
we protect our intellectual property by relying upon
a combination of trademark, copyright, patent and
design laws, trade secret protection, database rights,
confidentiality agreements and other contractual
arrangements with our employees, affiliates, customers,
suppliers, strategic partners and others.
Transformation
Executive lead
Chief Executive Officer,
Chief Operating Officer,
Chief Information Officer,
Chief Financial Officer
Risk trend
Risk overview
We are materially exposed to the risk of loss or failure resulting
from unsuccessful transformation as we deliver an ambitious
change agenda through a portfolio of strategic initiatives.
Risk description
Since our markets for data, information, services and products
are highly competitive and subject to rapid technological
change and evolving customer needs, we have a substantial
strategic change agenda. This programme of work will enhance
our products, services and platforms as we leverage synergies,
upgrade and replace legacy infrastructure, and transition to the
cloud. In 2024, we continued to deliver on our transformation
agenda, including material change delivered through strategic
programmes, execution of the LSEG-Microsoft partnership and
our M&A strategy. Acquisitions and divestments continue to
necessitate that we operate and integrate different technology
platforms and systems, which presents transformation risk due
to the material changes required to people, processes and
systems. Our partnership with Microsoft is resulting in changes
to LSEG’s products, commercial models and go-to-market
distribution and migration of on-premises applications to
Microsoft Azure.
Transformation risk is managed through the application
of the ERMF, deploying consistent, appropriate risk
management and mitigation across our businesses,
both during strategic transformation activity and
throughout acquisitions and divestments.
Our Group Investment Committee, a subcommittee of the
Executive Committee, is responsible for the successful
delivery and risk management of the Group Strategic
Programmes. Furthermore, a partnership governance
structure has been implemented to oversee the delivery
of the LSEG-Microsoft partnership. Risk management
features strongly in our delivery culture and regular
mandatory training is conducted with those delivering
change. Furthermore, oversight and assurance across
our change portfolio is provided by the Group Risk and
Internal Audit functions.
In addition, our Change Framework provides the governance
and programme management structure that has delivered an
effective track record of integrating acquisitions, separating
disposals and delivering tangible synergies in an evolving
regulatory and technological landscape.
Risk trend key
Increasing
Stable
Decreasing
Strategic risks continued
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Strategic Report
Principal risks and uncertainties continued
Risk category Risk Mitigation
Central
Counterparty
Executive lead
Chief Financial Officer,
Group Head of
Markets Division
Risk trend
Risk overview
Our Central Counterparty (CCP) activities – through LCH –
expose us to a number of financial risks that arise from the CCP’s
obligation to guarantee the performance of cleared contracts
between CCP members in the event a member defaults.
Risk description
In the event of a member default, the CCP must restore
a matched book by liquidating or transferring the defaulting
member’s positions held with the CCP. This can expose the
CCP to both adverse changes in the market value of the
positions (such as changes in asset prices, interest rates,
credit spreads and foreign exchange) and liquidation costs
(such as the cost of finding liquidity to exit the positions).
In addition, the CCP has market, credit and liquidity risks
arising from the investment of members’ cash and its ongoing
payment obligations. Non-financial risks such as operational,
legal and compliance and reputational risks, arise as a result
of the CCP’s day-to-day operations.
CCPs are designed to be financially resilient against the
largest default risks. The CCP rulebook is the foundation of
its resilience and is a legally binding document, signed by
members, that governs all clearing activities. It details the
authority of the CCP to assess appropriate margins, to
place a member in default and to liquidate a defaulting
member’s positions and collateral, where necessary. The
CCP rulebook includes minimum standards for member
eligibility and the resources available to manage a member
default: (i) initial and additional margins posted by members;
(ii) a portion of the CCP’s own capital; and then (iii) member
default funds and mutualisation of losses. Additionally, the
CCP can perform assessments to further absorb losses
beyond the default fund. The resiliency of these
mechanisms is tested via an annual fire-drill.
In its cash investment activities, the CCP’s primary objective
is to protect principal and liquidity and to ensure prompt
availability of cash when needed. Establishing strict criteria
for the eligibility of counterparties, investment types and
a limit structure which addresses concentration at multiple
levels minimises investment risk; however, the risk will not
be completely eliminated.
Additionally, unsecured commercial bank deposits are
strictly limited to 5% of the investment portfolio. Outright
bond purchases are limited to high-quality short-term
sovereign bonds or equivalent, and deposits at central
banks and secured placements (reverse repos) are
preferred where possible. All issuers and counterparties
are subject to internal credit scoring and regular reviews.
Furthermore, the effectiveness of the investment and
liquidity risk framework, and the ability to raise liquidity
are tested in quarterly ‘war games’ exercises, as well as
annual default fire-drills to ensure ongoing resiliency.
Model risk
Executive lead
Divisional Group Heads,
Chief Risk Officer,
Chief Financial Officer
Risk trend
Risk overview
Model risks stem from inaccuracies in the model design
(data sourcing, development and implementation) or from
improper use of models and errors in decision-making based
on the outputs. Additional model risk arises from inadequate
governance process that can, for example, lead to unidentified
models, and Group Risk function being unable to assess them.
Risk description
We utilise an increasing suite of models across all of our
divisions (e.g., margin models, client-facing analytics, market
abuse detection models and stress models used to calculate
capital and climate risk). The advent of artificial intelligence,
especially large language models, necessitates new
approaches for model risk management. These models are
currently under development across our business, including
in traditionally non-model areas such as Human Resources.
Our models are categorised into four Tiers, with Tier 1 carrying
the most model risk and as such exposing us to the most
financial risk. Additionally, some sustainable finance-related
models will also become subject to regulatory oversight.
All other models expose us primarily to reputational risk.
Our businesses have an industry standard model risk
control and governance framework in place, including
a model risk policy and model management system.
Robust model validation is performed across our full suite
of models to ensure that they are fit for purpose. Model
lifecycle controls are also in place, including ongoing
performance monitoring for key models and tracking
of changes for all models. In addition, risk oversight
is provided by our Model Risk Committee which is
a subcommittee of the Financial Risk Committee, and the
Model Risk Management team undertakes reviews to
identify models that could impact our businesses. Our
Model Risk Committee is supported by quarterly working
groups, which are organised for each division/function
and are fully mapped to the list of all models to ensure
complete coverage. The working groups provide a forum to
implement model risk controls, covering key topics defined
by the Model Risk Framework. The meetings are designed
to increase engagement with key stakeholders and ensure
alignment with risk management goals.
Financial and model risks
The risk of financial failure or loss of earnings
and/or capital as a result of investment activity,
lack of liquidity, funding or capital, and/or the
inappropriate use of models.
Risk trend key
Increasing
Stable
Decreasing
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Annual Report 2024
86
Principal risks and uncertainties continued
Risk category Risk Mitigation
Technology
Executive lead
Chief Information Officer
Risk trend
Risk overview
We are highly dependent on the development and
operation of our sophisticated technology and advanced
information systems and those of our third-party services
and outsourcing providers.
Risk description
Technology failures potentially leading to system outages may
impact our customers and the orderly running of our markets,
data services and distribution.
The resilience of the technology, systems and processes
underpinning our products and services remains a high
priority. We continue to invest in our technology estate
and controls, including activities to strategically manage
obsolescence within our hardware and operating systems,
improve our resilience, and to implement regulatory
requirements, such as the EU Digital Operations
Resilience Act (DORA). We perform regular, rigorous
business impact and operational risk scenario analysis
to identify, assess and remediate potential system and
governance vulnerabilities. In addition, to ensure that
products remain resilient and ready for deployment,
any technology changes are assessed and tested under
our Change Framework.
We continue to migrate services and applications to cloud,
which is expected to further improve service resilience
and mitigate risks associated with the technology
estate. Key performance and risk indicators are used to
monitor the resilience of our systems and have shown
improvements, over the year, in both our recovery
capability and system capacity. Furthermore, improvements
in our monitoring tools have meant that issues are both
identified more promptly and with a better understanding
of the root cause; this has improved our ability to respond
to and recover from issues, improving the resilience
posture of our technology estate. Overall, the number
and severity of incidents linked to the estate continues
to decline year-on-year.
Non-financial risks
The risk of loss or other adverse consequences
to the business resulting from the inadequacy
of, or failures associated with, internal
processes, people and systems, or from
external events.
Risk trend key
Increasing
Stable
Decreasing
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Strategic Report
Non-financial risks continued
Principal risks and uncertainties continued
Risk category Risk Mitigation
Information and
cyber security
Executive lead
Chief Information Officer
Risk trend
Risk overview
As a global financial markets infrastructure and data provider,
we are exposed to cyber risk. The cyber threat landscape
continues to be challenging, notably as the geopolitical
landscape continues to deteriorate and as threat actors adopt
emerging technologies.
Risk description
The financial sector and the wider economy continue to
experience notable cyber incidents. Cyber risks stem from
the utilisation of data, technology and digital services by our
organisation and our supply chain. In addition to the direct
impact that a cyber event could pose to our businesses and
our customers, our role as a financial markets infrastructure
provider means that a significant cyber event could create
a systemic impact on the financial sector and the global
markets that we service.
To remain competitive in this era of data and digitalisation,
cyber risk cannot be eliminated; however, it can be
managed to a level of risk that we are prepared to take as
a cost of doing business. We continue to make significant
investments in cyber security and have a dedicated Cyber
Security function led by the Chief Information Security
Officer whose role is focused on protecting and defending
our businesses against cyber attacks. Due to the increasing
sophistication of cyber adversaries and their techniques,
we proactively collect and evaluate actionable threat
intelligence. While we recognise that the prevention of
cyber attacks may not always be possible, our priority is on
remaining resilient to withstand cyber-attacks with minimal
disruption to our businesses.
Furthermore, our approach to cyber security aligns with
industry frameworks such as the Cyber Risk Institute
profile version of the National Institute of Standards and
Technology cyber security framework. In addition, given
that some of our divisions are highly regulated, we ensure
that the requisite assurance requirements are met.
Business
continuity
Executive lead
Chief Operating Officer,
Chief Risk Officer,
Chief Financial Officer,
Divisional Group Heads
Risk trend
Risk overview
We are exposed to the risk of operational disruptions from
a wide range of causes that may impact our customers and
the financial stability of capital markets.
Risk description
While we follow best practice and industry standard processes
and controls to ensure the continuity of our services and
operations, physical security, cyber security, geopolitical or
environmental events could impact continuity. As a result,
business continuity is one of the key objectives of our
operational resilience strategy. It helps us prevent, adapt to,
respond and recover from operational disruptions, and to
minimise their impacts.
We have a Group Crisis Management Freamwork which
sets out how we will respond to unforeseen events.
It allows for effective and relevant escalations and
decision-making, based on any given incident impact or
severity. This is supported by a practical and relevant
manual, crisis team response plans and scenario
playbooks, which include ransomware, emergency
relocation, third-party technology outages, energy crisis,
sanctions and geopolitical risk events. Annual crisis
management training is completed at the Group and
business unit levels, prioritising staff wellbeing, and critical
business areas and services. The robust Group-wide incident
and Crisis Management Framework is used to triage,
escalate, communicate and recover on a routine basis.
Additionally, in 2024, several Group-level crisis team
activations occurred, including a successful response to
the CrowdStrike outage. Furthermore, we have plans and
recovery strategies in place for the business services that
we provide to clients.
Risk trend key
Increasing
Stable
Decreasing
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88
Principal risks and uncertainties continued
Risk category Risk Mitigation
Third-party
Executive lead
Chief Operating Officer,
Divisional Group Heads,
Chief Information Officer
Risk trend
Risk overview
Our ability to deliver on our strategic objectives may be
impacted by failure to manage the financial, regulatory and
reputational risks associated with the selection, management
and ongoing oversight of critical third parties.
Risk description
At Group and entity level, we engage third-party service
providers, including cloud service providers to support the
delivery of our services. These are exposed to a range of
non-financial operational risks, such as technology, geopolitical,
cyber, reputational and regulatory compliance risk. Risk events
may result in these third parties being unable to meet their
contractual, regulatory, confidentiality or other obligations to us,
which in turn could lead to disruption, material financial loss,
higher costs, regulatory actions and reputational harm.
We continue to further refine and implement our Third-Party
Risk Management Framework to provide controls across all
stages of the third-party lifecycle, covering topics such as
planning and selecting, contracting and onboarding,
managing and monitoring, and termination and exit.
The framework helps ensure that we identify, assess,
remediate, monitor and report risk at key stages in the
lifecycle, and actively manage relationships with critical
third parties to avoid a breakdown in service provision.
Additionally, we focus on the ability of our critical third
parties to continue to provide goods and services in
accordance with requirements and in compliance with
contractual obligations.
Data
Executive lead
Divisional Group Heads,
Chief Operating Officer
Risk trend
Risk overview
We collect, process, license, calculate, own, transform,
administer and distribute data in many formats. Failure to
manage our data successfully could result in issues across data
quality, data usage, privacy, record management or data rights.
Risk description
We play a significant role in the financial markets infrastructure
and data landscape, with commitments to our customers,
counterparties, owners, vendors, regulators and the public in
the proper usage of our data, including via AI. If our data isn’t fit
for purpose, our reputation, financial condition and operating
results could be adversely impacted. Furthermore, failure to
meet data licencing and regulatory obligations could also
adversely affect our reputation and financial performance
or expose us to litigation or other legal or regulatory actions.
Our Enterprise Information Governance function, divisional
Chief Data Officers, Privacy Officers and Data Acquisition
and Rights Management Office work to develop and
institute a comprehensive governance framework to
ensure that our data is accessed and used fairly and
lawfully, and meets the needs of our customers,
stakeholders and regulators.
Our data and records policies and standards meet the
firm’s and customers’ needs, improve the quality of
decision-making, future-proof against the growing use of
AI and ensure adherence to legal and regulatory
obligations. We have defined and implemented a
standardised approach to data risk oversight with governance,
controls, measures, monitoring and efficient incident resolution
in place to mitigate any adverse impacts to our business.
In addition, our data protection and privacy policy sets
out a framework for privacy compliance to ensure that
personal data processed within our businesses are used
fairly, lawfully and in compliance with all applicable data
protection and privacy legislation.
Risk trend key
Increasing
Stable
Decreasing
Non-financial risks continued
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Strategic Report
Principal risks and uncertainties continued
Risk category Risk Mitigation
People and
talent
Executive lead
Chief People Officer
Risk trend
Risk overview
Our people and talent risks could arise from a lack of critical
skills, talent and knowledge, resulting in the inability to achieve
our objectives.
Risk description
People and talent risks can arise from multiple factors including
insufficient career development, inadequate compensation
processes and ineffective organisational structures and
leadership, all of which could lead to a lack of engagement
among our people or impact their wellbeing. Furthermore,
increased market competition and challenging geopolitical or
economic conditions could result in an inability to attract and
retain diverse, high-performing talent, and/or it could lead to
a disengaged workforce.
In the year, we began to embed our values across the
organisation, including an evolved performance evaluation
model tied to values, ensuring consistency in behaviour
and culture, and also launched a Leadership Expectations
programme, to explain how these translate into leadership
behaviours. We continued to focus on equity, diversity
and inclusion, including refreshed ambitions and priorities,
active inclusion networks, and enhanced policies and
benefits to foster a culture of belonging. Learning
opportunities, succession planning and career
development frameworks have continued to be expanded,
to ensure that our people have the appropriate skills and
resources available to perform their roles effectively and to
support their career journey at LSEG. We also continued
with leadership development engagements across all
stages of leadership, and delivered a framework for
promotion and progression.
Regulatory
change and
compliance
Executive lead
General Counsel,
Chief Executive Officer,
Divisional Group Heads
Risk trend
Risk overview
We are a global business operating in many regulatory
environments and are exposed to changes in those
environments and how we manage compliance with
regulatory requirements.
Risk description
We are subject to regulatory frameworks imposed by national
and international regulatory bodies. These regulations exist
to ensure stability, transparency and integrity of the financial
markets. Non-compliance could arise from various factors
including constantly changing regulations, complexity of
regulations and potential conflicts as a result of cross-border
operations. Specific risks to our business include: the ability to
access a particular market (e.g., EU equivalence for UK CCPs);
the regulation and supervision of new activities; market
competitiveness, including the attractiveness of the UK as
a financial centre; data issues including localisation, privacy,
sovereignty and regulation; sanctions issuance; sustainability
and ESG issues; innovation and technology, including AI and
digital assets; and resilience and financial stability, including
clearing, cloud and operational resilience.
Our Group Compliance function is responsible for setting
global policies and standards and defining compliance
risk appetite to guide our management of financial
regulatory compliance risk. The function provides oversight,
challenge and review of the businesses where there
are obligations and requirements from financial markets
regulators, to help them identify, assess and mitigate
regulatory compliance risk where required. Furthermore,
it conducts horizon-scanning activities to ensure that we
are aware of newly proposed and updated regulatory
change. The function also operates an assurance capability
and undertakes periodic risk-based reviews related to our
regulatory compliance.
Compliance experts with specialised knowledge of each
of the regulated services provided by our businesses are
aligned with the relevant business divisions. They provide
regulatory advice to the business and corporate functions
to support them in seeking to ensure that both day-to-day
operations and business developments are undertaken
in accordance with the relevant regulatory obligations.
Compliance policies are reviewed regularly and our
people, across the organisation, are required to complete
regular mandatory training of policies. Additional training
is provided for regulatory and compliance topics as
appropriate, to ensure that our people remain informed of
regulatory and compliance developments and standards.
Non-financial risks continued
Risk trend key
Increasing
Stable
Decreasing
London Stock Exchange Group plc
Annual Report 2024
90
Principal risks and uncertainties continued
Emerging risks
Emerging risks are newly developing external
risks which are difficult to quantify due to their
remote or evolving nature.
Risk category Risk Mitigation
Disruptive
technology
Executive lead
Chief Information Officer,
Divisional Group Heads
Risk trend
Risk overview
The markets that we serve could be changed by an increase
in competitive pressures and lower entry barriers, caused by
structural market changes, new business models and new
advances in cloud, AI, quantum computing and distributed
ledger technology.
Risk description
Change driven by developments in disruptive technology could
negatively impact our core business performance and disrupt
our commercial models. This risk could impact our entire
business, given the pace of change of business models,
technological advancements, and the continued increasing
pace of market entrants. Cloud providers are expanding their
capabilities from storage to a wide range of data management
and analytics solutions. They also enable a whole new
ecosystem of providers, including new market entrants, who
can now take advantage of cloud providers’ customer bases
and fast development cycle. The increased use of AI internally
and among customers brings with it associated risks such as
inherent bias, automated decision-making, data management
and misinformation. It will also introduce new challenges for
cyber security defence and detective mechanisms. Quantum
computing could revolutionise the field of cloud and AI by
enabling faster machine learning, facilitating new commercial
opportunities, but may potentially amplify some cyber security
and AI risks. As technology and regulatory clarity improves,
aggressive competitor activity in distributed ledger technology
could increase risk of disruption. Distributed ledger technology
presents potential disruptive risk to parts of our business as it
may result in a reduced need for centralised intermediaries,
thereby bypassing some of the services we offer.
We actively monitor new technological developments
and the pace of change, developing robust innovative
strategies to mitigate the risk resulting from emerging
technology. We, including through our Strategy function,
actively scan for potential investment opportunities in
emerging technology. In addition, we partner with advisers
and build proof-of-concepts to test new hypotheses and,
by collaborating with our customers, we can identify and
quickly react to changing consumption preferences.
Regulators are actively exploring the application of new
frameworks to manage the development of innovative
financial services technologies. It is expected that these
will be important for maintaining resilience and stability
in the market while enabling innovation with emerging
technology. We also participate in relevant industry and
academic forums, partnering closely with regulators.
Furthermore, we continue to maintain systems and controls
to mitigate the risk resulting from emerging technology.
Risk arising from our use of cloud, AI and distributed ledger
technology is identified, assessed, managed and reported
through the risk framework. We are aligned with industry
best practices and guidance when considering the
increased use of AI and distributed ledger technology.
As part of our Responsible AI Framework, we have
implemented specific governance to oversee the use of
AI both internally and within our products and services.
Risk trend key
Increasing
Stable
Decreasing
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Strategic Report
Financial viability statement
Financial viability statement
In accordance with Provision 31 of the Code, the Directors confirm
that they have a reasonable expectation that the Group will continue
to operate and meet its liabilities, as they fall due, for the next three
years. A period of three years has been chosen for the purpose of
this viability statement, in line with the Group’s business plan.
Viability period
The Directors’ assessment has been made with reference to the
Group’s current position and prospects, the Group’s three-year business
plan, the Group’s risk appetite and the expected impact of severe
but plausible downside scenarios. Given the Group’s acquisitive
nature in recent years and future organic growth strategy, a three-year
window is considered the most appropriate horizon for the Group’s
management to make its viability statement because it is the period
over which it can forecast with reasonable clarity the Group’s financial
performance, cash flows and strategic position. A 12-month period
from the expected date of the signing of the financial statements is
considered for the going concern assessment (see note 1.2 to the
financial statements on page 169).
Business planning process
The business plan makes certain assumptions about the performance
of the core revenue streams and segments, using existing product lines
as well as assumptions on take-up of new product lines. It considers
known inorganic activity, as well as assumptions on: the appropriate
levels of investment to support expected performance; the ability to
refinance debt as required; and expected returns to shareholders.
Assessment of viability
The principal risks and uncertainties facing the Group are set out
on pages 81 to 90 of the Strategic Report. In addition, note 17.5 on
financial risk management on page 219 of this report includes:
the Group’s objectives, policies and processes for managing its
capital; its financial risk management objectives; and its exposure
to credit risk, liquidity risk and market risk.
The business plan is stress-tested using severe but plausible
downside scenarios as determined relevant by the Financial Risk
Committee, over the full three-year plan period. These scenarios
are then assessed against the Group’s risk appetite parameters.
Impacts on the performance of core revenue streams and segments
are modelled through business inputs, with appropriate mitigating
factors also considered.
The scenarios modelled are discussed in the table opposite.
The results show that the Geopolitical Threat scenario would have
the largest impact on Group EBITDA. No scenario over the three-year
period leads to a breach of the Group’s risk appetite thresholds, or an
inability to meet the Group’s financial obligations through insufficient
headroom. The likelihood of these scenarios materialising is viewed
as remote.
Borrowing facilities
The Group’s borrowing facilities and respective repayment dates,
and the net debt position of the Group, are included in note 16 to
the financial statements, on pages 204 to 209.
Conclusion
The Directors assessed the prospects and viability of the Group in
accordance with Provision 31 of the UK Corporate Governance Code,
taking into account the Group’s three-year business plan, and the
principal risks to the Group’s future performance and liquidity.
The Directors have a reasonable expectation that the Group has
the ability to meet its obligations over the viability period.
Scenario Assumption
Associated
principal risk
Global financial
crisis
A replay of the 2008 crisis,
reassessed for purpose and
fitness with current market
conditions. The scenario
considers the collapse of
a major financial institution
and a simultaneous default of
one medium-sized (domestic
rather than international)
bank. Additionally, the
scenario includes the
consolidation of four globally
systemic banks into two.
Global economic
and geopolitical.
See page 83 for
more information.
Geopolitical threat Escalation of geopolitical
tensions that impacts
global markets and trade.
This scenario considers
the impact to revenues
due to sanctions and supply
chain issues, and access
to funding.
Global economic
and geopolitical.
See page 83 for
more information.
Cyber security
threats
The scenario considers
a cyber ransomware attack
impacting the Group’s ability
to serve a large portion of
its customers.
Information and
cyber security
threats. See
page 87 for more
information.
Technology outage This scenario assesses the
impact of a service disruption
to one of the Group’s key
databases which supports
a number of important
business services.
Technology.
See page 86 for
more information.
London Stock Exchange Group plc
Annual Report 2024
92
This section of the Annual Report
describes how LSEG
is governed and the control
structures we have in place.
Good corporate governance
is key to promoting the long-term
sustainable success of the
Company, achieving the Group’s
objectives, generating value
for shareholders and contributing
to wider society.
Governance
92 London Stock Exchange Group plc
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93 London Stock Exchange Group plc
Annual Report 2024
Strategic Report
In this section
Corporate governance introduction 94
Board of Directors 96
Corporate governance report 100
Complying with the provisions of the Code 109
Report of the Nomination Committee 110
Report of the Audit Committee 114
Report of the Risk Committee 120
Directors’ Remuneration Report 122
Directors’ Report 148
Statement of Directors’ responsibilities 153
93 London Stock Exchange Group plc
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London Stock Exchange Group plc
Annual Report 2024
94
Dear Shareholders,
I am pleased to present our Corporate Governance Report for the year
ended 31 December 2024, which provides insight into how our Board
has approached its responsibilities during the year, as well as an
overview of how LSEG is governed, the activities of the Board and the
control structures we have in place. Our Board is responsible for the
long-term sustainable success of the Company, generating value for
shareholders and contributing to wider society. We approach this by
supporting and challenging executive management to ensure that we
operate to high governance standards. This report explains how we
seek to achieve this. It also contains some highlights from 2024 from
my perspective as Chair. Together with the reports of the Committees,
we have set out how the UK Corporate Governance Code 2018
(the “Code”) has been applied during the year.
Changes to our Board
On 26 February 2024, we welcomed Michel-Alain Proch to LSEG,
before his formal appointment as Group CFO and Executive Director
on 1 March 2024. Michel-Alain brings extensive financial leadership
experience and his deep experience across global, financial
infrastructure and IT data solutions firms will be invaluable as we
deliver the next stage of LSEG’s strategic growth. You can read more
about Michel-Alain’s work during the year in the Strategic Report on
pages 42 and 43.
On 29 February 2024, Anna Manz stepped down as CFO and Executive
Director following her appointment as Chief Financial Officer at Nestlé,
and Ashok Vaswani stepped down as Non-Executive Director following
his appointment as Managing Director and Chief Executive Officer of
Kotak Mahindra Bank. Both Anna and Ashok were valued members of
the Board and upon their departures we extended our best wishes for
success in their new roles.
On 12 December 2024, we announced the appointment of Lloyd
Pitchford as Non-Executive Director and member of the Audit, Risk and
Nomination Committees, with effect from 30 April 2025. Further details
on Mr Pitchford’s appointment can be found in the Nomination
Committee Report on page 111.
Commitment to diversity
Our Board remains committed to identifying opportunities to refresh
its key skills and experience and to ensure that our Board continues
to remain effective, while having regard to diversity, inclusion and
equal opportunity. We believe that having diversity of thought,
experience and background makes us more dynamic, fosters
innovation and boosts performance.
Our Board seeks to meet the various goals on gender and ethnic
diversity set out in the Financial Conduct Authority’s UK Listing Rules,
Parker Review and FTSE Women Leaders Review. I am pleased to
confirm that we meet the Parker Review recommendations, with one of
the Board’s Directors being from a minority ethnic background; and one
of our four senior Board positions is held by a woman, as outlined in the
UK Listing Rules and FTSE Women Leaders Review. At the end of 2024,
we fell slightly below the UK Listing Rules and FTSE Women Leaders
Review goal of 40% female representation. As we seek to refresh the
Board and plan for orderly succession there may be periods of time
where the Board may not fully meet its diversity ambitions, but we
are committed to fulfilling the goals set out in the Listing Rules in
the longer term. For more information on Board diversity and the
process followed in relation to Board appointments, please see the
Nomination Committee report on pages 110 to 113.
Corporate governance
introduction
Our Board is responsible for the
long-term sustainable success of the
Company and for ensuring that we
operate to high governance standards.
Don Robert CBE
Chair
“
95 London Stock Exchange Group plc
Annual Report 2024
Governance
Corporate governance introduction continued
Commitment to sustainability
Our Board places a high priority on LSEG’s role in sustainability,
particularly in addressing climate change. This commitment resonates
with our shareholders, employees, customers, regulators and other
stakeholders. We remain committed to meeting their expectations in this
area. LSEG is pursuing multiple initiatives to fulfil our commitment to be
a strategic enabler of sustainable economic growth and LSEG is
uniquely positioned to be a leader in this respect. Further information
on the Group’s work on sustainability can be found in the Sustainability
section of the Strategic Report on pages 56 to 72.
Engagement with our customers
Our Board considers our Group’s customers to be a key stakeholder
and our interactions are essential to maintaining the Company’s high
standards of excellence in its offering. During 2024, we had the
opportunity to actively engage our customers both directly and
indirectly. During our visit to the New York office, our Directors met with
a strategic customer to discuss their thoughts on product and service
performance, upcoming company initiatives and overall satisfaction.
Further information about our engagement with customers can be
found on page 74.
Engagement with our people
Our workforce is core to achieving our strategy and during the year the
Board sought opportunities to engage with them. We continued to host
quarterly Board conversations in our regional locations and met our
colleagues in person including during our visit to the New York office.
Direct interaction provides real insight into the embedding of the
Group’s culture and values as well as the concerns of our people.
Further information about our engagement with our workforce can
be found on pages 75 to 76.
Committee governance
The Chairs of the Audit Committee, Risk Committee, Nomination
Committee and Remuneration Committee report on the activities of each
of the Committees during the year. I would like to thank the Committee
Chairs for the work they have done during the year.
Board effectiveness review
This year’s effectiveness review was conducted by the Group Company
Secretary using a detailed questionnaire provided by an external
provider, Lintstock. Our Board reviewed the results and agreed areas
of focus for 2025. We are committed to ensuring that these areas are
addressed to further enhance Board performance. I can confirm that the
actions from the 2023 effectiveness review have been completed.
Summaries regarding our actions from the 2023 effectiveness review
and the result of the 2024 effectiveness review can be found on pages
105 and 106.
Compliance with the Code
The Company has complied with the principles and provisions of the
Code throughout the financial year ended 31 December 2024 and to the
date of this report. This report is intended to give shareholders a clear
and comprehensive picture of the Group’s governance arrangements
and how they operated during the year. Further information on
compliance with the Code is detailed on page 109.
In addition, our Board has considered the changes presented in the UK
Corporate Governance Code 2024 (the “2024 Code”) and discussed
any related governance and operational changes necessary to comply
with the 2024 Code. The Company will adopt and apply the relevant
provisions of the 2024 Code in 2025.
Conclusion
I would like to thank my Board colleagues for their commitment and
constructive challenge throughout the year as we continue to support
the Company’s delivery of its strategy in 2025 and beyond. I hope this
report provides valuable insights into our activities and approach to
governance.
I encourage all shareholders to vote their shares in favour of all
resolutions to be considered at our AGM in May 2025, even if you are
unable to attend in person. Full details of the AGM will be provided in
the Notice of Meeting.
Don Robert CBE
Chair
26 February 2025
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Annual Report 2024
96
Board of Directors
The Board’s membership reflects a wide range of skills and business experience, drawn from
a number of industries, which is critical for bringing the expertise required and to enable different
perspectives to be brought to Board discussions.
Don Robert CBE
Chair of the Company and the
Nomination Committee
Appointed to the Board in January 2019 and
Chair of the Company in May 2019.
Skills, knowledge and contribution
— Strong track record in global financial
services, international business and mergers
and acquisitions
— Expert regulatory knowledge, accompanied
with a deep understanding of technology
and data and analytics
— Significant executive and non-executive
listed board experience
Experience
Don spent 18 years at multinational information
company Experian plc, where he most recently
served as Chairman (2014-2019). Prior to that
he was Group Chief Executive (2005-2014) and
CEO of the North American business (2001-
2005). Don has served in a variety of senior
roles including Chair of the US Consumer Data
Industry Association, Senior Independent
Director of Compass Group plc, Non-Executive
Director of the Court of Directors, Bank of
England and Chair of the videogames services
company, Keywords Studios plc (2023-2024).
Other current appointments
Non-Executive Director, Bupa (Chair from May
2025); Chair of Council, The London School of
Hygiene & Tropical Medicine; Partner, Corten
Capital; Chair, Ekco (a portfolio company of
Corten Capital); Non-Executive Director, Validis
Group Holdings Limited; Non-Executive
Director, FlexCharge; Visiting Fellow, Oxford
University; Honorary Group Captain, Royal Air
Force; Supporting Chair, Chapter Zero.
Committee membership
Nomination (Chair)
Remuneration
David Schwimmer
Group Chief Executive Officer
Appointed to the Board in August 2018.
Skills, knowledge and contribution
— A wealth of knowledge surrounding
market structure, investment banking and
emerging markets
— Extensive experience in corporate finance,
capital markets, and mergers and
acquisitions
— Deep understanding of the business and the
markets within which the Group operates
Experience
Since joining the Group in 2018, David has
overseen the transformation of LSEG from
a European regional exchange group to a
diversified, global leader in financial markets
infrastructure and data services. Prior to his
role at LSEG, David spent 20 years at Goldman
Sachs in a number of senior roles, most
recently as Global Head of Market Structure
and Global Head of Metals & Mining. Prior to
joining Goldman Sachs, he practiced law at
Davis Polk & Wardwell.
Other current appointments
Non-Executive Director, Centre for New
American Security (Not-for-Profit); Member
of the Principal Group, Glasgow Financial
Alliance for Net Zero.
Michel-Alain Proch
Group Chief Financial Officer
Appointed to the Board in March 2024.
Skills, knowledge and contribution
— Significant financial leadership experience
in global listed companies
— Deep experience across global, financial
infrastructure and IT data solutions firms
— Extensive experience of mergers and
acquisitions and delivering strategic growth
Experience
Prior to joining the Group on 26 February
2024, Michel-Alain was Group Chief Financial
Officer of Publicis Groupe SA (2021-2024)
where he led the global finance team across
100 countries. Prior to joining Publicis Groupe,
Michel-Alain was CFO of Ingenico until its
acquisition by Worldline (2019-2020), and then
served as adviser to the CEO in the integration
of the two companies. He previously spent
almost 13 years at Atos in a number of senior
roles, including Group Chief Financial Officer,
CEO, North America and Group Chief Digital
Officer, completing and integrating several
strategic acquisitions. Michel-Alain was
formerly the Vice-Chairman of Maison Du
Monde (2020-2024)
Other current appointments
Non-Executive Director, Pluxee N.V.
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Annual Report 2024
Governance
Board of Directors continued
Dominic Blakemore
Independent Non-Executive Director and
Chair of the Audit Committee
Appointed to the Board in January 2020.
Skills, knowledge and contribution
— Extensive experience in corporate finance,
investor relations and capital markets
— Significant financial leadership
experience from various international
financial institutions
— Strong strategic planning and
decision-making experience
Experience
Dominic is a chartered accountant and has
been Group Chief Executive Officer of
Compass Group plc since 2018. Previously,
he served as Deputy Chief Executive Officer
(2017), Group Chief Operating Officer, Europe
(2015-2017) and Group Finance Director
(2012-2015). Prior to these roles, Dominic
served as Chief Financial Officer of Iglo Foods
Group Limited (2010-2011). He also held the
position of European Finance & Strategy
Director at Cadbury plc (2008-2010). Dominic
was formerly a Non-Executive Director and
Chair of the Audit, Risk and Compliance
Committee of Shire plc (2014-2018).
Other current appointments
Vice-Chair, University College London;
Non-Executive Director, FareShare.
Committee membership
Audit (Chair)
Nomination
Risk
Martin Brand
Independent Non-Executive Director
Appointed to the Board in January 2021.
Skills, knowledge and contribution
— Significant board and executive experience
across listed companies
— Highly accomplished in corporate
finance, with a focus on the financial
technology sector
— Extensive experience in strategic
planning, data and analytics, and mergers
and acquisitions
Experience
Martin is Head of Blackstone Capital Partners
at Blackstone Inc. His work at Blackstone Inc.
has seen him involved in several of their
high-profile investments including: Sphera,
Ellucian, Refinitiv, Bumble, IntraFi and Paysafe.
He is a member of several of Blackstone’s
investment committees. He previously worked
as a derivatives trader with Goldman Sachs
in New York and Tokyo, and with McKinsey
& Company in London. He was Chair of
Tradeweb Markets (a subsidiary of LSEG)
until February 2022 and a Director of Refinitiv
until 2021.
Other current appointments
Non-Executive Director, Bumble Inc; Director,
UKG Software; Director, Liftoff Mobile; Director,
First Eagle; Trustee, American Academy Berlin.
Committee membership
Nomination
Professor Kathleen DeRose
Independent Non-Executive Director and
Chair of the Risk Committee
Appointed to the Board in December 2018.
Skills, knowledge and contribution
— Executive leadership experience in capital
markets and asset and wealth management
— Significant non-executive listed
board experience
— Expertise in the financial technology market,
risk management, and data and analytics
Experience
Kathleen is a Clinical Associate Professor of
Finance at New York University Leonard N. Stern
School of Business. Previous to this, she held a
number of senior roles at Credit Suisse Group
AG (2010-2015). Kathleen’s other prior positions
have included Managing Partner, and Head of
Portfolio Management and Research at Hagin
Investment Management (2006-2010), and
Managing Director, Head of Large Cap Equities
at Bessemer Trust (2003-2006). Preceding 2003,
Kathleen also held a number of roles at Deutsche
Bank and JPMorgan Chase (formerly Chase
Manhattan Bank). In addition to her senior
executive positions, Kathleen was founding Chair
of Evolute Group AG (2016-2017) and served as
a board member of EDGE (Economic Dividends
for Gender Equality) (2014-2015).
Other current appointments
Non-Executive Director, Experian plc;
Non-Executive Director, Voya Financial Inc.;
Non-Executive Director, Enfusion Inc.;
Non-Executive Director, Taxwell; Head of
Fintech Initiative, Fubon Centre for Technology,
Business, and Innovation.
Committee membership
Risk (Chair)
Audit
Nomination
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Annual Report 2024
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Board of Directors continued
Tsega Gebreyes
Independent Non-Executive Director
Appointed to the Board in June 2021.
Skills, knowledge and contribution
— Deep financial services and capital markets
experience gained from various global
senior executive and non-executive roles
— Significant expertise in international
business and technology
— Strong background in strategy and
business development
Experience
Tsega is a Founding Director at Satya Capital
Limited. Previously, she spent seven years at
Celtel International, a leading mobile
telecommunications provider in the Middle
East and North Africa. During her tenure at
Celtel, Tsega held a variety of senior roles
including Senior Group Adviser, Zain Africa BV
(2007-2016), Chief Strategy and Development
Officer (2005-2007), Chief Business
Development and Mergers & Acquisitions
Officer (2003-2005) and Director, Mobile
Commerce and New Product Development
(2000-2003). In addition to her senior
executive positions, Tsega has served as Vice
Chair of SES SA, and Non-Executive Director of
Sonae SA (2015-2019), ISON Group (2013-2018)
and Hygeia Nigeria Limited (2009-2015).
Other current appointments
Non-Executive Director, Airtel Africa plc;
Advisory Council Member, Mo Ibrahim
Foundation; Non-Executive Director,
Mastercard Foundation.
Committee membership
Audit
Nomination
Risk
Scott Guthrie
Non-Executive Director
Appointed to the Board in February 2023.
Skills, knowledge and contribution
— Market-leading experience in cloud
infrastructure and data and analytics
— A deep and valuable understanding of
the technology market
— Specialist in digital transformation
Experience
Scott has over 25 years of experience leading
large technology teams at Microsoft and has
been Executive Vice President of Microsoft’s
Cloud and AI division since 2014. He is
responsible for Microsoft’s Cloud Platform,
Data solutions, Operating Systems, Business
Applications, and Industry Solutions. The
products and services his team delivers
include Microsoft Azure, Dynamics 365, Power
BI, SQL Server, Nuance, and the core Windows
operating system. Scott was previously
Corporate Vice President of Microsoft Azure
(2011-2014), Corporate Vice President of
Microsoft’s Developer Division (2008-2011),
General Manager Microsoft Developer
Division (2005-2008).
Other current appointments
None
Committee membership
Nomination
Cressida Hogg CBE
Senior Independent Director
Appointed to the Board in March 2019.
Skills, knowledge and contribution
— Significant board and executive level
experience combined with a strong
corporate background in infrastructure,
private equity, mergers and acquisitions,
and investments
— Strong Chair experience and competency in
embedding corporate governance values
— Specialist knowledge in capital markets,
financial services regulation and pensions
Experience
Cressida was Global Head of Infrastructure
at Canada Pension Plan Investment Board
(2014-2018). Previous to this, she spent nearly
20 years with 3i Group plc and was one of the
co-founders of 3i’s Infrastructure business in
2005, before becoming Managing Partner in
2009. In addition to her senior executive
positions, Cressida served as Chair of Land
Securities Group plc (2018-2023) having been
appointed as a Non-Executive Director in 2014.
Other current appointments
Chair, BAE Systems plc; Non-Executive
Director, Troy Asset Management Ltd; Member,
Wellcome Trust Investment Committee;
Member, The Takeover Panel.
Committee membership
Audit
Nomination
Remuneration
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Annual Report 2024
Governance
Board of Directors continued
Dr Val Rahmani
Independent Non-Executive Director
Appointed to the Board in December 2017.
Skills, knowledge and contribution
— Significant expertise and knowledge of
technology and technical risk management
— Deep understanding of digital
transformation, innovation, sales
and marketing
— Extensive listed director experience
accompanied by expert corporate
governance knowledge
Experience
Val worked for IBM for almost 30 years and
was Chief Executive Officer of cyber security
start-up, Damballa Inc., for four years. Her past
career also included Non-Executive Director
positions at Aberdeen Asset Management plc,
Teradici Corporation and CTG, Inc. Val
previously ran the Innovation Panel for
Standard Life Aberdeen and holds a Doctorate
of Philosophy in Chemistry from the University
of Oxford.
Other current appointments
Non-Executive Director, RenaissanceRe
Holdings Limited; Non-Executive
Director, Entrust.
Committee membership
Nomination
Remuneration
Risk
William Vereker
Independent Non-Executive Director and
Chair of the Remuneration Committee
Appointed to the Board in October 2022.
Skills, knowledge and contribution
— Highly experienced banker, including
experience in executive roles
— Significant knowledge and experience
of capital markets, post-trade and
investment banking
— Deep knowledge of financial services and
regulatory and government relations
Experience
William was Vice Chair of the EMEA Investment
Bank at JP Morgan in 2020. Prior to that he
served as the Prime Minister’s Business Envoy
(2018-2020) and held senior roles at UBS
(2013-2018), including Global Head of
Investment Banking (2016-2018). Before joining
UBS, William held a number of senior executive
roles at Nomura (2009-2013) and Lehman
Brothers (2005-2008). He began his career
at Morgan Stanley and held a variety of
investment banking roles with a focus on the
energy and utility sectors, which culminated
with him being MD & Head of European
Utilities (2001-2005). William was also
a Member of the UK Investment Council
(2021-2024).
Other current appointments
Chair, Santander UK; Member, Advisory Board,
Celonis GmbH; Chair, Advisory Board of
Gonville and Caius College, Cambridge;
Member and Special Advisor, Delancey
Credit Fund Investment Committee.
Committee membership
Remuneration (Chair)
Nomination
Risk
Director changes in 2024
Anna Manz
Stepped down from the Board on
29 February 2024.
Ashok Vaswani
Stepped down from the Board on
29 February 2024.
Michel-Alain Proch
Joined the Board on 1 March 2024.
Director changes after 31 December 2024
Lloyd Pitchford
Joins the Board as a Non-Executive Director
on 30 April 2025 as announced on
12 December 2024.
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Corporate governance report
Board activities
Principal activities during the year
Each of the regular meetings includes a wide-ranging report from the Chief Executive Officer, together with reports from the Chief Financial Officer
and the Chief Operating Officer. Reports from the Committee Chairs and updates on major projects, including the LSEG-Microsoft partnership,
were also provided at each Board meeting.
During the year, the key matters considered by the Board included the following:
Area of focus Key activities and outcomes
Customers
— Received briefings on customer engagement, including digital markets infrastructure, sales and account management
and banks.
— Engaged directly with customers during the visit to the New York office.
— Received updates on customer metrics and key customer initiatives and new products and services including in relation
to the partnership with Microsoft.
Strategy, execution
and integration
— Discussed the long-term direction and strategic priorities at the Annual Board Strategy Day and approved the
Group strategy.
— Received regular updates on progress against the strategic objectives.
— Received frequent updates on the strategic partnership with Microsoft for next-generation data and analytics and
cloud infrastructure.
— Received regular updates on the Refinitiv integration, including in relation to achieving the stated targets and synergies,
customer matters, people and culture, transformation and technology.
— Approved M&A transactions, including the acquisition of ICD by Tradeweb for $785 million.
Finance and capital
— Reviewed and examined the Group’s financial performance at every Board meeting and approved the Group’s
financial statements.
— Reviewed and approved the annual budget and three-year strategic plan, with particular focus on capital allocation and
investment in technology as well as other strategic priorities.
— Considered and approved the proposal of the final and interim dividends, resulting in the payment of £642 million
dividend to shareholders during the year.
— Approved two directed share buybacks targeting shares held by the former Refinitiv shareholders. In aggregate, £1 billion
of limited-voting ordinary shares and voting ordinary shares were purchased.
— Approved debt programme renewals and issuances. Issued €600 million three-year Eurobond with a 2.75% coupon and
$100 million private placement with a 4.00% coupon, under the £4 billion European Medium Term Note Programme; and
redeemed $250 million under the $10 billion Global Medium Term Note Programme.
Sustainability
— Reviewed and approved LSEG’s Annual Sustainability Report 2023 (including TCFD Report), Sustainability Databook
2023 and Modern Slavery Statement.
— Received a briefing on the EU Corporate Sustainability Reporting Directive and reviewed and challenged LSEG’s
approach to the Directive.
— Discussed and challenged LSEG’s Climate Transition Plan.
— Reviewed LSEG’s sustainability performance against strategy and targets in 2024 and discussed the priorities for 2025.
People and culture
— Reviewed and approved the updated People and Culture at LSEG strategy, and reviewed examples of how the strategy
was being implemented in specific teams.
— Received updates on the Company’s values, following their launch in 2023, and ensured that these were appropriately
embedded across the Group.
— Received updates on the organisational design, location strategy, talent development and workforce capability.
— Received updates on: employee welfare, including rewards, benefits and wellbeing offerings; compensation reviews
taking into account market rates, inflation and commercial consideration; and enhancements to the global equity,
diversity and inclusion strategy.
— Received updates on the Group’s progress to promote equity, diversity and inclusion, including e-learning courses
which had been launched and rolled out to colleagues during the year.
— Received regular updates from the Directors on their engagement with colleagues across the Group – see pages 75 and
76 for details of the Board/Employee Engagement programme.
— Discussed the results of the annual LSEG Engage survey and supported and endorsed management to take appropriate
action in response to workforce feedback.
Risk management and
internal controls
— Received updates from the Chief Risk Officer on key risk management and internal control matters, and discussed key
risks and, where applicable, risk reduction activities.
— Considered the Group’s risk profile and approved the principal and emerging risks.
— Reviewed and approved the Group’s risk appetite statements.
— Reviewed and approved the risk management and internal control frameworks and their effectiveness.
— Received updates on technology risk, cyber security, sustainability risk and operational resilience.
— Received updates at each Board meeting from the Chairs of the Risk and Audit Committees on matters considered by
these Committees.
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Governance
Corporate governance report continued
Board training and deep dives
The Board regularly reviews the need for additional training and focused
briefings on key topics. In 2024, the Board participated in a number of
training sessions relating to new regulations, including on the Digital
Operational Resilience Act (DORA) and the Corporate Sustainability
Reporting Directive (CSRD).
The strategic partnership with Microsoft was discussed at every Board
meeting and during separate sessions with management outside of
Board meetings to receive updates on products and progress.
Additionally, during the Board’s visit to the New York office, it received
comprehensive briefings on the Group’s business divisions and strategy.
Board and Committee meetings
The table shows the number of scheduled and ad hoc meetings attended against the number of meetings each Director was eligible to attend.
Director Board Audit Risk Nomination Remuneration
Don Robert CBE 6/6 2/2 4/4
David Schwimmer 6/6
Michel-Alain Proch
1
5/5
Dominic Blakemore 6/6 4/4 4/4 2/2
Martin Brand 6/6 2/2
Kathleen DeRose 6/6 4/4 4/4 2/2
Tsega Gebreyes 6/6 4/4 4/4 2/2
Scott Guthrie 6/6 2/2
Cressida Hogg CBE
2
6/6 3/3 2/2 4/4
Valerie Rahmani 6/6 4/4 2/2 4/4
William Vereker 6/6 4/4 2/2 4/4
Directors who left during the year
Anna Manz
3
1/1
Ashok Vaswani
4
1/1 1/1 1/1
1 Michel-Alain Proch joined LSEG on 26 February 2024 and was appointed as a Director on 1 March 2024.
2 Cressida Hogg was appointed to the Audit Committee on 25 April 2024.
3 Anna Manz resigned as a Director with effect from 29 February 2024.
4 Ashok Vaswani resigned as a Director with effect from 29 February 2024.
The Non-Executive Directors meet privately without the Executive
Directors being present after every Board meeting. Comprehensive
Board and Committee papers, comprising an agenda and formal reports
and briefing papers, are sent to Directors in advance of each meeting.
Directors are also updated with written and verbal reports from senior
executives and external advisers during the meeting.
Chairs’ Forum
The Chairs’ Forum is composed of the Chairs of the Group’s principal
regulated subsidiaries and the Chair of the Company, with the Group
CEO being invited to meetings on a regular basis. The Forum provides
opportunities for relevant subsidiary Chairs from across the Group to
engage on common themes and topics of interest. During the year, this
included: regulatory matters including sanctions; people and talent
development; succession planning; the political situation in key markets;
and broader issues impacting the regulated subsidiaries.
Culture
The Board has established and keeps under review the Group’s culture,
purpose and values. In its review, the Board received dashboards
monitoring culture and was satisfied that the Group’s culture was aligned
with the Company’s purpose, values and strategy and sufficiently
embedded across the Group. The Board will continue to monitor and
assess the Group’s culture. The Board’s discussions were supported
by the Directors’ interactions with the workforce, as described above.
More information about our culture and how it is embedded in our
Group can be found in the Strategic Report on pages 59 to 61.
Stakeholder engagement
The Board seeks to understand the interests, needs and concerns of
shareholders and other key stakeholders (including customers, the
workforce and regulators) to enable the Company to pursue long-term
sustainable success. For more information on how we engage with our
stakeholders as well as how the Board has discharged its duties under
Section 172 of the Companies Act, please see pages 78 to 80 of the
Strategic Report.
Relations with shareholders
We believe that regular and ongoing engagement with our key
stakeholders and, in particular, our shareholders is central to good
corporate governance. The Group’s Investor Relations (IR) function,
reporting to the Chief Financial Officer, manages a shareholder
engagement programme throughout the year.
The Chair, Senior Independent Director and Chairs of each Board
Committee are available to engage with major investors, and do so
from time to time, typically to discuss corporate governance matters,
including sustainability, remuneration and Board composition, as well
as performance against the Company’s strategy. In early 2024, the Chair
of the Remuneration Committee consulted with major shareholders
and proxy voting agencies to understand their views on the proposed
approach for our updated Remuneration Policy and key executive
remuneration decisions. Further details and the outcome of this
engagement are included within the Directors’ Remuneration
Report from pages 122 to 147 and the outcome of all votes on
proposed resolutions at our 2024 AGM can be found on our website
www.lseg.com/en/investor-relations/annual-general-meeting.
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Corporate governance report continued
Senior management and the IR team engage with investors to discuss
strategy, performance, sustainability and other matters. We maintained
a high rate of investor engagement into 2024, meeting strong interest
from both new and existing investors. Across the year, we held over
500 engagements with institutional equity and debt investors
(significantly higher than the FTSE 100 average), with interest primarily
from the UK and USA but with growing interest from other countries as
the geographical mix of our shareholder base continues to diversify.
In particular, representation from Canada, Japan, Australia, Switzerland
and France increased this year as we look to further broaden our
outreach more globally.
In the first half of 2024, demand for the stock proved to be particularly
strong, as the Blackstone consortium executed two more successful
share placings, each of which was significantly oversubscribed. In
October, the consortium sold the last of their shares, fully exiting their
position. We are delighted to have replaced a significant selling
shareholder with a number of high-quality, long-term global
institutional investors.
Senior executive management and the IR team took part in 13
conferences this year, across the US, Canada, the UK and continental
Europe, hosted by banks or industry organisations. As well as expanding
our conference schedule, we ran a number of roadshows with executive
management. We also focused on giving investors further exposure to
divisional management in 2024, via both one-to-one meetings and at
industry expert conferences. In addition, we held deep dive webinar
sessions on Post Trade and FTSE Russell, exploring the operational
detail of those divisions in more depth as well as covering industry
trends and key growth drivers, and giving investors time to put their
questions to the management teams directly.
The Board receives a report on IR matters at each of its scheduled
meetings, including feedback from investors, market expectations of
financial performance and updates on share register composition. The
key takeaways from sell-side research notes are communicated through
the business, including to the Board and senior executives. The Group’s
corporate brokers also provide the Board with advice on market
sentiment, input on market communications and share register analysis.
In addition to information on financial and operational performance, the
Group engages with shareholders and relevant shareholder advisory
agencies on sustainability and governance matters. The Group
produces an annual Sustainability Report which details its approach to
sustainability matters: www.lseg.com/investor-relations/sustainability.
Our AGM provides the opportunity for all shareholders to meet
and to put questions to the Board of Directors. Our 2024 AGM was
held on 25 April 2024 at ‘87 Barts Close’ in London and provided the
opportunity for all shareholders to meet and put questions to the
Board of Directors.
The IR section of the Group’s website (www.lseg.com/en/investor-relations)
is a primary source of regularly updated information about the Group.
All financial reports and statements, regulatory news service
announcements and disclosures, presentations and other relevant
documents are available on the website, together with a list of analysts
producing research on the Company and a summary of analysts’
forecasts of performance. Recognising that joining our preliminary and
interim results conference calls is not always possible, recordings of
these calls are accessible to all shareholders via the Group website.
Workforce engagement
Information on workforce engagement and how the Company
discharges its responsibilities under Provision 5 of the UK Corporate
Governance Code can be found in the Board engagement with
stakeholders section on pages 75 and 76. The Board believes
that its direct and indirect engagement with the workforce has been
effective in facilitating meaningful, two-way dialogue between the
Board and employees.
The engagement initiatives undertaken during the year have enabled
the Board to hear from a broad range of our workforce across our
regions and at different levels of seniority and role type, given the
size and global footprint of the Group.
Our governance framework
The structure of our governance framework is set out below and
confirms that the Board holds primary responsibility for ensuring
the long-term success of the Company, primarily for the benefit
of our shareholders. The Board has delegated certain responsibilities
to its Committees and delegates authority for day-to-day operations
to management.
LSEG governance framework
Shareholders
Board of Directors
See biographies on pages 96 to 99
Chief Executive Officer
Group management
committees
Board Committees
Nomination Committee
See page 110
Audit Committee
See page 114
Risk Committee
See page 120
Remuneration
Committee
See page 122
Executive Committee
See biographies
on page 13
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Governance
Corporate governance report continued
Board responsibilities
The LSEG Board is collectively responsible for the long-term,
sustainable success of the Company, the delivery of sustainable value
to its shareholders and contributing to wider society.
The Board:
— provides leadership of the Company and is responsible for setting the
strategy and maintaining high standards of governance.
— leads the development of the Group’s culture, values and behaviours.
— oversees key strategic matters and their related risks, including
sustainability, technology (including cyber and AI) and human
capital management.
— oversees the execution of the Group’s strategy and holds executive
management to account for its delivery.
— ensures necessary resources are in place for the Group to be able to
meet its objectives and measures performance against these.
— the establishment of a framework of prudent and effective controls,
which enable risk to be assessed and managed.
— reviews and holds management to account for financial and
business performance.
— ensures that its responsibilities to shareholders and stakeholders are
met, including through effective engagement (including having
workforce policies and practices that are consistent with the
Company’s values and that support the Company’s long-term
sustainable success).
— bears ultimate responsibility for the oversight of risk management
and internal controls.
In carrying out their duties, the Directors act in accordance with all
relevant and applicable legislative and regulatory rules. In particular,
they take into account Directors’ duties contained in the Companies Act
2006 (the “Act”) and will consider the factors listed in Section 172 of the
Act and any other relevant factors. LSEG’s Section 172(1) statement for
the year ended 31 December 2024, including details of certain Board
decisions taken during the year, can be found on pages 78 to 80 of the
Strategic Report.
The Directors have full access to the advice and services of the Group
Company Secretary, who is responsible for advising on corporate
governance matters.
Board Committees
The Board has delegated certain responsibilities to four Board
Committees: the Audit, Nomination, Remuneration and Risk Committees.
Full details of the Committees’ responsibilities are set out in individual
Terms of Reference which are available on the corporate website.
The work undertaken by each Committee during the financial year is
detailed within the respective Committee reports on pages 110 to 147.
Division of responsibilities
The Board maintains a division of responsibilities between
the leadership of the Board and executive leadership of the
Group. The responsibilities of the Chair, the Senior Independent
Director and the Group Chief Executive are approved by the
Board. The Board’s statement of division of responsibilities
has been made publicly available on our website:
https://www.lseg.com/en/about-us/corporate-governance.
Chair
Don Robert CBE
— leads the Board and is responsible for the overall effectiveness
of its operation;
— manages and is accountable for Board succession planning;
— ensures that there is effective communication by the Company with
its shareholders and other key stakeholders, including personally
engaging with these parties;
— chairs all general meetings of the members of the Company, including
the Annual General Meeting; and
— ensures that Board members receive accurate, timely, and clear
information to make informed decisions.
Group Chief Executive Officer
David Schwimmer
— leads the Company on strategy and overall commercial objectives;
— manages the day-to-day business of the Company;
— leads and promotes the Company’s purpose, culture, values
and behaviours;
— implements the decisions of the Board, together with the
Executive team; and
— oversees and directs the communication programme with
shareholders and other key stakeholders.
Senior Independent Director
Cressida Hogg CBE
— acts as a sounding board for the Chair;
— leads the review of the performance of the Chair;
— develops succession plans for the Chair;
— acts as an intermediary between the Chair and other Directors
when necessary; and
— is available to shareholders as necessary.
Group Chief Financial Officer
Michel-Alain Proch
— provides expert knowledge and experience on all financial matters
to the Board;
— collaborates with the CEO and other executives to shape and execute
the company’s strategic plans;
— communicates the Company’s financial performance to shareholders,
and other key stakeholders;
— manages and oversees the budgeting and financial planning
process; and
— ensures accurate and timely financial reporting to stakeholders.
Non-Executive Directors
— provide independent oversight and challenge to management;
— assist management in the development of strategy;
— review the Group’s financial information;
— engage key stakeholders; and
— perform additional duties as required by membership of the
Board’s committees.
Group Company Secretary
Lisa Condron
— ensures that the Board has the policies, processes, information,
time and resources it needs to function effectively;
— ensures that good information flows within the Board, its Committees
and between Senior Management and Directors;
— facilitates new Directors’ inductions, and arranges Board training
to assist with the Directors’ professional development;
— ensures that the Board has access to independent professional
advice when necessary; and
— reports to the Chair on all Board governance matters.
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Annual Report 2024
104
Corporate governance report continued
Board composition
As at the date of this report, the Board is composed of 11 members:
the Chairman, seven independent Non-Executive Directors, one
Non-Executive Director (the Director appointed in connection with
the strategic partnership with Microsoft) and two Executive Directors.
Four of the Directors are women; one of the Directors is from a minority
ethnic background; and one senior position is held by a female
Director (Senior Independent Director). The Board Diversity Policy,
which is reviewed annually, is available on the corporate website:
https://www.lseg.com/en/about-us/corporate-governance. Further
information about diversity, inclusion and equal opportunity in the
Board and executive management can be found in the Nomination
Committee report on page 112.
Director independence
The Board, with support from the Nomination Committee, has evaluated
the independence of all the Non-Executive Directors. In assessing each
Director, the Board considers whether there are relationships or
circumstances that are likely to affect or could appear to affect
a Director’s judgement.
Martin Brand was appointed to the Board as a Non-Executive Director in
2021 and represented Blackstone in accordance with the terms of the
Relationship Agreement with Blackstone. In May 2024, following the
completion of the £1 billion share buybacks by the Company and the
placing of shares with institutional investors by the Blackstone
Consortium, the Relationship Agreement terminated in accordance
with its terms. As a result, Blackstone was no longer entitled to nominate
a director to the Board; however, the Board agreed that given the
insights and perspectives Martin brings to the Board and his experience
as Head of Blackstone Capital Partners at Blackstone, he should
remain on the Board as a Non-Executive Director in a personal capacity.
During October 2024, the Blackstone Consortium completed its sale of
shares in the Company and no longer holds an interest in LSEG shares.
In view of this and given that there are no ongoing material business
relationships between the Company and Blackstone, in February 2025,
the Board determined that Mr Brand was to be considered independent
as part of its annual review of Director independence in accordance
with Provision 10 of the Code.
Scott Guthrie was appointed to the Board as a Non-Executive Director
in 2023. Scott represents Microsoft Corporation and was appointed
in connection with the strategic partnership (for further information,
please refer to pages 40 and 41). The Board agreed that Scott would
not be considered independent under the Code given the relationship
with Microsoft. Scott is not a member of the Audit, Remuneration or
Risk Committees.
On 12 December 2024, the Company announced the appointment
of Lloyd Pitchford as a Non-Executive Director with effect from
30 April 2025. The Board determined that Mr Pitchford was considered
independent on appointment. Mr Pitchford will stand for election by
shareholders at the 2025 AGM.
The Board has evaluated the independence of the other Non-Executive
Directors and concluded that each are independent in character and
judgement. The Chair was independent on appointment.
In line with the Code, at least half the Board, excluding the Chair, are
independent Non-Executive Directors. All Directors are subject to
annual re-election at the Company’s AGM.
Skills and expertise
The Board, with support of the Nomination Committee, keeps under
review the skills and experience of the Board to ensure that it
has the breadth and depth of expertise to carry out its duties and
responsibilities. Following the review, the Directors were satisfied that
the Board contained the necessary skills and expertise to fulfil the
Company’s long-term strategic objectives. In December 2024,
the Directors considered the relevant sector experience for each
Non-Executive Director; this has been summarised in the table below.
Relevant sector experience
3Data and analytics
1Post-trade
6Capital markets
6Technology
2Financial qualifications
7FTSE 100/listed experience
4Financial regulation
Further details on the Nomination Committee review of Board
composition can be found on pages 110 to 113.
Time commitment and conflicts of interest
The Board or Nomination Committee have responsibility to review time
commitments and significant external appointments being undertaken
by the Directors. During the year, the Board reviewed the additional
external appointment of Martin Brand as Non-Executive Director of
Bumble, Inc. The Board agreed that the proposed appointment would
not create any material conflict of interest and confirmed that Mr Brand
would have sufficient time to undertake the new role in addition to
existing commitments.
The Chairman’s additional external appointments require the approval
by the Board. In November 2024, it was announced that Don Robert
would become a Non-Executive Director of British United Provident
Association Limited (BUPA), a private company limited by guarantee,
in February 2025 and then Chair in May 2025. Prior to his appointment,
the Board confirmed that Mr Robert would have sufficient time to
undertake the role in addition to his existing commitments, taking into
account that he would be stepping down as Chair of Keywords plc on
23 October 2024, and that the proposed appointment would not create
a material conflict of interest.
In accordance with the Companies Act 2006, the Directors have
adopted a policy and procedures for the disclosure and authorisation
of conflicts of interest. The Company’s Articles of Association allow the
Board to authorise conflicts of interest that may arise and to impose
such limits or conditions as it thinks fit. The Company has established
procedures whereby actual and potential conflicts of interest are
regularly reviewed, appropriate authorisation is sought prior to the
appointment of any new Director, and new conflicts are addressed
appropriately. These have been followed during 2024.
The decision to authorise a conflict of interest can only be made by
non-conflicted Directors and, in making such decisions, the Directors
must act in a way they consider, in good faith, would be most likely to
promote the Company’s success.
105 London Stock Exchange Group plc
Annual Report 2024
Governance
Corporate governance report continued
Induction
The Group Company Secretary oversees the development of induction programmes for new Directors. These are designed to be comprehensive,
formal, and tailored to each Director, including discussions with key members of management and certain of the Groups advisers. The programmes
focus on the Group’s purpose, values, culture, strategy, operations, governance and stakeholders while considering the new Director’s relevant and
existing skills and experience, as well as additional requirements for Board Committee membership. New Non-Executive Directors receive an
induction pack containing corporate and governance documents outlining the responsibilities attached to their appointment.
Board effectiveness and leadership
A Board effectiveness review is carried out annually in line with the UK Corporate Governance Code 2018 (the “Code”), with a review being
externally facilitated every three years. The next externally facilitated performance review is anticipated to be conducted during 2025.
2023 effectiveness review
The 2023 effectiveness review was facilitated internally and identified areas for further focus by the Board during 2024. These are summarised
below, together with the resulting actions taken in 2024.
Area Area of focus Summary of actions taken
Board
composition
and
dynamics
To build on relationships between the
Non-Executive Directors and the wider
Executive team.
— The Board continued the programme of rotating attendance of an Executive
Committee member at each Board meeting during the year alongside
presentations by Executive Committee and members of their teams to the
Board throughout the year.
— The Board met with Executive Committee members during business briefings
at the New York office and over a lunch event at the UK office.
— The Executive Committee and other members of their teams attended the
off-site Board Strategy Day.
— The Board met with Executive Committee members outside of Board
meetings to discuss the partnership with Microsoft.
Stakeholder
oversight
Continued focus on customers.
— The Board received customer updates at every Board meeting.
— The views of and impacts on customers were included in relevant Board
papers and discussions.
— The Directors met with a strategic customer during the Board’s visit to the
New York office.
Strategic
oversight
Furthering its understanding and
oversight capability:
— Technology, particularly technological
change and the Data & Analytics strategy;
— Delivery of the LSEG-Microsoft partnership
and product development;
— External insights, particularly competitive
dynamics; and
— Organisational capacity to deliver the
strategy and continued focus on the
development of internal talent and pool
of future succession candidates.
— The recently appointed Chief Information Officer, Irfan Hussain, presented
his technology strategy to the Board.
— The Board received briefings on the Data & Analytics business and
AI strategy at the Board Strategy Day.
— The Board received briefings on technology and competitive dynamics at
meetings during the year.
— Updates on the LSEG-Microsoft partnership were provided to the Board at
every meeting and additionally the Board met with management outside of
Board meetings to receive progress updates.
— The Nomination Committee reviewed the succession plans for senior
leadership and the plans to develop top talent.
Risk
management
and
operational
resilience
Oversight of operational resilience will remain
a key priority for the Board in 2024, which is seen
as important for delivery of the Group’s ambitions
and for our customers.
— The Board and Risk Committee received regular updates on the Group’s
operational resilience and related programmes of improvement.
— The Board received a presentation on technology risk including
presentations from the business and Risk team (first and second lines
of defence).
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106
Corporate governance report continued
2024 effectiveness review
In 2024, the Board undertook an internal evaluation of the performance
of the Board, its Committees, the Chair and the individual Directors.
The evaluation process was conducted by the Group Company
Secretary using a detailed questionnaire provided by an external
provider, Lintstock.
The 2024 effectiveness review sought the views of Directors on the
effectiveness of the organisation and dynamics of the Board and
its Committees, the papers and topics covered at the Board and
Committee meetings, the purpose and culture of the business,
stakeholder engagement, the relationship between the Non-Executive
Directors and management, the current and future composition of
the Board, the oversight of risk management and internal controls,
and the leadership of the Board.
The outputs of the evaluation were reported to, and considered by,
the Board, and actions and focus areas for the Board and its
Committees to undertake in 2025 were agreed.
As part of the 2024 effectiveness review, the Senior Independent
Director led a review of the performance of the Chair, using a similar
form of questionnaire provided by Lintstock and met with the Board
without the presence of the Chair to discuss the results of the review.
The Chair meets with Directors individually to discuss their performance.
The results of the effectiveness review will also be used to assist
in the future development of the Board, its Committees and its
individual Directors.
Results
The 2024 effectiveness review identified a number of positive
attributes including:
— Board composition and dynamics – the Board is seen to be of
a manageable size while benefiting from an excellent and diverse
mix of skills, with a good balance of experience and expertise.
— Stakeholder oversight – the Board’s understanding of shareholder
perspectives is viewed as relatively strong. Customer spotlights
provided at Board meetings are seen to be valuable and the Board
engagement employee sessions were very well received.
— Board support and focus of meetings – a high standard of Board
support is provided and further improvements have been seen in
the quality and length of meeting materials.
— Strategic and operational oversight – oversight of strategy and
operations was rated highly overall.
— Risk oversight – oversight of risk was rated highly overall.
Next steps
The Board agreed areas of focus for 2025 should be:
— Stakeholder oversight – continued focus on understanding
customer views and requirements, including the opportunities
and related risks, with increased insights from a broader range of
external parties and experts.
— Strategic oversight – continued focus on the key strategic areas
including: delivery of the LSEG-Microsoft partnership, operational
transformation and resilience, technology and AI, Data & Analytics
strategy; and further incorporation of sustainability matters into
Board discussions.
— Risk oversight – continued focus on technology resilience alongside
delivery of the technology strategy.
— People oversight – continued focus on plans to develop talent in
senior management.
Overall, the review found that the Board and its Committees are
effective and are performing well. The results indicated that the Board
considers that it has the appropriate balance of skills, experience,
independence and knowledge to enable it and its Committees to
discharge their duties and responsibilities effectively.
The results of the effectiveness reviews of the Committees were
positive about the management and composition of the Committees
as well as the quality of the information received.
Committee 2025 areas of focus
Audit Committee
— Ongoing support in relation to sustainability reporting.
— The need for additional members with financial and accounting expertise.
— Continued oversight of the programme of work related to compliance
with the new material control requirements under Provision 29 of the
2024 UK Corporate Governance Code.
Nomination Committee
— Continued focus on internal succession plans and talent development
for senior management.
Remuneration Committee
— Review of the support and guidance provided by the Committee’s
external advisers.
Risk Committee
— Technology resilience to remain as a key area of focus.
107 London Stock Exchange Group plc
Annual Report 2024
Governance
Corporate governance report continued
Risk management and internal control
The Board is ultimately responsible for the Company’s overall approach
to risk management and internal control. The Board is supported in
discharging its risk management and internal control responsibilities by
the Audit and Risk Committees, which have been delegated specific
duties as set out in their Terms of Reference.
The Board has established and maintains a risk management framework
which prescribes the extent of the principal risks the Group is willing to
take to achieve its long-term strategy. The system of internal controls
has been designed to manage the Group’s activities within the risk
appetite set by the Board and provides reasonable assurance that risks
are being effectively managed or mitigated. It covers all material
controls, including those to manage financial, operational and
compliance risks, and safeguards the quality and integrity of both
internal and external financial and non-financial reporting.
The Audit and Risk Committees work jointly to monitor the adequacy
and effectiveness of the Company’s systems of risk management and
internal control and oversee the work to further enhance and strengthen
the internal control environment. Further details on the work of the Audit
Committee can be found on pages 114 to 119 and further details on the
work of the Risk Committee can be found on pages 120 to 121.
The Group is committed to operating within a robust control
environment. A summary of some of the Group’s Risk Management
Frameworks and internal controls are listed below.
Principal and emerging risk management
The Board, with support from the Audit Committee, conducted a robust
assessment of the Company’s principal and emerging risks for the
financial year. A summary of the Company’s principal and emerging
risks can be found on pages 81 to 90.
Risk management framework
The Risk Committee reviews the Enterprise-wide Risk Management
Framework (EMRF) at least annually and recommends enhancements
to the Board. The ERMF sets out the Company’s approach to managing
risk and ensures that risks are adequately understood and managed
within risk appetite across the Group. Further details on the ERMF can
be found in the principal risks section from page 81.
Risk appetite statement
The Group Risk Appetite Statement outlines the key concepts of risk
appetite and risk tolerance that the Group will accept in pursuit of its
strategic objectives. The Board, following recommendation from the
Risk Committee, approves the Group Risk Appetite Statement at
least annually.
Financial control framework
The Group has established a Financial Control Framework (FCF) that
seeks to maintain a robust financial control environment, that mitigates
the risk of material financial misstatement and helps protect the Group
against financial fraud. The FCF aims to ensure clear links between the
Group’s financial reporting risks and the associated processes and
control environment, making sure these are tested and appropriately
documented. The FCF is also focused on ensuring the right culture and
training is in place to support a risk-first mindset. The FCF is monitored
by the Audit Committee which receives regular updates on the progress
being made to enhance the FCF. The Audit Committee updates the
Board on the effectiveness of the FCF, along with the progress being
made to enhance the FCF, at least annually.
Financial reporting controls
The Group’s financial reporting process is facilitated using accounting
policies and reporting formats and is supported by guidance issued to
all reporting entities within the Group. Management is responsible for
maintaining the control environment for financial reporting and ensuring
that policies and procedures exist around the maintenance of records.
The submission of financial reports from each reporting entity is subject
to a rigorous review. Management must provide assurance regarding
the reliability and accuracy of the Group’s financial reports and controls.
Relevant financial controls are subject to independent testing as well as
self-attestation by control owners, the results of which are reported to
the Audit Committee. The Audit Committee reviews the application of
the Group’s accounting policies as well as significant accounting
judgements and estimates. It also reviews the externally reported
interim and full-year results and satisfies itself that these are fair,
balanced and understandable. The Board, with support from the
Audit Committee, reviews the effectiveness of the Group’s financial
reporting internal controls.
Policy governance framework
LSEG operates a Policy Governance Framework (PGF) which details
the internal governance for all Group policies. The PGF outlines the
development, maintenance, implementation and compliance of all
Group policies. It details how various risks within Group policies are
addressed and ensures that all Group policies comply with the PGF. The
Risk Committee is responsible for the oversight and approval of the PGF.
Internal Audit
The Board, together with the Audit Committee, is responsible for
ensuring the independence and effectiveness of the Internal Audit
function. Internal Audit’s primary function is to provide independent and
objective assurance to the Board, Audit Committee and executive
management on the adequacy and effectiveness of the Group’s system
of internal controls. The Internal Audit function provides opinion and
challenge on the control environment and provides assurance on the
Group’s ERMF. Internal Audit provides an opinion on the adequacy
and effectiveness of the Group’s framework of governance, risk
management and controls on an annual basis. This is achieved through
a programme of assurance over key risks applicable to the Group and
audits required by regulation. To ensure independence, the Internal
Audit function sits within the third line of defence in the Group’s risk
control structure and has no operational responsibilities for the legal
entities or processes which it reviews.
The independence of the Internal Audit function from executive
management is protected by the following measures:
— The Audit Committee approves the Internal Audit budget, annual plan,
charter and mandate.
— The Chief Internal Auditor reports to the Group CFO for administrative
matters with a secondary reporting line to the Chair of the Audit
Committee and has direct access to the Chair of the Board.
— The Remuneration Committee, with input from the Chair of the
Audit Committee and the Group CFO, assess the performance of the
Chief Internal Auditor.
— The Audit Committee approves the appointment or removal of the
Chief Internal Auditor.
Further details on the Internal Audit function can be found in the
internal audit charter which is available on the Group’s website at:
https://www.lseg.com/en/about-us/corporate-governance.
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108
Corporate governance report continued
Management structure / Delegation of authority
The Group operates a matrix structure designed to optimise resource
allocation and organisational capacity. Subject to the Schedule of
Matters Reserved for the Board, the Board has delegated the day-to-day
running of the Group to the CEO. The CEO is supported by the Group
Executive Committee (the “ExCo”), which is designed to ensure open
challenge and support effective decision-making. Each ExCo member is
accountable for a key operating division, business area or function.
The ExCo meets regularly to assist the CEO in exercising his authority
over material matters that have strategic, cross-business area or
Group-wide implications. Delegation from the Board requires ExCo
members to maintain responsibility and sustain a control environment
that is appropriate to their division, business area or function.
The ExCo has established subcommittees: the Financial, Investment
& Capital Committee (FICC); the Executive Risk Committee (ERC); and
the Sustainability Committee. The remit of the FICC is wide ranging and
includes: reviewing the financial and legal implications of Group
contracts; approving changes to the Group’s corporate structure;
reviewing the financial and reporting implications of acquisitions and
disposals; annual reviews of the Group’s overall tax and treasury
governance policies; and monitoring of the Group’s intragroup lending
arrangements. The ERC oversees matters such as risk culture, risk
profile oversight, risk policy oversight, risk appetite and risk disclosures
and reporting. The remit of the Sustainability Committee includes
the oversight of sustainability and climate-related risks.
Assessment and effectiveness
In conjunction with the Board’s review of this annual report, the Board,
with support from the Audit and Risk Committees, conducted a robust
review of both the principal risks facing the Group, including those that
would threaten its business model, future performance and liquidity,
and the operation and effectiveness of the Group’s system of risk
management and internal controls through 2024 until the date of
approval of the Annual Report. As part of its assessment, the Board
reviewed the identification, assessment, management and escalation of
processes for principal and emerging risks and the integration of those
processes within Group. It concluded that overall, the risk management
systems are adequate and are responsive to the Group’s risk profile and
long-term strategic objectives, and that appropriate enhancement plans
were in place to strengthen the control environment. The enhancements
to the Group’s risk management arrangements being implemented as
part of continuous improvement programmes are overseen by the
Audit or Risk Committee as appropriate.
The Board will continue to consider further enhancements to its risk
management and internal control systems, to ensure that complies with
regulatory and legal developments as well as changes to the external
environment.
Further information
Further detail on the Group’s risk management (including an overview
of the principal risks and a summary of emerging risks) of the Group is
provided on pages 81 to 90.
109 London Stock Exchange Group plc
Annual Report 2024
Governance
Complying with the provisions
of the Code
Throughout the financial year ended 31 December 2024 and to the date of this report, London Stock Exchange Group plc has complied with all
principles of the Code, and complied with all provisions of the Code.
The Code is publicly available at the website of the UK Financial Reporting Council at www.frc.org.uk. Details of how the principles of the Code have
been applied can be found throughout this Corporate Governance Report, the Strategic Report, and the Committee reports. The following table
outlines where narrative on the principles is positioned throughout the Annual Report:
Section heading
Page
number
1. Board leadership and Company purpose
A. Leadership, long-term sustainable success, generating value for shareholders and
contributing to wider society
Corporate governance report 103
B. Company purpose, values and strategy Our purpose and strategy
Sustainability
24-26,
59
C. Resources and prudent and effective controls Corporate governance report 103,
107-108
D. Effective engagement with stakeholders Board engagement with stakeholders
Corporate governance report
73-77,
101-102
E. Workforce policies and practices Sustainability 59-61
2. Division of responsibilities
F. Leadership of the Board Corporate governance report 103
G. Board composition and division of responsibilities Board of Directors
Corporate governance report
96-99,
103-104
H. Role and time commitment of Non-Executive Directors Corporate governance report 103-104
I. Policies, processes, information, time and resources, and support of the Company Secretary Corporate governance report 100-108
3. Composition, succession and evaluation
J. Board appointment process and effective succession planning Report of the Nomination Committee 110-113
K. Board and Committee skills, experience and knowledge Board of Directors
Corporate governance report
96-99,
104
L. Annual Board and individual Director evaluation Corporate governance report 105-106
4. Audit, risk and internal control
M. Independence and effectiveness of internal and external audit function Report of the Audit Committee 118
N. Fair, balanced and understandable assessment of Company’s position and prospects Report of the Audit Committee 119
O. Procedures to manage risk, oversee internal control framework and determine nature
and extent of principal risks
Principal risks and uncertainties
Corporate governance report
81-90
107-108
5. Remuneration
P. Remuneration policies and practices Report of the Remuneration Committee 122-147
Q. Procedure for developing policy on Executive, Director and senior management remuneration Report of the Remuneration Committee 122-147
R. Independent judgement and discretion in remuneration outcomes Report of the Remuneration Committee 122-147
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110
Report of the
Nomination Committee
Our Committee focused on succession
planning and the appointment of
Lloyd Pitchford who joins the Board as
a Non-Executive Director in April 2025.
Don Robert CBE
Chair of the Nomination Committee
Achievements for 2024
During the year, the Nomination Committee:
1. led the search, evaluation and nomination to the Board for the
appointment of Lloyd Pitchford as Non-Executive Director, to take
effect on 30 April 2025, as announced on 12 December 2024;
2. reviewed the composition of the Board which supported the
development of succession plans;
3. enhanced the strategy to develop our top talent;
4. focus on the areas identified in the 2023 Committee effectiveness
review, including Board and Executive Committee succession plans,
the development and performance of Executive Committee
members and talent management across the Group; and
5. approved the updated Board Diversity Policy.
Priorities for 2025
The priorities set by the Committee for 2025 are to:
1. review succession plans for Non-Executive Directors and
Senior Management and ensure those plans and the talent
pipeline promotes diversity, inclusion and equal opportunity;
2. continue to review the composition of the Board, ensuring that
the Board has the appropriate balance of skills, expertise, tenure and
diversity; and
3. ensure that the focus areas identified from the 2024 Committee
effectiveness review are considered by the Committee.
Composition and meetings
The Committee’s membership is composed of all the Non-Executive
Directors, with a majority being independent. Structuring the
membership in this way enables Non-Executive Directors to participate
in all discussions relating to Board composition and succession
planning, which reflects the importance placed on these topics
by the Company and the Code. The names and biographies of the
Non-Executive Directors who form this Committee can be found on
pages 96 to 99 of this report.
The Group Company Secretary is the Secretary to the Committee and
attends all meetings. The Group Chief Executive Officer, the Chief
People Officer and external advisers attend meetings as requested
by the Committee.
During the year, the Committee met twice. In addition, the Committee
members met with candidates for Director and Senior Management
positions as part of the Committee’s nomination processes.
Purpose and responsibilities
The responsibilities of the Committee include: ensuring that the Board
retains the appropriate balance of skills, knowledge, experience and
diversity to support the strategic objectives of the Group; maintaining
a formal, rigorous and transparent approach to the appointment of new
Directors; and maintaining effective succession plans for the Board and
Senior Management.
Further details on the responsibilities of the Nomination Committee
can be found in the Committee’s Terms of Reference, which are
reviewed annually and are available on the Company’s website at:
https://www.lseg.com/en/about-us/corporate-governance.
“
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Governance
Committee effectiveness
The Committee’s effectiveness was assessed as part of the 2024 Board and Committee effectiveness review. The result of the review was that the
Committee is performing well and operates at a very high level.
Further details on the 2024 Board and Committee effectiveness review and arising focus areas for the Committee can be found in the Governance
section of this report on pages 105 to 106.
Principal activities during the year
Area of focus Matters considered Key outcomes Future priorities
Board
appointments
Led the search, evaluation
and nomination process of
Non-Executive Directors.
The nomination and appointment of Lloyd
Pitchford as a Non-Executive Director.
Support in the search and appointment
process for new Directors.
Senior
management
appointments
Supported the search, evaluation and
nomination process of Executive
Committee members.
The appointment of Pascal Boillat as
Chief Operating Officer.
Support the selection process for
senior management.
Succession
planning
Reviewed succession plans for the
Board and Senior Management.
Further developed succession plans
and ensured their alignment to the
Group’s strategy.
Review succession plans for the Board
and Senior Management, with
consideration for diversity.
Board
composition
Reviewed the structure, size, skills,
expertise, diversity and tenure of the
Board and its Committees.
Identified future needs of the Board
which supported the development of
succession plans.
Review the composition of the Board and
its Committees.
Board diversity
policy
Reviewed updates to the Board Diversity
Policy in line with the 2024 UK Corporate
Governance Code and the Group Equity,
Diversity and Inclusion Policy.
Recommended updates to the Policy to
the Board to approve.
Continue to maintain the Policy and
ensure that it remains effective.
Board succession planning
Board succession planning is a key role of the Committee. The Board
recognises the need to regularly refresh the Board to ensure that it is
best placed to support and challenge management on its strategy and
plans, with the appropriate balance of skills, tenure and diversity. During
the year, the Committee reviewed the structure and composition of the
Board and its Committees to ensure that critical skills and experience
were refreshed. In its review, the Committee considered likely future
changes, with consideration given to the expertise, diversity and tenure
of each Director. The review helped the Committee to identify Board
succession requirements.
The Board recognises that several Directors were appointed to the
Board at a similar time and is therefore undergoing a process of
refreshing its composition to ensure that it has a mix of tenures
as well as retaining the appropriate mix of skills and experience.
Tenure of Independent Directors*
7 to 9 years
1 (13%)
0 to 2 years
1 (13%)
3 to 4 years
2 (25%)
5 to 6 years
4 (50%)
Board appointments
The Chair of the Board, with support from the Nomination Committee,
leads the process for the appointment of new Directors to our Board.
During the year, the Committee supported the process, which was
based on merit and objective criteria, to appoint a new Independent
Non-Executive Director, resulting in the appointment of Lloyd Pitchford
as Non-Executive Director, with effect from 30 April 2025, as announced
on 12 December 2024. Mr Pitchford brings a wealth of significant
financial experience and is currently Chief Financial Officer of
Experian plc and Non-Executive Director and Chair of the Audit
Committee of Bunzl plc. On 12 December 2024, it was announced
that Mr Pitchford had resigned from his appointment at Bunzl plc with
effect from 23 April 2025. Prior to that Mr Pitchford held senior roles
at Intertek plc and in the energy sector, and we look forward to him
joining our Board in 2025.
The process was supported by Egon Zehnder, an external search
consultant which provided regular updates including a longlist and
shortlist of candidates. In addition to its engagement as the Board’s
external search consultant Egon Zehnder provided executive support
services to the Company, and is a signatory to the Enhanced Voluntary
Code of Conduct. Shortlisted candidates were interviewed by the Chair
and Dominic Blakemore (Chair of the Audit Committee). The final
candidates also met with Cressida Hogg (Senior Independent Director),
William Vereker (Chair of the Remuneration Committee), David
Schwimmer (Group Chief Executive Officer) and Michel-Alain Proch
(Group Chief Financial Officer). Feedback was reported to the
Nomination Committee and the Committee recommended, and the
Board approved, the appointment.
As disclosed in last year’s Nomination Committee report, we welcomed
Michel-Alain Proch to our Group on 26 February 2024 and to our Board
as Chief Financial Officer and Executive Director on 1 March 2024.
Report of the Nomination Committee continued
* percentages calculated from 7 independent directors and the Chair, excludes
non-independent Directors.
London Stock Exchange Group plc
Annual Report 2024
112
Report of the Nomination Committee continued
Senior management succession plans and appointments
During the year, the Committee reviewed succession plans for
management. In its review, the Committee challenged management to
promote diversity and further develop talent across the Group.
The Chair of the Board participates in the interview and selection
process for Executive Committee members, along with other Committee
members as appropriate. The Committee will continue to support the
Chief Executive Officer to further develop senior management
succession plans and talent pipelines, with consideration for diversity,
for immediate cover as well as longer-term appointments.
On 1 July 2024 we welcomed Pascal Boillat to our Group as Chief
Operating Officer. In the selection process, the Chief Executive
and Chief People Officer were supported by the Board Chair and
other members of the Committee, who participated in the interview
process. Further details on the Executive Committee can be found
on pages 12 and 13.
Time commitment
The Committee reviews the time commitments of the Directors and the
Committee and/or Board approves any significant external appointments
being undertaken by the Directors. Further information about the
Directors’ external appointments can be found in the Corporate
Governance Report on page 104.
Board effectiveness
The results of the 2024 Board effectiveness review and the actions
taken during the year in relation to the 2023 Board effectiveness review
are described in the Corporate Governance Report on pages 105 and
106. The work of the Nomination Committee during the year reflected
the key area of focus for 2024 which arose from the 2023 evaluation,
to ensure that the Board maintains the appropriate mix of skills and
experience. The Committee will continue to keep Board composition,
as well as talent development for senior management, as a key focus
area during 2025, and support the Board to ensure that all focus areas
arising from the 2024 evaluation are actioned to further enhance the
performance of the Board and its Committees.
Diversity, inclusion and equal opportunity
Board diversity
The Board is composed of Directors with a wide range of skills and
business experience, drawn from a variety of sectors and industries,
which bring valuable expertise and perspectives to Board discussions.
The combination of all of these factors benefits the Board with a diverse
range of competencies, perspectives and thoughts, that support the
Board’s ability to challenge strategic issues and provide a dynamic
environment for decision-making.
As at 31 December 2024, the Board had female representation of
36%, one of the four senior positions was held by a woman and one
director was from a minority ethnic background. The Board
acknowledges that it: (i) met two of the three goals laid out in the
Financial Conduct Authority’s UK Listing Rule 6.6.6R(9; (ii) met one
of the two recommendations of the FTSE Women Leaders Review;
and (iii) met the recommendations of the Parker Review.
In terms of gender diversity, the Committee regularly reviews the
composition of the Board, including the tenure of the Directors, and
recognises that several Directors were appointed to the Board at a
similar time. The Board is therefore undergoing a process of refreshing
its composition to ensure that it has a mix of tenures as well as retaining
the appropriate mix of skills and experience. Consequently, this
succession planning may result in periods of time where the Board
may not fully meet its diversity ambitions but will seek to ensure that
these are met in the longer term.
Board succession plans and appointments are based on merit and
objective criteria. Other than appointments made under the relationship
agreement with Microsoft, the selection for appointments continues to
be conducted with a robust selection process, led by the Nomination
Committee and supported by external search consultancies. These
external search consultancies provide diverse lists of candidates which
support the Board’s succession and appointment approach to secure
balanced and diverse shortlists for new appointments.
The Board, with support from the Nomination Committee, operates
a diversity policy which enables diversity, inclusion and equal
opportunity, as well as setting out the Board’s ambitions to build a board
with diverse backgrounds. The Board Diversity Policy states that the
Board believes that diversity, inclusion and equal opportunity makes us
more dynamic, fosters innovation and boosts performance. In making
appointments and forming succession plans, the Board will not
discriminate on the basis of any diversity criteria, including: age;
disability; gender identity or expression; marital or parental status; race,
including colour, ethnicity, nationality, country of origin, or cultural
background; religion or belief; and sex or sexual orientation; as well
as other forms of diversity. It also states the Board’s aim to maintain
a minimum of 40% female representation on the Board; to have a
woman in at least one of the roles of Chair, Chief Executive Officer,
Chief Financial Officer or Senior Independent Director; and have at
least one Director from a minority ethnic background. The Policy,
which is reviewed annually, is available on the Company’s website
at https:// www.lseg.com/en/about-us/corporate-governance.
Executive management diversity
Our Executive Management (Group Executive Committee and Group
Company Secretary) comprises individuals from a diverse range of
backgrounds. As at 31 December 2024, the Group Executive
Management had 30% female representation and 20% ethnicity
representation and continues to progress on our diversity goals.
The names and biographies for the Group Executive Committee
can be found on page 13 of this report.
During 2024, through merit-based hiring and promotion, we continued
to work towards our goals of maintaining at least 40% women in
senior leadership and of 25% ethnic minority representation in senior
leadership by 2027. As at 31 December 2024, the Group senior
leadership comprised 41% of women (2023: 42%) and 16% (2023: 14%)
of underrepresented ethnic groups.
In addition, as at 31 December 2024, the gender diversity of the boards
of our subsidiary companies increased to 33% (2023: 32%).
The Company operates a Group-wide Equity, Diversity and
Inclusion Policy. The Policy is available on the Group website at:
https://www.lseg.com/en/sustainability-strategy/inclusive-culture.
For more information on the action we are taking, please see pages 59
to 61 of this Annual Report and our Annual Sustainability Report 2024.
113 London Stock Exchange Group plc
Annual Report 2024
Governance
Other diversity initiatives
Our Group continues to be an active participant in important industry-wide diversity initiatives. LSEG is a member of the Valuable 500, a collective of
500 CEOs and their companies, innovating together for disability inclusion. LSEG was an early signatory of HM Treasury’s Women in Finance Charter
in the UK and fully met the recommendations of the Charter as well as the stretch goal of reaching and maintaining 40% female representation in our
Group Senior Leadership.
For further information on senior leadership gender and ethnicity representation, please refer to our Sustainability section on pages 60 and 61.
Diversity reporting
As at 31 December 2024, the Board met two of the three goals set out in the Financial Conduct Authority’s UK Listing Rule 6.6.6R(9)(a). The table
below sets out the diversity data of the Board and executive management as at 31 December 2024. Board diversity data is collected directly from
each Director using a questionnaire and was provided on a self-identifying basis.
Reporting table on sex/gender representation as at 31 December 2024
Number of
Board members
Percentage of
the Board
Number of
senior positions
on the Board
(CEO, CFO, SID
and Chair)
Number in
executive
management
1
Percentage of
executive
management
1
Men 7 64 3 7 70
Women 4 36 1 3 30
Not specified/prefer not to say 0 0 0 0 0
Reporting table on ethnicity representation as at 31 December 2024
Number of
Board members
Percentage of
the Board
Number of
senior positions
on the Board
(CEO, CFO, SID
and Chair)
Number in
executive
management
1
Percentage of
executive
management
1
White British or other White (including minority white groups) 10 91 4 8 80
Mixed/Multiple Ethnic Groups 0 0 0 0 0
Asian/Asian British 0 0 0 2 20
Black/African/Caribbean/Black British 1 9 0 0 0
Other ethnic group including Arab 0 0 0 0 0
Not specified/prefer not to say 0 0 0 0 0
Ethnicity data reflects countries where LSEG collects this information.
1 Defined as the Executive Committee and the Group Company Secretary in accordance with the FCA’s UK Listing Rule 6.6.6R(10).
Don Robert CBE
Chair
26 February 2025
Report of the Nomination Committee continued
London Stock Exchange Group plc
Annual Report 2024
114
Report of the
Audit Committee
The external audit was a key focus for the
Audit Committee this year, as the Group
transitioned to its new external auditor.
We also closely monitored the Group’s
readiness for the incoming EU Corporate
Sustainability Reporting Directive.
Dominic Blakemore
Chair of the Audit Committee
Achievements for 2024
The main achievements of the Audit Committee in 2024 were:
— Reviewing and recommending to the Board the full-year and half-year
2024 results and approving the associated key accounting
judgements and estimates
— Reviewing and approving our Annual Report and Accounts and our
Annual Sustainability Report
— Oversight of the 2024 external audit
— Monitoring and reviewing several financial matters including
acquisitions and the progress of specific uncertain tax provisions
— Reviewing the Financial Control Framework and the Group’s
preparations for the revised UK Corporate Governance Code
(the 2024 Code)
— Successful onboarding of our new external auditors (Deloitte LLP)
— Monitoring and reviewing progress of our EU Corporate Sustainability
Reporting Directive (CSRD) programme in preparation for 2025
year-end reporting
Priorities for 2025
— Monitoring the Group’s progress towards ensuring compliance with
Provision 29 of the 2024 Code, with a particular focus on material
operational and compliance controls
— Assessing the Group’s readiness to comply with CSRD
— Reviewing the impact of any acquisitions and disposals on financial
and tax accounting and ensuring that the transactions are accurately
represented in the Group’s Annual Report and Accounts
— Monitoring the Group’s uncertain tax provisions
— Continuing to assess the impact of developments in
accounting standards
— Monitoring the progress of the 2025 year-end external audit
— Reviewing the internal control and risk management environment
— Monitoring the enhanced use of data in internal audit work to provide
broader insight and analysis
— Monitoring the development and embedding of audit programmes
of work related to specialisms such as sustainability and behavioural
risk across the Internal Audit function
— Supporting the build-out of the Internal Audit capabilities in the areas
of transformation and change assurance
Composition and meetings
The Committee comprises four (2023: four) Independent Non-Executive
Directors. Following the resignation of Ashok Vaswani on 29 February
2024, we welcomed Cressida Hogg as a member on 25 April 2024.
The UK Corporate Governance Code (the Code) requires at least one
member of the Committee to have recent and relevant financial
experience and that members shall have competence relevant to the
sector in which the company operates. The Committee members have
a wide range of experience. The Chair of the Committee, Dominic
Blakemore, is a qualified chartered accountant with a career in a variety
of senior finance roles. The Chairs of the Audit and Risk Committees
each sit on both Committees, which makes sure that issues relevant to
both Committees are identified and managed. The skills and experience
of each Committee member are provided in the Board of Directors
section on pages 96 to 99.
The Chair of the Company, Group Chief Executive Officer, Group Chief
Financial Officer, Group Financial Controller, Group Chief Risk Officer,
Group Chief Internal Auditor, and representatives of the external auditor,
Deloitte, are all regular attendees at Committee meetings. Other members
of management may also be invited to present specific matters.
The Group Company Secretary is the Secretary to the Committee.
“
115 London Stock Exchange Group plc
Annual Report 2024
Governance
In addition to formal meetings, the Chair of the Committee and some
Committee members met with senior management during the year.
The Chair of the Committee also meets separately with the external
auditor, as required, ahead of each meeting.
Purpose and responsibilities
The Audit Committee assists the Board in overseeing and monitoring
financial and sustainability reporting, internal control systems and risk
management systems.
The key responsibilities of the Committee are:
— Monitoring the integrity of the financial statements
— Reviewing significant financial reporting matters and
accounting policies
— Assessing the effectiveness of the Group’s internal control and
risk management systems (along with the Risk Committee)
— Monitoring and reviewing the effectiveness of the Group’s Internal
Audit function, including its scope of work and findings, and
ensuring that it has adequate resources and appropriate access
to information to perform its duties effectively and independently
from executive management
— Overseeing the relationship with the external auditor, including
monitoring their objectivity and independence, approving the annual
audit plan and reviewing external audit findings
— Approving the external audit fees, monitoring non-audit fees paid to
the external auditor and ensuring that the external audit is put out to
tender on a periodic basis
Further details on the functions and responsibilities of the Audit
Committee can be found in the Committee’s Terms of Reference which
are reviewed annually and are available on the Company’s website at:
https://www.lseg.com/en/about-us/corporate-governance.
Committee effectiveness
The Committee’s effectiveness was assessed as part of the 2024 Board
and Committee effectiveness review. The result of the review was that
the Committee is performing well and operating effectively. Further
details on the 2024 Board and Committee effectiveness review can
be found in the Governance section of this report on page 106.
Activities during the year
Below we set out the main work undertaken by the
Audit Committee covering:
1. Financial reporting
2. Internal controls, internal audit and risk management
3. Oversight of the external auditor
4. Other matters
1. Financial reporting
Significant accounting judgements, estimates and assumptions
and other matters related to the financial statements
The Committee reviewed, discussed and approved the half-year and
full-year financial results, significant accounting judgements and
estimates and the adequacy of disclosures. The main topics considered
are set out below, three of which are also identified as key audit matters
by the external auditor.
Matter considered How the Committee addressed the matter
Acquisitions of r8fin and ICD
During 2024, the Group completed two significant acquisitions.
This required the valuation of acquired tangible and intangible assets,
including customer relationships, technology and goodwill.
The fair value of acquired intangible assets and resulting goodwill
recognised on acquisition are subject to significant estimates. These
include the future performance of the acquired business and the rate
of return required to determine an appropriate discount rate (in order
to calculate the net present value of the assets acquired).
The Committee reviewed the acquisition accounting for each material
acquisition, including:
— Determination of the consideration paid
— Assessment of any contingent payments
— Identification and valuation of acquired net assets with a particular focus
on intangible assets
— Resulting goodwill
— Alignment with LSEG accounting policies
The Committee satisfied itself that goodwill and purchased intangibles had
been recognised appropriately.
See note 21 to the financial statements on pages 234 to 235.
Carrying value of goodwill and purchased intangibles
The Group carries significant amounts of goodwill and purchased intangible
assets on its balance sheet. In line with IAS 36 Impairment of Assets,
goodwill allocated to the Group’s cash-generating units (CGUs) is assessed
for impairment. Purchased intangible assets are also reviewed for
impairment, and their useful economic lives are also assessed.
Impairment tests for the Group’s CGUs are based on value-in-use
calculations which require significant estimates over:
— Future performance
— Growth rates
— Discount rates
The Committee considered the approach and methodology to performing
the detailed annual CGU impairment assessment. This included reviewing
key assumptions:
— Cash flow expectations
— Short- and long-term growth rates
— The Group’s cost of capital
The Committee also considered and approved the approach to the
impairment and useful life assessment of purchased intangibles.
See note 9 to the financial statements on pages 189 to 193 for details of the
impairment review.
Capitalisation and subsequent impairment of internally
developed software
The Group develops and capitalises significant levels of software.
The capitalisation of software development costs involves management
judgement against criteria set in IAS 38 Intangible Assets.
The Committee reviewed the methodology used to capitalise software
development costs and satisfied itself that it was adequate and in conformity
with IFRS.
The Committee reviewed management’s assessment of possible indicators
of impairment for internally developed software.
The Committee approved the recognition of £216 million of internally
developed software asset impairment in the year. See note 9.
Report of the Audit Committee continued
London Stock Exchange Group plc
Annual Report 2024
116
Report of the Audit Committee continued
Matter considered How the Committee addressed the matter
Revenue recognition
The Group generates revenue from a variety of sources that are material
in size and volume. Judgements are applied to the timing of revenue
recognition and year-end revenue accruals, particularly across subscription
revenues, primary markets admission fees and FTSE Russell.
The Committee was satisfied that sufficient analysis had been performed in
this area to conclude that revenue has been recognised appropriately and
that there is no evidence that any manipulation of revenues has taken place.
The Committee also reviewed the significance of judgements applied and
discussed any necessary disclosure requirements. It was concluded that no
judgement on revenue recognition required individual disclosure in the
Annual Report.
Uncertain tax positions
The Group is subject to taxation in the many countries in which it operates.
There are four main uncertain tax positions (UTPs) for which the Group has
used guidance under IFRIC 23 Uncertainty over Income Tax Treatments to
determine the possible outcomes, and to assign a probability to each of
those outcomes:
— US Internal Revenue Service (IRS) Audit
— Valuation of certain Refinitiv intellectual property
— US tax credits
— Diverted Profits Tax to Thomson Reuters
During 2024 two significant matters with associated UTPs were resolved:
— EU State Aid
— Russian tax audit
The Committee reviewed UTPs throughout the year with a particular focus
on the in-year developments below:
— US IRS Audit:
The Committee was updated on developments and noted that the Group
expects to close this matter in due course having reached agreement
with the IRS.
— US tax credits:
The Committee noted that a UTP has been recognised in respect of
certain taxes in the US, where the Group has a similar fact pattern to
another taxpayer who is participating in ongoing legal proceedings.
— EU State Aid:
The Committee noted that this matter is now closed with The Court of
Justice of the European Union having ruled in the Group’s favour in its
binding judgement issued on 19 September 2024.
— Russian tax audit:
The Committee noted that this matter is now closed with agreement
having been reached with the Russian tax authorities during the year.
The Audit Committee determined that the provisions and disclosure for
these matters are appropriate.
See note 6.3 to the financial statements on page 187 for details of
the UTPs.
Discounts from partners and suppliers
The Group exercises judgement when discounts from partners and
suppliers are recognised. The Group assesses whether discounts are
deducted as earned or spread over the contract term.
Due to their size and nature, the discounts in relation to the strategic
partnership with Microsoft have been deemed a significant judgement
during the year. These time- and value-limited discounts are recognised
as earned.
The Committee discussed the discounts in relation to the LSEG-Microsoft
partnership and the significance of the judgement applied regarding the
recognition of the discounts.
The Committee was satisfied with the judgement applied to the recognition
of Microsoft credits in the year.
Non-underlying items/alternative performance measures
The Group separately identifies results before non-underlying items
(these results are referred to as adjusted) to provide a performance measure
of the day-to-day operating results of the Group.
The Group uses its judgement to classify items as non-underlying
(see page 175 for more information). Judgement is applied to ensure that
the criteria for a non-underlying item is met. Each judgement considers
whether items arise in the normal course of business and would have
otherwise not been recognised or incurred had it not been for the impact
of mergers, acquisitions, disposals, significant restructuring activities or
significant strategic or operating model changes.
The Committee discussed and agreed on the classification of non-underlying
items in the financial statements for the year. In particular, the Committee
discussed the nature and amounts of:
— Transaction costs
— Integration and separation costs
— Restructuring costs
— Asset impairment
— Amortisation of purchased intangibles
The Committee discussed the quality of earnings in relation to the Group’s
adjusted operating profit.
See note 2.3 to the financial statements on pages 175 to 176.
Reallocation of goodwill
The Group restructured its external divisional reporting to align with
internal management reporting lines. This resulted in a reassessment of
the Group’s cash-generating unit (CGU) structure and the associated
goodwill allocated to each CGU.
The previously reported Data & Analytics CGU was split into three CGUs:
Data & Analytics, FTSE Russell and Risk Intelligence. Goodwill previously
allocated to the Data & Analytics CGU was reallocated on a relative value
basis to the new CGUs. There was no change to the goodwill allocation
to the other pre-existing CGUs.
The Committee reviewed the approach for the change in segmental reporting
structure and its impact on the CGU structure and goodwill allocation.
117 London Stock Exchange Group plc
Annual Report 2024
Governance
Report of the Audit Committee continued
Matter considered How the Committee addressed the matter
Pensions
Substantially all of the Group’s employees participate in defined benefit or
defined contribution schemes. For the Group’s defined benefit schemes,
judgement is applied to the amount of the retirement benefit assets
recognised on the balance sheet. The defined benefit pension liabilities
recognised are determined based on the present value of future benefit
obligations using assumptions determined by the Group with advice from
an independent qualified actuary.
The Committee discussed the approach for the value of the retirement benefit
assets, the continued recognition of a pension scheme surplus and the
assumptions applied in the calculation of the retirement benefit obligations.
The Committee was satisfied with the approach and assumptions applied
by management.
See note 12 to the financial statements on pages 197 to 201.
2. Internal controls, internal audit and risk management
The Committee continued to exercise disciplined oversight of the
effectiveness of the Group’s internal controls and Internal Audit function,
in line with principles of the Code. It fulfilled its responsibilities by
reviewing and discussing regular reports from management, the external
auditor and the Internal Audit function including:
— Reports on compliance with the internal control components of the
Code, including the Group’s plans to comply with Provision 29 of
the 2024 Code
— Three progress updates on the programme to create a leading
Financial Control Framework
— Discussions on the IT control environment
— Quarterly updates on internal audit delivery
— Updates from the Internal Audit function on progress to implement
revised Global Internal Audit Standards (effective January 2025)
— An annual report on the effectiveness of the Internal Audit function
at the first Committee meeting of the year
— The external audit management letter from our previous external
auditor, EY, which highlighted areas for improvement that were noted
by the Committee for follow-up
During the year, the Committee received an update on the Internal
Audit function, which included:
— Updates on the development of the function as it completed
implementation of its target operating model to reflect the Group’s
business and global footprint
— The Committee’s review of Internal Audit’s balanced scorecard
— The results of quality assurance activities undertaken during the year
Impact of LSEG’s evolving business model
Internal Audit continues to update the internal audit universe to
reflect developments in the organisation. As part of annual planning,
an inherent risk assessment was undertaken which, alongside
regulatory requirement for internal audit work, guided the audit
plan for 2024. The Committee approved an enhanced, risk-based
model to guide coverage for the 2025 internal audit plan.
Management is undertaking significant work to ensure that the risk
landscape is fully understood and that appropriate controls are in
place to mitigate risk to within the firm’s stated risk appetite over
time. This work will be supported by the Risk function and by Internal
Audit, both of whom support the necessary oversight and assurance.
Internal Audit provides risk-based, objective and independent
assurance, advice, insight and foresight to the Group. Internal Audit
delivers assurance on the design and effectiveness of controls that
support first line business activities as well as the Group’s risk
management and governance frameworks. Internal Audit adopts
a risk-based audit approach that prioritises providing assurance
over the management of key risks that may impact the Group.
As regards the work of Internal Audit, the Committee:
— Monitored Internal Audit’s progress against the 2024 audit plan,
including reviewing and approving any changes to the plan during
the course of the year
— In December 2024, considered and approved the 2025 internal audit
plan and budget
— Received the annual Internal Audit Opinion, which sets out the
function’s view on the effectiveness of the Group’s control
environment and risk culture as well as themes and root cause
analysis arising from audit work performed
— Received updates on emerging audit issues and themes during
the course of the year
— Tracked management’s progress to address actions within
reasonable timeframes
— Approved the Internal Audit Charter which was updated to reflect
revised Global Internal Audit Standards and the UK Chartered Institute
of Internal Auditors code
— Received a report from Mazars LLP which confirmed that Internal
Audit had implemented improvement actions following from the
2022 External Quality Assurance (EQA) Review, which confirmed
that Internal Audit generally conforms with applicable internal
auditing standards
— Received a report from the Head of Audit Practices and Operations
on the results of the function’s quality assurance activities
The Committee obtained additional comfort by meeting with the Group
Chief Internal Auditor at each Committee meeting without executive
management present. In addition, the Group Chief Internal Auditor
meets regularly with the Chair of the Audit Committee. The Group Chief
Internal Auditor continues to report to the Audit Committee Chair with
a secondary reporting line to the Group Chief Financial Officer.
London Stock Exchange Group plc
Annual Report 2024
118
Report of the Audit Committee continued
The Committee assessed the effectiveness of the Internal Audit
function throughout the year using qualitative and quantitative
indicators including:
— The Internal Audit balanced scorecard, which is presented at each
Committee meeting and reflects key performance indicators relating
to internal audit plan delivery, quality assurance results, staff
engagement and resourcing, as well as the financial management
of the function
— Completeness of the audit plan against the agreed coverage model
— Quality of the audit reports and the issues raised
— Root cause insights on the issues raised and feedback from
executive management on specific audits
— Other performance indicators, such as the distribution of
audit ratings, percentage of past due actions and percentage of
self-identified issues
The Committee concluded that the Internal Audit function is both
independent and effective, in line with principle M of the Code.
In addition, the Committee (in conjunction with the Risk Committee)
relied on this assurance process throughout the year, as well as the
other evidence reviewed on internal controls, to advise the full Board
on its reporting to shareholders on the Group’s internal control system
and risk management systems. This aligns with principle O of the Code.
The Board statement can be found on page 108.
3. Oversight of the external auditor
The Committee has primary responsibility for overseeing the
relationship with the external auditor, Deloitte. This includes: conducting
the process to select the external auditor; recommending their
appointment, reappointment and removal to the Board for approval by
our shareholders at each AGM; continuous assessment of the auditor’s
independence and effectiveness, and audit quality; approving the
statutory audit fee and non-audit services; reviewing and approving the
annual audit plan; and meeting with Deloitte to review any issues and
the findings of the audit.
The Committee reviewed and approved the 2024 audit plan presented
by Deloitte. This included the scope of the audit, the assessment of the
key audit risks and areas of focus as well as the materiality threshold
for the Group and the threshold for reporting unadjusted differences.
Reports from Deloitte on the status of their 2024 plan and the results of
their work, as well as Deloitte’s own assessment of their independence,
were received throughout the year. The external auditor’s reports were
discussed at each Committee meeting and their views and opinions
used to challenge decisions by the Group.
During their audit of the 2024 financial year, Deloitte raised a number
of observations over certain IT General Controls. The Audit Committee
discussed Deloitte’s observations, as well as the implications for
Deloitte’s approach to the audit, and noted management’s response.
Management recognises that the IT control environment requires
enhancement and is in the process of implementing improvements.
The Audit Committee reviewed management’s assessment that there
are sufficient mitigating controls to reduce any risk of a material
financial misstatement down to an acceptable level.
The Committee assessed the effectiveness of the external audit
throughout the year in accordance with principle M of the Code.
The Committee relied on its own judgement supported by the
following evidence:
— A report from management on their own evaluation of the
effectiveness of the external auditor based on a questionnaire
prepared in accordance with the Financial Reporting Council’s
(FRC’s) guidance and completed by key stakeholders
— Review of the FRC’s Audit Quality report on Deloitte
— The separate meetings held with Deloitte at each Committee meeting
without management being present
Based on all the evidence presented, the Committee satisfied itself that
the external audit has been conducted effectively, with appropriate
rigour and challenge, and that Deloitte had applied appropriate
professional scepticism throughout the audit.
Deloitte was appointed as the Group’s external auditor at the AGM
in April 2024. Fiona Walker was appointed as lead audit partner.
The lead audit partner and other key partners identified are required
to rotate every five years. Other partners are required to rotate every
seven years.
Transition of new auditor
As disclosed in last year’s report, the Audit Committee
recommended to the Board that Deloitte be appointed as the
Group’s external auditor for the financial year ended 31 December
2024, following an audit tender undertaken in 2022. This proposal
was approved by shareholders at our AGM on 25 April 2024.
As part of the onboarding and first-year audit process, the following
have been undertaken:
— Deloitte shadowed EY during the latter’s audit of the Group’s 2023
financial year, including attending some meetings alongside EY
— Completion of opening balance sheet testing by Deloitte
— Early and regular engagement by management with Deloitte
— Review by Deloitte of all our significant judgements and estimates,
as well as the Group’s accounting policies. There were no
significant areas where the Group’s interpretation differed
from Deloitte
— Early testing of material balances ahead of year end to ensure
an effective and efficient audit approach had been adopted
Report on external auditor’s fees and safeguards on
non-audit services
The Committee has a policy governing the engagement of the external
auditor to provide non-audit services, which is reviewed on an annual
basis. This policy was updated during the prior year to reflect Deloitte’s
role as incoming auditor and has been applied throughout the year.
The policy prohibits certain activities from being undertaken by the
external auditor, such as: accounting/bookkeeping services; internal
auditing; certain tax and payroll services; executive recruitment;
remuneration services; and more generally any work which could
compromise their independence. The policy also places restrictions
on the employment of former employees of the external auditor.
Recognising that the external auditor may be best placed to undertake
certain work, the policy permits the provision of certain audit-related
and non-audit services. The policy allows approval for any audit and
non-audit services between £50k and £100k to be delegated to the
Group Chief Financial Officer and any engagements under £50k to
the Group Financial Controller. Any such approvals are then reported
to the Audit Committee at the next meeting.
119 London Stock Exchange Group plc
Annual Report 2024
Governance
Report of the Audit Committee continued
The Committee fully complied with the policy in the year. It reviewed each
of the appointments and considered management’s assessment of:
— The threats to independence and objectivity resulting from the
provision of such services
— Whether there were any conflicts of interest
— The quantum of non-audit fees in the context of the overall audit fee
A breakdown of audit and non-audit service fees paid and payable to
the external auditor for the year ended 31 December 2024 is provided
below and in note 4.2 to the financial statements.
Year ended 31 December
2024
£m
2023
£m
Services
Audit of parent and consolidated
financial statements 5 7
Audit of subsidiary companies 10 7
Non-audit services 1 1
Total 16 15
Deloitte (2023: EY) provided non-audit services of £1.1 million; 7% of total
fees (2023: £0.7 million; 5% of total fees). This comprised audit-related
assurance services of £0.5 million (2023: £0.4 million) and
other non-audit services of £0.6 million (2023: £0.3 million).
In each case, the Committee concluded that the appointment of
Deloitte, and previously EY, to perform certain non-audit services would
not impair their independence and represented the most effective,
secure and efficient way of obtaining the necessary advice and services.
The Committee is satisfied that the Group and Deloitte have been
compliant with International Ethics Standards Board for Accountants
(IESBA) and FRC auditor independence rules.
The Committee has complied with the relevant parts of the Competition
and Markets Authority Final Order on the statutory audit market for the
year ended 31 December 2024.
4. Other matters
Going concern and long-term financial viability statement
The Directors are required to assess whether it is appropriate to
prepare the financial statements on a going concern basis and, in
accordance with the Code, provide a statement on the Group’s viability.
At its meeting in February 2025, the Committee reviewed the Group’s
forecasts and projections, taking into account reasonably possible
changes in trading performance. It confirmed that the going concern
basis in preparing the financial statements continues to be appropriate.
See page 153 of the Statement of Directors’ responsibilities for the
going concern statement. At the same meeting, the Committee also
considered the Group’s long-term viability with reference to the Group’s
current position and prospects, three-year business plan, risk appetite
and the expected impact of severe but plausible downside scenarios
on the business. See page 91 of the Strategic Report for the financial
viability statement.
Fair, balanced, and understandable (FBU) reporting
In line with principle N of the Code, the Committee satisfied itself that
the Annual Report is fair, balanced and understandable and has
presented its conclusions to the Board. The Committee reviewed drafts
of the Annual Report and Accounts and considered the following:
— That statutory measures have been given equal prominence to
the alternative performance measures used
— That information contained in the Strategic Report represents
a fair reflection of performance during the year
— Information within the Strategic Report and narrative reporting
across the Annual Report is consistent with that reported in the
financial statements
— Key areas of estimation and judgement are consistently applied
The Committee discussed with management the process undertaken
to ensure that the relevant requirements of FBU reporting were met.
This process included:
— Independent reviews of the entire report by people not directly
involved in preparing the report
— Extensive review and verification processes by the appropriate
departments and senior managers to ensure the accuracy of
the content
— Consideration of the balance of disclosure between positive and
negative points on the Group’s performance in the year
See page 153 of the Statement of Directors’ responsibilities for the
FBU statement.
Audit and Corporate Governance reform
The Committee received a number of updates on how the Group is
preparing for the UK Government’s Audit and Corporate Governance
reform. The Committee noted that the revised UK Corporate
Governance Code was issued in January 2024, to be effective from
2025, and that the ongoing programmes around internal controls put
the Group in a good position to meet the requirements of the revised
Code. The Committee monitored and assessed:
— The refresh of the Group’s Financial Control Framework
— The Group’s Control Enhancement Programme, focusing on
operational and compliance controls
— Steps and training being taken to improve control operation and
risk awareness
Corporate Sustainability Reporting Directive (CSRD)
The EU Corporate Sustainability Reporting Directive (CSRD) will
introduce mandatory assurance of reported sustainability data. The
Committee reviewed CSRD requirements that will be effective from the
financial year ending 31 December 2025 and the progress that the
Group has made in preparing for the implementation of this directive
from a controls and reporting perspective. The Committee received
updates on the progress of the plan across the key workstreams
with particular focus given to the double materiality assessment.
Whistleblowing investigations
The Group’s whistleblowing policy provides a method of addressing
concerns while at the same time offering whistleblowers protection from
victimisation, harassment or disciplinary proceedings. During the year,
the Committee continued to closely monitor the effectiveness and
independence of the Speak Up and whistleblowing arrangements of
the Group.
Dominic Blakemore
Chair of the Audit Committee
26 February 2025
London Stock Exchange Group plc
Annual Report 2024
120
Report of the
Risk Committee
The Group continues to support its key
markets and deliver stable and resilient
services that meet our clients’ needs.
The Group’s risk culture, objectives,
appetite, governance and operations
are well established, underpinning the
whole organisation. In particular, more
focus was placed on further enhancing
risk culture and controls this year.
Kathleen DeRose
Chair of the Risk Committee
Achievements for 2024
During the year, the Risk Committee held four regular meetings.
They prioritised programmes and activities identified at the end of
the previous financial year with the aim of enabling the safe growth
of the Group and protecting revenue. These activities included:
— Monitored the Group’s risk profile against risk appetite and
oversight of risk mitigation and control enhancement activities
— Monitored potential impacts from macroeconomic and
geopolitical events
— Oversight of the Group’s risk culture and embedding of the
Enterprise Risk Management Framework
— Reviewed the strategic benefits and risks of the
LSEG-Microsoft partnership
— Reviewed and subsequently recommended the Enterprise
Risk Management Framework and Risk Appetite Statement
for Board approval
In addition, the Group Chief Risk Officer (CRO) provided regular updates
to the Chair throughout the year.
Priorities for 2025
In 2025, the Committee’s priorities include the following:
— Continued oversight on the embedding of the Enterprise Risk
Management Framework and ongoing work to further enhance
risk culture across the Group
— Continued monitoring of the Group’s risk profile against risk appetite
and oversight of mitigation activities
— Continued monitoring of potential impacts from macroeconomic
and geopolitical events
— Ensure the focus areas identified from the 2024 Committee
effectiveness review are considered by the Committee including
technology resilience
Given the importance of Information and Cyber Security Risks, the Risk
Committee will continue to monitor this risk with any detailed reviews
elevated for Board discussion.
Composition and meetings
The Committee comprises five independent Non-Executive Directors.
The skills and experience of each Committee member are provided
in the Board of Directors section on pages 96 to 99. All Committee
members have been in place for more than a year.
The Group Chair, Group Chief Executive, Group Chief Financial Officer,
CRO and Group Chief Internal Auditor are all standing attendees at
Committee meetings. A member of the Company Secretariat is the
Secretary to the Committee. In addition to the standing attendees,
various other members of management are invited to present specific
matters relevant to the Committee’s remit.
The Board is satisfied that each member of the Committee has the skills
and experience necessary for the Committee to effectively discharge
its responsibilities. The Chairs of the Audit and Risk Committees each sit
on both Committees, which ensures the appropriate identification and
management of issues relevant to both Committees.
“
121 London Stock Exchange Group plc
Annual Report 2024
Governance
Report of the Risk Committee continued
Purpose, responsibility and Terms of Reference
The Committee has non-executive responsibility for high-level
risk- related matters and for risk governance. The Committee reviews
the risk profile of the Group, and its divisions, on a regular basis and
comments on the adequacy of the processes in place to identify,
manage, mitigate and report on key risks (including principal risks).
It advises the Board on the Company’s overall risk appetite, tolerance
and strategy, and reviews the adequacy of the Enterprise Risk
Management Framework and its application to decision-making.
The Committee sets the criteria for the accurate and timely reporting
of material risks including regular reports on compliance for each
regulated entity. As part of this mandate, the Committee also regularly
reviews best practices for Enterprise Risk Management.
Further details on the functions and responsibilities of the Risk
Committee can be found in the Committee’s Terms of Reference
which are reviewed annually and available from the Group Company
Secretary, or in the corporate governance section of the Group’s
website at: www.lseg.com/investor-relations/sustainability/governance.
Committee effectiveness
The Committee’s effectiveness was assessed as part of the 2024 Board
and Committee effectiveness review. Further details can be found in the
Governance section of this report on page 106. The result of the review
was that the Committee is performing well and operating effectively.
Principal activities through the year
The Committee established formal agendas covering all responsibilities delineated in the Committee’s Terms of Reference. During the year, the
Committee discharged these responsibilities with the following activities:
Matter considered How the Committee addressed the matter
Principal and
emerging risks
Provide robust reviews of principal and emerging risks, with a focus on:
1. Review and recommendation of the Group Risk Appetite Statement to the Board, which was approved
2. Review and challenge of scenario analyses, risk management and risk mitigation across the Group
3. Review of focus topics, including AI risk management, technology risk, model risk and treasury risk
4. Assessment of the potential impacts of emerging risks on the Group’s strategy and business model, including:
— Geopolitical risk, including Russia/Ukraine and Middle East
— National election outcomes, and implications of potential policies in key markets such as the US
— Potential issues that could arise through disruption in Money Market Funds, Clearing Agents and US Treasuries
— The global CrowdStrike cyber incident– leading to global loss of Microsoft-related services and highlighting concentration risk
— The threat of global subsea data cables and misinformation
Compliance Monitored compliance in line with the Group’s regulatory obligations and in accordance with the defined risk appetite.
Key updates to the Committee include:
1. Review of regular compliance reports, including the assessment of changes and remedial action required to ensure continued
compliance with financial services regulations, such as financial crime and fraud
2. Review and challenge of identification and deep dive assessment of key regulatory compliance risks and Group-wide
thematic observations
3. Review the outcome of the assurance activity conducted by the Compliance function
4. Review and approval of Compliance related policies
Risk Management
Framework
Focused on continuing to embed the Group’s Enterprise Risk Management Framework, part of which included enhancing risk
culture to support the Group’s 2024 strategic objectives. Key focus topics included:
1. Delivery of the 2024 Risk Culture week, ongoing risk campaign throughout the year and the development of new risk
culture measurements
2. Delivery of deep dives into our business divisions, reviewing their risk exposure and understanding their key risks
3. Review and approval of the Enterprise Risk Management and Policy Governance Frameworks
4. Review of the Group’s counterparty limits which were approved during the year
Risk Management function
The CRO leads and oversees all aspects of risk management for the
Group. He reports to the Chief Executive Officer and also, to ensure
independence, to the Chair of the Risk Committee. The Committee
approves the CRO’s remit and ensures that the CRO has the
independence and resources necessary to perform their duty.
Group management consults with the Committee on the appointment
and dismissal of the CRO.
The Committee meets with the CRO without the presence of executive
management at each Committee meeting.
Kathleen DeRose
Chair of the Risk Committee
26 February 2025
London Stock Exchange Group plc
Annual Report 2024
122
Directors’ Remuneration report
Contents
Statement by the Chair pages 123 to 126
Remuneration at a glance pages 127 to 131
Summary of Executive Director Remuneration Policy pages 130 to 131
Annual Report on Remuneration pages 132 to 147
Areas of focus during 2024
— 2024 remuneration outcomes and awards, including 2024 bonus,
vesting of 2022 LTI awards and granting of 2024 LTI awards
— Shareholder engagement around approval of 2024 Remuneration
Policy and embedding of design
— Remuneration approach for 2025, including the design of 2025
bonus, long-term incentive awards and a review of the Group
Chair’s fee
— Continued evolution of the Reward Framework for wider workforce
Details of agenda items discussed at each Committee meeting are
set out on page 147.
Priorities for 2025
— Review of remuneration policy and practices to ensure continued
alignment to our strategy and best practice
— Ensuring remuneration design, particularly for senior leaders below
Board level, remains effective in attracting, retaining and motivating
individuals to be high performers who drive future business success
— Continued progress towards pay clarity, transparency and equity,
in particular in light of the upcoming implementation date of the
EU Pay Transparency Directive
Purpose, responsibility and terms of reference
The Remuneration Committee is appointed by the Board and comprises
the Chair and three independent Non-Executive Directors. The
Committee’s remit includes the remuneration of the Group Chair,
Executive Directors and senior management; reviewing the design
of all share incentive plans for approval by the Board and shareholders;
and overseeing remuneration arrangements for all of our people.
Details of the Committee’s remit and activities are set out in this Report.
The Committee has written terms of reference which are available from
the Group Company Secretary or at the corporate governance section
of our website at https://www.lseg.com/en/about-us/corporate-governance.
Committee effectiveness
The Committee’s effectiveness was assessed as part of the 2024
Board and Committee effectiveness review. The result of the review
was that the Committee is performing well and operating effectively.
Further details can be found in the Governance section of this report
on page 106.
On behalf of the Committee, I would like
to express our thanks to shareholders for
their very strong support for our new
Remuneration Policy with 89% votes
in favour at the 2024 AGM. Our clear
focus as a Committee has not changed
as we implement the Policy: we will
continue to ensure our approach to
remuneration drives LSEG’s growth
and rewards high performance.
William Vereker
Chair of the Remuneration Committee
“
123 London Stock Exchange Group plc
Annual Report 2024
Governance
Directors’ Remuneration report continued
Statement by the Chair of the
Remuneration Committee
I am pleased to present the Directors’ Remuneration Report for the year
ended 31 December 2024.
This is the first year of operation of our new Remuneration Policy (the
Policy) and new long-term incentive plan rules (the Equity Incentive Plan
or EIP) which were approved by shareholders last year. On behalf of the
Committee, I would like to express our thanks to shareholders for their
engagement throughout the consultation process on our Policy and
their very strong support with 89% of votes in favour at the 2024 AGM.
An important area of focus for the Committee this year has been the
implementation of the Policy and continuing to ensure our approach
to remuneration drives LSEG’s growth and rewards high performance.
This statement on pages 123 to 126 provides further detail and context
for the decisions made by the Committee in the year. A “Remuneration
at a glance” section is included after this statement on pages 127 to
131 which summarises broader employee reward at LSEG, 2024
remuneration outcomes for Executive Directors, the operation of
2025 incentive plans, and a summary of the key terms of the Policy.
Our Annual Report on Remuneration is set out on pages 132 to 147 and
is subject to an advisory vote at the 2025 AGM.
Performance in the year
In 2024, LSEG delivered another year of strong performance, as we
continued to transform our business and deliver on our strategy. LSEG is
maintaining a rapid pace of innovation as we strengthen our solutions
across the business, and the Group remains well-positioned to benefit
from powerful industry trends and drive change across financial markets.
— Delivered organic income (excl. recoveries) growth of +7.7%, with
broad-based growth across our divisions.
— Achieved ASV growth at 31 December of +6.3%, in line with guidance.
— Improving profitability: Adjusted EBITDA margin rose 160bps; +80bps
on a constant currency basis.
— Strong earnings growth: AEPS +12.2% to 363.5p, driven by revenue
growth and increased efficiency.
— Excellent cash conversion: equity free cash flow £2.2 billion
driven by profit growth and reducing capital intensity.
— High pace of product innovation: over 500 enhancements to
Workspace, increased availability of LSEG data on new platforms and
first LSEG Microsoft Partnership products now generally available.
— Acquisition of ICD: gives Tradeweb access to an important fourth
customer base, through services to corporate treasury.
— Acquired a further 11.6% of LCH Group, taking our ownership to 94.2%;
sold our 4.92% stake in Euroclear.
— Significant shareholder returns: £1 billion returned via buybacks in
2024; final dividend +12.2% to 89.0p per share.
2024 bonus outcomes for Executive Directors
Executive Directors were eligible to receive an annual bonus based on
meeting or exceeding bonus targets that were set at the beginning of
the year, looking at the Group’s financial performance, strategic
objectives and their personal contribution.
The Committee received input from the Risk Committee with regard
to performance related to risk culture (awareness, transparency and
accountability) when assessing remuneration decisions.
For FY2024, we exceeded our Group Adjusted Operating Profit (AOP)
target (with AOP growth of 9.5%
1
), met our Future Growth target, and
have performed well against our strategic objectives. The Group
continues to make strong progress in the commercial and strategic
transformation of our business and we have consistently been delivering
on the guidance set out at our Capital Markets Day in 2023: accelerating
growth; improving margin as well as our already-strong cash conversion;
and delivering on the in-year product commitments as part of the
strategic partnership with Microsoft.
In the context of this strong performance, the overall outcome of 70% of
maximum for the FY2024 Group bonus pool underscores the stretching
nature of the performance targets set by the Committee.
As a result of the Group’s performance and the personal contribution of
the Executive Directors, the Committee determined that the Executive
Directors will be awarded bonuses of 73% of their maximum opportunity
(300% and 200% of salary respectively for the CEO and CFO). 40% of
the bonus payment will be deferred into shares.
Further details on FY2024 performance can be found on pages 134
and 135.
2022 LTIP award outcomes
The AEPS element of the LTIP award made in 2022 will vest at 70% and
the Relative TSR element will vest at 100%. These vesting outcomes
reflect the delivery of AEPS growth of 10.1% CAGR and 68.7% TSR
performance over the three-year performance period, the latter
representing 81st percentile performance relative to the FTSE 100
peer group. Overall, this results in a vesting outcome of 82% of the
maximum for the 2022 LTIP award.
Discretion in relation to incentive outcomes
The incentive outcomes above are reflective of overall Group financial
and strategic performance. The Committee determined that no
discretion should be exercised to adjust any of the formulaic outcomes.
The Committee reviewed LSEG’s share price performance in
determining the extent to which the 2022 LTIP award should vest
and concluded that no windfall gains had occurred.
Operation of 2025 bonus
The FY2025 Group bonus pool will continue to be determined
based on Group performance measures weighted 75% on financial
measures (60% AOP, 15% Future Growth) and 25% on strategic
objectives. The Future Growth measure was introduced from 2024
in direct response to shareholder feedback that we should be more
specific about how our performance targets are linked to the
achievement of future revenue targets.
The Executive Directors’ awards are funded from the Group bonus
pool. Bonus awards for the Executive Directors will be determined in
accordance with performance measures weighted: 60% against Group
AOP; 15% against Future Growth; 15% against Group Strategic
Objectives; and 10% against personal objectives.
Annual bonuses for FY2025 will be awarded in line with our Policy.
Under the Policy, 60% of any FY2025 bonus payment for Executive
Directors would be paid in March 2026. The remaining 40% would be
deferred into shares for a period of three years.
1 Growth is on a constant currency basis.
London Stock Exchange Group plc
Annual Report 2024
124
Directors’ Remuneration report continued
Statement by the Chair of the Remuneration Committee continued
Long-term incentive awards to be made in 2025
In 2025, long-term incentive awards will be granted under the EIP,
in line with the Policy.
The Committee has carefully considered how we will operate our
long-term incentive awards in 2025. The performance measures
and weightings for the 2025 grant will continue to be 60% AEPS
and 40% Relative TSR.
We have reviewed the AEPS element (60% weighting) and, considering
internal and external forecasts, have set the AEPS targets at 5% to 11%
CAGR. To achieve maximum vesting, an incremental £1.2bn AOP would
be required in 2027, equivalent to incremental income in the region of
£2.6bn, relative to 2024. We expect that this AEPS range will be one of
the highest in the FTSE 30 and above median of our global sector
peers. This continues to demonstrate LSEG’s commitment to setting
class-leading, stretching targets. We delivered AEPS growth of 10.1%
CAGR over the three-year performance period of our 2022 LTIP award.
This higher AEPS baseline makes AEPS CAGR growth increasingly
challenging to achieve for LSEG.
For the Relative TSR element (40% weighting), performance will continue
to be assessed against our global sector peer group and the FTSE 100,
weighted 50:50. We added a second benchmark, our global sector
peer group, to our Relative TSR measure in 2024 as we felt it was
appropriate to assess our performance against organisations of
a comparable scale and complexity to LSEG and with whom we
compete for capital and talent.
Following extensive analysis, the Committee has determined to extend
the current global sector peer group of the relative TSR measure
(20% of the overall award) from 14 to 20 companies, with the addition
of MarketAxess, Hong Kong Exchanges and Clearing, Equifax, Verisk,
Dunn & Bradstreet and Transunion (as shown in the chart below).
This provides a stronger representation across the breadth of our
business areas and addresses concerns about the narrow absolute
TSR spread among a relatively small peer group which can lead to
all-or-nothing outcomes.
Company
Alignment to LSEG Divisions
Data & Analytics FTSE Russell Risk Intelligence Capital Markets Post Trade
LSEG
CME Group
Intercontinental Exchange
MSCI
Deutsche Börse
Nasdaq
Cboe Global Markets
Euronext
S&P Global
Moody’s Corporation
FactSet Research Systems
MorningStar
Experian
RELX
Wolters Kluwer
Additions to peer group
MarketAxess
Hong Kong Exchanges and Clearing
Equifax
Verisk
Dunn & Bradstreet
Transunion
125 London Stock Exchange Group plc
Annual Report 2024
Governance
Directors’ Remuneration report continued
Statement by the Chair of the Remuneration Committee continued
We also reviewed the vesting practices of our global peers and
considered how best to strengthen our alignment with this group.
Following consultation with shareholders, the Committee has
determined to continue to set our vesting threshold for the global sector
peer component at median performance, but with an associated payout
of 50% for this segment (20% of the overall award). A payout of 50% for
median performance aligns with the vast majority of both US and EU
listed companies within our global peer set (9 out of the 12 companies
that have a relative TSR measure). The maximum vesting threshold at
the 75th percentile will be maintained, with an associated 100% payout.
For the FTSE 100 segment (20% of the overall award), the vesting range will continue to be median to upper quartile (25% payout for median
performance, scaling to 100% payout for upper quartile performance) to reflect typical UK market practice.
Company Vesting
Cboe Global Markets
CME Group
Deutsche Börse
Equifax
Euronext
Experian
Intercontinental Exchange
LSEG (proposed)
Nasdaq
RELX
Transunion
Verisk
Wolters Kluwer
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Percentile rank required to achieve 50% vesting
42%
54%
42%
42%
65%
50%
40%
47%
43%
42%
50%
59%
50%
%
Lower
quartile
Median
quartile
Upper
quartile
The following chart shows the 12 companies within our global sector peer group that have a relative TSR measure in their long-term incentive
plan. The grey bar represents the performance range and the circle represents the percentile rank each company needs to attain over the
performance period (relative to their peer group) to achieve 50% vesting of this portion of their long-term incentive award. For example, 4 of
our US peers have a performance range between lower quartile and upper quartile and require TSR growth at the 42nd percentile level,
relative to their peer group, to achieve 50% vesting of this portion of their long-term incentive award.
London Stock Exchange Group plc
Annual Report 2024
126
Summary of key executive remuneration decisions for FY2024 and FY2025
Role Chief Executive
Officer
Chief Financial Officer
(to 29 February 2024)
1
Chief Financial Officer
(from 1 March 2024)
2
Name David Schwimmer Anna Manz Michel-Alain Proch
FY2024
Previous salary (with effect from 1 January 2024)
2
£1,375,000 £750,000 £850,000
Bonus for financial year ending 31 December 2024 % of salary 218% of salary 0% of salary
3
146% of salary
% of maximum 73% 0% 73%
£ total amount £3,000,319 £0 £1,244,995
Of which 40% is deferred
4
£1,200,128 N/A £497,998
Max. annual bonus opportunity (% of salary)
for financial year ending 31 December 2024 300% N/A 200%
2022 LTIP award outcomes (% of maximum) 82% N/A
5
N/A
FY2025
Annual salary (with effect from 1 January 2025) £1,375,000 N/A £850,000
2
Max. annual bonus opportunity (% of salary)
for financial year ending 31 December 2025 300% N/A 200%
2025 long-term incentive award grants
(subject to performance) 550% of salary 0% of salary
3
400% of salary
Notes:
1 Anna Manz stepped down from the Board and left the Group on 29 February 2024.
2 Michel-Alain Proch joined LSEG on 26 February 2024 and was appointed to the Board as CFO on 1 March 2024. His annual salary was effective from his start date of 26 February 2024.
3 No FY2024 bonus or 2025 long-term incentive award will be awarded to Anna Manz, who has left the Group.
4 Executive Directors must compulsorily defer 40% of bonus into shares for a period of three years under the Policy.
5 Anna Manz’s outstanding 2021, 2022 and 2023 LTIP awards lapsed on her resignation.
Concluding remarks
The intent of this statement and the wider Directors’ Remuneration Report is to explain the Group’s approach to remuneration, which takes into
account best practice and market trends while continuing to support the commercial needs of the Group, and the interests of shareholders and
all other stakeholders. The Committee continues to place great importance on ensuring that there is a clear link between pay and performance,
including a focus on culture and adherence to the Group’s risk framework, and that our remuneration outcomes are reflective of this wider context.
I would like to thank my fellow Committee members and all internal and external stakeholders for their valuable input over the course of the year.
William Vereker
Chair of the Remuneration Committee
26 February 2025
This report has been prepared in accordance with Schedule 8 to The Large and Medium-sized Companies and Groups (Accounts and Reports)
Regulations 2008 (as amended), and the relevant sections of the Listing Rules.
Directors’ Remuneration report continued
Statement by the Chair of the Remuneration Committee continued
127 London Stock Exchange Group plc
Annual Report 2024
Governance
Remuneration at a glance
Broader employee reward at LSEG
The Committee has responsibility for overseeing arrangements for all of our people, and reviews broader workforce policies and practices
in order to support decisions on executive pay. Our single aligned global reward framework was developed to create a transparent,
performance-driven approach for our Group. This framework helps to unify and drive our organisation forward and is based on the
following principles: (i) Performance-led; (ii) Competitive; (iii) Transparent and Equitable; and (iv) Inclusive and Consistent.
Directors’ Remuneration report continued
Salary
How we reward our colleagues
Salaries are normally reviewed annually by taking into account a range of factors and are reflective of individual
roles, job-related knowledge, skills, commensurate experience and the wider market.
In 2024, over 90% of colleagues received a salary increase. Whilst it is important to maintain cost discipline in light
of more inflationary environments in some of LSEG’s key locations, we continue with the principle of allocating
proportionately more of our 2025 salary budget to those most impacted.
For senior career stages, the approach for our 2025 annual salary review is consistent with that taken in previous
years whereby increases are focused on those with expanded roles and those whose pay is low versus internal
peers and/or the external market.
Benefits
How we reward our colleagues
While our general principle is to offer a market-aligned benefits plan in each key country in which we operate,
we continue to innovate with benefit policies that drive inclusion and enhance the employee experience.
In 2024, as part of our commitment to create a truly inclusive culture, we updated our Global Parental Leave Policy
for all new parents at LSEG with at least one year’s continuous service. These colleagues are now entitled to at
least 26 weeks’ paid leave, and the option to return to work on a phased basis, working 80% of their normal hours
for eight weeks, all while keeping their full pay.
Our Bereavement Leave offering has also been enhanced to provide six weeks of full pay globally and all colleagues
can now access 10 days of fully paid Carer’s Leave when they face unexpected challenges with caring responsibilities.
For the UK, a flexible benefits plan is offered, in which individuals have certain core benefits (such as private
medical, life assurance and income protection) together with a cash allowance which can be spent on elective
benefits (such as additional medical, life or dental cover).
Colleagues receive an annual pension allowance, invested in the Company’s defined contribution plan or provided
as a cash allowance.
Long-term incentive plans
How we reward our colleagues
Performance share awards (subject to stretching performance targets over three years) are granted to our most
senior 100 colleagues (ExCo direct reports) who have the ability to significantly influence the long-term
performance of the Group.
The next most senior cohort within the organisation (c.400 colleagues) are eligible for restricted share awards aligned
with long-term company performance and shareholder interests, vesting in equal tranches over three years.
Bonus
How we reward our colleagues
84% of colleagues participate in LSEG’s annual performance-related bonus based on Group, divisional
(where applicable) and personal performance against goals. Remaining colleagues participate in other
performance-based plans such as sales incentives.
Annual bonuses for our top 100 colleagues are subject to 40% deferral into shares, vesting in equal tranches
over three years.
From 2024, personal performance for bonuses is assessed equally on what has been achieved and how
colleagues have achieved their targets to reinforce the importance of culture in driving sustainable
high-performance at LSEG.
LSEG employee share plans
How we reward our colleagues
Our broader employee population have the opportunity to invest and share in the Group’s future success and
share price growth through our all-employee share plans. More than a third of our c.26,000 employees across
37 countries now participate in these share plans.
Executive Director alignment
The review of Executive Director salaries
takes into account the same factors
considered for the wider workforce.
Executive Director alignment
Executive Directors are eligible for
a range of market-aligned benefits and
receive a pension allowance in line
with the wider workforce.
Executive Director alignment
Executive Directors are eligible for
long-term incentive awards (subject to
stretching performance targets over
three years). An additional two-year
post-vesting holding period applies
to Executive Directors.
Executive Director alignment
The annual bonus plan for Executive
Directors considers the same
performance conditions as the broader
employee population and is linked to both
Group performance and individual
performance, taking into account both
what has been achieved and how.
Annual bonuses for Executive Directors
are subject to 40% deferral into shares
for a period of three years.
Executive Director alignment
Executive Directors are eligible to
participate in LSEG’s all-employee
share plans on the same terms as
all other eligible employees.
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At a glance continued
FY2024 Bonus Outcomes
David Schwimmer, Chief Executive Officer
Performance measure Threshold Target Maximum Weighting Outcome achieved
Group AOP
1
£2,977m £3,118m £3,243m 60% 46.9%
Actual: £3,229m
Future Growth
ASV and Net Sales 10%
Actual: 5%
Strategic Business Cases 5% 7.5%
Actual: 2.5%
Details of performance are set out on page 134.
Strategic Objectives 3.75% 7.5% 15% 15% 9.4%
Actual: 9.4%
Personal Objectives 10% 9.0%
Actual: 9%
Details of performance are set out on page 136.
Total 100% 73%
Michel-Alain Proch, Chief Financial Officer
Performance measure Threshold Target Maximum Weighting Outcome achieved
Group AOP
1
£2,977m £3,118m £3,243m 60% 46.9%
Actual: £3,229m
Future Growth
Net Sales & ASV 10%
Actual: 5%
Strategic Business Cases 5% 7.5%
Actual: 2.5%
Details of performance are set out on page 134.
Strategic Objectives 3.75% 7.5% 15% 15% 9.4%
Actual: 9.4%
Personal Objectives 10% 9.5%
Actual: 9.5%
Details of performance are set out on page 136.
Total 100% 73%
1 At 2024 Plan FX rates.
2024 Remuneration Outcomes
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At a glance continued
2022 LTIP Award Outcomes
David Schwimmer, Chief Executive Officer
Performance measure Threshold Maximum Weighting Outcome achieved
Average adjusted
EPS growth
6% 12.5% 60% 42%
Actual: 10.1%
Relative
TSR growth
Median ranking Upper quartile ranking 40% 40%
Actual: 81st percentile
Total 100% 82%
The 2022 LTIP award is not applicable for Michel-Alain Proch who joined LSEG on 26 February 2024 and was appointed to the Board as CFO on 1 March 2024.
The performance measures used in our incentives are directly aligned to the Group’s KPIs and strategic priorities.
Executive Director individual bonus allocation for 2025 (no change from 2024)
Financial
60% AOP performance
Financial
15% future growth
GSOs
15%
Personal
10%
Measure Description Alignment to strategy
Adjusted Operating
Profit (AOP)
— Core measure of financial performance that measures
revenue and other income vs. cost of sales and
operating expenses, adjusting for items such as
interest and depreciation and amortisation.
— AOP is a key profitability measure for the Group aligned to our
growth objective.
— Delivering profitable growth is essential as we aim to drive
sustainable value creation for all our stakeholders.
Future Growth The Future Growth measure will be assessed against the
following KPIs:
— Annual Subscription Value (ASV) growth – a point in
time measure of our book of recurring contracts
vs. 12 months ago.
— Net Sales – defined as new business minus
cancelled business, reflecting the subscription
‘Book of Business’ position.
— Board approved multi-year strategic business case
delivery and contribution to future business growth.
— Our ambition is to accelerate growth over the medium term.
The assessment of the Future Growth measure ensures
there is a focus on leading indicators of next year’s revenue
growth, as well as strategic business cases that will drive
multi-year growth.
— ASV growth is an important metric as more than 70% of our
revenues are subscription-based with a high degree of
visibility; and the Net Sales metric quantifies LSEG’s
performance in generating sales that will, once the service
is installed, flow through to new revenue.
— Each year the Board approves renewed multi-year strategic
growth objectives that encompass all of LSEG’s divisions.
At the end of the performance period the Committee ensures
a balanced assessment of these is considered to contribute
towards this measure.
Group Strategic
Objectives (GSOs)
— GSOs drive our multi-year growth and transformation
journey to deliver on our ambitions and execute
our strategy.
— They are currently divided between the following
5 categories: Resilience, Culture, Customer, Efficiency
and Sustainability.
— GSOs underpin the vital social and economic role
LSEG plays in enabling sustainable growth.
— GSOs are determined annually in accordance with
LSEG’s Board-approved strategy.
Personal — In alignment with all colleagues at LSEG, personal
objectives are determined annually, encompassing
both financial and non-financial elements.
— Personal objectives are aligned to the Company’s
strategic priorities.
— Personal performance is assessed equally on “what” has
been achieved but also “how”, to reinforce the importance
of culture in driving sustainable high-performance at LSEG.
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At a glance continued
Summary of Executive Director Remuneration Policy
The Remuneration Policy was subject to a binding shareholder vote at the 2024 AGM and was passed with 89% support. The table below details
a summary of the key terms of the Policy for Executive Directors. The Policy for Non-Executive Directors is outlined on page 140.
The full Remuneration Policy Report is set out at pages 127 to 136 of the 2023 Annual Report which can be found on our website:
www.lseg.com/en/investor-relations/annual-reports/2023. The principles prescribed by the UK Corporate Governance Code are taken into account
by the Committee in determining remuneration policy and practices as described on page 128 of the 2023 Annual Report. There have been no
changes to the Policy during the financial period.
Purpose & link to strategy Operation & performance measures Maximum
Base Salary
Provides a core element of remuneration
which reflects the responsibilities of
the role.
Enables the recruitment and retention
of individuals of the calibre required to
execute the Group’s strategy.
Base salaries are normally reviewed annually by taking into account a range
of factors including size and scope of role, size of organisation, skills and
expertise of the individual, market competitiveness, performance, wider
market and economic conditions and increases across the Group.
Base salaries are not subject to performance conditions.
No defined maximum salary;
increases are determined
based on the factors
described in the middle
column.
Benefits
Provide local market-competitive benefits
and support the wellbeing of employees.
A market-aligned benefits plan is offered in each key country in which we
operate. For the UK, a flexible benefits plan is offered, in which individuals
have certain core benefits (such as private medical, life assurance and
income protection) together with a taxable cash allowance which can be
spent on elective benefits (such as additional medical, life or dental cover).
Car transportation and/or appropriate security arrangements may also be
provided to Executive Directors.
Where necessary any benefits may be grossed up for taxes.
Executives are eligible to participate in the Group’s HMRC tax favoured
Sharesave Plan (or international equivalent) on the same basis as
other employees.
Executive Directors are covered by the Directors’ and Officers’ insurance
and indemnification.
Benefits are not subject to performance conditions.
No defined maximum.
Benefits are set at reasonable
levels in order to be market
competitive for their local
jurisdiction and are
dependent on individual
circumstances.
Participation in the Sharesave
Plan is capped at the same
level as all other participants.
2025 long-term incentive awards
Relative TSR vs
FTSE 100
20%
Relative TSR vs
global sector peers
20%
Average adjusted
EPS growth
60%
Measure Description Alignment to strategy
Average adjusted
EPS growth
— Average earnings per share, adjusted to remove any
non-underlying items.
— AEPS is one of LSEG’s key growth measures and KPIs.
— Growth in LSEG’s AEPS reflects our degree of success in
driving strong top-line performance, as well as managing
costs including tax, interest, and capital allocation.
Relative TSR vs global
sector peers
— Measures the total returns delivered to shareholders
(share price growth plus dividends paid) over the three
year performance period, relative to LSEG’s global
sector peers.
— With LSEG’s continued transformation, there is a significant
step-change in our talent requirements and an important
need to maintain focus on how LSEG’s business performance
and remuneration compares to appropriate peer groups.
— Inclusion of both FTSE 100 and global sector peer sets
enables a balanced assessment across LSEG’s key
benchmarks and is aligned with the comparisons we are
aware that our investors make.
Relative TSR vs FTSE 100 — As above, measuring LSEG’s performance relative to
FTSE 100 firms.
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Purpose & link to strategy Operation & performance measures Maximum
Retirement benefits
Provide executives with
retirement benefits.
Support recruitment and retention
of high-calibre people.
Provision of annual pension allowance, invested in the Company’s defined
contribution plan or taken or provided as a cash allowance.
Retirement benefits are not subject to performance conditions.
10% of salary.
This is a rate aligned with the
wider workforce in the UK.
Annual Bonus
Rewards annual performance against
challenging financial, strategic and
individual targets linked to Group strategy.
Deferral into shares reinforces retention
and enhances alignment with
shareholders by encouraging longer-term
focus and sustainable performance.
The Group operates a Group-wide bonus pool which is funded based on
the achievement of financial and strategic goals of the Group.
Allocations to individual Executive Directors are made from this pool based
on the Committee’s assessment of their personal performance, taking into
account the Group’s financial and strategic performance and the
achievement of any personal objectives related to their role.
40% of the annual bonus is subject to mandatory deferral into shares,
normally for a period of three years. Dividends (or equivalents) may be paid
in respect of deferred shares on vesting.
Unvested deferred awards are subject to malus. Paid bonuses and vested
deferred awards are subject to clawback.
Performance measures are based on a combination of financial
(e.g. adjusted operating profit and future growth), strategic and
personal performance targets.
At least 70% of the annual bonus pool and Executive Directors’ bonuses will
be based on performance against financial measures.
No bonuses are paid for below threshold performance. The Committee may
award any amount between zero and 100% of the maximum opportunity.
Up to 300% of salary for
the CEO
Up to 200% of salary for
other Executive Directors
Long-Term Incentives
(under Equity Incentive Plan)
Incentivise performance over the
longer term through the award of
performance-related shares.
Align reward with long-term, sustainable
Group performance and a focus on
shareholder value.
Awards of shares are granted annually.
Awards vest subject to performance targets assessed over a performance
period, normally of three years with an additional holding period of two years.
Dividends (or equivalents) may be awarded on vesting. Unvested awards are
subject to malus and vested awards are subject to clawback.
Vesting of awards is subject to achievement of total shareholder return and
other financial performance targets. Any one measure will not exceed
two-thirds of the award.
For each performance element, achievement of the threshold performance
level will result in no more than 25% of the maximum award paying out. For
achievement of the maximum performance level, 100% of the maximum pays
out. Normally, there is straight-line vesting between these points.
Up to 550% of salary for
the CEO
Up to 400% of salary for
other Executive Directors
Share ownership
Ensures alignment with
shareholders’ interests.
Executive Directors are expected to build up share ownership over
a period of five years from appointment. The minimum shareholding
requirement is 600% of base salary for the CEO and 400% of base salary
for other Executive Directors.
Executive Directors are expected to hold 100% of their minimum
shareholding requirement for two years post-departure.
No defined maximum.
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Annual Report on Remuneration
This section sets out how remuneration arrangements have operated during the past financial year (FY2024), and also provides details on how we
intend to operate our Policy during the coming year (FY2025). This report will be put to an advisory vote at the 2025 AGM. The information from this
page 132 to page 147 has been audited where required under applicable regulations and is indicated as audited where applicable. The Policy has
operated as intended in 2024.
Single total figure of remuneration for Executive Directors (audited)
Single total figure of
remuneration
David Schwimmer Anna Manz (to 29 February 2024) Michel-Alain Proch (from 1 March 2024)
FY2024
£000 % of total
FY2023
£000 % of total
FY2024
£000 % of total
FY2023
£000 % of total
FY2024
£000 % of total
FY2023
£000 % of total
Fixed remuneration
Salary 1,375 1,000 125 750 721 –
Flexible benefits allowance 15 15 3 15 1 –
Benefits 143
3
229 8
4
40 266
5
–
Pension 137 100 13 75 72 –
Variable remuneration
Annual bonus 3,000 1,582 – – 1,245 –
Long term incentive –
performance
1
2,460 1,800 – – – –
Long term incentive –
share price growth
1
734 666
2
– – – –
Buy-out award – – 2,034
6
Total remuneration of which 7,864 5,392 149 880 4,339 –
Fixed remuneration 1,670 21% 1,344 25% 149 100% 880 100% 1,060 24% –
Variable remuneration 6,194 79% 4,048 75% – 0% – 0% 3,279 76% –
Notes to the table:
1 The value delivered through performance is calculated as the number of shares forecast to vest in 2025 multiplied by the share price on the date of grant. The value delivered through share
price growth is calculated as the same number of shares multiplied by the difference between the average share price in the last 3 months of the financial year, being £108.56 and the share price
on the date of grant being £83.60. The Committee does not intend to amend the outcome or make any adjustments in regard to share price growth over the period, on the basis that this reflects
our view of the Group’s underlying performance and returns for shareholders over the performance period.
2 Performance shares vested at 60% on 26 March 2024 at £96.74 per share.
David Schwimmer
3 Benefits include the cash value of private medical, income protection and life assurance plus expatriate allowances (including tax/filing support) and commuting expenses (including car
transportation where appropriate) with associated taxes. David Schwimmer contributed £500 per month to the Sharesave plan throughout 2024; this benefit has been valued based on
the 20% discount to market value on the Sharesave option exercise price.
Anna Manz
4 Benefits include the cash value of private medical, income protection and life assurance plus commuting expenses (including car transportation where appropriate) with associated taxes.
Michel-Alain Proch
5 Benefits include the cash value of private medical, income protection and life assurance plus expatriate allowances (including immigration, one-off relocation costs and tax/filing support) and
commuting expenses (including car transportation where appropriate) with associated taxes. Michel-Alain Proch contributed £500 per month to the 2024 Sharesave plan; this benefit has been
valued based on the 20% discount to market value on the Sharesave option exercise price.
6 As disclosed in the 2023 Directors’ Remuneration Report, a buy-out award was granted to Michel-Alain during 2024 to compensate for the forfeiture of his Publicis Groupe 2021 LTIP. Given the
proximity of the vesting date with Michel-Alain’s start date at LSEG, the Group replaced the Publicis Groupe 2021 LTIP with a cash buy-out award of £2,034k reflecting the actual outcome of this
Publicis Groupe award.
Further notes
There were no money or assets reported in any previous financial year that were subject to a recovery of sums paid or withholding during the year.
Payments for loss of office (audited)
No payments were made for loss of office during the year.
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Payments to past directors (audited)
Anna Manz resigned as CFO on 25 May 2023. Following publication of
the Group’s 2023 Full Year Annual Results on 29 February 2024, she
stepped down from the Board and left the Group. In line with the Policy
in effect at the time of her resignation, and as disclosed in last year’s
report, her unvested awards were treated as outlined below:
Unvested Award
Type
Grant
Date Vest Date
No.
Shares
Granted
No.
Shares
Forfeited
Johnson Matthey 2020 bonus
forfeiture (LSEG RSU Buy-out)
10 Aug
2021
10 Aug
2024
2,900 None
Johnson Matthey
foregone 2020 LTI grant
(LSEG PSU Buy-out)
24 Nov
2020
26 Mar
2024
11,719 11,719
Deferred Bonus
(RSUs)
FY2020
Bonus
26 Mar
2021
07 Mar
2024
715 715
FY2021
Bonus
06 Apr
2022
13 Mar
2025
5,616 5,616
FY2022
Bonus
17 Mar
2023
18 Mar
2026
5,474 5,474
LSEG LTIP (PSUs) 2021-23
LTIP
26 Mar
2021
26 Mar
2024
27,612 27,612
2022-24
LTIP
06 Apr
2022
07 Apr
2025
23,325 23,325
2023-25
LTIP
17 Mar
2023
17 Mar
2026
30,712 30,712
2021 UK Sharesave Option 01-Oct-
2021
01-Nov-
2024
277 277
Total 108,350 105,450
Notes:
– Under the Policy in effect at time of resignation, minimum shareholding requirements were
300% of salary to be held for two years post-employment. No awards vested prior to her
termination date and Anna does not own any shares outright. However, the Johnson Matthey
2020 bonus forfeiture award (LSEG RSU Buy-out) vested in full on 10 August 2024 and must
be held for two years post Anna’s termination date.
– All forfeited awards lapsed on Anna’s resignation date.
Anna continued to receive her contractual salary, pension allowance and benefits until her
termination date.
Additional notes to the Single total figure of remuneration (audited)
Fixed pay
Base salary
When reviewing Executive Director salaries, and in line with our Policy,
the Committee considers multiple reference points including our global
sector peers and companies in the FTSE 30.
Benefits
A flexible benefits plan is offered, in which individuals have certain core
benefits (such as private medical, life assurance and income protection)
together with (in the UK) a taxable cash allowance which can be spent
on elective benefits (such as additional medical, life or dental cover).
Where received as a cash supplement, this allowance is not used to
calculate bonus payments or pension contributions.
Benefits are reviewed periodically to ensure they remain affordable
and competitive. Executives are eligible to participate in the Group’s
HMRC tax-favoured Sharesave Scheme (or international equivalent).
There has been no change to the provision of benefits and all
arrangements below have previously been disclosed.
David Schwimmer and Anna Manz (for the duration of her employment
in 2024) received a flexible benefits allowance of £15,000 per annum,
which is unchanged from last year. Michel-Alain Proch receives a flexible
wellness allowance of £1,000 per annum. In addition, the Executive
Directors receive benefits in kind which include private health care,
permanent health insurance and life assurance arrangements.
Car transportation is also provided where appropriate.
As an expatriate from the US to UK, David Schwimmer receives
the following:
— Tax preparation and filing assistance in the US and the UK.
— The Group will meet the costs of repatriating Mr Schwimmer’s
effects back to the US if the company terminates his employment
other than in circumstances such as serious misconduct which
would justify termination.
As an expatriate from France to the UK, Michel-Alain Proch received/
receives the following:
— 30 days of temporary accommodation following his relocation to
the UK.
— One-off contribution of £100,000 to support with mobility-related
costs associated with establishing residency in the UK, including
housing, transport, shipping & storage.
— Immigration, relocation and tax/filing support in accordance with
LSEG’s usual practices and approved Policy.
Sharesave
David Schwimmer contributes £500 per month into the 2023
Sharesave Plan which will mature in November 2026 with a six-month
exercise window.
Michel-Alain Proch contributes £500 per month into the 2024
Sharesave Plan which will mature in November 2027 with a six-month
exercise window.
Insurance and Indemnification
Executive Directors are covered by the Directors’ and Officers’
insurance and indemnification.
Malus and Clawback
There are no contractual malus or clawback provisions in place in
relation to benefits.
Retirement benefits
In the UK, pension provision for our Executive Directors takes the form
of a non-consolidated cash allowance; only base salary is used to
calculate pension entitlement and no other pension supplements apply.
David Schwimmer, Michel Alain-Proch and Anna Manz each received
an allowance equivalent to 10% of base salary as a taxable cash
supplement, which is in line with the wider workforce, ensuring we
are compliant with the UK Corporate Governance Code.
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Annual Report on Remuneration continued
Bonus awarded for FY2024
Executive Directors are eligible to receive an annual bonus based on
meeting or exceeding bonus targets that are set at the beginning of
the year, looking at the Group’s financial performance and strategic
objectives as well as personal performance.
The Remuneration Committee also receives input from the Risk
Committee with regard to performance related to risk culture
(awareness, transparency and accountability) when assessing
remuneration decisions.
The Group bonus pool was assessed 60% against Group AOP, 15%
against Future Growth and 25% against Group Strategic Objectives
(GSOs). The Committee considers AOP to be of particular significance
for the Group and believes it should continue to be the main financial
measure for annual bonus plan purposes. Notwithstanding this, the
introduction of the Future Growth measure enables the Committee
to apply specific focus to the achievement of future revenue targets.
The maximum bonus opportunity for FY2024 was 300% of salary
for the CEO and 200% of salary for the CFO.
We continue to maintain a high level of focus on sustainability within
the assessment of the GSOs with one objective solely dedicated to
Sustainability, reflecting our commitment to drive financial stability,
empower economies and enable customers to create sustainable
growth. Whilst each individual objective is not formulaically weighted,
ESG considerations are embedded throughout our GSOs as shown
in the summary assessment table below.
The Executive Directors’ awards are funded from the Group bonus pool.
FY2024 bonus awards for the Executive Directors are determined in
accordance with performance assessed: 60% against Group AOP;
15% against Future Growth; 15% against Group strategic objectives;
and 10% against personal objectives (including divisional objectives
where applicable).
Personal performance is assessed against contribution to the strategic
objectives, including cultural objectives, and against role-related goals
and expected behaviours, taking into account both what has been
achieved and how the individuals achieved their targets.
Determination of bonus for FY2024
The Committee determined the overall Group bonus pool with reference to the 12-month performance period ending 31 December 2024.
The performance measures and targets for the FY2024 Group bonus pool are set out below:
Performance measure Threshold Target Maximum Weighting Outcome achieved
Group AOP
1
£2,977m (15%) £3,118m (30%) £3,243m (60%) 60% 46.9%
Actual: £3,229m
Future Growth
ASV and Net Sales
2.5% 5% 10%
10%
Actual: 5%
Strategic Business Cases
1.25% 2.5% 5%
5% 7.5%
Actual: 2.5%
Details of performance are set out below.
Group Strategic
Objectives
6.25% 12.5% 25% 25% 15.6%
Actual: 15.6%
Details of performance are set out on page 135.
Total 100% 70%
1 At 2024 Plan FX rates.
Summary assessment of Future Growth objectives
KPIs Performance assessment
Overall outcome
achieved
ASV and Net Sales The Committee has assessed performance based on the delivery of ASV growth of 6.3%, in line with
guidance, and progress made in Net Sales.
Business case delivery The Committee has assessed performance based on an evaluation of the achievement of critical
milestones of specific divisional business cases, including: the good progress that has been made with
our partnership with Microsoft, delivering the in-year product commitments made at Capital Markets Day,
including Financial Meeting Prep and Analytics API for Financial Services; the acquisition of 11.6% of
minority interests in LCH Group taking our ownership to over 94%; and other divisional achievements.
Below Target Target Above Target Maximum
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Summary assessment of strategic objectives
The Committee assessed performance against strategic objectives between Target & Above Target, based on the following factors.
Measure Objective
ESG
alignment KPIs Performance against objectives
Overall
outcome
achieved
Customer Deliver an exceptional
customer experience
and engagement
through our commitment
to ‘connect ideas with
capital’ leveraging
an open approach
and partnerships;
Demonstrate thought
leadership and
innovation in our core
customer and partner
value propositions
S — Customer
Experience
(CX) Score
— Brand awareness
— Run rate revenue
synergies
— Delivered improvements in customer experience
through enhancements to service quality, quicker
resolution of queries and reducing data errors
— Continued to enhance our product offering with over
500 updates launched to Workspace and increased
availability of LSEG data on new platforms
— Significant increase in brand awareness driven by
momentum from LSEG brand campaign launched in
15 markets globally
— Delivered cumulative run-rate revenue synergies of
£266m at year end
Culture Develop leadership
capability and leverage
embedded values to
drive an inclusive,
high-performance
culture
S — Engagement score
— Gender and Ethnic
diversity in Senior
Leadership
— Maintained a strong engagement score of 74 as we
continue to deliver on our transformation agenda
— Supported an inclusive culture through the launch of
a significantly enhanced Global Parental Leave policy
— 41%
1
Female representation in Senior Leadership as
of 31 Dec 24
— 16%
1
Ethnic Minorities representation in Senior
Leadership as of 31 Dec 24
Resilience Drive risk awareness &
management; improve
infrastructure and
delivery for long term
resilience, compliance,
sustainable growth
G — Critical (P1) &
significant (P2)
risk events
— Top Risk
Remediation
— Business Risk
Maturity Assessment
— Good progress has been made in 2024, with
a reduction in the number of critical risk events
and embedding the Group’s Enterprise Risk
Management Framework. However, the Committee
continues to focus on further enhancing risk culture
in the organisation.
— Improvement in Business Risk Maturity across all
divisions and functions driven by continued focus on
ensuring the Group has a complete and effective
control environment through a firmwide Control
Enhancement Plan; work to support the completeness
and accuracy of self-identified issues; and embedding
Governance, Risk Management and Compliance
(GRC) tooling
Efficiency Simplify our
governance, technology,
operations, processes
& products to enable
scalable growth
S, G — Cost efficiency
of Operations
— Delivery of
Group Strategic
Programmes
— Engineering
Portfolio outcomes
— Delivered year-over-year decrease in Operations opex
driven by hiring controls and insourcing activities
— Delivered additional cost efficiencies and deployed
Zero-Based Budgeting across the firm to enable
structural benefits in 2025 and beyond
— Continued progress made towards operating
more efficiently and effectively across our
strategic programmes
— Established the Group Investment Committee to
improve discipline on capex allocation, spend
and outcomes
— Achieved 98% planned engineering portfolio outcomes
Sustainability Establish LSEG as
strategic enabler and
leader of sustainable
economic growth
E, S, G — Stakeholder
perception
— SFI Revenue growth
— ESG Ratings
— Improved stakeholder perception with Brand Monitor
showing that 72% of stakeholders (vs 66% in 2023)
perceive LSEG as a leader in Sustainable Finance
& Investment (SFI)
— Continued to grow SFI revenue in line with expectations
— Ratings maintained or improved vs 2023
Below Target Target Above Target Maximum
1 For more information on the action we are taking, refer to page (56) of this annual report and page (26) of our 2024 Sustainability Report.
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136
Directors’ Remuneration report continued
Annual Report on Remuneration continued
Assessment of personal performance
Executive Director Commentary
David Schwimmer,
Chief Executive Officer
— Under David’s leadership, LSEG is in a strong financial position and is consistently delivering on the guidance set out at our
Capital Markets Day in 2023: accelerating growth, improving margin, and improving our already-strong cash conversion. LSEG
has delivered organic income (excl. recoveries of 7.7%, with broad-based growth across all our divisions. AOP growth is also very
strong, at 9.5% on a constant currency basis. LSEG’s share price closed 2024 at £112.85, +22% on the year, delivering significant
value for shareholders.
— David continues to drive LSEG’s strategic transformation with multiple re-ratings indicative of the shift from market infrastructure
to a diversified, global leader in information services. The strategic repositioning and strong demand from investors for LSEG
shares supported the final exit of the consortium of former Refinitiv shareholders from the LSEG register, bringing further
diversification to our shareholder base.
— Under David’s tenure, LSEG’s share price has increased by ~170% and our market capitalisation has increased by 314%.
— LSEG is becoming a more product-centric organisation, with a high pace of innovation. There have been over 500
enhancements to Workspace, increased availability of LSEG data on new platforms and first LSEG Microsoft Partnership products
now generally available. All the in-year product commitments made at Capital Markets Day (e.g., Financial Meeting Prep and
LSEG Financial Analytics API) and migrated planned Foundation+ application have been delivered.
— David continues to foster an inclusive culture, setting the tone from the top on embedding the global values across the Group,
as well as driving a high-performance culture underpinned by team effectiveness and innovation. The results of the employee
engagement survey were strong at 74. David continues to prioritise Risk Culture, emphasising resilience and risk management.
— David has continued the development of senior talent, with strong hires into the Executive Committee and smooth and effective
management of the transition and onboarding of the CFO, CIO and COO.
— David continues to actively drive LSEG’s external profile, leading an extensive international programme of media and public
engagements advancing LSEG’s policy, brand building and customer goals. LSEG’s brand awareness and recognition as
a global leader in sustainable finance and investment has significantly increased over the course of the year.
Michel-Alain Proch,
Chief Financial Officer
— MAP has fully established himself as a core member of the Executive Committee. He has delivered efficiencies in operational
expenditure and reduced capital expenditure through systemic changes to investment planning and reinforcing strong
cost discipline.
— LSEG has shown strong earnings growth: AEPS +12.2% to 363.5p, driven by revenue growth and increased efficiency;
and excellent cash conversion: equity free cash flow £2.2 billion driven by profit growth and reducing capital intensity.
— MAP has set up the structure and processes to deliver EBITDA margin expansion over the medium term. Under his direction
the Group has delivered a constant currency improvement of 80bps in adjusted EBITDA margin, through improved control of
third-party costs and an enhanced investment process via a newly-established Group Investment Committee, to improve
discipline on capex allocation, spend and outcomes.
— MAP has implemented Zero-Based Budgeting across the firm to deliver additional cost efficiencies and enable structural benefits
in 2025 and beyond.
— MAP has also been central to the Group’s capital allocation strategy, with an increase of 13.0% in the total annual dividend and
the return of £1 billion of excess capital to shareholders via share buybacks in 2024. During the year, the Group acquired further
minority stakes in LCH, taking our ownership to over 94%, completed the acquisition of ICD through Tradeweb; and we divested
our 5% stake in Euroclear.
Based on the above context and an assessment of personal
performance, the Remuneration Committee awarded bonuses to each
of the Executive Directors as follows:
Role Chief Executive
Officer
Chief Financial
Officer
Name David
Schwimmer
Michel-Alain
Proch
Bonus for
FY2024
% of salary 218% of salary 146% of salary
% of max. 73% 73%
£ total amount £3,000,319 £1,244,995
1
Of which 40% is deferred £1,200,128 £497,998
Bonus
Component
Group AOP (60%) 78% of
maximum
78% of
maximum
Future Growth (15%) 50% of
maximum
50% of
maximum
Group Strategic Objectives
(15%)
63% of
maximum
63% of
maximum
Personal Objectives (10%) 90% of
maximum
95% of
maximum
1 As disclosed in last year’s report, Michel-Alain forfeited various incentive awards which were
inflight at the time of his leaving Publicis Groupe SA; LSEG agreed to compensate for the
forfeited amounts partly through an enhancement to Michel-Alain’s FY24 bonus opportunity.
The combined regular FY24 bonus (based on a pro-rated opportunity for the time served
over FY24) plus the compensatory amount meant that his maximum FY24 bonus opportunity
was equal to 200% of his salary.
Compulsory deferral under Remuneration Policy
Executive Directors must compulsorily defer 40% of their bonus into
shares for a period of three years under the existing Policy. Dividend
equivalents will be paid in respect of deferred shares on vesting.
LTIP Award granted in March 2021 (vesting in 2024)
The award granted to David Schwimmer in 2021 was based on relative
TSR performance versus the FTSE 100 Index peer group and adjusted
EPS performance in the 36-month performance period to December
2023. The AEPS element vested at 100%, and the relative TSR element
vested at 0%. These vesting outcomes reflect the delivery of AEPS
growth of 18.3% CAGR over the three-year performance period;
and 8.1% TSR performance over the three-year period (2.6% annualised)
representing 43rd percentile performance relative to the FTSE 100 peer
group. The TSR position partly reflects the significant growth in the share
price in the years leading up to the start of the 2021 LTIP performance
period during which LSEG was consistently upper quartile. The vesting
price at 26 March 2024 was £96.74. These values are shown in the
single figure table for the financial year ending December 2023.
137 London Stock Exchange Group plc
Annual Report 2024
Governance
Directors’ Remuneration report continued
Annual Report on Remuneration continued
LTIP Award granted in April 2022 (to vest in 2025)
The AEPS element of the LTIP award granted to David Schwimmer
made in 2022 will vest at 70% and the Relative TSR element will vest
at 100%. These vesting outcomes reflect the delivery of AEPS growth
of 10.1% CAGR over the three-year performance period; and 68.7%
TSR performance over the three-year performance period (19%
annualised) representing 81st percentile performance relative to
the FTSE 100 peer group.
The value shown in the single figure table on page 132 for the financial
year ending December 2024 represents the estimated value of the
2022 awards which will vest in April 2025. The estimated value
(including the estimated value of the award that reflects share price
growth) is based on the average share price in the final 3 months of
the financial year (£108.56). The Committee does not intend to amend
the outcome or make any adjustments in regard to share price growth
over the period, on the basis that this vesting reflects our view of the
Group’s underlying performance and returns for shareholders over the
performance period. The award is subject to a two-year post vesting
holding period.
The final vesting outcome (including the actual share price at
vesting) will be disclosed in the next Annual Report on Remuneration
covering FY2025.
The performance conditions applying to awards granted in April 2022
were as follows:
EPS element (60%) –
average adjusted
EPS growth
TSR element (40%) –
relative TSR growth vs.
FTSE 100 Index
Proportion of relevant
element which vests
Less than 6.5% p.a. Less than median 0%
6.5% p.a. Median ranking 25%
12.5% p.a. or more Upper quartile ranking 100%
Straight-line pro-rating applies between these points
Long-term incentive awards granted in FY2024 (audited)
Awards during FY2024 were granted in April 2024 under the EIP as
follows for the Executive Directors.
Chief Executive
Officer
Chief Financial
Officer
Name David
Schwimmer
Michel-Alain
Proch
LTI
(conditional
award)
% of salary 550% of salary 400% of salary
Face value £7,562,500 £3,400,000
Share price
1
£88.90 £88.90
Number of shares granted 85,067 38,245
1 The share price of £88.90 was determined using the closing price (MMQ) on 25 April 2024 as
approved by the Share Scheme Committee (a sub-committee of the Remuneration Committee).
The performance conditions applying to awards granted in April 2024
are as follows:
EPS element
(60%) – average
adjusted
EPS growth
TSR element
(20%) – relative
TSR
1
growth
vs. global sector
peer set
2
TSR element
(20%) – relative
TSR
1
growth vs.
FTSE 100 Index
Proportion of
relevant element
which vests
Less than 7% p.a. Less than median Less than median 0%
7% p.a. Median ranking Median ranking 25%
12.5% p.a. or more
Upper quartile
ranking
Upper quartile
ranking 100%
Straight-line pro-rating applies between these points
1 TSR is measured over a two-month trailing average at the start and end of the performance
period and compared to the relevant peer group. EPS is measured over the same
performance period, three financial years ending 31 December 2026, and compared
to the FY2023 baseline.
2 The sector peer set includes S&P Global, Intercontinental Exchange, MSCI, Nasdaq,
CME, Moody’s, FactSet, Cboe, Experian, Morningstar, Deustche Börse, Euronext,
RELX and Wolters Kluwer.
Other share plans (Sharesave, SharePurchase)
All permanent UK employees, including Executive Directors, are eligible
to participate in the HM Revenue & Customs tax-favoured Sharesave
scheme. Under the rules of the Sharesave scheme, participants can
save up to £500 each month, for a period of three years. At the end of
the saving period, savings may be used to acquire ordinary shares by
exercising the related option. The options may be granted at an exercise
price which represents a discount of up to 20% to market value at the
date of invitation. No performance conditions are attached to Sharesave
options. Employees in Sri Lanka are eligible to participate in an
equivalent international Sharesave plan.
There is also a SharePurchase Plan, which is designed to provide share
ownership opportunities to all people in our Group, including Executive
Directors, who are not based in the UK or Sri Lanka. SharePurchase
allows eligible employees in 35 countries to purchase up to an
equivalent of £500 of LSEG ordinary shares per month, who are
then awarded additional shares which vest after the completion of
a three-year plan cycle. No performance conditions are attached to the
award. During 2024 we launched SharePurchase into six new countries,
meaning that this year 94% of our employees globally were offered the
opportunity to benefit from our success and share in LSEG’s future by
participating in one of our employee share ownership plans.
In 2023, David Schwimmer commenced saving at the maximum of
£500 per month under the Sharesave plan, relating to options granted
on exactly the same terms as to all other eligible employees.
In 2024, Michel-Alain Proch commenced saving at the maximum
£500 per month under the Sharesave, relating to options granted
on exactly the same terms as to all other eligible employees.
These all-employee share plans are a core component of our people
proposition and benefits offering, acting as a modest retention tool
with 35% of eligible employees participating globally during 2024.
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138
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Annual Report on Remuneration continued
Share plan rules and approvals
Shareholder approval is required for any employee share plan that
uses either newly issued shares or treasury shares to satisfy the vesting
of awards granted, or if any Director of the Company is eligible to
participate under a long-term incentive scheme, as per UK Listing
Rule 9.3.1.
Our long-term incentive plan (the Equity Incentive Plan or EIP) was
approved by shareholders at the 2024 AGM.
Malus and clawback provisions
Malus and clawback provisions apply to all share incentive awards
granted to Executive Directors. Clawback provisions apply to annual
bonuses paid to Executive Directors.
In respect of awards under the EIP, the malus provisions allow the
Committee in its absolute discretion to determine, at any time prior
to the payment or vesting of an award, to reduce, cancel or impose
further conditions in certain circumstances, including:
(a) material misstatement or restatement in the Company’s or any
member of the Group’s audited financial accounts (other than as
a result of a change in accounting practice);
(b) the negligence, fraud or serious misconduct of an individual, or fraud
or serious misconduct with the knowledge of a participant;
(c) conduct by an individual which results in, or is or was reasonably
likely to result in (whether or not such result has transpired
e.g., if undiscovered and/or if no mitigating steps had been taken):
(i) significant reputational damage to the Company, any member
of the Group or to a relevant business unit (as appropriate);
(ii) a material adverse effect on the financial position of the
Company, any member of the Group or to a relevant business
unit (as appropriate);
(iii) a material downturn in the financial performance of the
Company, any member of the Group or to a relevant business
unit (as appropriate);
(iv) a material corporate failure of the Company, any member of the
Group or to a relevant business unit (as appropriate);
(v) a material adverse effect on the business opportunities and
prospects for sustained performance or profitability of the
Company, any member of the Group or relevant business unit
(as appropriate); or
(vi) a material failure of risk management in the Company,
any member of the Group or to a relevant business unit
(as appropriate),
or an individual being (or having been): a member of; an employee of; or
responsible for, a business unit, the Company or a member of the Group
that suffers (or may or could reasonably have suffered) any of the same;
(d) where the grant, vesting, exercise, payment or release of an award
would not be sustainable according to the financial situation of the
Group as a whole nor justified on the basis of the performance of
the Group, the relevant business unit and the relevant individual;
(e) conduct or behaviour by an individual that, following an
investigation, is reasonably considered by the Committee to
constitute a breach of the Company’s values and/or standards as
stipulated by the Group’s Code of Conduct or any of the Company’s
policies, procedures or any provision of any staff handbook in force
from time to time;
(f) unreasonable failure by an individual to protect the interests of the
Group’s stakeholders;
(g) where a participant ceases to be an employee by reason of their
retirement (as determined by the Committee) at any time prior to
payment or vesting, but becomes employed in an executive role by
any entity other than a role for which they receive no remuneration;
(h) an error in assessing any performance conditions applicable to an
award or in the information or assumptions on which the award was
granted, vests or is exercised, paid or released; or
(i) any other circumstances that the Committee, in exercising
appropriate discretion and acting fairly and reasonably, considers to
be similar in nature or effect to those above.
Clawback provisions allow the Committee in its absolute discretion to
claw back from individuals some or all of the vested EIP awards or paid
bonus in the same circumstances outlined for malus above.
Clawback will normally apply for a period of 3 years following vesting
of share awards and/or payment of cash bonus unless the Committee
determines otherwise. The Committee believes this is an appropriate
time period which aligns with the length of the performance period for
long-term incentives.
Similar but not identical malus and/or clawback triggers apply to existing
awards under other LSEG discretionary share incentive plans, and to
annual bonuses.
The malus and clawback provisions were not used in FY2024 for any
awards granted to Executive Directors.
Implementation of the Remuneration Policy during 2025
(1 January 2025 to 31 December 2025)
Base salary operation:
There are no changes proposed to the base salaries of the CEO and
CFO. The base salaries for 2025 are therefore as follows:
CEO: £1,375,000
CFO: £850,000
Pension operation:
The CEO and the CFO receive a cash contribution in lieu of
pension equivalent to 10% of salary which is a rate aligned with the
wider workforce, ensuring compliance with the UK Corporate
Governance Code.
Annual bonus operation:
The maximum annual bonus award for the CEO will be 300% of salary
and for the CFO will be 200% of salary.
As per FY2024, the weighting for the FY2025 Group bonus pool will be
determined based on performance measures weighted 60% Group
AOP, 15% Future Growth and 25% Group Strategic Objectives (GSOs)
to be assessed over a 12-month performance period. The Executive
Directors’ awards are funded from the Group bonus pool. Bonus awards
for the Executive Directors will be determined in accordance with
performance assessed: 60% against Group AOP; 15% Future Growth,
15% against Group Strategic Objectives; and 10% against personal
objectives (including divisional objectives where applicable).
The Committee considers the specific annual bonus targets to be
commercially sensitive, and that it would be detrimental to disclose the
targets at the start of the performance year. Details of performance
against the targets set will be disclosed in next year’s Directors’
Remuneration Report.
Personal performance is assessed against contribution to the strategic
objectives, including cultural objectives, and against role-related goals
and expected behaviours, taking into account both what has been
achieved and how the individuals achieved their targets. The
Remuneration Committee receives input from the Risk Committee with
regard to performance related to risk culture (awareness, transparency
and accountability) when assessing remuneration decisions.
60% of any bonus payment for Executive Directors will be paid in
March 2026. The remaining 40% will be deferred into shares for
a period of three years.
139 London Stock Exchange Group plc
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Governance
Directors’ Remuneration report continued
Annual Report on Remuneration continued
Deferred awards are subject to malus and clawback provisions
(e.g. in cases of material misstatement, gross misconduct, misbehaviour
or material failure of risk management) with judgement applied by the
Remuneration Committee.
For good leavers, deferred awards will usually vest in full at the normal
vesting date, unless the Committee elects to scale back the award
based on any factors deemed relevant. Where an individual is not
considered to be a good leaver, unvested awards will lapse.
Long-term incentives (granted under the Equity Incentive Plan):
Long-term incentive awards will be granted under the EIP in 2025.
The 2025 long-term incentive awards will be subject to a two-year
holding period in addition to the three-year vesting period, resulting
in a total five year period from the date of grant.
The Committee has given careful consideration to the target ranges
applicable to the 2025 grant, in particular to ensure that AEPS growth
targets are appropriately stretching taking into account both internal
and external forecasts. For the AEPS element (60% weighting), the
performance targets will range from 5% to 11% growth per annum.
To achieve maximum vesting, an incremental £1.2bn AOP would be
required in 2027, equivalent to incremental income in the region of
£2.6bn, relative to 2024. We expect that this AEPS range will be one
of the highest in the FTSE 30 and above median of our global sector
peers. This continues to demonstrate LSEG’s commitment to setting
class-leading, stretching targets. We delivered AEPS growth of 10.1%
CAGR over the three-year performance period of our 2022 LTIP award.
This higher AEPS baseline makes AEPS CAGR growth increasingly
challenging to achieve for LSEG.
For the Relative TSR element (40% weighting), performance will continue
to be assessed against our global sector peer group and the FTSE 100,
weighted 50:50. We added a second benchmark, our global sector peer
group, to our Relative TSR measure in 2024 as we felt it was appropriate
to assess our performance against organisations of a comparable scale
and complexity to LSEG, many of which LSEG competes with for capital
and talent.
Following extensive analysis, the Committee has determined to extend
the current global sector peer group of the relative TSR measure
(20% of the overall award) from 14 to 20 companies, with the addition
of MarketAxess, Hong Kong Exchanges and Clearing, Equifax,
Verisk, Dunn & Bradstreet and Transunion. This provides a stronger
representation across the breadth of our business areas and addresses
concerns about the narrow absolute TSR spread among a relatively
small peer group which can lead to all-or-nothing outcomes.
We have carefully reviewed the vesting practices of our global peers
and considered how best to strengthen our alignment with this group.
Following consultation with shareholders, the Committee has
determined to continue to set our vesting threshold for the global sector
peer component at median performance, but with an associated payout
of 50% for this segment (20% of the overall award). A payout of 50% for
median performance aligns with the vast majority of both US and EU
listed companies within our global peer set (9 out of the 12 companies
that have a relative TSR measure). The maximum vesting threshold at
the 75th percentile will be maintained, with an associated 100% payout.
For the FTSE 100 segment, the vesting range will continue to be
median to upper quartile (25% payout for median performance,
scaling to 100% payout for upper quartile performance) to reflect
typical UK market practice.
Malus and clawback provisions will apply to these awards, allowing the
Committee to reduce subsisting awards or request the re-transfer
of value in respect of already paid or vested awards in certain
circumstances (see page 138 above). The 2025 awards will vest three
years after the grant date subject to relative TSR and adjusted EPS
performance measures as follows:
EPS element (60%) – average
adjusted EPS growth
Proportion of relevant element
which vests
Less than 5% p.a. 0%
5% p.a. 25%
11% p.a. or more 100%
TSR element (20%) – relative
TSR vs global sector peer set
1
Proportion of relevant element
which vests
Less than 50th percentile 0%
50th percentile 50%
75th percentile 100%
TSR element (20%) – relative
TSR vs FTSE 100 Index
Proportion of relevant element
which vests
Less than 50th percentile 0%
50th percentile 25%
75th percentile 100%
Straight-line pro-rating applies between threshold and maximum vesting.
1 The sector peer set for 2025 includes S&P Global, Intercontinental Exchange, MSCI,
Nasdaq, CME, Moody’s, FactSet, Cboe, Experian, Morningstar, Deustche Börse, Euronext,
RELX, Wolters Kluwer, MarketAxess, HKEX Group, Equifax, Verisk, Dunn & Bradstreet,
and Transunion.
Awards to be made during 2025
Based on the context and an assessment of personal performance,
the Remuneration Committee intends to make grants to the Executive
Directors as set out below.
Role Chief Executive
Officer
Chief Financial
Officer
Name David Schwimmer Michel-Alain Proch
Long-term incentive
award (subject to
performance)
% of
salary
550% of salary 400% of salary
Amount £7,562,500 £3,400,000
Shareholding requirements
The minimum shareholding requirement is 600% of base salary for the
CEO, 400% of base salary for the CFO and 200-300% of base salary for
the Group Executive team. Executive Directors will also be required to
hold the lower of their actual shareholding and 100% of their MSR for
two years post-departure.
Service contracts for Executive Directors
The Executive Directors’ service contracts do not have a fixed term
and provide for a period of 12 months’ notice by either party.
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Directors’ Remuneration report continued
Annual Report on Remuneration continued
Non-Executive Directors’ fees for 2025
During the year, the Committee reviewed the Group Chair’s fee. Fees for
the Group Chair are typically reviewed on a three-year cycle rather than
annually, aligned to the three-year appointment term. Since it was last
reviewed in 2022, LSEG’s market capitalisation has almost doubled
and the Company has transformed in terms of global breadth,
complexity and business diversification. Further, market benchmarking
demonstrates that our Group Chair’s fee is positioned below the lower
quartile of both the FTSE 15 and FTSE 30. In light of the above factors
and the increased time commitment, scope and global complexity of
the role, the Group Chair’s fee has been increased to £720,000 with
effect from 1 January 2025. This revised fee aligns to the median of
the FTSE 30.
There are no other changes to Non-Executive Directors’ fees and
therefore the fee schedule for 2025 is as follows:
Fees
With effect
from 1 Jan
2024
With effect
from 1 Jan
2025
Group Chair £625,000 £720,000
Senior Independent Director £150,000 £150,000
Non-Executive Director base fee (inclusive of
Committee memberships) £95,000 £95,000
Audit/Remuneration/Risk Committee Chair £40,000 £40,000
Non-Executive Directors are also required to build up a shareholding
requirement of 1x basic annual fees, to be built up within three years
of appointment.
Non-Executive Directors’ Remuneration
Non-Executive Directors’ remuneration is determined by the Board
and is neither performance-related nor pensionable. The Chair’s fee
is determined by the Remuneration Committee. The fees for Non-
Executive Directors are set at a level which is intended to recognise
the significant responsibilities of Directors and to attract individuals with
the necessary experience and ability to make an important contribution
to the Company’s affairs. Comparisons are made with fees paid at
FTSE 30 companies.
A travel allowance of £4,000 per intercontinental trip for Non-Executive
Directors reflects the global nature of the company’s business and the
additional time commitment required for travel. The Group Chair is not
eligible for this allowance as he receives an all-inclusive fee for his role.
Travel and other appropriate expenses with associated taxes
(including fees incurred in obtaining professional advice) incurred
in the course of performing their duties are reimbursed to the Chair
and to the Non-Executive Directors.
The Chair and the Non-Executive Directors do not participate in any of
the Company’s annual bonus or long-term incentive plans and are not
entitled to any payments on termination.
141 London Stock Exchange Group plc
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The original date of appointment as Directors of the Company is as follows:
Name Date Appointed
Effective date of
letter of
appointment Time to expiry Notice period
Date of
resignation
LSEG Committee
membership/
chairmanship
Other subsidiaries/
committees
Don Robert CBE 01/01/2019 01/01/2025 AGM in 2028 6 months Group Chair,
Nomination Chair,
Remuneration
Dr. Val Rahmani 20/12/2017 20/12/2023 19/12/2026 None Risk, Nomination,
Remuneration
Professor Kathleen
DeRose
28/12/2018 28/12/2024 27/12/2027 None Risk Chair, Audit,
Nomination
Cressida Hogg CBE 08/03/2019 08/03/2022 07/03/2025
1
None SID, Audit,
Remuneration,
Nomination
Dominic Blakemore 01/01/2020 01/01/2023 31/12/2025 None Audit Chair,
Nomination, Risk
Martin Brand
2
29/01/2021 17/05/2024 16/05/2027 None Nomination
Tsega Gebreyes 01/06/2021 01/06/2024 31/05/2027 None Audit, Nomination,
Risk
William Vereker 03/10/2022 03/10/2022 02/10/2025 None Remuneration Chair,
Risk, Nomination
Shareholder director
Scott Guthrie
3
01/02/2023 01/02/2023 Nomination
Directors who stood down from the Board during the Year:
Ashok Vaswani 01/06/2021 01/06/2021 31/05/2024 None 29/02/2024 Audit, Nomination,
Risk
1 A new letter of appointment for Cressida Hogg will become effective on 8 March 2025.
2 Martin Brand ceased to be a shareholder director representing Blackstone on 17 May 2024 upon the termination of the relationship agreement with the consortium of former Refinitiv
shareholders. He remains on the Board as a Non-Executive Director in a personal capacity. Please refer to the Corporate Governance Report for further information.
3 Shareholder director representing Microsoft.
Non-Executive Directors’ Remuneration Table (audited)
FY2024
LSEG Fees
£000
FY2024
Taxable
Benefits
1
£000
FY2024
Total
£000
FY2023
LSEG Fees
£000
FY2023
Taxable
Benefits
1
£000
FY2023
Total
£000
Don Robert CBE 625 12 637 625 14 639
Dr. Val Rahmani 95 61 156 95 66 161
Professor Kathleen DeRose 135 49 184 135 35 170
Cressida Hogg CBE 150 4 154 150 – 150
Dominic Blakemore 135 4 139 135 – 135
Tsega Gebreyes 95 2 97 95 2 97
William Vereker 135 4 139 107 – 107
Martin Brand
2
– 6 6 – – –
Scott Guthrie
3
– 24 24 – 16 16
Ashok Vaswani 16 13 29 95 72 167
Total Non-Executive Directors’ fees 1,386 180 1,566 1,437 205 1,642
Notes:
1 Taxable benefits relate to any travel allowance payments and travelling expenses, including grossed up taxes where applicable.
2 Does not receive a fee for their role. Under his letter of appointment Martin Brand is entitled to receive a travel allowance of £4,000 per intercontinental trip. Mr Brand has chosen to waive this
travel allowance during 2024.
3 Shareholder director appointed to the Board on 1 February 2023 who does not receive a fee for his role.
Outside appointments
Executive Directors are allowed to accept appointments as Non-Executive Directors of other companies with the prior approval of the Chair or
Nomination Committee as appropriate. Approval will only be given where the appointment does not represent a conflict of interest with the
Company’s activities, the director has sufficient time to undertake the additional role and where the wider exposure gained will be beneficial to
the development of the individual. Executive Directors may retain fees to encourage them to seek out the development opportunities and
valuable experience afforded by these appointments and in recognition of the personal responsibility Executives assume in such roles.
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Annual Report 2024
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Directors’ Remuneration report continued
Annual Report on Remuneration continued
Alignment between pay and performance
Total Shareholder Return (TSR) performance
The following graph shows, for the financial period ended
31 December 2024 and for each of the previous ten financial periods,
the TSR on a holding of the Company’s ordinary shares of the same
kind and number as those by reference to which the FTSE 100 is
calculated. The TSR graph represents the value, at 31 December 2024,
of £100 invested in LSEG plc on 31 December 2014, compared with the
value of £100 invested in the FTSE 100 Index over the same period. The
FTSE 100 Index has been chosen for the purposes of this graph as it is
widely used and understood, and LSEG plc is a constituent of the index.
0
100
200
300
400
500
600
Total shareholder return
December year ending
14 15 16 17 18 19 20 21 22 23 24
FTSE 100
LSEG
Historic levels of CEO pay
Period ended: (12 months unless otherwise stated) CEO
CEO Single total figure
of remuneration (£’000)
Annual bonus payout
against maximum
opportunity %
Long-term incentive
vesting rates against
maximum opportunity %
31 December 2024 David Schwimmer 7,864 73% 82%
31 December 2023 David Schwimmer 5,392 70% 60%
31 December 2022 David Schwimmer 4,854 64% 82%
31 December 2021 David Schwimmer 6,847 72% 100%
31 December 2020 David Schwimmer 6,479 76% 100%
31 December 2019 David Schwimmer 2,456 75% –
3
31 December 2018 David Schwimmer
1
2,153 76% –
3
29 November 2017 Xavier Rolet
2
5,799 79% 100%
31 December 2016 Xavier Rolet 6,880 91% 91%
31 December 2015 Xavier Rolet 6,526 95% 94%
Notes:
1 Appointed as CEO on 1 August 2018.
2 Stepped down from the Board on 29 November 2017; data therefore represents 11-month figures.
3 Awards vesting in 2019 and 2020 vested at 89.6% and 100% respectively; these grants were not applicable to David Schwimmer.
CEO to employee pay ratio
Paying our people fairly relative to their role, skills, experience and
performance is central to our approach to remuneration, and our reward
framework and policies support us in doing this. The Committee
consider pay ratios as a useful reference point to inform pay decisions,
but also take into account a number of other internal and external
factors when determining executive pay outcomes, including:
— Our reward framework which establishes the compensation structure,
elements and leverage for each career stage in the organisation,
providing the Committee with oversight of workforce remuneration;
— The Group’s financial and strategic performance, including
consideration of risk;
— Each individual’s performance, including conduct and behaviour,
against personal objectives;
— External market surveys; and
— Wider context and the views of shareholders and investor bodies.
The table below shows the ratios of the CEO single total figure of
remuneration (as disclosed on page 132) to the total pay and benefits
of UK people at the 25th, 50th and 75th percentile.
Year Method
25th
percentile
pay ratio
50th
percentile
pay ratio
75th
percentile
pay ratio
2024 C 85 64 53
2023 C 61 46 34
2022 C 61 40 31
2021 C 97 63 49
2020 C 93 67 49
2019 C 31 21 19
143 London Stock Exchange Group plc
Annual Report 2024
Governance
Directors’ Remuneration report continued
Annual Report on Remuneration continued
The Committee has reviewed the ratios and pay data for the individuals
identified at each of the relevant quartiles and believe they are a fair
reflection of the company’s wider pay policies. The remuneration
received by each of each of the individuals is in line with our reward
framework. Executive Directors’ and other senior managers’
remuneration include a greater proportion of performance related pay
when compared to the identified people. The Committee considers
this is essential to differentiate levels of responsibility and align pay
to sustainable long-term performance and shareholders’ interests. As
discussed in last year’s report, our Remuneration Policy for Executive
Directors was revised in 2024 to be globally competitive to attract and
retain the calibre of talent required to continue LSEG’s transformation
and deliver our strategic ambition. The revisions made to the Policy in
2024 reflect that:
— LSEG has transformed and is now a leading global financial markets
infrastructure and data provider, which is larger, more diversified and
more complex than at the time of the last material Policy review;
— the market for our senior leadership team is now a set of global
companies in similar geographic and business segments as LSEG,
where pay levels are often significantly higher (further information
on our global sector peers is set out on page 124);
— we are experiencing pay compression between our CEO and other
recent senior hires, both in absolute terms and compared to typical
market relativities, as a result of our need to compete for talent with
the largest global players in the financial markets infrastructure and
data provision sector; and
— we need to ensure that the LSEG pay structures, measures and
targets reinforce continuation of the strong performance delivered
by our exceptional management team in recent years.
For the reasons described above, the 2024 Remuneration Policy reset
Executive Director remuneration to align more closely with the median
pay of our global sector peer pay.
As a significant proportion of the CEO’s remuneration is linked to
performance and share price over the longer-term, it is expected that
annual changes in the pay ratio will be significantly influenced by
LTI outcomes each year and will fluctuate accordingly.
Notes to the calculation:
— We have chosen to use Option C in the regulations to determine the
pay ratios. The best equivalents for the UK individuals at the 25th,
50th and 75th percentiles were determined using the hourly rate from
our gender pay analysis. This option leverages the comprehensive
analysis we have completed as part of our UK gender pay gap
reporting exercise. It comprises 92% of the UK population (from the
entities with 250 or more employees) and all compensation awards in
the financial year to ensure that the best equivalents determined are
a fair and true representation of workforce pay at the relevant
percentiles. For further information on our pay equity reporting in
2024, see our 2024 Sustainability Report.
— The 2024 total pay and benefits of the identified people was
determined based on data as at 31 December 2024.
— The 2024 total pay and benefits for the 25th, 50th and 75th
percentile people are as follows: £92,861, £123,396, £148,229.
— The 2024 base salary for the 25th, 50th and 75th percentile people
are as follows: £65,000, £90,000, £110,000.
— The CEO is the highest paid individual in the Group.
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Annual Report on Remuneration continued
Percentage change in remuneration of all directors and our people
The table below shows the percentage year-on-year change in salary, benefits and annual bonus for each Executive Director and Non-Executive
Director compared to the global average remuneration of our employees. Where appropriate, amounts have been annualised to provide a
like-for-like comparison. The 2020/2021 year-on-year reduction in benefits costs for our Non-Executive Directors was largely due to the decrease in
travel-related expenses during the Covid-19 pandemic. The 2021 year-on-year reduction in the benefits and bonus for our employees was reflective
of the newly combined company following the Refinitiv transaction and a change in the geographic mix of our employee population. The 2022
year-on-year increase in benefits costs for our Non-Executive Directors was due to the level of global travel returning to pre-pandemic levels
meaning those based in the US travelled to the UK several times during the year incurring both intercontinental travel fees and travel expenses;
a Board meeting was also held in New York in June 2022. The 2023 year-on-year increase in benefits cost for the CEO was largely due to tax filing
and immigration expenses incurred during the year. As discussed in last year’s report, the 2024 Remuneration Policy reset Executive Director
remuneration to align more closely with the median pay of our global sector peer group.
2024 2023 2022 2021 2020
Salary/
fees Benefits
Annual
Bonus
Salary/
fees Benefits
Annual
Bonus
Salary/
fees Benefits
Annual
Bonus
Salary/
fees Benefits
Annual
Bonus
Salary/
fees Benefits
Annual
Bonus
Executive Directors
1
David Schwimmer 38% -36% 90% 0% 63% 10% 2% -14% -12% 24% -23% 19% 2% -11% 5%
Michel-Alain Proch – – – – – – – – – – – – – – –
Non-Executive Directors
2
Don Robert CBE 0% -11% – 0% -58% – 19% 584% – 0% -85% – 0% -30% –
Dr. Val Rahmani 0% -7% – 19% 31% – 0% 1093% – 0% -73% – 7% -67% –
Professor Kathleen DeRose
3
0% 41% – 23% -16% – 0% 640% – 38% -44% – 7% -74% –
Cressida Hogg CBE
4
0% – – 0% – – 39% – – 35% – – 7% 0% –
Dominic Blakemore 0% – – 23% – – 0% – – 9% – – – – –
Tsega Gebreyes
5
0% 55% – 19% -94% – 0% – – – – – – – –
William Vereker
6,9
0% – – 34% – – – – – – – – – – –
Martin Brand
7
– – – – – – – – – – – – – – –
Scott Guthrie
8
– 54% – – – – – – – – – – – – –
Directors who stood down from the Board during the year:
Anna Manz 0% -80% – 15% 3% – 0% 27% -15% – – – – – –
Ashok Vaswani
10
0% -82% – 19% 65% – 0% – – – – – – – –
Average pay of our employees -3% 3% 10% 5% 4% 16% 14% 17% -15% -29% -37% -47% 3% 10% 4%
Notes:
1 Calculated using data from the single total figure of remuneration table on page 132.
2 Calculated using data from the Non-Executive Directors’ Remuneration Table on page 141.
3 Kathleen DeRose was appointed as Chair of the Risk Committee on 1 January 2021.
4 Cressida Hogg was appointed as Senior Independent Director on 6 August 2021.
5 Appointed to the Board on 1 June 2021.
6 Appointed to the Board on 3 October 2022.
7 Does not receive a fee for their role.
8 Appointed to the Board on 1 February 2023 in connection with the strategic partnership with Microsoft and does not receive a fee for their role.
9 William Vereker was appointed as Chair of the Remuneration Committee on 14 September 2023, taking over from Cressida Hogg.
10 Ashok Vaswani stepped down from the Board on 29 February 2024.
145 London Stock Exchange Group plc
Annual Report 2024
Governance
Relative importance of spend on pay
The table below shows the relative FY2024 versus FY2023 expenditure
of the Group on Dividends and Share Buyback versus Total Employee
Costs. These figures are underpinned by amounts from the Notes to the
Financial Statements at the back of this report.
Year-on-year increases (%) FY2024 FY2023
Annual
Increase
Dividends Paid and Share Buyback In
Financial Period £1,641m £1,611m +2%
Total Employee Costs £2,367m £2,242m* +6%
* Including underlying and non-underlying from continuing operations only.
Relative importance of spend on pay
Total employee costs
2024
* including underlying and non-underlying from continuing operations only.
2023*
2024
2023
£m 500 1,000 1,500 2,000 2,500
Dividends paid and share buyback in financial period
+6%
+2%
Statement of Directors’ shareholdings and share interests as at 31 December 2024 (audited)
All Directors are subject to a Minimum Shareholding Requirement (MSR), as set out in the Policy. Any Executive Director who steps down from the
Board continues to be subject to a MSR for two years post-employment. Current shareholdings are summarised in the following table:
Shares held Awards held
Requirement
(% salary/fee)
Shareholding
as at
31 December
2024
(% salary/fee)
2,4
Requirement
met
3
Owned
outright
Unvested and
subject to
performance
conditions
Unvested and
subject to
continued
employment
1
Vested but not
exercised
Executive Directors
David Schwimmer 100,014 161,902 28,680 – 600 945% Yes
Michel-Alain Proch 9,314 57,752 11,503 – 400 124%
Non-Executive Directors
Don Robert CBE 10,000 – – – 100 181% Yes
Val Rahmani 1,429 – – – 100 170% Yes
Kathleen DeRose 1,500 – – – 100 178% Yes
Cressida Hogg CBE 1,683 – – – 100 127% Yes
Dominic Blakemore 1,611 – – – 100 191% Yes
Martin Brand
5
– – – – – N/A N/A
Tsega Gebreyes 1,200 – – – 100 143% Yes
William Vereker
6
– – – – 100 –
Scott Guthrie
5
– – – – – N/A N/A
Directors who stood down from the Board during the Year:
Anna Manz
7
1,520 – – – 300 23%
Ashok Vaswani
7
581 – – – – 69% N/A
1 Refers to Deferred Bonus Plan and SAYE.
2 Includes shares held outright plus, on a ‘net of expected taxes’ basis, share options awarded under the DBP that are unvested and subject to continued employment.
3 MSR required to be reached within five years of appointment (percentage of base salary) for Executive Directors and within three years (percentage of basic annual fees)
for Non-Executive Directors.
4 Based on a share price of £112.85 (being the closing share price – MMQ – on 31 December 2024).
5 MSR does not apply as are not paid a fee for their service.
6 Has three years from date of appointment on 3 October 2022 to achieve MSR.
7 Shareholding as at 29 February 2024.
Note: There have been no further changes in these interests between 31 December 2024 and 28 February 2025.
Directors’ Remuneration report continued
Annual Report on Remuneration continued
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Annual Report on Remuneration continued
Directors’ Interests in Ordinary Shares – Beneficial, Family and any Connected Persons Interests (audited)
Ordinary Shares Held
1
Awards with
performance conditions
2
Awards without
performance conditions
3,4
Total Interests
31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023
Executive Directors
David Schwimmer 100,014 81,396 161,902 119,315 28,680 29,475 290,596 230,186
Michel-Alain Proch 9,314 – 57,752 – 11,503 – 78,569 –
Non-Executive Directors
Don Robert CBE 10,000 10,000 – – – – 10,000 10,000
Val Rahmani 1,429 1,429 – – – – 1,429 1,429
Kathleen DeRose 1,500 1,500 – – – – 1,500 1,500
Cressida Hogg CBE 1,683 1,150 – – – – 1,150 1,150
Dominic Blakemore 1,611 1.611 – – – – 1,611 1,611
Martin Brand – – – – – – – –
Tsega Gebreyes 1,200 1,200 – – – – 1,200 1,200
William Vereker – – – – – – – –
Scott Guthrie 623 623 – – – – 623 623
Directors who stood
down from the Board
during the Year:
Anna Manz
5
1,520 – – – – 3,177 1,520 3,177
Ashok Vaswani
5
581 581 – – – – 581 581
1 Ordinary shares include both ordinary shares listed on the London Stock Exchange and American Depositary Receipts (ADRs) representing ordinary shares (at a ratio of 1 ordinary share
(LSEG) : 4 ADR (LNSTY)).
2 LTI performance shares are structured as nil-cost options prior to 2021, since 2021 awards were granted as conditional awards.
3 Unvested awards in the Deferred Bonus Plan and share options granted under SAYE.
4 Deferred Bonus Plan shares are structured as nil-cost options, prior to 2021. Since 2021 awards were granted as conditional awards. All subject to continued employment and malus provisions.
5 Shareholding as at 29 February 2024.
Note: There have been no further changes in these interests between 31 December 2024 and 28 February 2025.
Long Term Incentive Plan table
The 2014 Long Term Incentive Plan and Equity Incentive Plan has one element applicable only to Executive Directors, which is a 2 year holding
period post vesting.
Awards of Performance shares are granted in the form of a conditional award since 2021, prior awards were granted as nil-cost options.
Awards granted from 2020 are dependent on an adjusted EPS growth target for 60% of the award, with the other 40% dependent on Relative
TSR performance. Details of performance conditions are set out on page 137.
The table below sets out the Executive Directors’ long-term incentive awards (including the exercise of vested shares in FY2024), as at
31 December 2024.
Number of shares
Vesting
date
Price at
vesting
date £
Value at
vesting
date £ Comment
Date of
award
Price at
award
date £
At start
of year
Award
during
the
year
Vested
during
year
Lapsed
during
year
At end
of year
David Schwimmer 26/03/2021 70.62 42,480 – 25,488 16,992 – 26/03/2024 96.74 2,465,709 FY2024 Actual
06/04/2022 83.60 35,885 – – – 35,885 07/04/2025 108.56 3,194,378 FY2025 Estimate
1
17/03/2023 73.26 40,950 – – – 40,950 17/03/2026 – –
26/04/2024 88.90 – 85,067 85,067 26/04/2027 – –
119,315 85,067 25,488 16,992 161,902 2,465,709 FY2024 Actual
3,194,378 FY2025 Estimate
1
Michel-Alain Proch 26/04/2024 88.90 – 38,245 – – 38,245 26/04/2027 – – FY2024 Actual
Notes:
1 FY2025 Estimate: Average share price over the period from 1 October 2024 to 31 December 2024 with vesting forecast at 82 per cent.
All estimates are shown separately in bold. They will be fully disclosed in next year’s Annual Report on Remuneration.
147 London Stock Exchange Group plc
Annual Report 2024
Governance
Directors’ Remuneration report continued
Annual Report on Remuneration continued
Remuneration Committee – meetings
During the financial period ending 31 December 2024, the Committee held 4 scheduled meetings. Here is a summary of the items they discussed:
Routine Non-Routine
February 2024 — FY2023 Performance and Bonus approval
— FY2024 Bonus Design
— Performance and determination of CEO and Group
Executives’ remuneration
— FY2024 long-term incentive awards (granted under the
EIP) and anticipated vesting of previous LTIP awards
— FY2023 Directors’ Remuneration Report
— 2024 Remuneration Policy – Shareholder
consultation feedback
— EIP rules
July 2024 — FY2024 Performance and Bonus update
— Governance update, including shareholder feedback on
FY2023 Directors’ Remuneration Report
— Share Plans vesting update
— Executive Committee Member update
— Pay Equity
— Upgrades to LSEG’s performance framework
— Review of independent advisors to the Committee
October 2024 — FY2024 Bonus: Future Growth Measure
— Measurement of Relative TSR performance vs.
Global Peers
December 2024 — FY2024 Bonus: Future Growth Measure
— Executive Committee performance and pay review
— Shareholder consultation update
— Update on review of independent advisors to
the Committee
February 2025
Meetings which took place
during FY2025 will be repeated
in next year’s report
— FY2024 Performance and Bonus approval
— FY2024 Bonus Design
— FY2025 LTI grants and anticipated vesting of previous
LTI awards
— CEO and Group Executive performance and pay review
— FY2024 Directors’ Remuneration Report
— Shareholder consultation feedback
— Group Board Chair fee review
To assist the Committee, the results of market surveys are made available. Where appropriate, the Committee invites the views of the Chief
Executive Officer, Chief Financial Officer, Chief People Officer and the Chief Risk Officer via the Risk Committee. None of these individuals nor the
Chair participated in any discussion relating to their own remuneration.
Statement of shareholder voting
The table below sets out the results of the advisory vote on the Directors’ Remuneration Report and the binding vote on the Remuneration Policy
Report at the 2024 AGM.
Votes for Votes against
Votes cast
Votes
withheldNumber % Number %
Remuneration Policy Report (2024 AGM) 399,211,048 88.99 49,413,030 11.01 448,624,078 82,082
Annual Report on Remuneration (2024 AGM) 437,331,831 97.48 11,316,907 2.52 448,648,738 57,422
Advisors
The Remuneration Committee continues to be mindful of recommendations from key stakeholders, including institutional investor bodies.
The Committee consults with major shareholders on any key decisions taken. Willis Towers Watson were appointed as independent remuneration
consultants to the Committee following a competitive tender process in 2020. During the year, Willis Towers Watson received £80,149 (excluding
VAT) based on actual time spent for their services to the Committee.
Ellason were appointed as an additional independent advisor by the Committee in 2023 to support with the review of LSEG’s Remuneration Policy.
During 2024, Ellason received £38,895 (excluding VAT) based on actual time spent for their services to the Committee.
Willis Towers Watson and Ellason are both members of the Remuneration Consultants Group and, as such, voluntarily operate under the code of
conduct in relation to executive remuneration consulting in the UK. The Committee is satisfied that their advice was independent and objective.
Signed on behalf of the Board of Directors
William Vereker
Chair of the Remuneration Committee
26 February 2025
London Stock Exchange Group plc
Annual Report 2024
148
Directors’ report
The Directors of the Company are pleased to present their
Annual Report to shareholders, together with the financial statements
for the year ended 31 December 2024 with comparatives for the
year ended 31 December 2023.
This report has been prepared in accordance with requirements
outlined within The Large and Medium-sized Companies and Groups
(Accounts and Reports) Regulations 2008 and forms part of the
management report as required under Disclosure Guidance and
Transparency Rule (DTR) 4. This section, together with the Strategic
Report and other sections of the Annual Report as set out in the table
below, fulfils the requirements of the Directors’ Report. For further
information on matters of strategic importance, please refer to the
Strategic Report.
Index to the Directors’ Report and other disclosures
AGM 255
Articles of Association 149
Board of Directors 96
Branches 244
Business model 04
Conflicts of interest 104
Directors’ indemnity 150
Directors’ loss of office 137
Dividends 148
Employee engagement 75
Employment information 150
Engagement with suppliers 77
Engagement with stakeholders and Section 172(1) statement 78
Essential contracts and change of control 151
Financial instruments 210
Going concern 169
Greenhouse gas emission reporting 71
UK Listing Rule 6.6.1 R cross-reference table 148
Modern slavery 63
Political donations 151
Purchase of own shares 150
Related party transactions 236
Share capital 149
Substantial shareholders 255
Viability statement 91
Information required to be disclosed by LR 6.6.1 R (starting on the
page indicated)
UK Listing Rule 6.6.1 R cross-reference table
Interest capitalised N/A
Publication of unaudited financial information N/A
Details of long-term incentive schemes N/A
Waiver of emoluments by a Director 150
Waiver of future emoluments by a Director N/A
Non pre-emptive issues of equity for cash N/A
Item 7 (in relation to major subsidiary undertakings) N/A
Parent participation in a placing by a listed subsidiary N/A
Contracts of significance 151
Provision of services by a controlling shareholder N/A
Shareholder waivers of dividends 148
Shareholder waivers of future dividends 148
Agreements with controlling shareholders N/A
Strategic Report
LSEG presents a fair review of the Group during the financial year
in the Strategic Report set out on pages 2 to 91, as required by the
Companies Act 2006. The Strategic Report, which includes a review
of the Group’s business areas, a financial review and the principal risks
and uncertainties of the Company, was approved by the Board on
26 February 2025 and is incorporated into this Directors’ Report
by reference.
Results
The Group made a profit before taxation from continuing operations,
before non-underlying items for the year, of £2,970 million
(2023: £2,692 million). After taking into account amortisation of
purchased intangible assets and non-underlying items, the profit of
the Group before taxation for the year from continuing operations was
£1,258 million (2023: £1,195 million). Profit after taxation from continuing
operations for the year was £921 million (2023: £948 million).
Dividends
The Directors are recommending a final dividend for the year of
89 pence (2023: 79.3 pence) per share which is expected to be paid
on 21 May 2025 to shareholders on the register on 22 April 2025.
Together with the interim dividend of 41 pence (2023: 35.7 pence)
per share paid on 18 September 2024, this produces a total dividend
for the period of 130 pence (2023: 115.0 pence) per share estimated to
amount to £689million (2023: £611 million).
For 2024, in alignment with our updated policy, the interim
dividend was calculated as approximately one-third of the
expected full-year dividend, with a full-year AEPS payout ratio
of 33-40%. More information on the dividend policy can be found
on the Investor Relations section of the Company’s website:
https://www.lseg.com/en/investor-relations/dividend-history.
A standard dividend waiver agreement is in place for the employee
benefit trust (“EBT”). Further information on the EBT can be found
in the share capital notes on page 227.
149 London Stock Exchange Group plc
Annual Report 2024
Governance
Directors’ report continued
Share capital
As at 31 December 2024, the Company’s share capital consists of
543,573,966 ordinary shares of 6
79/86
pence each (“ordinary shares”),
made up of: (i) 531,451,860 ordinary shares (excluding treasury shares)
(97.77%), which carry one vote each; and (ii) 12,122,106 ordinary shares
held in treasury (2.23%). The total number of voting rights in the
Company on 31 December 2024 was 531,451,860. More information
on the Company’s share capital can be found in note 18 on page 227.
On 8 March 2024, the Company completed a directed buyback of
162,651 voting ordinary shares and 5,444,527 limited-voting shares
through an off-market purchase. On 7 May 2024, the Company
completed a directed buyback of 5,701,722 voting ordinary shares
through an off-market purchase. Together, these transactions returned
£1 billion to former Refinitiv shareholders. The purchased voting
ordinary shares were placed into treasury and the limited-voting
shares were cancelled.
On 26 March 2024, 15,179,384 limited-voting ordinary shares of
6
79/86
pence each held by former Refinitiv shareholders were converted
into voting ordinary shares of 6
79/86
pence each on a one-for-one
basis. These converted ordinary shares were admitted to trading
on 26 March 2024. Following the conversion, the Company has
no limited-voting ordinary shares in issue.
On 17 April 2024, 1,375,000 ordinary shares of 6
79/86
pence each held
in treasury were transferred to the Employee Benefit Trust. Between
30 October 2024 and 19 December 2024, 176,777 ordinary shares of
6
79/86
pence each were issued and allotted to the Employee Benefit
Trust. These transactions were made to satisfy awards made under
the Company’s employee share plans.
As at 26 February 2025, the total number of voting rights in the
Company was 531,451,860. The figure 531,451,860 may be used by
shareholders as the denominator for the calculations by which they
will determine if they are required to notify their interest in, or a change
to their interest in, the Company under the FCA’s Disclosure Guidance
and Transparency Rules.
Share rights
The rights and obligations attached to the Company’s ordinary shares
are set out in the Company’s Articles of Association, copies of which
can be obtained from Companies House in the UK or by writing to the
Group Company Secretary.
Following the conversion of the limited-voting ordinary shares on
26 March 2024, the Company has no limited-voting ordinary shares
in issue. Consequently, the Company has one class of shares in issue,
consisting of ordinary shares of 6
79/86
pence each.
No shareholder shall be entitled to vote at a general meeting, either
in person or by proxy, in respect of any share held by him or her unless
all monies presently payable by him or her in respect of that share
have been paid. In addition, no shareholder shall be entitled to vote,
either in person or by proxy, if he or she has been served with a notice
under Section 793 of the Companies Act 2006 (concerning interests
in those shares) and has failed to supply the Company with the
requisite information.
Other than restrictions considered to be standard for a UK listed
company (for example, restrictions on partly paid certificated shares),
there are no limitations on the holding, transfer or voting rights of
ordinary shares in the Company, all of which are governed and
regulated by the Company’s Articles of Association and applicable
legislation and regulation.
The Company is not aware of any other agreements between holders
of shares that may result in restrictions on the transfer of shares or on
voting rights.
Corporate Governance Statement
The Company has complied throughout the year with the principles of
the UK Corporate Governance Code 2018 (the “Code”), which is publicly
available on the Financial Reporting Council website (www.frc.org.uk).
Further information on compliance with the Code can be found on
page 109.
The Corporate Governance Statement sets out how the Company
complies with the Code and includes a description of the main features
of our internal control and risk management arrangements in relation
to the financial reporting process; this is set out on pages 107 and 108.
The information required by DTR 7.2 can be found in the Directors’
Report on page 148. Further information regarding the composition
and operation of the Board and its Committees, including the Board
Diversity Policy, can be found on pages 100 to 106.
Articles of Association
The Company’s Articles of Association may only be amended by special
resolution at a general meeting of the shareholders. The Company’s
Articles of Association contain provisions relating to the appointment
and removal of Directors. The Articles of Association can be obtained
from Companies House in the UK and are available on the Company’s
website at: https://www.lseg.com/en/about-us/corporate-governance.
Authority to issue shares
Subject to the provisions of the Companies Act 2006 and without
prejudice to any rights attached to any existing shares or class of
shares, any share may be issued with such rights or restrictions as the
Company may by ordinary resolution determine or, subject to and in
default of such determination, as the Board shall determine.
Authority to allot shares
The authority conferred on the Directors at last year’s AGM to
allot shares in the Company up to a maximum nominal amount of
£12,352,057 (representing 33.3% of the issued share capital of the
Company (excluding treasury shares) as at the latest practicable date
before publication of the Notice of the Company’s last AGM) or, in
connection with a pre-emptive offer to existing shareholders by way
of a rights issue, up to a maximum nominal amount of £24,704,114
(representing 66.6% of the issued share capital of the Company
(excluding treasury shares) as at the latest practicable date before
publication of the Notice of the Company’s last AGM), expires on
the date of the forthcoming AGM. Shareholders will be asked to
give a similar authority to allot shares at the forthcoming AGM.
London Stock Exchange Group plc
Annual Report 2024
150
Directors’ report continued
Authority to purchase shares
The authority for the Company to purchase in the market up to
53,560,181 of its ordinary shares (representing 10% of the issued share
capital of the Company as at the latest practicable date before
publication of the Notice of the Company’s last AGM) granted at the
Company’s last AGM, expires on the date of the forthcoming AGM.
During 2024, the Company did not purchase any of its own shares
using this authority. Shareholders will be asked to give a similar
authority to purchase shares at the forthcoming AGM.
Directed buyback
In March 2024, the Company executed a directed buyback utilising the
remaining authority obtained at the 2023 AGM to make an off-market
purchase of shares from former Refinitiv shareholders. In May 2024,
the Company executed a second directed buyback following the
passing of a special resolution at the 2024 AGM to give the Company
further authority to make off-market purchases of shares from the
former Refinitiv shareholders.
To facilitate the programmes, on 5 March 2024 and on 1 May 2024,
LSEG agreed to limited variations of the lock-up arrangements
contained in the Relationship Agreement which was entered into
on completion of the Refinitiv acquisition. The Company executed
two directed share buybacks targeting shares held by the former
Refinitiv shareholders, which returned £1 billion to shareholders in 2024.
On 8 March 2024, the Company completed an off-market purchase
of 162,651 voting ordinary shares and 5,444,527 limited-voting shares
at a purchase price of £89.17 per share, with a total consideration of
approximately £500 million. On 7 May 2024, the Company completed
a second off-market purchase of 5,701,722 voting ordinary shares at
a purchase price of £87.6928 per share, with a total consideration
of approximately £500 million. For more information on the
directed buyback, please see page 79 which falls within the
Section 172(1) statement.
On 23 October 2024, the former Refinitiv shareholders completed their
sell down of ordinary shares in the Company. As a result, the Company
will not seek to renew the authority to make off-market purchases at the
2025 AGM.
Directors’ interests
Directors’ interests in the shares of the Company as at 31 December
2024, according to the register maintained under the Companies Act
2006, are set out in the Directors’ Remuneration Report on page 145.
No company in the Group was, during or at the end of the year, party to
any contract of significance in which any Director was materially interested.
Directors’ indemnity
There were qualifying third-party indemnity provisions (as defined by
Section 3 of the Companies Act 2006) in force during the course of the
year ended 31 December 2024. Directors have the benefit of indemnity
arrangements from the Company in respect of liabilities incurred as
a result of their office and execution of their powers, duties and
responsibilities. The Company maintained a Directors’ and Officers’
liability insurance policy throughout the year. This policy covers the
Directors for any such liabilities in respect of which they are not
indemnified by the Company and, to the extent to which it has
indemnified the Directors, also covers the Company. Neither the
Company’s indemnity nor insurance provides cover for a Director
in the event that the Director is proved to have acted fraudulently
or dishonestly. Such qualifying third-party indemnity provisions
remain in force as at the date of approving this Directors’ Report.
Waiver of Directors’ emoluments
Under his letter of appointment Martin Brand is entitled to receive
a travel allowance of £4,000 per intercontinental trip. Mr Brand has
chosen to waive this travel allowance during 2024.
Employees
Information on the Group’s employees, including the Group’s approach
to human rights, diversity, pay equity, the outcomes relating to the
Group’s employee engagement survey and further examples of
employee engagement, can be found in the Sustainability section
starting on page 56. Information on the Group’s share schemes is
provided in the Directors’ Remuneration Report starting on page 122.
The Group welcomes and gives full, fair and merit-based consideration
to applications from diverse candidates, including persons with visible
and non-visible disabilities. As with all areas of inclusion, our focus is
on providing the right tools to support people to be successful in the
workplace. The Group assists all employees who have a disability
with training, career development and progression opportunities and,
in a situation where an existing employee develops a disability, our
approach is to provide continuing support and training as appropriate.
Where changes to working practices or structure affect employees,
they are consulted and given the appropriate assistance.
LSEG is a Valuable 500 Iconic Leader and as such has made a pledge
to ensure that we:
— drive towards removing bias related to disability hiring and provide
the necessary tools for people with a disability to succeed;
— have inclusive hiring and onboarding practices;
— make subtitles available for all videos we publish;
— create inclusive offices and infrastructure across all our locations,
relying on consistent guidelines;
— have a Company-wide leadership pledge and commitment to support
disability; and
— improve physical accessibility for existing locations.
We are committed to providing a safe and inclusive environment for
everyone. The LSEG Accessibility Network works in partnership with
the Group to make sure commitments are implemented. We recognise
key observances, such as International Day of Persons with Disabilities
and World Mental Health Day, to raise awareness, reduce stigma and
celebrate the contribution of people with disabilities.
All employees are provided with information on matters of concern
to them in their work through regular briefing meetings and internal
publications. To inform employees of the economic and financial
factors affecting our business, regular updates are posted on our
intranet and engagement events are hosted, such as townhall style
meetings with members of our Executive Committee, providing a
briefing on specific areas of the business. Alongside this, information
is cascaded to employees through people leaders, also supporting
employee engagement.
Sustainability
We are committed to the pursuit of sustainable economic development.
As a Group, we recognise that this requires us to use resources in
ways that both delivers long-term sustainability and profitability for
the business, and considers the impact of those resources on the
environment. These considerations are also built into how we develop
our products and services.
Further details of our approach to climate, our targets and progress
on environmental matters, as well as methodology and verification,
can be found in the Sustainability section on pages 56 to 72.
151 London Stock Exchange Group plc
Annual Report 2024
Governance
Directors’ report continued
Research and development
LSEG undertakes research and development activities that align with
new revenue opportunities in financial services. The research combines
significant domain expertise with modern quantitative, data science and
cloud engineering practices. The large variety of data and analytics
available at LSEG enables research and development to apply current
techniques and technologies. Technical expertise features prominently
in LSEG research functions, including AI and large language models,
quantitative and data driven modelling, machine learning and natural
language processing. Research also includes significant expertise in
customer experience design and user experience.
Political donations
During the year, the Group did not make any direct political donations
or incur any political expenditure.
It remains the Company’s policy not to make direct political donations
or to incur direct political expenditure; however, the application of the
relevant provisions of the Companies Act 2006 is potentially very broad
in nature and, like last year, the Board is seeking shareholder authority
to ensure that the Group does not inadvertently breach these provisions
as a result of the breadth of its business activities, although the Board
has no intention of using this authority. As with previous years, the Board
is proposing that shareholders pass a resolution at the forthcoming AGM
to authorise the Group to:
— make political donations to political parties and independent election
candidates not exceeding £100,000 in total;
— make political donations to political organisations other than political
parties not exceeding £100,000 in total; and
— incur political expenditure not exceeding £100,000 in total, provided
that in any event the aggregate amount of any such donations and
expenditure made or incurred by the Group shall not exceed £100,000.
Notwithstanding the Company’s policy not to make political donations,
we recognise the rights of our employees to participate in the political
process. Their rights to do so are governed by the applicable laws in the
countries in which we operate. For example, in the US under the Federal
Election Campaign Act, eligible employees can establish nonpartisan
political action committees (a “PAC”) to support voluntary employee
participation in the political process. Corporate PACs are a common
feature of the US political system and operate independently of any
political party or candidate.
LSEG US Holdco, Inc. operates a PAC for eligible employees. Consistent
with US law, LSEG US Holdco, Inc. pays for the PAC’s administrative
expenses; providing such support is not considered to be a political
donation or expenditure under US law. In accordance with the
applicable law, contributions from the PAC are funded entirely by
voluntary contributions from eligible employees. All decisions on the
amounts and recipients of contributions are directed by a steering
committee comprising employees eligible to contribute to the PAC.
All PAC receipts and disbursements are publicly disclosed on the
FEC’s website: https://www.fec.gov/data/browse-data/?tab=committees.
Significant agreements
The following are significant agreements as at 31 December 2024,
to which the Company is a party, that take effect, alter or terminate
upon a change of control of the Company following a takeover bid.
Strategic Initiatives Agreement with Microsoft
As part of the strategic partnership with Microsoft Corporation, certain
subsidiaries of the Company are party to a strategic initiatives
agreement with Microsoft Ltd (the “Strategic Initiatives Agreement”).
Under the Strategic Initiatives Agreement, the parties have agreed to
jointly pursue strategic initiatives in relation to LSEG’s data architecture,
Workspace solution and analytics capabilities, as well as explore the
development of digital market infrastructure based on cloud technology.
The Strategic Initiatives Agreement includes a provision permitting
Microsoft to terminate the agreement in circumstances where the
Company comes under the control of an entity that Microsoft are
prohibited from dealing with by a sanctioning body, or that is based
in a jurisdiction subject to international sanctions.
Thomson Reuters News Agreement
Certain subsidiaries within the Group are party to an agreement with
Reuters News dated 1 October 2018, under which Reuters News
provides, for a 30-year term, various categories of general news and
financial content, alongside certain accompanying intellectual property
licence agreements in relation to the provision of such content (the
“Thomson Reuters News Agreement”). The Thomson Reuters News
Agreement includes a provision requiring Refinitiv to obtain consent
to assign the agreement pursuant to a change in control in certain
circumstances, a breach of which could potentially lead to a termination
of the agreement.
Facility agreements
— Amended 2017 Revolving Credit Facility
On 22 November 2023, the amended and restated £1,425 million
syndicated, committed, revolving credit facility agreement was further
amended and extended (the “Amended 2017 RCF”). The facility
limit was increased to £1,925 million and the maturity date was
extended to 16 December 2027. The facility provides flexible
financing capacity for the general corporate purposes of the Group
and includes £1,925 million euro and US dollar swingline facilities
as backstop support for commercial paper issuance.
— 2020 Credit Facility
The Company has a syndicated, committed $2,000 million and
£1,075 million revolving credit facility agreement dated 16 December
2020 (the “2020 Facility”), which came into effect upon the
completion of the Refinitiv acquisition. The revolving facility offers
the Group additional flexible financing and is available for the general
corporate purposes of the Group. The revolving facility contained
two one-year extension options, both of which have been exercised.
Consequently, the final maturity date of the revolving credit facility
is now 16 December 2027.
— Terms of Amended 2017 RCF and 2020 Facility
The terms of the Amended 2017 RCF and the 2020 Facility are
appropriate for an investment grade borrower and each includes
change of control provisions which, if triggered, allow the relevant
facility agent, upon instructions from the majority lenders, to cancel
the facility and declare all outstanding loans under the relevant
agreement, together with accrued interest and all other amounts
accrued, due and payable. These facilities apply SONIA and SOFR
rates respectively (including an appropriate credit adjustment spread)
where applicable.
— Tradeweb Revolving Credit Facility
In November 2023, Tradeweb terminated its revolving credit facility,
entered into in April 2019, and replaced it with a new $500 million
revolving credit facility which matures in November 2028. The facility
provides borrowing capacity to be used to fund ongoing working
capital needs, letters of credit and for general corporate purposes,
including potential future acquisitions and expansions. The facility
will mature on 21 November 2028.
London Stock Exchange Group plc
Annual Report 2024
152
Directors’ report continued
Notes
— Euro Medium-Term Notes
The Company, together with its subsidiaries LSEG Netherlands B.V.
and LSEG US Fin Corp., has issued to the wholesale fixed income
market under its Euro Medium-Term Note Programme (the value of
which is £4,000 million), five tranches of euro notes for a total of
€3,000 million due from 2026 to 2030 and one $100 million tranche
of US dollar notes due in 2027. The notes contain a ‘redemption upon
change of control’ provision which, if triggered by the combination
of a change of control and, within 120 days thereafter, a credit rating
downgrade to non-investment grade, allows noteholders to exercise
their option to require the Company or where applicable its
subsidiaries to redeem the notes and pay any accrued and
unpaid interest due.
— Global Medium-Term Notes
The Company, together with its subsidiaries LSEG Netherlands B.V.
and LSEGA Financing plc, has issued to the wholesale fixed income
market under its Global Medium-Term Note Programme (the value of
which is £10,000 million) one £500 million tranche of sterling notes
due in 2030, three tranches of euro notes due from 2025 to 2033 for
a total of €1,500 million, and four tranches of US dollar notes for a
total of $3,750 million due from 2026 to 2041. The notes contain a
‘redemption upon change of control’ provision which, if triggered
by the combination of a change of control and, within 120 days
thereafter, a credit rating downgrade to non-investment grade,
allows noteholders to exercise their option to require the Company
and/or its subsidiaries to redeem the notes and pay any accrued
and unpaid interest due.
— Standalone 144A Notes
LSEG US Fin Corp., a subsidiary of the Company, has issued to the
wholesale fixed income market under standalone documentation
two tranches of US dollar notes due from 2027 to 2034 for a total
of $1,250 million. The notes contain a ‘redemption upon change of
control’ provision which, if triggered by the combination of a change
of control and, within 120 days thereafter, a credit rating downgrade to
non-investment grade, allows noteholders to exercise their option to
require LSEG US Fin Corp. to redeem the notes and pay any accrued
and unpaid interest due.
— Commercial Paper
The Company issues commercial paper to the debt capital markets
from time to time under its £2,250 million Euro Commercial Paper
(ECP) Programme and $2,500 million US Commercial Paper (USCP)
Programme. The programmes provide flexible financing capacity for
the general corporate purposes of the Group and are backstopped
by the £1,925 million euro and US dollar swingline facilities available
under the Amended 2017 RCF. At 31 December 2024, there were
balances outstanding of $944 million under the USCP programme,
and €252 million and £75 million under the ECP programme
Employee share plans
The rules of the Company’s employee share plans set out the
consequences of a change of control of the Company on employees’
rights under the plans. Generally, such rights will vest on a change of
control and participants will become entitled to acquire shares in the
Company (although in certain circumstances the Remuneration
Committee has the discretion to defer vesting and to require rights
to be exchanged for equivalent rights over the acquiring company’s
shares). More information on Employee Share Plans can be found
in the Directors’ Remuneration Report on page 122.
Employee Benefit Trust
As at 31 December 2024, the trustee of the London Stock Exchange
Employee Benefit Trust, which is an independent trustee, held 1,605,133
shares under the terms of the trust for the benefit of employees and
former employees of the Company and its subsidiaries. The trust is
a discretionary trust and the shares are held to meet employees’
entitlements under the Company’s share plans. Employees have no
voting rights in relation to the unencumbered shares while they are
held in trust. The trustee has full discretion to exercise the voting rights
attached to the unencumbered shares or to abstain from voting. Shares
acquired by employees through the Company’s employee share plans
rank equally with the ordinary shares in issue and have no special rights.
Branches outside the UK
The Company does not directly operate any branches outside of the UK.
Certain subsidiaries of the Company have established branches in
a number of different countries in which they operate. A full list of the
Company’s subsidiary entities can be found in Note 10 starting on
page 244.
Financial risk management
The use of financial instruments by the Group and the Group’s financial
risk management have been specifically considered by the Directors,
and relevant disclosures appear in the Principal risks section, on pages
81 to 90 of this Annual Report; and in note 17 to the financial statements,
on pages 210 to 226 of this Annual Report.
Directors’ statement as to disclosure of information to auditors
In accordance with Section 418(2) of the Companies Act 2006, the
Directors confirm, in the case of each Director in office at the date
the Directors’ Report is approved as listed on pages 96 to 99, that:
— so far as the Director is aware, there is no relevant audit information
of which the Company’s auditors are unaware; and
— they have taken all the steps that they ought to have taken as
a Director in order to make himself or herself aware of any relevant
audit information and to establish that the Company’s auditors are
aware of that information.
Future developments
The Group’s likely future developments can be found in the Market
trends and our response section of the Annual Report (pages 6 to 7).
This section covers financial, technological and societal trends that
are affecting the Group and demonstrates how we are evolving as
an organisation to adapt appropriately going forward.
Events since the financial year-end
For further information on events since the reporting date, please see
note 24 on page 236.
Auditors
Deloitte LLP was appointed as the Company’s external auditor for the
financial year ended 31 December 2024 following shareholder approval
at the AGM held on 25 April 2024. The reappointment of Deloitte LLP
as the Company’s external auditor for the financial year ended
31 December 2025 will be subject to shareholder approval at the
AGM to be held in 2025.
By Order of the Board
Lisa Condron
Group Company Secretary
26 February 2025
153 London Stock Exchange Group plc
Annual Report 2024
Governance
The Directors are responsible for preparing the Annual Report,
the Directors’ Remuneration Report and the financial statements in
accordance with applicable United Kingdom law and regulations.
Company law requires the Directors to prepare financial statements
for each financial year. Under that law the Directors have elected
to prepare the Group financial statements in accordance with
UK-adopted international accounting standards (“IFRS”), and the
parent company financial statements in accordance with the Companies
Act 2006 and Financial Reporting Standard (“FRS”) 101 Reduced
Disclosure Framework.
Under company law, the Directors must not approve the financial
statements unless they are satisfied that they give a true and fair view
of the state of the affairs of the Group and the parent company and
of the profit or loss for that year.
In preparing those financial statements, the Directors are required to:
— in respect of the Group financial statements, select suitable
accounting policies in accordance with IFRS, including IAS 1
and IAS 8: Accounting Policies, Changes in Accounting Estimates
and Errors, and then apply them consistently;
— in respect of the parent company financial statements, select suitable
accounting policies in accordance with FRS 101 and then apply
them consistently;
— present information, including accounting policies, in a manner that
provides relevant, reliable, comparable and understandable information;
— make judgements and accounting estimates that are reasonable
and prudent;
— provide additional disclosures when compliance with the specific
requirements in IFRSs and in respect of the parent company financial
statements, FRS 101, is insufficient to enable users to understand the
impact of particular transactions, other events and conditions on the
Group and the Company’s financial position and financial performance;
— in respect of the Group financial statements, state whether
UK-adopted international accounting standards have been
followed, subject to any material departures disclosed and
explained in the financial statements;
— in respect of the parent Company financial statements, state whether
applicable UK accounting standards, including FRS 101, have been
followed, subject to any material departures disclosed and explained
in the financial statements; and
— prepare the financial statements on the going concern basis, unless it
is inappropriate to presume that the Group and the Company will
continue in business
The Directors confirm that they have complied with the above
requirements in preparing the financial statements.
The Directors are responsible for keeping adequate accounting records
that are sufficient to show and explain the Group and the Company’s
transactions and disclose with reasonable accuracy at any time the
financial position of the Company and the Group and to enable them
to ensure that the financial statements and the Directors’ Remuneration
Report comply with the Companies Act 2006, as well as other
applicable laws and regulations, including the requirements of the
Listing Rules and the Disclosure Guidance and Transparency Rules.
As regards the Group financial statements, the Directors are also
responsible for safeguarding the assets of the Company and the Group
and for taking reasonable steps for the prevention and detection of
fraud and other irregularities.
Under applicable law and regulations, the Directors are also responsible
for preparing a strategic report, directors’ report, directors’ remuneration
report and corporate governance statement that comply with that
law and those regulations. The Directors are responsible for the
maintenance and integrity of the corporate and financial information on
the Company’s website. Legislation in the UK governing the preparation
and dissemination of financial statements may differ from legislation in
other jurisdictions.
The Group’s business activities, together with the factors likely to affect
its future development, performance and position are set out in the
Strategic Report sections of the Annual Report on pages 2 to 91.
In particular, the current economic conditions continue to pose a number
of risks and uncertainties for the Group and these are set out in the
Principal risks on pages 81 to 90.
The financial risk management objectives and policies of the Group
and the exposure of the Group to capital risk, credit risk, market risk
and liquidity risk are discussed on pages 210 to 226. The Group
continues to meet Group and individual entity capital requirements
and day-to-day liquidity needs through the Group’s cash resources
and available credit facilities.
The combined total of committed facilities and bonds issued at
31 December 2024 was £12,747 million (2023: £12,108 million).
The Directors have reviewed the Group’s forecasts and projections,
taking into account reasonably possible changes in trading
performance, which show that the Group has sufficient financial
resources. On the basis of this review, and after making due enquiries,
the Directors have a reasonable expectation that the Company and the
Group have adequate resources to continue in operational existence
for the foreseeable future. Accordingly, they continue to adopt the
going concern basis in preparing the financial statements. The Group’s
business activities, together with the factors likely to affect its future
development, performance and position, its objectives and its policies
in managing the financial risks to which it is exposed, and its capital
are set out in the Strategic Report on pages 2 to 91.
Each of the Directors, whose names and functions are set out on
pages 96 to 99 of this Annual Report confirms that, to the best of their
knowledge and belief:
— the Group financial statements, which have been prepared in
accordance with IFRS, and the parent company financial statements,
which have been prepared in accordance with FRS 101, give a true
and fair view of the assets, liabilities, financial position and profit or
loss of the Group and the parent company taken as a whole;
— the report of the Directors contained in the Annual Report, including
the Strategic Report, includes a fair review of the development and
performance of the business and the position of the parent company
and the Group taken as a whole, together with a description of the
principal risks and uncertainties that they face; and
— they consider that the Annual Report, the Group financial statements
and the parent company financial statements, taken as a whole, are
fair, balanced and understandable and provides the information
necessary for shareholders to assess the Group and the parent
Company’s position, performance, business model and strategy.
By Order of the Board
Lisa Condron
Group Company Secretary
26 February 2025
Statement of
Directors’ responsibilities
London Stock Exchange Group plc
Annual Report 2024
154
Financial Statements
154 London Stock Exchange Group plc
Annual Report 2024
155 London Stock Exchange Group plc
Annual Report 2024
Financial Statements
155 London Stock Exchange Group plc
Annual Report 2024
Independent Auditor’s Report 156
Consolidated financial statements
Consolidated income statement 164
Consolidated statement of comprehensive income 165
Consolidated balance sheet 166
Consolidated statement of changes in equity 167
Consolidated cash flow statement 168
Notes to the consolidated financial statements
1 Accounting policies 169
2 Segment information 173
3 Total income and contract liabilities 177
4 Operating expenses before depreciation,
amortisation and impairment 182
5 Net finance costs 183
6 Taxation 184
7 Earnings per share 188
8 Dividends 188
9 Intangible assets 189
10 Property, plant and equipment 194
11 Investments in financial assets 196
12 Pension and other retirement benefit schemes 197
13 Trade and other receivables 201
14 Cash and cash equivalents 202
15 Trade and other payables 203
16 Borrowings, lease liabilities and net debt 204
17 Financial assets and financial liabilities 210
18 Share capital, share premium and other reserves 227
19 Non-controlling interests 229
20 Share-based payments 230
21 Business combinations 234
22 Transactions with related parties 236
23 Commitments and contingencies 236
24 Events after the reporting period 236
Company financial statements
Company balance sheet 238
Company statement of changes in equity 239
Notes to the Company financial statements
1 Accounting policies 240
2 Income statement 241
3 Investments in subsidiaries 241
4 Trade and other receivables 241
5 Cash and cash equivalents 241
6 Trade and other payables 242
7 Borrowings 242
8 Share-based payments 243
9 Financial guarantees 243
10 Group companies 244
11 Events after the reporting period 251
Key to symbols used in this section
Accounting policy
Significant accounting estimates, assumptions and judgements
In this section
London Stock Exchange Group plc
Annual Report 2024
156
Independent Auditor’s Report to the members
of London Stock Exchange Group plc
Report on the audit of the financial statements
1. Opinion
In our opinion:
— the financial statements of London Stock Exchange Group plc
(the ‘Parent Company’) and its subsidiaries (the ‘Group’) give
a true and fair view of the state of the Group’s and of the Parent
Company’s affairs as at 31 December 2024 and of the Group’s
profit for the year then ended;
— the Group financial statements have been properly prepared
in accordance with United Kingdom adopted international
accounting standards;
— the Parent Company financial statements have been properly
prepared in accordance with United Kingdom Generally
Accepted Accounting Practice, including Financial Reporting
Standard 101 “Reduced Disclosure Framework”; and
— the financial statements have been prepared in accordance
with the requirements of the Companies Act 2006.
We have audited the financial statements which comprise:
— the consolidated income statement;
— the consolidated statement of comprehensive income;
— the consolidated and Parent Company balance sheets;
— the consolidated and Parent Company statements of changes
in equity;
— the consolidated cash flow statement; and
— the related notes 1 to 24.
The financial reporting framework that has been applied in the
preparation of the Group financial statements is applicable law and
United Kingdom adopted international accounting standards. The
financial reporting framework that has been applied in the preparation
of the Parent Company financial statements is applicable law and United
Kingdom Accounting Standards, including FRS 101 “Reduced Disclosure
Framework” (United Kingdom Generally Accepted Accounting Practice).
2. Basis for opinion
We conducted our audit in accordance with International Standards on
Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under
those standards are further described in the auditor’s responsibilities
for the audit of the financial statements section of our report.
We are independent of the Group and the Parent Company in
accordance with the ethical requirements that are relevant to our
audit of the financial statements in the UK, including the Financial
Reporting Council’s (the ‘FRC’s’) Ethical Standard as applied to
listed public interest entities, and we have fulfilled our other ethical
responsibilities in accordance with these requirements. The non-audit
services provided to the Group and Parent Company for the year are
disclosed in note 4.2 to the financial statements. We confirm that we
have not provided any non-audit services prohibited by the FRC’s
Ethical Standard to the Group or the Parent Company.
We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our opinion.
3. Summary of our audit approach
Key audit
matters
The key audit matters that we identified in the current
year were:
— Revenue recognition;
— Valuation of intangible assets arising from business
combinations, including goodwill; and
— Capitalisation and subsequent impairment
assessment of internally-developed intangible assets.
Accounting for acquisitions, which the previous auditor
included as a key audit matter in the prior period,
was not deemed to be a key audit matter in the
current period.
Materiality The materiality that we used for the Group financial
statements was £74 million which was determined
on the basis of 5% of profit before tax normalised for
certain items as set out in section 6.
Scoping Our Group audit scoping accounted for 97.8% of
revenue, 94.5% of profit before tax and 98.7% of
net assets.
First year audit transition
This is the first year that we have been appointed as auditors to the
Group. We undertook a number of transitional procedures to prepare
for the audit including establishing our independence from the Group.
We used the time prior to commencing our audit to meet with Group
leadership and non-executive Directors to gain an understanding
of the business, the environment in which it operates, and priorities
and challenges.
Once independent of the Group, we commenced our audit planning
on 1 August 2023. From that date we attended all Audit Committee
meetings, initially in an observer capacity, and continued to meet
regularly with Group leadership and non-executive Directors.
We worked alongside the former auditor, reviewed the audit file for the
2023 year-end audit and shadowed meetings to gain an understanding
of the Group’s processes, their audit risk assessment, and the controls
on which they relied for the purposes of issuing their audit opinion.
We held regular meetings with audit partners and senior staff who
would be responsible for undertaking the audits in the most significant
divisions and components of the Group. The main purpose of these
meetings was to outline our audit approach, including discussing
possible significant audit risks, the use of analytics in our audit and to
brief our teams on the Group’s key processes, systems and structure.
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Financial Statements
4. Conclusions relating to going concern
In auditing the financial statements, we have concluded that the
Directors’ use of the going concern basis of accounting in the
preparation of the financial statements is appropriate.
Our evaluation of the Directors’ assessment of the Group’s and Parent
Company’s ability to continue to adopt the going concern basis of
accounting included:
— We obtained the going concern assessment prepared by the Group
and assessed the basis for the assumptions used in the forecast
information including operational profitability, the Group’s debt
repayment obligations and capital expenditure requirements as
well as undrawn facilities. We also considered the achievability
of budgeted growth with reference to historical performance,
external market data and the Group’s existing commitments.
— We considered the effect of key risks on the Group’s business model
and analysed how these risks might affect the Group’s liquidity
position, including access to capital, and thus its ability to continue
to operate as a going concern.
— We re-built the Group’s going concern model to evaluate
arithmetic accuracy.
— We assessed the downside stress scenarios applied by the
Directors in their analysis, in particular whether the downside
scenarios represented an appropriately robust sensitivity. We
evaluated the effect of these scenarios on key metrics such
as liquidity headroom over the going concern period and the
plausibility of any mitigating actions.
— We assessed the Directors’ reverse stress scenario and the Directors’
conclusion that such a scenario is remote.
— We considered the regulatory requirements over specific entities
in the Group and any potential impact on the wider Group’s going
concern assessment.
— We read the disclosures included in note 1.2 and assessed their
consistency with the going concern assessment and compliance
with relevant reporting requirements.
Based on the work we have performed, we have not identified any
material uncertainties relating to events or conditions that, individually
or collectively, may cast significant doubt on the Group's and Parent
Company’s ability to continue as a going concern for a period of at
least twelve months from when the financial statements are authorised
for issue.
In relation to the reporting on how the Group has applied the UK
Corporate Governance Code, we have nothing material to add or
draw attention to in relation to the Directors’ statement in the financial
statements about whether the Directors considered it appropriate
to adopt the going concern basis of accounting.
Our responsibilities and the responsibilities of the Directors with respect
to going concern are described in the relevant sections of this report.
5. Key audit matters
Key audit matters are those matters that, in our professional judgement,
were of most significance in our audit of the financial statements of
the current period and include the most significant assessed risks of
material misstatement (whether or not due to fraud) that we identified.
These matters included those which had the greatest effect on: the
overall audit strategy; the allocation of resources in the audit; and
directing the efforts of the engagement team.
These matters were addressed in the context of our audit of the financial
statements as a whole, and in forming our opinion thereon, and we do
not provide a separate opinion on these matters.
5.1. Revenue recognition
Key audit
matter
description
The Group recognised revenue from external customers of £8,579 million for the year ended 31 December 2024 (31 December 2023:
£8,061 million). Of this, £918 million relates to FTSE Russell (31 December 2023: £844 million) and £4,374 million relates to Data &
Analytics (“D&A”) (31 December 2023: £4,301 million). See also note 2 and the Audit Committee’s Report on page 116.
Judgement is required to estimate the asset-based revenue accrual in FTSE Russell (“FTSE AUM”) for the fourth quarter based on
prior billings, and other assumptions.
Within D&A, the majority of revenue is subscription revenue. Due to the limited judgement required in recognising subscription revenue,
we did not identify a significant risk but, due to its quantum and the IT control deficiencies outlined in Section 7.2, this was an area of
significant audit effort.
How the scope
of our audit
responded
to the key
audit matter
We performed the following procedures over revenue:
— We obtained an understanding of relevant controls over the Group’s material revenue streams. However, as a result of the IT control
deficiencies set out in Section 7.2, we were not able to rely on controls over revenue and in response to these deficiencies we
altered the nature and extent of our procedures accordingly; and
— We evaluated the appropriateness of the revenue recognition policy in accordance with IFRS 15, Revenue from Contracts
with Customers.
Specifically, for the year-end FTSE AUM revenue accrual:
— For a sample of transactions, we challenged management’s approach to estimating the accrual:
— We independently sought third party information and, where available, used this to challenge management’s estimate; and
— We obtained invoices issued after the year-end, cash receipts, and AUM declarations to evaluate the appropriateness of
the accrual.
For subscription revenue, using a data driven audit approach, we:
— Obtained the underlying revenue data from relevant systems within the subscription revenue data flow and, where possible,
used data analytics to reconcile subscription revenue to invoices and cash records;
— For any amounts where we were unable to reconcile to invoices and/ or cash using data analytics, we manually traced a sample
of transactions back to order forms, contracts, evidence of LSEG fulfilling the performance obligation, billing documents and bank
statements; and
— We tested underlying input data by tracing a sample to underlying source documentation (e.g. order forms).
Key
observations
We are satisfied that FTSE AUM and subscription revenue are appropriately recognised for the year-ended 31 December 2024.
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5.2. Valuation of intangible assets arising from business combinations, including goodwill
Key audit
matter
description
At 31 December 2024, and as outlined in note 9, the Group reported £19,668 million of goodwill (31 December 2023: £19,246 million)
and £10,785 million of assets arising from business combinations, such as customer relationships, brands and databases and content
(“purchased intangible assets”) (31 December 2023: £11,184 million), net of amortisation.
As outlined in the Group’s accounting policy in note 9 and the Audit Committee Report on page 115, goodwill is assessed for impairment
at least annually, irrespective of whether or not indicators of impairment exist. The Group performs its annual impairment assessment
at 30 September.
Impairment assessments are performed by comparing the carrying amount of each cash generating unit (“CGU”), or group of CGUs,
to its recoverable amount, using the higher of value in use (“VIU”) or fair value less costs to dispose (“FVLCD”). In performing the
annual impairment test, a number of estimates are required, the most significant of which are:
— Short-term revenue forecasts and related cash flows;
— Selection of appropriate discount rates; and
— Long-term growth rates.
The CGUs most sensitive to changes in assumptions are Risk Intelligence, FTSE Russell, Data & Analytics and Tradeweb, where
a reasonably possible change in these assumptions could result in an impairment. Our key audit matter was therefore focused on
the assumptions used for these CGUs.
Note 9 and the Audit Committee report on page 115 outlines that the useful economic life of purchased intangible assets requires
estimation by the Group of the period over which an asset will continue to generate value. The most significant purchased intangible
assets arose on the acquisition of Refinitiv, in particular the customer relationships recognised. Due to the value of this asset and the
length of the useful economic life, any change in the useful economic life could have a significant impact on the annual amortisation
charge. This requires consideration of a number of factors, which include customer attrition rates. Our key audit matter therefore
focused on management’s estimates in relation to this asset.
How the scope
of our audit
responded
to the key
audit matter
We performed the following procedures over the goodwill impairment test:
— Obtained an understanding of relevant controls over the identification of impairment indicators for goodwill and purchased
intangible assets, and the annual impairment test for goodwill;
— Challenged management’s goodwill impairment methodology for compliance with IAS 36, Impairment of assets (“IAS 36”),
and tested that the impairment test was performed in line with the documented methodology;
— Performed an independent recalculation of management’s goodwill model to test the accuracy of the model;
— Challenged management’s goodwill impairment test as at 30 September 2024, including:
— Reviewing the budgets by:
— comparing future revenue growth forecasts against historic performance; and
— inspecting divisional budget packs and determining whether key judgements are in line with our understanding of the
business and third party data.
— Alongside valuation specialists, compared the discount rate and long-term growth rate (“LTGR”) used by management to our
own independently determined range;
— Challenged management’s roll forward assessment of the goodwill impairment test at 31 December 2024, including an independent
assessment of any potential impairment triggers between 30 September and the year-end; and
— Evaluated management’s disclosures in note 9 for compliance with IAS 36.
We performed the following procedures over the useful economic life of Refinitiv customer relationships:
— Obtained the customer list received as part of the acquisition to evaluate the initial value of the asset;
— Tested the completeness and accuracy of the Refinitiv customer list as at 31 December 2024, utilising the transaction list for the year,
by tracing a sample of customers to transactions in the period and a sample of transactions to the customer list;
— Compared the original customer list to that at 31 December 2024 and recalculated the customer attrition rate used by management
in their assessment; and
— Assessed whether, based on customer attrition rates, a straight-line method of amortisation remained appropriate.
Key
observations
We are satisfied that the Group’s judgements and estimates in relation to the valuation of goodwill and purchased intangible assets
are reasonable.
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Financial Statements
5.3. Capitalisation and subsequent impairment assessment of internally-developed intangible assets
Key audit
matter
description
The Group reported £2,517 million of internally-developed intangible assets, net of amortisation and impairment, at 31 December 2024
(31 December 2023: £2,717 million), as outlined in note 9.
The capitalisation of certain expenditure on internally-developed assets is subjective and management judgement is required to assess
whether expenditure should be capitalised in accordance with IAS 38, Intangible Assets. The Group’s criteria for capitalisation are
outlined in note 9.
Additionally, internally-developed intangible assets are assessed for indicators of impairment annually in accordance with IAS 36.
Judgement is required by the Group in identifying whether events or changes in circumstances indicate that the carrying amounts may
not be recoverable, and, where impairment indicators are identified, the estimation of the appropriate recoverable amount. Following
a detailed review of internally-developed intangible assets in the period, impairments of £216 million (31 December 2023: £10 million)
were recognised by the Group where recoverable amounts were deemed to be lower than the carrying value. Further detail is provided
in the CFO Review on page 43, the Audit Committee Report on page 115 and note 9.
How the scope
of our audit
responded
to the key
audit matter
Our audit procedures in respect of capitalisation and impairment of these assets, to address the risk of errors and fraud, included
the following:
— Obtained an understanding of relevant controls over the capitalisation of expenses, as well as the relevant controls over the
impairment assessment for internally-developed intangible assets;
— For a sample of additions, we mapped to the relevant project and assessed whether the costs had been appropriately capitalised,
in accordance with IAS 38, through review of supporting documentation including business cases and, where relevant, direct inquiry
and challenge of the software developers;
— For a sample of assets including those under development, where impairments were not identified by management, we challenged
management’s assessment of impairment indicators with reference to the criteria in IAS 36; and
— Where impairments were recognised by management, we reviewed and challenged management’s approach in determining the
impairment charges, and the period to which they related, with the assistance of our valuation specialists where appropriate.
Key
observations
We are satisfied that the Group’s judgements in relation to the capitalisation and subsequent valuation of internally-developed intangible
assets are reasonable.
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6. Our application of materiality
6.1. Materiality
We define materiality as the magnitude of misstatement in the financial statements that makes it probable that the economic decisions of
a reasonably knowledgeable person would be changed or influenced. We use materiality both in planning the scope of our audit work and
in evaluating the results of our work.
Based on our professional judgement, we determined materiality for the financial statements as a whole as follows:
Group financial statements Parent Company financial statements
Materiality £74 million £74 million
Basis for
determining
materiality
5% of normalised profit before tax
Group materiality is determined as 5% of normalised profit before tax,
which is reported profit before tax, adjusted for non-underlying impairments
that we deemed to be non-recurring including internally-developed intangible
assets (£186 million) and investments in associates (£33 million) recognised
in the period.
Parent Company materiality was based on net assets
and capped at Group materiality (0.03% of net assets).
Rationale for
the benchmark
applied
In determining the Group materiality, we considered a number of
factors, including the needs and interests of the users of the Group
financial statements.
Profit before tax is considered to be the key metric for the users of the
financial statements. As detailed above, we have normalised the profit before
tax in the current year for certain impairments, to provide a more stable and
representative measure of the Company's underlying performance. This is,
therefore, deemed a more appropriate benchmark for determining materiality.
The Parent Company holds the Group’s investments
and is not profit driven. The balance sheet is the key
measure of financial health that is important to shareholders
since the primary concern for the Parent Company is the
receipt and payment of dividends. However, given the size
of the entity’s balance sheet, we have capped materiality
at Group materiality.
Normalised
profit before tax
£1,477m
Group materiality
Group materiality
£74m
Component materiality range
£24m to £28m
Audit Committee reporting threshold
£3.7m
Materiality
6.2. Performance materiality
We set performance materiality at a level lower than materiality to
reduce the probability that, in aggregate, uncorrected and undetected
misstatements exceed the materiality for the financial statements
as a whole.
Group financial
statements
Parent Company financial
statements
Performance
materiality
65% of Group materiality 65% of Parent Company
materiality
Basis and
rationale for
determining
performance
materiality
In determining performance materiality, we considered
the following factors:
— the current financial year being Deloitte LLP’s
first year auditing the Group and Parent Company
financial statements;
— the degree of centralisation and commonality of
processes;
— the quality of the control environment and whether
we were able to rely on controls, as described in
Section 7.2; and
— the low number of misstatements (corrected and/or
uncorrected) identified in the previous audit.
6.3. Error reporting threshold
We agreed with the Audit Committee that we would report to the
Committee all audit differences in excess of £3.7 million, as well as
differences below that threshold that, in our view, warranted reporting
on qualitative grounds. We also report to the Audit Committee on
any disclosure matters that we identified when assessing the overall
presentation of the financial statements.
7. An overview of the scope of our audit
7.1. Identification and scoping of components
Our audit was scoped by obtaining an understanding of the Group and
its environment and assessing the risks of material misstatement at the
Group level. We structured our approach to the audit to reflect how the
Group is organised as well as ensuring our audit was both effective and
risk focused.
Due to the centralised nature of the business, which includes a number
of shared service centres and central management of financial reporting
for components, a significant portion of our testing was performed
centrally by the Group audit team in the UK and India. The Group team
was structured in line with the Group’s operating segments, with
divisional partners working alongside the Group engagement partner.
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Financial Statements
Where we identified that processes, controls and financial reporting
were not centrally managed, and instead performed locally, we
considered quantitative and qualitative factors regarding our scoping.
We identified LCH SA and Tradeweb Markets Inc (“Tradeweb”) as
components where an audit of the entire financial information was
required.
Our scoping accounted for 97.8% of revenue, 94.5% of profit before tax
and 98.7% of net assets.
7.2. Our consideration of the control environment
The Group relies on the effectiveness of a number of IT systems
and applications to ensure that financial transactions are recorded
completely and accurately. The main financial accounting, reporting,
trading and treasury systems were identified as key IT systems relevant
to our audit. The IT control environment, including certain aspects of
LCH SA, is managed centrally at a Group or divisional level and was
tested by IT specialists who were part of the Group audit team.
Tradeweb operates under a separate IT environment and therefore
testing was performed by the component audit team.
As a result of certain IT control deficiencies related to application
user access management and the management of privileged access
accounts, we were unable to rely on controls over key IT systems
and adopted a fully substantive approach to our audit testing, with
the exception of certain elements of payroll where information is
managed by third parties. As the same deficiencies were not identified
in Tradeweb, a controls reliant approach was adopted by that
component team.
The Audit Committee has discussed these internal control deficiencies,
and management’s response as discussed on page 118. As deficiencies
in the control environment increase the risk of fraud and error within the
financial statements, we performed additional procedures to respond
to the potential risks, including, and as described in the “Revenue
recognition” Key Audit Matter, using data analytics to perform 100%
testing for elements of certain revenue streams.
7.3. Our consideration of climate-related risks
In planning our audit, we considered the potential impact of climate
change on the Group’s business and its financial statements. The Group
continues to develop its assessment of and response to the potential
impacts of environmental, social and governance (“ESG”) related
risks, including climate change, as outlined in the Sustainability Report
and climate related financial disclosures. We held discussions with
management to understand the process for identifying climate-related
risks, the consideration of mitigating actions and the impact on the
Group’s financial statements which can be found in the Climate-related
financial disclosures aligned to the Taskforce on Climate-related
Financial Disclosure (“TCFD”) requirements on pages 68 to 71.
Management do not expect any material climate change related
financial impact on their business. We performed our own qualitative
risk assessment of the potential impact of climate change on the
Group’s account balances and classes of transactions based on our
understanding of the nature of the Group’s underlying operations.
We read the climate-related disclosures included in the Annual Report
and considered whether they are materially consistent with note 1.7
in the financial statements and our knowledge obtained in the audit.
7.4. Working with other auditors
Detailed audit instructions were sent to the auditors of each in-scope
component. These instructions identified the significant audit risks, other
areas of audit focus, the account balances, classes of transactions and
disclosures considered material and their relevant risks of material
misstatement as assessed by the Group audit team. The instructions
also set out certain audit procedures to be performed and the
information to be reported back to the Group audit team, and other
matters relevant to the audit.
For all in-scope components, the Group audit team was involved in the
audit work performed by component auditors through a combination of:
providing referral instructions; regular interaction with component teams
during the year using video conferencing tools, including planning and
closing calls; physical onsite visits by the Group engagement partner
and other team members to all components and overseas audit teams;
and review and challenge of related component inter-office reporting,
their audit files and findings from their work.
8. Other information
The other information comprises the information included in the
Annual Report, other than the financial statements and our auditor’s
report thereon. The Directors are responsible for the other information
contained within the Annual Report.
Our opinion on the financial statements does not cover the other
information and, except to the extent otherwise explicitly stated in our
report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so,
consider whether the other information is materially inconsistent with
the financial statements or our knowledge obtained in the course of
the audit, or otherwise appears to be materially misstated.
If we identify such material inconsistencies or apparent material
misstatements, we are required to determine whether this gives rise
to a material misstatement in the financial statements themselves.
If, based on the work we have performed, we conclude that there is
a material misstatement of this other information, we are required to
report that fact.
We have nothing to report in this regard.
9. Responsibilities of Directors
As explained more fully in the Directors’ Responsibilities Statement, the
Directors are responsible for the preparation of the financial statements
and for being satisfied that they give a true and fair view, and for such
internal control as the Directors determine is necessary to enable
the preparation of financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the financial statements, the Directors are responsible for
assessing the Group’s and the Parent Company’s ability to continue
as a going concern, disclosing as applicable, matters related to going
concern and using the going concern basis of accounting unless the
Directors either intend to liquidate the Group or the Parent Company
or to cease operations, or have no realistic alternative but to do so.
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10. Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the
financial statements as a whole are free from material misstatement,
whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance,
but is not a guarantee that an audit conducted in accordance with
ISAs (UK) will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected
to influence the economic decisions of users taken on the basis of
these financial statements.
A further description of our responsibilities for the audit of
the financial statements is located on the FRC’s website at:
www.frc.org.uk/auditorsresponsibilities. This description forms
part of our auditor’s report.
11. Extent to which the audit was considered capable of detecting
irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws
and regulations. We design procedures in line with our responsibilities,
outlined above, to detect material misstatements in respect of
irregularities, including fraud. The extent to which our procedures are
capable of detecting irregularities, including fraud is detailed below.
11.1. Identifying and assessing potential risks related to irregularities
In identifying and assessing risks of material misstatement in respect
of irregularities, including fraud and non-compliance with laws and
regulations, we considered the following:
— the nature of the industry and sector, control environment and
business performance including the design of the Group’s
remuneration policies, key drivers for Directors’ remuneration,
bonus levels and performance targets;
— the Group’s own assessment of the risks that irregularities may
occur either as a result of fraud or error;
— results of our enquiries of management, internal audit, members of
the legal, risk and compliance functions, the Directors and the Audit
Committee about their own identification and assessment of the risks
of irregularities, including those that are specific to the Group’s sector;
— any matters we identified having obtained and reviewed the Group’s
documentation of their policies and procedures relating to:
— identifying, evaluating and complying with laws and regulations
and whether they were aware of any instances of non-compliance;
— detecting and responding to the risks of fraud and whether they
have knowledge of any actual, suspected or alleged fraud;
— the internal controls established to mitigate risks of fraud or
non-compliance with laws and regulations;
— the matters discussed among the audit engagement team including
component audit teams and relevant internal specialists, including tax,
valuations, pensions, IT and forensic specialists regarding how and
where fraud might occur in the financial statements and any potential
indicators of fraud.
As a result of these procedures, we considered the opportunities
and incentives that may exist within the organisation for fraud and
identified the greatest potential for fraud in the following areas: revenue
recognition, valuation of assets arising from business combinations,
including goodwill and capitalisation and subsequent impairment
assessment of internally-developed intangible assets. In common with
all audits under ISAs (UK), we are also required to perform specific
procedures to respond to the risk of management override.
We also obtained an understanding of the legal and regulatory
frameworks that the Group operates in, focusing on provisions of those
laws and regulations that had a direct effect on the determination of
material amounts and disclosures in the financial statements. The Group
operates in multiple countries and locations around the world which
are regulated by the local regulator and is required to comply with local
frameworks. The key laws and regulations we considered in this context
included the UK Companies Act, UK Corporate Governance Code,
The Financial Conduct Authority’s (“FCA”) Listing Rules, other relevant
FCA rules and regulations, Financial Services and Markets Act 2000,
European Markets Infrastructure Regulations, Securities and Exchange
Commission (“SEC”), Commodity Futures Trading Commission (“CFTC”)
and tax legislation.
In addition, we considered provisions of other laws and regulations that
do not have a direct effect on the financial statements but compliance
with which may be fundamental to the Group’s ability to operate or to
avoid a material penalty. These included specific regulatory solvency
requirements within the Group.
11.2. Audit response to risks identified
As a result of performing the above, we identified revenue recognition,
valuation of assets arising from business combinations, including
goodwill and capitalisation and subsequent impairment assessment of
internally-developed intangible assets as key audit matters related to
the potential risk of fraud. The key audit matters section of our report
explains the matters in more detail and also describes the specific
procedures we performed in response to those key audit matters.
Our procedures to respond to risks identified included the following:
— reviewing the financial statement disclosures and testing to
supporting documentation to assess compliance with provisions
of relevant laws and regulations described as having a direct effect
on the financial statements;
— enquiring of management, the Audit Committee and in-house and
external legal counsel concerning actual and potential litigation
and claims;
— performing analytical procedures to identify any unusual or
unexpected relationships that may indicate risks of material
misstatement due to fraud;
— reading minutes of meetings of those charged with governance,
reviewing internal audit reports and reviewing correspondence
with regulatory bodies, such as the FCA, and HMRC; and
— in addressing the risk of fraud through management override of
controls, testing the appropriateness of journal entries and other
adjustments; assessing whether the judgements made in making
accounting estimates are indicative of a potential bias; and evaluating
the business rationale of any significant transactions that are unusual
or outside the normal course of business.
We also communicated relevant identified laws and regulations and
potential fraud risks to all engagement team members including internal
specialists and component audit teams, and remained alert to any
indications of fraud or non-compliance with laws and regulations
throughout the audit.
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Report on other legal and regulatory requirements
12. Opinions on other matters prescribed by the Companies
Act 2006
In our opinion the part of the Directors’ Remuneration Report to
be audited has been properly prepared in accordance with the
Companies Act 2006.
In our opinion, based on the work undertaken in the course of the audit:
— the information given in the Strategic Report and the Directors’ Report
for the financial year for which the financial statements are prepared
is consistent with the financial statements; and
— the Strategic Report and the Directors’ Report have been prepared
in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Group and
the Parent Company and their environment obtained in the course
of the audit, we have not identified any material misstatements in the
Strategic Report or the Directors’ Report.
13. Corporate Governance Statement
The Listing Rules require us to review the Directors' statement in
relation to going concern, longer-term viability and that part of the
Corporate Governance Statement relating to the Group’s compliance
with the provisions of the UK Corporate Governance Code specified
for our review.
Based on the work undertaken as part of our audit, we have concluded
that each of the following elements of the Corporate Governance
Statement is materially consistent with the financial statements and
our knowledge obtained during the audit:
— the Directors’ statement with regards to the appropriateness of
adopting the going concern basis of accounting and any material
uncertainties identified set out on page 169;
— the Directors’ explanation as to its assessment of the Group’s
prospects, the period this assessment covers and why the period
is appropriate set out on page 91;
— the Directors' statement on fair, balanced and understandable set
out on page 119;
— the Board’s confirmation that it has carried out a robust assessment
of the emerging and principal risks set out on pages 107;
— the section of the Annual Report that describes the review of
effectiveness of risk management and internal control systems set
out on page 107; and
— the section describing the work of the Audit Committee set out on
page 114.
14. Matters on which we are required to report by exception
14.1. Adequacy of explanations received and accounting records
Under the Companies Act 2006 we are required to report to you if,
in our opinion:
— we have not received all the information and explanations we require
for our audit; or
— adequate accounting records have not been kept by the Parent
Company, or returns adequate for our audit have not been received
from branches not visited by us; or
— the Parent Company financial statements are not in agreement with
the accounting records and returns.
We have nothing to report in respect of these matters.
14.2. Directors’ remuneration
Under the Companies Act 2006 we are also required to report if in our
opinion certain disclosures of Directors’ remuneration have not been
made or the part of the Directors’ Remuneration Report to be audited
is not in agreement with the accounting records and returns.
We have nothing to report in respect of these matters.
15. Other matters which we are required to address
15.1. Auditor tenure
Following the recommendation of the Audit Committee, we were
appointed by the shareholders at the annual general meeting on
25 April 2024 to audit the financial statements for the year ending
31 December 2024 and subsequent financial periods. The period of
total uninterrupted engagement including previous renewals and
reappointments of the firm is accordingly one year.
15.2. Consistency of the audit report with the additional report to
the Audit Committee
Our audit opinion is consistent with the additional report to the Audit
Committee we are required to provide in accordance with ISAs (UK).
16. Use of our report
This report is made solely to the Company’s members, as a body,
in accordance with Chapter 3 of Part 16 of the Companies Act 2006.
Our audit work has been undertaken so that we might state to the
Company’s members those matters we are required to state to them
in an auditor’s report and for no other purpose. To the fullest extent
permitted by law, we do not accept or assume responsibility to anyone
other than the Company and the Company’s members as a body,
for our audit work, for this report, or for the opinions we have formed.
As required by the Financial Conduct Authority (FCA) Disclosure
Guidance and Transparency Rule (DTR) 4.1.15R – DTR 4.1.18R, these
financial statements will form part of the Electronic Format Annual
Financial Report filed on the National Storage Mechanism of the FCA in
accordance with DTR 4.1.15R – DTR 4.1.18R. This auditor’s report provides
no assurance over whether the Electronic Format Annual Financial
Report has been prepared in compliance with DTR 4.1.15R – DTR 4.1.18R.
Fiona Walker (Senior statutory auditor)
For and on behalf of Deloitte LLP
Statutory Auditor
London, United Kingdom
26 February 2025
Independent Auditor’s Report to the members of London Stock Exchange Group plc continued
London Stock Exchange Group plc
Annual Report 2024
164
Consolidated income statement
2024 | 2023 | ||||||
| Non- | Non- | ||||||
Adjusted 1 | underlying | Total | Adjusted 1 | underlying | Total | ||
Year ended 31 December | Notes | £m | £m | £m | £m | £m | £m |
Revenue | 2.1, 3.1 | ||||||
Net treasury income | 2.1, 3.1 | ||||||
Other income | 2.1, 3.1 | ||||||
Total income | |||||||
Cost of sales | 2.1 | ( | ( | ( | ( | ||
Gross profit | |||||||
Operating expenses before depreciation, amortisation and impairment | 4 | ( | ( | ( | ( | ( | ( |
Profit on disposal of business | 2.3 | ||||||
Remeasurement gain | 2.3 | ||||||
Income from equity investments | 11.1 | ||||||
Share of loss after tax of associates | ( | ( | |||||
Earnings before interest, tax, depreciation, amortisation and impairment | ( | ( | |||||
Depreciation, amortisation and impairment | 2.3, 9, 10 | ( | ( | ( | ( | ( | ( |
Operating profit/(loss) | ( | ( | |||||
Finance income | 5 | ||||||
Finance costs | 5 | ( | ( | ( | ( | ( | ( |
Net finance costs | 5 | ( | ( | ( | ( | ( | ( |
Profit/(loss) before tax | ( | ( | |||||
Taxation | 6.1 | ( | ( | ( | ( | ||
Profit/(loss) for the year | ( | ( | |||||
| Profit/(loss) to: | |||||||
Equity holders | ( | ( | |||||
Non-controlling interests | 19 | ( | ( | ||||
Profit/(loss) for the year | ( | ( | |||||
Earnings per share attributable to equity holders | |||||||
Basic earnings per share | 7 | ||||||
Diluted earnings per share | 7 | ||||||
Dividend per share in respect of the financial year | |||||||
Dividend per share paid during the year | 8 | ||||||
Dividend per share declared for the year | 8 |
1 "Adjusted" excludes the impact of non-underlying items (see note 2.3).
165 London Stock Exchange Group plc
Annual Report 2024
Financial Statements
Consolidated statement
of comprehensive income
| 2024 | 2023 | ||
Year ended 31 December | Notes | £m | £m |
Profit for the year | |||
| Other comprehensive income/(loss) | |||
| Items that will not be subsequently reclassified to the income statement | |||
Actuarial losses on retirement benefit assets and obligations | 12.2 | ( | ( |
Gains/(losses) on equity instruments designated as fair value through other comprehensive income (FVOCI) | 11.1 | ( | |
Tax relating to items that will not be reclassified | 6.1 | ( | |
( | |||
| Items that may be subsequently reclassified to the income statement | |||
Net gains on net investment hedges | 17.4e | ||
Losses/(gains) recycled to the income statement | 17.4e | ( | |
| Debt instruments at FVOCI: | |||
— Net gains from changes in fair value on debt instruments at FVOCI | |||
Net exchange gains/(losses) on translation of foreign operations | ( | ||
Tax relating to items that may be reclassified | 6.1 | ( | |
( | |||
Other comprehensive income/(loss) net of tax | ( | ||
Total comprehensive income/(loss) | ( | ||
| Total comprehensive income/(loss) attributable to: | |||
Equity holders | ( | ||
Non-controlling interests | 19 | ||
Total comprehensive income/(loss) | ( |
London Stock Exchange Group plc
Annual Report 2024
166
Consolidated balance sheet
| 2024 | 2023 | ||
At 31 December | Notes | £m | £m |
| Assets | |||
| Non-current assets | |||
Intangible assets | 9 | ||
Property, plant and equipment | 10 | ||
Investments in associates | |||
Investments in financial assets | 11 | ||
Derivative financial instruments | 17.1 | ||
Other receivables | 13 | ||
Retirement benefit assets | 12.3 | ||
Deferred tax assets | 6.2 | ||
| Current assets | |||
Trade and other receivables | 13 | ||
Clearing member assets | 17.1 | ||
Derivative financial instruments | 17.1 | ||
Current tax receivable | |||
Cash and cash equivalents | 14 | ||
Total assets | |||
| Liabilities | |||
| Current liabilities | |||
Trade and other payables | 15 | ||
Contract liabilities | 3.4 | ||
Borrowings and lease liabilities | 16 | ||
Clearing member financial liabilities | 17.2 | ||
Derivative financial instruments | 17.2 | ||
Current tax payable | |||
Provisions | |||
| Non-current liabilities | |||
Borrowings and lease liabilities | 16 | ||
Other payables | 15 | ||
Contract liabilities | 3.4 | ||
Derivative financial instruments | 17.2 | ||
Retirement benefit obligations | 12.3 | ||
Deferred tax liabilities | 6.2 | ||
Provisions | |||
Total liabilities | |||
Net assets | |||
| Equity | |||
| Capital and reserves attributable to the Company's equity holders | |||
Ordinary share capital | 18.1 | ||
Share premium | 18.1 | ||
Retained earnings | |||
Other reserves | 18.2 | ||
Total shareholders' funds | |||
Non-controlling interests | 19 | ||
Total equity |
London Stock Exchange Group plc
Registered number 5369106
167 London Stock Exchange Group plc
Annual Report 2024
Financial Statements
Consolidated statement of changes in equity
| Attributable to equity holders | ||||||||
| Total | Non- | |||||||
| Ordinary | Share | Retained | Other | attributable to | controlling | |||
| share capital | premium | earnings | reserves 1 | equity holders | interests | Total equity | ||
| Notes | £m | £m | £m | £m | £m | £m | £m | |
1 January 2023 | ||||||||
Profit for the year | ||||||||
Other comprehensive loss | ( | ( | ( | ( | ( | |||
Total comprehensive income/(loss) | ( | ( | ( | |||||
Share buyback by the Company | ( | ( | ( | ( | ||||
Dividends | 8, 19 | ( | ( | ( | ( | |||
Share-based payments | 20 | |||||||
| Tax on share-based payments | ||||||||
less than expense recognised | 6.1 | |||||||
Purchase of non-controlling interests | ( | ( | ( | ( | ||||
Tradeweb share buyback 2 | ( | ( | ||||||
Shares withheld from employee options | ||||||||
exercised (Tradeweb) 3 | ( | ( | ||||||
Tax on investment in partnerships | 6.1 | |||||||
Adjustments to non-controlling interest | ||||||||
31 December 2023 | ||||||||
Profit for the year | ||||||||
Other comprehensive income | ||||||||
Total comprehensive income | ||||||||
Share buyback by the Company | 18.1 | ( | ( | ( | ||||
Dividends | 8, 19 | ( | ( | ( | ( | |||
Share-based payments | 20 | |||||||
| Tax on share-based | ||||||||
payments less than expense recognised | 6.1 | |||||||
Purchase of non-controlling interests | 19 | ( | ( | ( | ( | |||
Tradeweb share buyback 2 | ( | ( | ||||||
Shares withheld from employee options | ||||||||
exercised (Tradeweb) 3 | ( | ( | ||||||
| Tax on investment | ||||||||
in partnerships | 6.1 | ( | ( | |||||
Adjustments to non-controlling interest 4 | ||||||||
31 December 2024 |
1 Other reserves mainly consist of merger relief reserve and foreign exchange translation reserve. Movements in these other reserves are detailed in note 18.2.
2 In 2022, Tradeweb Markets Inc. (Tradeweb), a subsidiary of the Group, authorised a share repurchase programme, primarily to offset annual dilution from stock-based compensation plans.
Its share repurchase programme authorises the purchase of up to US$300 million of Tradeweb’s common stock. The share repurchase programme does not require Tradeweb to acquire
a specific number of shares, and may be suspended, amended or discontinued at any time.
3 Tradeweb is required to withhold shares issued as a result of employee share plans in order to settle the associated taxes payable by the employee.
4 Adjustments to non-controlling interest includes shares issued by Tradeweb as partial consideration for the r8fin and ICD acquisitions (see note 21).
London Stock Exchange Group plc
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168
Consolidated cash flow statement
| 2024 | 2023 | ||
Year ended 31 December | Notes | £m | £m |
| Operating activities | |||
Profit for the year | |||
| Adjustments to reconcile profit to net cash flow: | |||
— Taxation | 6.1 | ||
— Net finance costs | 5 | ||
— Amortisation and impairment of intangible assets | 9 | ||
— Depreciation and impairment of property, plant and equipment | 10 | ||
— Impairment of investment in associate | 2.3 | ||
— Profit on disposal of business | 2.3 | ( | |
— Remeasurement gain | 2.3 | ( | |
— Share based payments | 20 | ||
— Foreign exchange (gains)/losses | ( | ||
— Fair value (gains)/losses on embedded foreign exchange contracts | 4 | ( | |
— Dividend income | 11.1 | ( | ( |
— Other movements | ( | ( | |
| Working capital changes and movements in other assets and liabilities: | |||
— Decrease/(increase) in receivables, contract and other assets | ( | ||
— Decrease in payables, contract and other liabilities | ( | ( | |
— (Decrease)/increase in net clearing member balances | ( | ||
Cash generated from operations | |||
Interest received | |||
Interest paid 3 | ( | ( | |
Net taxes paid | ( | ( | |
Net cash flows from operating activities | |||
| Investing activities | |||
Payments for intangible assets | 9 | ( | ( |
Payments for property, plant and equipment | ( | ( | |
Acquisition of subsidiaries, net of cash acquired | 21.2 | ( | ( |
Investments in financial assets | 11 | ( | |
Proceeds from disposal of financial assets | 11 | ||
Proceeds from disposal of business | |||
Dividends received | 11.1 | ||
Net cash flows used in investing activities | ( | ( | |
| Financing activities | |||
Payment of principal portion of lease liabilities | 16.4 | ( | ( |
Repayment of borrowings and settlement of derivative financial instruments 1 | 16.4 | ( | ( |
Proceeds from borrowings 2,3 | 16.4 | ||
Dividends paid to equity holders | 8 | ( | ( |
Dividends paid to non-controlling interests | 19 | ( | ( |
Repurchase of shares by Company | 18.1 | ( | ( |
Repurchase of shares by subsidiary (Tradeweb) | ( | ( | |
Purchase of non-controlling interests | 19 | ( | ( |
Other financing activities | ( | ( | |
Net cash flows used in financing activities | ( | ( | |
(Decrease)/increase in cash and cash equivalents | ( | ||
Foreign exchange translation | ( | ( | |
Cash and cash equivalents at 1 January | |||
Cash and cash equivalents at 31 December 4 | 14 |
1 Repayment of borrowings and settlement of derivative financial instruments for 2024 includes a net decrease in borrowings with short-term maturities of £192 million and a net settlement of
£31 million paid on maturity of cross-currency interest rate swaps.
2 Proceeds from borrowings for 2023 includes a net increase in borrowings with short-term maturities of £1, 112 million.
3 For 2024, interest paid on commercial paper of £72 million has been presented within interest paid in operating activities. The 2023 cash flows have not been re-presented. In 2023, commercial
paper interest of £29 million was included within proceeds from borrowings with short-term maturities in financing activities.
4 Group cash flow does not include cash and cash equivalents held by the Group’s Post Trade operations on behalf of the Group’s clearing members for use in their operations as managers of
the clearing and guarantee systems. These balances represent margins and default funds held for counterparties for short periods in connection with these operations. See notes 17.1 and 17.2.
The movement in clearing balances represents change in members cash collateral balances and interest paid to members thereon. Interest received through placement of clearing member
collateral is included within other working capital adjustments within operating cash flows.
169 London Stock Exchange Group plc
Annual Report 2024
Financial Statements
Notes to the consolidated financial statements
Reporting entity
These consolidated financial statements have been prepared for
(the “Group”). The Group is a diversified global financial markets
infrastructure and data business. The Company is a public company ,
incorporated and domiciled in England and Wales
registered office is 10 Paternoster Square, London, EC4M 7LS .
During 2024, the Group acquired the businesses listed on the right.
The results of these businesses have been consolidated from the
date of acquisition (see note 21).
| Cash- | |||
| generating | |||
Acquired business | Acquisition date | Segment | unit (CGU) |
| r8fin Holdings, | 19 January 2024 | Capital | Tradeweb |
| LP (r8fin) | Markets | ||
| Institutional Cash | 1 August 2024 | Capital | Tradeweb |
| Distributors (ICD) | Markets |
1. Accounting policies
This section describes our material accounting policy information
and significant accounting judgements and estimates that relate
to the financial statements as a whole. Where an accounting policy
or a significant accounting judgement or estimate is applicable to
a specific note to the financial statements, it is disclosed in that note.
These policies have been consistently applied to all the periods
presented, unless otherwise stated. We have also detailed below
the new accounting pronouncements that we will adopt in future
years and how we have assessed the impact of climate change on
our financial statements.
London Stock Exchange Group plc
Annual Report 2024
170
Notes to the consolidated financial statements continued
1. Accounting policies continued
| Country of | Group | ||
| incorporation | ultimate | ||
| and principal | economic | ||
Name | Principal activity | operations | interest % |
| Banque Centrale de | CCP clearing | France | 94.2 |
| Compensation | services | ||
| (LCH SA) | |||
| Financial & Risk | IP owner | England & | 100.0 |
| Organisation Limited | Wales | ||
| Frank Russell | Market indices | United States | 100.0 |
| Company | provider | ||
| FTSE International | Market indices | England & | 100.0 |
| Limited | provider | Wales | |
LCH Limited | CCP clearing | England & | 94.2 |
| services | Wales | ||
| London Stock | Recognised | England & | 100.0 |
| Exchange plc | investment | Wales | |
| exchange | |||
| LSEGA Financing plcTreasury | England & | 100.0 | |
| management | Wales | ||
| LSEG Netherlands | Treasury | Netherlands | 100.0 |
| B.V. | management | ||
LSEG US Fin Corp | Treasury | United States | 100.0 |
| management | |||
| Refinitiv Germany | Market and financial | Germany | 100.0 |
| GmbH | data provider | ||
Refinitiv Japan KK | Market and financial | Japan | 100.0 |
| data provider | |||
Refinitiv Limited | Market and financial | England & | 100.0 |
| data provider | Wales | ||
Refinitiv US LLC | Market and financial | United States | 100.0 |
| data provider | |||
| Refinitiv US | IP owner | United States | 100.0 |
| Organization LLC | |||
| Tradeweb Markets | Multilateral trading | United States | 50.8 |
| LLC (Group) | facility |
171 London Stock Exchange Group plc
Annual Report 2024
Financial Statements
Notes to the consolidated financial statements continued
1. Accounting policies continued
| International accounting standards | |
and interpretations | Effective date |
Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates: Lack of exchangeability 1 | 1 January 2025 |
| Amendments to IFRS 9 Financial Instruments | 1 January 2026 3 |
| and IFRS 7 Financial Instruments Disclosure: | |
Classification and measurement of financial instruments 1 | |
IFRS 18 Presentation and Disclosure in Financial Statements 2 | 1 January 2027 3 |
| IFRS 19 Subsidiaries without Public | 1 January 2027 3 |
Accountability: Disclosures 1 |
London Stock Exchange Group plc
Annual Report 2024
172
Notes to the consolidated financial statements continued
1. Accounting policies continued
| Significant | |||
| estimates | |||
| and | Significant | ||
| Note | assumptions | judgement | |
2.3 | Non-underlying items | ● | |
4 | Supplier/partner discounts | ● | |
6.3 | Uncertain tax positions | ● | ● |
9 | Recoverable amounts of CGUs | ● | |
9 | Estimated useful | ● | |
| economic lives | |||
12 | Recognition of pension surplus | ● | |
12 | Net present value of pension | ● | ● |
| assets and liabilities | |||
21 | Fair value of intangible | ● | |
| assets acquired as part of | |||
| a business combination |
173 London Stock Exchange Group plc
Annual Report 2024
Financial Statements
Notes to the consolidated financial statements continued
2. Segment information
This note sets out our results by operating segment. These have
changed in the year – we now report against five operating segments.
From 2024, the Group reorganised its reporting structure to
align segment reporting with new management reporting lines
to the Executive Committee. The changes impact the previous
Data & Analytics segment, with no change to Capital Markets or
Post Trade reporting.
The Group now reports five main operating segments (compared
with three operating segments under the previous structure):
— Data & Analytics – provider of financial data and analytics
— FTSE Russell – provider of benchmark data and indices
— Risk Intelligence – provider of customer and third-party risk solutions
— Capital Markets – global operator of capital raising and trading
venues in multiple asset classes
— Post Trade – provider of clearing, risk management and capital
optimisation solutions
For the new Data & Analytics perimeter, revenues have been grouped
by product types under three business lines:
— Workflows consolidates the Group’s user interface businesses,
comprising Trading & Banking and the desktop activities previously
reported within Investment Solutions and Wealth;
— Data & Feeds consolidates the Group’s data businesses and
comprises Enterprise Data, plus the data and feeds activities
previously reported within Investment Solutions and Wealth; and
— Analytics which was previously reported within Investment Solutions.
Benchmark & Indices was split out from Investment Solutions and
renamed FTSE Russell as a separate division. Similarly, Customer
& Third-Party Risk became a stand-alone division and renamed
Risk Intelligence.
The segment information for the year ended 31 December 2023
has been re-presented for the changes in operating segments.
London Stock Exchange Group plc
Annual Report 2024
174
2. Segment information continued
2.1 Segment results
Results, including adjusted EBITDA, by operating segment for the year ended 31 December 2024 are as follows:
| Data & | FTSE | Risk | Capital | |||||
| Analytics | Russell | Intelligence | Markets | Post Trade | Other | Group | ||
| Notes | £m | £m | £m | £m | £m | £m | £m | |
Revenue 1 | 3.1 | 4,374 | 918 | 531 | 1,828 | 928 | – | 8,579 |
Net treasury income | 3.1 | – | – | – | – | 266 | – | 266 |
Other income | 3.1 | – | – | – | – | – | 13 | 13 |
Total income | 4,374 | 918 | 531 | 1,828 | 1,194 | 13 | 8,858 | |
Cost of sales | (809) | (63) | (46) | (40) | (215) | – | (1,173) | |
Gross profit | 3,565 | 855 | 485 | 1,788 | 979 | 13 | 7,685 | |
Adjusted operating expenses before depreciation, amortisation and impairment | 4 | (1,817) | (264) | (199) | (846) | (432) | (2) | (3,560) |
Income from equity investments | 11.1 | – | – | – | – | – | 27 | 27 |
Share of loss after tax of associates | – | – | – | – | – | (4) | (4) | |
Adjusted EBITDA | 1,748 | 591 | 286 | 942 | 547 | 34 | 4,148 | |
Adjusted depreciation, amortisation and impairment | 9, 10 | (573) | (63) | (43) | (167) | (137) | – | (983) |
Adjusted operating profit | 1,175 | 528 | 243 | 775 | 410 | 34 | 3,165 |
1 Data & Analytics revenue includes recoveries of £364 million. Post Trade revenue includes net settlement and similar expenses recovered through the CCP clearing businesses of £4 million
which comprises gross settlement income of £48 million less gross settlement expenses of £44 million.
Re-presented results, including adjusted EBITDA, by operating segment for the year ended 31 December 2023 are as follows:
| Data & | FTSE | Risk | Capital | |||||
| Analytics | Russell | Intelligence | Markets | Post Trade | Other | Group | ||
| Notes | £m | £m | £m | £m | £m | £m | £m | |
Revenue 1 | 3.1 | 4,301 | 844 | 492 | 1,546 | 878 | – | 8,061 |
Net treasury income | 3.1 | – | – | – | – | 289 | – | 289 |
Other income | 3.1 | – | – | – | – | – | 29 | 29 |
Total income | 4,301 | 844 | 492 | 1,546 | 1,167 | 29 | 8,379 | |
Cost of sales | (810) | (60) | (43) | (35) | (195) | – | (1,143) | |
Gross profit | 3,491 | 784 | 449 | 1,511 | 972 | 29 | 7,236 | |
Adjusted operating expenses before depreciation, amortisation and impairment | 4 | (1,874) | (259) | (215) | (715) | (403) | (8) | (3,474) |
Income from equity investments | 11.1 | – | – | – | – | – | 15 | 15 |
Adjusted EBITDA | 1,617 | 525 | 234 | 796 | 569 | 36 | 3,777 | |
Adjusted depreciation, amortisation and impairment | 9, 10 | (560) | (60) | (44) | (128) | (123) | – | (915) |
Adjusted operating profit | 1,057 | 465 | 190 | 668 | 446 | 36 | 2,862 |
1 Data & Analytics revenue includes recoveries of £370 million. Post Trade revenue includes net settlement and similar expenses recovered through the CCP clearing businesses of £5 million
which comprises gross settlement income of £46 million less gross settlement expenses of £41 million.
Notes to the consolidated financial statements continued
175 London Stock Exchange Group plc
Annual Report 2024
Financial Statements
2. Segment information continued
2.2 Adjusted EBITDA and adjusted operating profit
Profit for the year is reconciled to adjusted operating profit and adjusted
EBITDA as follows:
| 2024 | 2023 | ||
| Notes | £m | £m | |
Profit for the year | 921 | 948 | |
Taxation | 6.1 | 337 | 247 |
Profit before tax | 1,258 | 1,195 | |
Net finance costs | 5 | 205 | 176 |
Operating profit | 1,463 | 1,371 | |
Non-underlying items before interest, tax, depreciation, amortisation and impairment | 2.3 | 203 | 263 |
Non-underlying depreciation, amortisation and impairment | 2.3, 9, 10 | 1,499 | 1,228 |
Adjusted operating profit | 3,165 | 2,862 | |
Adjusted depreciation, amortisation and impairment | 9, 10 | 983 | 915 |
Adjusted EBITDA | 4,148 | 3,777 |
Notes to the consolidated financial statements continued
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176
2. Segment information continued
| 2024 | 2023 | ||
| Notes | £m | £m | |
| Non-underlying operating expenses | |||
before interest, tax, depreciation, amortisation and impairment | |||
Transaction (costs credit)/costs | (15) | 85 | |
Integration and separation costs | 211 | 211 | |
Restructuring and other costs | 15 | 36 | |
211 | 332 | ||
Profit on disposal of business | (8) | – | |
Remeasurement gain | – | (69) | |
(8) | (69) | ||
Non-underlying items before interest, tax, depreciation, amortisation and impairment | 203 | 263 | |
Non-underlying depreciation, amortisation and impairment | |||
| Amortisation of purchased | |||
intangible assets | 9 | 1,048 | 1,057 |
| Amortisation and impairment | |||
of software | 9 | 401 | 148 |
Depreciation and impairment of property, plant and equipment | 10 | 17 | 23 |
Impairment of investment in associate | 33 | – | |
1,499 | 1,228 | ||
Non-underlying items before interest and tax | 1,702 | 1,491 | |
Non-underlying finance costs | 5 | 10 | 6 |
Non-underlying items before tax | 1,712 | 1,497 | |
Non-underlying tax benefit | 6.1 | (376) | (378) |
Non-underlying items after tax | 1,336 | 1,119 |
Transaction costs credit mainly relates to the following:
— r8fin and ICD acquisition costs – £15 million (see note 21.4).
— Fair value gain on the contingent consideration payable resulting
from the acquisition of Quantile Group Limited (Quantile) in
2022 – £21 million (2023: £17 million).
— Refinitiv acquisition costs credit – £14 million (2023: £39 million
charge) mainly relating to changes in the Tradeweb tax receivable
agreement liability, and changes in the tax indemnity receivable
from and payable to Thomson Reuters.
Integration and separation costs mainly consist of costs to
integrate Refinitiv of £166 million (2023: £209 million) and other
recent acquisitions.
Amortisation of purchased intangible assets of £1,048 million
(2023: £1,057 million) mainly relates to the amortisation of intangible
assets recognised as a result of the acquisition of Refinitiv.
Amortisation and impairment of software of £401 million
(2023: £148 million) mainly relates to:
— Incremental amortisation of fair value adjustments of intangible assets
recognised as a result of the acquisition of Refinitiv – £207 million
(2023: £128 million).
— Impairment of software assets – £186 million (2023: nil). Following
a change in strategy and leadership of certain projects we have
impaired two projects by £108 million. In addition, as we transition to
a product-led organisation with a focus on a smaller number of
projects, we have impaired assets that are not fully aligned with
this new model. These make up majority of the £78 million balance.
We have continued to review our property needs following the
acquisition of Refinitiv. This has resulted in impairment of right-of-use
property assets of £16 million (2023: £22 million).
Following our annual impairment review, the Group recognised an
impairment related to an investment in associate of £33 million due
to lower than expected financial performance.
The non-underlying tax benefit of £376 million (2023: £378 million)
mainly reflects the tax impact of the Group’s non-underlying items
(computed based on the tax rates applicable to the respective
territories), partly offset by the impact of certain legislative changes
in the tax rate applied to the surplus on one of the Group’s defined
benefit pension schemes, which resulted in a £44 million expense
(2023: £44 million benefit).
2.4 Segment assets
Total non-current assets (excluding financial instruments, prepayments,
contract assets, deferred tax assets and retirement benefit assets)
broken down by asset location is shown in the following table:
| 2024 | 2023 | |
| £m | £m | |
UK | 7,928 | 8,760 |
US | 20,682 | 19,853 |
Europe, excluding UK | 3,439 | 3,823 |
Asia | 1,130 | 1,078 |
Other | 481 | 377 |
Total | 33,660 | 33,891 |
Notes to the consolidated financial statements continued
177 London Stock Exchange Group plc
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Financial Statements
Notes to the consolidated financial statements continued
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Notes to the consolidated financial statements continued
3. Total income and contract liabilities continued
179 London Stock Exchange Group plc
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3. Total income and contract liabilities continued
| Data & | FTSE | Risk | Capital | Post | ||||
| Analytics | Russell | Intelligence | Markets | Trade | Other | Group | ||
| Note | £m | £m | £m | £m | £m | £m | £m | |
| Revenue from external customers | ||||||||
Workflows | 1,910 | – | – | – | – | – | 1,910 | |
Data & feeds | 1,880 | – | – | – | – | – | 1,880 | |
Analytics | 220 | – | – | – | – | – | 220 | |
Recoveries | 364 | – | – | – | – | – | 364 | |
Subscriptions | – | 611 | – | – | – | – | 611 | |
Asset-based | – | 307 | – | – | – | – | 307 | |
Customer & third-party risk solutions | – | – | 531 | – | – | – | 531 | |
Equities | – | – | – | 236 | – | – | 236 | |
Fixed income, derivatives and other | – | – | – | 1,334 | – | – | 1,334 | |
FX | – | – | – | 258 | – | – | 258 | |
OTC derivatives | – | – | – | – | 582 | – | 582 | |
Securities & reporting | – | – | – | – | 235 | – | 235 | |
Non-cash collateral | – | – | – | – | 111 | – | 111 | |
Total revenue | 4,374 | 918 | 531 | 1,828 | 928 | – | 8,579 | |
Net treasury income | 3.2 | – | – | – | – | 266 | – | 266 |
Other income | – | – | – | – | – | 13 | 13 | |
Total income | 4,374 | 918 | 531 | 1,828 | 1,194 | 13 | 8,858 | |
| Timing of revenue recognition | ||||||||
Services satisfied at a point in time | 80 | – | 121 | 1,322 | 500 | – | 2,023 | |
Services satisfied over time | 4,294 | 918 | 410 | 506 | 428 | – | 6,556 | |
Total revenue | 4,374 | 918 | 531 | 1,828 | 928 | – | 8,579 |
Notes to the consolidated financial statements continued
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180
3. Total income and contract liabilities continued
| Data & | FTSE | Risk | Capital | Post | ||||
| Analytics | Russell | Intelligence | Markets | Trade | Other | Group | ||
| Note | £m | £m | £m | £m | £m | £m | £m | |
| Revenue from external customers | ||||||||
Workflows | 1,903 | – | – | – | – | – | 1,903 | |
Data & feeds | 1,810 | – | – | – | – | – | 1,810 | |
Analytics | 218 | – | – | – | – | – | 218 | |
Recoveries | 370 | – | – | – | – | – | 370 | |
Subscriptions | – | 563 | – | – | – | – | 563 | |
Asset-based | – | 281 | – | – | – | – | 281 | |
Customer & third-party risk solutions | – | – | 492 | – | – | – | 492 | |
Equities | – | – | – | 227 | – | – | 227 | |
Fixed income, derivatives and other | – | – | – | 1,068 | – | – | 1,068 | |
FX | – | – | – | 251 | – | – | 251 | |
OTC derivatives | – | – | – | – | 517 | – | 517 | |
Securities & reporting | – | – | – | – | 254 | – | 254 | |
Non-cash collateral | – | – | – | – | 107 | – | 107 | |
Total revenue | 4,301 | 844 | 492 | 1,546 | 878 | – | 8,061 | |
Net treasury income | 3.2 | – | – | – | – | 289 | – | 289 |
Other income | – | – | – | – | – | 29 | 29 | |
Total income | 4,301 | 844 | 492 | 1,546 | 1,167 | 29 | 8,379 | |
| Timing of revenue recognition | ||||||||
Services satisfied at a point in time | 78 | 1 | 122 | 1,055 | 458 | – | 1,714 | |
Services satisfied over time | 4,223 | 843 | 370 | 491 | 420 | – | 6,347 | |
Total revenue | 4,301 | 844 | 492 | 1,546 | 878 | – | 8,061 |
Notes to the consolidated financial statements continued
181 London Stock Exchange Group plc
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Financial Statements
3. Total income and contract liabilities continued
| 2024 | 2023 | |
| £m | £m | |
| Instruments held at amortised cost | ||
Treasury income on assets | 3,622 | 4,122 |
Treasury expense on assets¹ | (759) | (959) |
Treasury expense on liabilities | (3,465) | (3,769) |
| Net expense from instruments held | ||
at amortised cost | (602) | (606) |
| Instruments held at fair value | ||
Treasury income | 868 | 896 |
Treasury expense | – | (1) |
| Net income from instruments held | ||
at fair value | 868 | 895 |
Net treasury income | 266 | 289 |
| 2024 | 2023 | |
| £m | £m | |
UK | 2,717 | 2,494 |
US | 3,224 | 2,953 |
Europe, excluding UK | 1,205 | 1,198 |
Asia | 991 | 993 |
Other | 442 | 423 |
Total revenue | 8,579 | 8,061 |
| 2024 | 2023 | |
| £m | £m | |
1 January | 345 | 346 |
| Contract liabilities assumed on acquisition | ||
of subsidiaries | – | 16 |
Recognised as revenue during the year | (253) | (270) |
Deferred during the year | 268 | 272 |
Foreign exchange translation | (2) | (19) |
31 December | 358 | 345 |
Non-current contract liabilities | 68 | 72 |
Current contract liabilities | 290 | 273 |
Total contract liabilities | 358 | 345 |
Notes to the consolidated financial statements continued
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182
2024 | 2023 | ||||||
| Non- | Non- | ||||||
| Adjusted | underlying | Total | Adjusted | underlying | Total | ||
| Note | £m | £m | £m | £m | £m | £m | |
Staff costs | 4.1 | 2,226 | 141 | 2,367 | 2,085 | 157 | 2,242 |
IT costs | 636 | 12 | 648 | 607 | 40 | 647 | |
Third-party services | 396 | 52 | 448 | 404 | 50 | 454 | |
Short-term lease costs | 9 | 1 | 10 | 13 | – | 13 | |
Fair value gains on contingent consideration | – | (21) | (21) | – | (17) | (17) | |
Other costs | 334 | 26 | 360 | 323 | 102 | 425 | |
3,601 | 211 | 3,812 | 3,432 | 332 | 3,764 | ||
Foreign exchange (gains)/losses | (1) | – | (1) | 32 | – | 32 | |
| Fair value (gains)/losses on embedded | |||||||
foreign exchange contracts | (40) | – | (40) | 10 | – | 10 | |
Total operating expenses before depreciation, amortisation and impairment | 3,560 | 211 | 3,771 | 3,474 | 332 | 3,806 |
| 2024 | 2023 | ||
| Notes | £m | £m | |
Salaries and other benefits | 2,255 | 2,159 | |
Social security costs | 215 | 204 | |
Pension costs | 12.1 | 100 | 101 |
Share-based payment expense | 20 | 165 | 143 |
Total payments made to employees | 2,735 | 2,607 | |
Amounts capitalised as development costs | (368) | (365) | |
Total staff costs | 2,367 | 2,242 | |
Adjusted staff costs | 2,226 | 2,085 | |
Non-underlying staff costs | 141 | 157 | |
Total staff costs | 2,367 | 2,242 |
Notes to the consolidated financial statements continued
183 London Stock Exchange Group plc
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Financial Statements
Notes to the consolidated financial statements continued
4. Operating expenses before
depreciation, amortisation
and impairment continued
| 2024 | 2023 | |
| £m | £m | |
Salaries and other benefits | 21 | 18 |
Pension costs | 1 | 1 |
Share-based payments | 8 | 9 |
Total compensation | 30 | 28 |
2024 | 2023 | |
UK | 4,900 | 4,880 |
US | 3,235 | 3,276 |
India | 7,164 | 6,730 |
Europe, excluding UK | 3,199 | 2,723 |
Philippines | 2,216 | 2,254 |
Sri Lanka | 1,720 | 1,613 |
China | 1,279 | 1,394 |
Other Asia | 2,079 | 2,064 |
Africa and Middle East | 589 | 620 |
Other | 657 | 676 |
Average number of employees 1 | 27,038 | 26,230 |
| 2024 | 2023 | |
| £m | £m | |
| Audit of parent and consolidated | ||
financial statements | 5 | 7 |
Audit of subsidiary companies 1 | 10 | 7 |
Non-audit services 2 | 1 | 1 |
Total auditors' fees | 16 | 15 |
| Note | ||
| — Interest income on retirement | ||
| benefit assets | 12 | Pension and other |
| — Interest costs on retirement | retirement benefit schemes | |
| benefit obligations | ||
— Interest on borrowings | 16.1 | Borrowings |
| — Lease interest income | 16.2 | Lease liabilities and net |
| — Lease interest expense | investments in leases |
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184
5. Net finance costs continued
| 2024 | 2023 | ||
| Notes | £m | £m | |
| Finance income | |||
Financial assets measured at amortised cost | |||
— Bank deposit and other interest income | 145 | 125 | |
— Lease interest income | 1 | 1 | |
— Other finance income | 1 | 1 | |
Gain on partial repurchase of bond | 16.1 | 24 | – |
| Derivative financial instruments | |||
interest income 1 | – | 22 | |
Hedge ineffectiveness on fair value hedges | 17.4c | – | 2 |
| Net interest income on net retirement | |||
benefit assets | 12.1 | 4 | 8 |
175 | 159 | ||
| Finance costs | |||
Financial liabilities measured at amortised cost | |||
— Interest payable on bank and other borrowings | (288) | (225) | |
— Lease interest expense | 16.2 | (20) | (17) |
— Other finance expenses | (17) | (16) | |
| Derivative financial instruments | |||
interest expense 1 | (31) | (42) | |
Hedge ineffectiveness on fair value hedges | 17.4c | (1) | – |
| Fair value loss on derivative | |||
financial instruments | (8) | (5) | |
Foreign exchange losses | (15) | (30) | |
(380) | (335) | ||
Net finance costs | (205) | (176) | |
Adjusted net finance costs | (195) | (170) | |
Non-underlying net finance costs | 2.3 | (10) | (6) |
Net finance costs | (205) | (176) |
Notes to the consolidated financial statements continued
185 London Stock Exchange Group plc
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Financial Statements
Notes to the consolidated financial statements continued
6. Taxation continued
6.1 Income tax
Tax recognised in the income statement
| 2024 | 2023 | ||
| Notes | £m | £m | |
| Current tax | |||
UK corporation tax for the year at 25% (2023: 23.5%) | 145 | 73 | |
Overseas tax for the year | 311 | 202 | |
Adjustments in respect of previous years | (13) | (6) | |
Total current tax | 443 | 269 | |
| Deferred tax | |||
Deferred tax expense for the year | 142 | 61 | |
Adjustments in respect of previous years | (4) | (27) | |
Deferred tax benefit in relation to amortisation and impairment of intangible assets | (244) | (56) | |
Total deferred tax | 6.2 | (106) | (22) |
Total tax | 337 | 247 | |
Adjusted tax | 713 | 625 | |
Non-underlying tax | 2.3 | (376) | (378) |
Total tax | 337 | 247 |
Factors affecting the tax charge for the year
The tax charge for the year differs from that derived from the
standard rate of corporation tax in the UK of 25% (2023: 23.5%)
as explained below:
| 2024 | 2023 | |
| £m | £m | |
Profit before tax | 1,258 | 1,195 |
Profit multiplied by standard rate of corporation tax in the UK | 315 | 281 |
Overseas earnings taxed at (lower)/higher rate | (15) | 36 |
Adjustment arising from changes in tax rates | 44 | (44) |
Expenses not deductible | 10 | 2 |
Adjustments in respect of previous years | (17) | (33) |
Deferred tax not recognised | – | 5 |
Total tax | 337 | 247 |
Tax on items recognised in other comprehensive income
| 2024 | 2023 | ||
| Note | £m | £m | |
| Current tax expense on: | |||
| — Gains/losses on financial assets | |||
(at FVOCI) | (34) | – | |
Total current tax recognised in other comprehensive income | (34) | – | |
| Deferred tax benefit/(expense) on: | |||
| — Actuarial movements on retirement | |||
benefit obligations | 60 | (35) | |
| — Gains/losses on financial assets | |||
(at FVOCI) | 12 | 2 | |
Total deferred tax recognised in other comprehensive income | 6.2 | 72 | (33) |
Total tax recognised in other comprehensive income | 38 | (33) |
Tax on items recognised in equity
| 2024 | 2023 | ||
| Note | £m | £m | |
| Current tax benefit on: | |||
— Share-based payments less than expense recognised | 4 | – | |
Total current tax recognised in equity | 4 | – | |
| Deferred tax benefit/(expense) on: | |||
— Share-based payments less than expense recognised | 10 | 15 | |
| — Investment in partnerships (recognised | |||
in non-controlling interests) | (11) | 62 | |
— Other | – | 2 | |
Total deferred tax recognised in equity | 6.2 | (1) | 79 |
Total tax recognised in equity | 3 | 79 |
Global Minimum Tax
On 11 July 2023, the UK Government substantively enacted the Pillar
Two income taxes legislation effective from 1 January 2024. Under the
legislation, the Company is required to pay top-up tax in the UK on
profits of all its subsidiaries that are taxed at an effective tax rate of
less than 15%.
The Group’s current tax expense related to Pillar Two income taxes is
£5 million for the year.
The Group has applied a mandatory temporary exception from deferred
tax accounting for the impacts of the top-up tax and will account for it as
a current tax when it is incurred.
| 2024 | 2023 | |
| £m | £m | |
Deferred tax assets | 659 | 664 |
Deferred tax liabilities | (1,995) | (2,140) |
Net deferred tax liabilities | (1,336) | (1,476) |
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186
6. Taxation continued
| Tax losses | |||||||||
| Goodwill | and other | Provisions | |||||||
| and | carry- | Property, | Retirement | and other | |||||
| intangible | forward | plant and | Share | benefit | Investment in | temporary | |||
assets 1 | attributes | equipment | schemes | obligations | partnerships 2 | differences | Total | ||
Group | Note | £m | £m | £m | £m | £m | £m | £m | £m |
1 January 2023 | (2,816) | 617 | 87 | 53 | (45) | 454 | 72 | (1,578) | |
| Deferred tax on acquisition | |||||||||
of subsidiaries | (77) | 11 | – | – | – | – | 3 | (63) | |
Tax recognised in the income statement | 6.1 | 74 | (27) | (17) | (1) | 43 | (24) | (26) | 22 |
Tax recognised in other comprehensive income | 6.1 | – | – | – | – | (35) | – | 2 | (33) |
Tax recognised in equity | 6.1 | – | – | – | 15 | – | 62 | 2 | 79 |
| Foreign exchange translation | |||||||||
and other | 151 | (26) | (1) | (2) | (3) | (26) | 4 | 97 | |
31 December 2023 | (2,668) | 575 | 69 | 65 | (40) | 466 | 57 | (1,476) | |
Tax recognised in the income statement | 6.1 | 276 | (114) | (3) | 2 | (41) | (14) | – | 106 |
Tax recognised in other comprehensive income 3 | 6.1 | – | – | – | – | 60 | – | 12 | 72 |
Tax recognised in equity | 6.1 | – | – | – | 10 | – | (11) | – | (1) |
| Foreign exchange translation | |||||||||
and other | (39) | 13 | – | – | – | (11) | – | (37) | |
31 December 2024 | (2,431) | 474 | 66 | 77 | (21) | 430 | 69 | (1,336) |
Notes to the consolidated financial statements continued
187 London Stock Exchange Group plc
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Financial Statements
6. Taxation continued
Notes to the consolidated financial statements continued
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188
7. Earnings per share continued
Earnings per share is presented on four bases: basic earnings per
share, diluted earnings per share, adjusted basic earnings per share
and adjusted diluted earnings per share. Earnings per share is
calculated as the Group’s profit for the financial year divided by
the weighted average number of shares in issue during the year.
2024 | 2023 | |
Basic earnings per share | 128.8p | 138.9p |
Diluted earnings per share | 128.0p | 138.1p |
Adjusted basic earnings per share | 363.5p | 323.9p |
Adjusted diluted earnings per share | 361.5p | 322.1p |
7.1 Profit and adjusted profit for the year attributable to the
Company’s equity holders
| 2024 | 2023 | ||
| Note | £m | £m | |
Profit for the year attributable to the Company’s equity holders | 685 | 761 | |
| Adjustments: | |||
| — Total non-underlying items net | |||
of tax | 2.3 | 1,336 | 1,119 |
— Non-underlying items attributable to non-controlling interests | (87) | (105) | |
| Adjusted profit for the year | |||
attributable to the Company's equity holders | 1,934 | 1,775 |
7.2 Weighted average number of shares
1,2
| 2024 | 2023 | |
| millions | millions | |
Weighted average number of shares 1,2 | 532 | 548 |
Dilutive effect of share options and awards | 3 | 3 |
Diluted weighted average number of shares | 535 | 551 |
1 The weighted average number of shares excludes treasury shares and those held in the
Employee Benefit Trust.
2 The change in weighted average number of shares reflects the impact of share buybacks in
2023 and 2024. For details and the number of shares as at 31 December 2024, see note 18.1.
| 2024 | 2023 | |
| £m | £m | |
| Final dividend for the year ended | ||
| 31 December 2022 paid 24 May 2023: | ||
75.3p per ordinary share | – | 415 |
| Interim dividend for the year ended | ||
| 31 December 2023 paid 20 September 2023: | ||
35.7p per ordinary share | – | 196 |
| Final dividend for the year ended | ||
| 31 December 2023 paid 22 May 2024: | ||
79.3p per ordinary share | 425 | – |
| Interim dividend for the year ended | ||
| 31 December 2024 paid 18 September 2024: | ||
41.0p per ordinary share | 217 | – |
642 | 611 |
Notes to the consolidated financial statements continued
189 London Stock Exchange Group plc
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Financial Statements
Notes to the consolidated financial statements continued
| Amortisation | ||
| period or useful | ||
Assets | Amortisation method | economic life |
| Customer | Straight-line basis | 5 to 25 years |
| and supplier | ||
| relationships | ||
Brands | Straight-line basis | 4 to 25 years |
| Databases | Straight-line basis | 5 to 12 years |
| and content | ||
Software | Straight-line basis or | 7 to 15 years |
| reducing balance basis | ||
Licences and intellectual property | Straight-line basis | 3 to 25 years |
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190
9. Intangible assets continued
Notes to the consolidated financial statements continued
191 London Stock Exchange Group plc
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Financial Statements
Notes to the consolidated financial statements continued
9. Intangible assets continued
| Purchased intangible assets | ||||||||
| Software, | ||||||||
| licences | ||||||||
| Customer | Databases | and | ||||||
| and supplier | and | intellectual | Software | |||||
| Goodwill | relationships | Brands | content | property | and other | Total | ||
| Note | £m | £m | £m | £m | £m | £m | £m | |
| Cost | ||||||||
1 January 2023 | 19,859 | 9,925 | 2,113 | 2,734 | 903 | 4,129 | 39,663 | |
| Intangible assets acquired on acquisition | ||||||||
of subsidiaries | 370 | 281 | – | – | 47 | – | 698 | |
Additions | – | – | – | – | – | 962 | 962 | |
Disposals and write-off | – | – | (1) | – | – | (82) | (83) | |
Foreign exchange translation | (953) | (538) | (114) | (154) | (93) | (149) | (2,001) | |
31 December 2023 | 19,276 | 9,668 | 1,998 | 2,580 | 857 | 4,860 | 39,239 | |
| Intangible assets acquired on acquisition | ||||||||
of subsidiaries | 21.2 | 258 | 307 | 3 | – | 146 | – | 714 |
Additions 1 | – | – | – | – | – | 934 | 934 | |
Disposal of business | – | – | – | – | – | (3) | (3) | |
Disposals and write-off 2 | – | (10) | – | – | – | (429) | (439) | |
Foreign exchange translation | 164 | 172 | 33 | 49 | 12 | (31) | 399 | |
31 December 2024 | 19,698 | 10,137 | 2,034 | 2,629 | 1,015 | 5,331 | 40,844 | |
| Accumulated amortisation and impairment | ||||||||
1 January 2023 | 30 | 1,650 | 584 | 490 | 367 | 1,476 | 4,597 | |
Amortisation charge for the year | – | 607 | 149 | 229 | 72 | 790 | 1,847 | |
Impairment | – | – | – | – | – | 10 | 10 | |
Disposals and write-off | – | – | (1) | – | – | (82) | (83) | |
Foreign exchange translation | – | (91) | (39) | (32) | (66) | (51) | (279) | |
31 December 2023 | 30 | 2,166 | 693 | 687 | 373 | 2,143 | 6,092 | |
Amortisation charge for the year 3 | – | 607 | 145 | 223 | 73 | 903 | 1,951 | |
Impairment 4 | – | – | – | – | – | 216 | 216 | |
Disposal of business | – | – | – | – | – | (1) | (1) | |
Disposals and write-off 2 | – | (10) | – | – | – | (424) | (434) | |
Foreign exchange translation | – | 40 | 14 | 17 | 2 | (23) | 50 | |
31 December 2024 | 30 | 2,803 | 852 | 927 | 448 | 2,814 | 7,874 | |
Net book values 5 | ||||||||
31 December 2024 | 19,668 | 7,334 | 1,182 | 1,702 | 567 | 2,517 | 32,970 | |
31 December 2023 | 19,246 | 7,502 | 1,305 | 1,893 | 484 | 2,717 | 33,147 |
London Stock Exchange Group plc
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192
9. Intangible assets continued
| Capital | |||||||
| Markets, | |||||||
| Data & | FTSE | Risk | excluding | ||||
| Analytics | Russell | Intelligence | Tradeweb | Tradeweb | Post Trade | Total | |
| £m | £m | £m | £m | £m | £m | £m | |
1 January 2024 | 13,767 | – | – | 2 | 4,889 | 588 | 19,246 |
Reallocation of goodwill | (7,088) | 5,442 | 1,646 | – | – | – | – |
| Goodwill recognised on acquisition | |||||||
of subsidiaries | – | – | – | – | 258 | – | 258 |
Foreign exchange | (8) | 54 | 14 | – | 102 | 2 | 164 |
31 December 2024 | 6,671 | 5,496 | 1,660 | 2 | 5,249 | 590 | 19,668 |
Assumption | Determination of assumption |
| Short- and medium-term | The short-term revenue and cost growth assumptions are based on the business plans prepared by management for the |
| revenue and cost growth | three-year period ending 31 December 2027 and extended by a further three years for trended medium-term growth. |
| Business plans are based on an assessment of current trends, anticipated market and regulatory developments, | |
| discussions with customers and suppliers and management’s experience. | |
| Long-term economic | Cash flows beyond an initial three-year period are extrapolated using a medium-term growth rate (as discussed above) |
| growth rates (used to | for a further three years. At which point the cash flows are extrapolated using estimated long-term growth rates, which are |
| determine terminal values) | based on external estimates of GDP and inflation. |
Pre-tax discount rates | Weighted average cost of capital is determined using market risk-free rates based on the yields of government bonds most |
| relevant to the operations of the CGU, adjusted for country and operational risk and the cost of borrowing for the Group. |
Long-term growth rates | Pre-tax discount rates | |||
| 2024 | 2023 | 2024 | 2023 | |
| % | % | % | % | |
Data & Analytics | 4.0 | 4.1 | 11.0 | 12.1 |
FTSE Russell | 3.9 | N/A | 11.8 | N/A |
Risk Intelligence | 3.8 | N/A | 12.5 | N/A |
Capital Markets, excluding Tradeweb | 3.7 | 3.6 | 9.1 | 10.3 |
Tradeweb | 4.0 | 4.1 | 10.7 | 11.4 |
Post Trade | 3.4 | 3.4 | 12.3 | 12.2 |
Notes to the consolidated financial statements continued
193 London Stock Exchange Group plc
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Financial Statements
Notes to the consolidated financial statements continued
9. Intangible assets continued
| Change in assumption required for value-in-use to equal carrying amount | ||||||
| Capital | ||||||
| Markets, | ||||||
| Data & | FTSE | Risk | excluding | |||
| Analytics | Russell | Intelligence | Tradeweb | Tradeweb | Post Trade | |
Reduction in terminal cash flow (%) | (44.7) | (47.6) | (67.3) | N/A 1 | (61.4) | N/A 1 |
Reduction in long-term growth rates (percentage points) | (3.7) | N/A 1 | N/A 1 | N/A 1 | N/A 1 | N/A 1 |
Increase in pre-tax discount rates (percentage points) | 4.0 | 4.7 | N/A 1 | N/A 1 | 6.6 | N/A 1 |
| Carrying value of material | Remaining | ||
| purchased intangible assets | amortisation | ||
| 2024 | 2023 | period | |
| £m | £m | 2024 | |
| Customer and supplier relationships | |||
Refinitiv | 5,303 | 5,635 | 12 years |
Tradeweb | 823 | 889 | 9-16 years |
Frank Russell | 288 | 305 | 10-15 years |
ICD | 264 | N/A | 15 years |
Acadia | 223 | 233 | 16 years |
| Brands | |||
Refinitiv | 449 | 532 | 1-11 years |
Frank Russell | 422 | 442 | 15 years |
Tradeweb | 158 | 169 | 11 years |
| Databases and content | |||
Refinitiv | 1,693 | 1,878 | 7-8 years |
London Stock Exchange Group plc
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194
Notes to the consolidated financial statements continued
195 London Stock Exchange Group plc
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Financial Statements
Notes to the consolidated financial statements continued
10. Property, plant and equipment continued
Land & Buildings | Plant and equipment | |||||
| Right- | Leasehold | |||||
| Freehold | of-use | improve- | Right-of-use | |||
| property | assets | ments | assets | Owned | Total | |
| £m | £m | £m | £m | £m | £m | |
| Cost | ||||||
1 January 2023 | 53 | 672 | 125 | 70 | 624 | 1,544 |
Property, plant and equipment acquired on acquisition of subsidiaries | – | 1 | – | – | 2 | 3 |
Additions | 5 | 20 | 8 | 49 | 79 | 161 |
Lease modifications | – | 74 | – | – | – | 74 |
Disposals, reclassifications and other | (41) | (33) | 20 | (4) | 38 | (20) |
Foreign exchange translation | – | (23) | (3) | (2) | (20) | (48) |
31 December 2023 | 17 | 711 | 150 | 113 | 723 | 1,714 |
Additions | 4 | 44 | 7 | 36 | 91 | 182 |
Lease modifications | – | 30 | – | 42 | – | 72 |
Disposals, reclassifications and other 1 | (6) | (107) | 4 | (12) | (26) | (147) |
Foreign exchange translation | (1) | (1) | (2) | 1 | 4 | 1 |
31 December 2024 | 14 | 677 | 159 | 180 | 792 | 1,822 |
| Accumulated depreciation and impairment | ||||||
1 January 2023 | 29 | 267 | 67 | 22 | 362 | 747 |
Depreciation charge for the year | – | 105 | 15 | 28 | 116 | 264 |
Impairment | – | 22 | – | – | – | 22 |
Disposals, reclassifications and other | (27) | (30) | 5 | (5) | 45 | (12) |
Foreign exchange translation | – | (10) | (1) | (1) | (11) | (23) |
31 December 2023 | 2 | 354 | 86 | 44 | 512 | 998 |
Depreciation charge for the year | – | 85 | 16 | 58 | 106 | 265 |
Impairment 2 | – | 17 | – | – | – | 17 |
Disposals, reclassifications and other 1 | – | (103) | (2) | (15) | (23) | (143) |
Foreign exchange translation | – | – | – | – | 4 | 4 |
31 December 2024 | 2 | 353 | 100 | 87 | 599 | 1,141 |
| Net book values | ||||||
31 December 2024 | 12 | 324 | 59 | 93 | 193 | 681 |
31 December 2023 | 15 | 357 | 64 | 69 | 211 | 716 |
London Stock Exchange Group plc
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196
| 2024 | 2023 | ||
| Notes | £m | £m | |
| Non-current | |||
Equity instruments | 11.1 | 50 | 372 |
Debt instruments | 11.2 | 8 | – |
Total investments in financial assets | 17.1 | 58 | 372 |
| 2024 | 2023 | |
| £m | £m | |
1 January | 372 | 394 |
Additions | 9 | – |
Disposals 1 | (377) | (1) |
Fair value gains/(losses) recognised in other comprehensive income 2 | 60 | (12) |
Foreign exchange translation | (14) | (9) |
31 December | 50 | 372 |
| 2024 | 2023 | |
| £m | £m | |
Finbourne Technology Limited | 14 | 8 |
OpenExchange, Inc. | 8 | 8 |
Sumscope Inc. | 7 | 6 |
Module Q, Inc. | 6 | 7 |
PrimaryBid Limited | 4 | 31 |
Euroclear Holding SA/NV | – | 307 |
| 2024 | 2023 | |
| £m | £m | |
1 January | – | 226 |
Additions | 8 | – |
Disposals | – | (223) |
Foreign exchange translation | – | (3) |
31 December | 8 | – |
Notes to the consolidated financial statements continued
197 London Stock Exchange Group plc
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Financial Statements
Notes to the consolidated financial statements continued
London Stock Exchange Group plc
Annual Report 2024
198
12. Pension and other retirement benefit schemes continued
12.1 Amounts recognised in the income statement
| 2024 | 2023 | ||
| Notes | £m | £m | |
Defined contribution schemes | 87 | 88 | |
| Defined benefit scheme – | |||
current/past service cost, curtailment, and expenses | 13 | 13 | |
Pension costs recognised in staff costs | 4.1 | 100 | 101 |
Net interest income | 5 | (4) | (8) |
96 | 93 |
12.2 Amounts recognised in other comprehensive income in respect
of retirement benefit schemes
| 2024 | 2023 | ||
| Note | £m | £m | |
1 January | (298) | (213) | |
| Actuarial losses recognised | |||
in the year | 12.3 | (3) | (85) |
31 December | (301) | (298) |
| 2024 | 2023 | |
| £m | £m | |
Retirement benefit assets | 162 | 172 |
Retirement benefit obligations | (64) | (79) |
Net retirement benefit asset | 98 | 93 |
| 2024 | 2023 | ||
| Note | £m | £m | |
1 January | 93 | 167 | |
| Pension expense, including | |||
net interest income | (9) | (5) | |
Actuarial losses | 12.2 | (3) | (85) |
Employer contributions and benefits paid | 16 | 14 | |
Other | – | 1 | |
Foreign exchange translation | 1 | 1 | |
31 December | 98 | 93 |
| 2024 | 2023 | ||
| Note | £m | £m | |
Large UK schemes 1 | 12.4 | 141 | 157 |
Other plans | (43) | (64) | |
Net retirement benefit asset 2 | 98 | 93 |
| Buy-in | 2024 | 2023 | |
| status | £m | £m | |
RPF | Partial 1 | 125 | 140 |
SPS | Full 2 | 8 | 12 |
LSE Section of LSEGPS | Full 3 | 3 | 1 |
LCH Section of LSEGPS | Full 3 | 5 | 4 |
Net retirement benefit asset | 141 | 157 |
Notes to the consolidated financial statements continued
199 London Stock Exchange Group plc
Annual Report 2024
Financial Statements
Notes to the consolidated financial statements continued
12. Pension and other retirement benefit schemes continued
| Net surplus/ | |||
| Assets | Liabilities | (deficit) | |
| £m | £m | £m | |
1 January 2023 | 2,369 | (2,152) | 217 |
| Pension (expense)/income | |||
| recognised in the income statement | |||
— Past/current service cost and administrative fees | – | (6) | (6) |
— Interest income/(cost) | 112 | (102) | 10 |
Remeasurements recognised in other comprehensive income | |||
— Movement on plan assets, excluding interest income, recognised in other comprehensive income | (55) | – | (55) |
| — Actuarial losses – | |||
financial assumptions | – | (48) | (48) |
| — Actuarial gains – | |||
demographic assumptions | – | 44 | 44 |
— Actuarial losses – experience | – | (11) | (11) |
Employer contributions 1 | 6 | – | 6 |
Benefits paid | (101) | 101 | – |
31 December 2023 | 2,331 | (2,174) | 157 |
| Pension (expense)/income | |||
| recognised in the income statement | |||
— Past/current service cost and administrative fees | – | (8) | (8) |
— Interest income/(cost) | 103 | (96) | 7 |
Remeasurements recognised in other comprehensive income | |||
— Movement on plan assets, excluding interest income, recognised in other comprehensive income | (248) | – | (248) |
| — Actuarial gains – | |||
financial assumptions | – | 222 | 222 |
| — Actuarial gains – | |||
demographic assumptions | – | 7 | 7 |
Employer contributions 1 | 6 | – | 6 |
Benefits paid | (108) | 108 | – |
Other | (3) | 1 | (2) |
31 December 2024 | 2,081 | (1,940) | 141 |
| 2024 | 2023 | |
| Fair value of assets | £m | £m |
| Equities | ||
— Quoted | 108 | 92 |
— Not quoted | 10 | 14 |
| Bonds | ||
— Quoted | – | 3 |
— Not quoted 1 | 729 | 817 |
Buy-in policy | 920 | 1,026 |
Cash and cash equivalents | 20 | 25 |
Multi-assets and other | 294 | 354 |
Total fair value of assets | 2,081 | 2,331 |
London Stock Exchange Group plc
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200
12. Pension and other retirement benefit schemes continued
2024 | 2023 | |
| Discount rate | ||
— Non-insured | 5.50% | 4.50% |
— Insured | 5.36% | 4.50% |
Price inflation | 3.23% | 3.13% |
Rate of increase in salaries | 3.20% | 3.10% |
| Life expectancy from age 65 (years) | ||
— Non-retired male member | 23.9 | 23.8 |
— Non-retired female member | 26.0 | 25.9 |
— Retired male member | 22.3 | 22.2 |
— Retired female member | 24.3 | 24.2 |
| (Decrease)/increase in | |||
scheme obligations 1 | |||
| Change in | 2024 | 2023 | |
| Assumption | assumption | £m | £m |
Discount rate | +0.5% | (110) | (135) |
Price inflation | +0.5% | 60 | 83 |
Mortality rate | +1 year | 64 | 79 |
Notes to the consolidated financial statements continued
201 London Stock Exchange Group plc
Annual Report 2024
Financial Statements
Notes to the consolidated financial statements continued
12. Pension and other retirement benefit
schemes continued
| 2024 | 2023 | |
| £m | £m | |
Less than 1 year | 106 | 102 |
Between 1 and 2 years | 110 | 107 |
Between 2 and 5 years | 350 | 341 |
Over 5 years | 652 | 638 |
Total expected benefit payments | 1,218 | 1,188 |
London Stock Exchange Group plc
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202
13. Trade and other receivables continued
| 2024 | 2023 | ||
| Note | £m | £m | |
| Non-current | |||
Net investments in leases | 58 | 62 | |
Tax indemnity receivable | 61 | 66 | |
Deposits receivable | 17 | 19 | |
Other receivables 1 | 5 | 6 | |
| Non-current receivables classified | |||
as financial assets 1 | 17.1 | 141 | 153 |
Prepayments 1 | 23 | 25 | |
Contract assets | 11 | – | |
Total non-current receivables | 175 | 178 | |
| Current | |||
Trade receivables | 951 | 941 | |
Fees receivable | 300 | 244 | |
| Expected credit loss on trade | |||
receivables and fees receivable | (20) | (13) | |
Net trade receivables | 1,231 | 1,172 | |
Net investments in leases | 4 | 9 | |
Deposits receivable | 49 | 34 | |
Other receivables 2 | 158 | 602 | |
| Current trade and other receivables | |||
classified as financial assets | 17.1 | 1,442 | 1,817 |
Prepayments | 218 | 230 | |
Contract assets | 5 | 4 | |
Total current trade and other receivables | 1,665 | 2,051 | |
Total receivables | 1,840 | 2,229 |
| 2024 | 2023 | |
| £m | £m | |
1 January | 13 | 9 |
New provisions for expected credit losses | 14 | 14 |
Amounts written off as uncollectible | (7) | (9) |
Foreign exchange translation | – | (1) |
31 December | 20 | 13 |
Net investments in leases: Group as lessor
The Group sub-lets a number of its properties where there is surplus
space or the office is no longer used by the business. The Group has
both finance and operating sub-leases. Net investments in leases are
shown within trade and other receivables above.
The future minimum rentals receivable
1
as at 31 December are as follows:
| 2024 | 2023 | |
| £m | £m | |
Less than 1 year | 6 | 10 |
Between 1 and 2 years | 6 | 6 |
Between 2 and 5 years | 17 | 17 |
Over 5 years | 41 | 47 |
Total | 70 | 80 |
1 The future minimum rentals receivable above reflect the gross rental receivable and are not
discounted. The net investments in leases disclosed within trade and other receivables are
discounted to reflect the net present value to the Group at the year end.
14. Cash and cash equivalents
Cash and cash equivalents comprise cash at bank, short-term deposits,
money market funds and other instruments and structures that are
readily convertible to known amounts of cash and are subject to
insignificant risk of changes in value.
| 2024 | 2023 | ||
| Note | £m | £m | |
Cash at bank | 821 | 755 | |
Cash equivalents | 2,654 | 2,825 | |
| Total cash and cash equivalents | |||
classified as financial assets 1 | 17.1 | 3,475 | 3,580 |
1 At 31 December 2024, cash and cash equivalents include £1,342 million (2023: £1,329 million)
of amounts held by regulated entities for regulatory and operational purposes. Cash held by
subsidiaries which operate in countries where exchange controls or other legal restrictions
apply, and which is therefore not available for general use by the Group, has been fully
provided against. Cash and cash equivalents do not include amounts held by the CCPs
on behalf of their clearing members.
Notes to the consolidated financial statements continued
203 London Stock Exchange Group plc
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Financial Statements
Notes to the consolidated financial statements continued
| 2024 | 2023 | ||
| Note | £m | £m | |
| Non-current | |||
Contingent consideration payable | – | 21 | |
| Tradeweb tax receivable | |||
agreement liability | 261 | 312 | |
Tax indemnity payable | 250 | 242 | |
Other payables | 6 | 5 | |
| Non-current payables | |||
classified as financial liabilities | 17.2 | 517 | 580 |
Deferred compensation | 7 | 21 | |
Total non-current payables | 524 | 601 | |
| Current | |||
Trade payables | 323 | 258 | |
Accrued expenses | 1,127 | 1,024 | |
Other payables 1 | 294 | 459 | |
Current payables classified as financial liabilities | 17.2 | 1,744 | 1,741 |
Social security and other taxes | 141 | 155 | |
Total current trade and other payables | 1,885 | 1,896 | |
Total payables | 2,409 | 2,497 |
London Stock Exchange Group plc
Annual Report 2024
204
| 2024 | 2023 | ||
| Notes | £m | £m | |
| Non-current | |||
| Bank borrowings – | |||
committed bank facilities 1 | (6) | (8) | |
Bonds | 7,885 | 7,022 | |
Trade finance loans | – | 1 | |
Lease liabilities | 494 | 518 | |
| Total non-current borrowings | |||
and lease liabilities | 8,373 | 7,533 | |
| Current | |||
Bank borrowings | – | 17 | |
Commercial paper | 1,037 | 1,206 | |
Bonds | 415 | 825 | |
Lease liabilities | 140 | 118 | |
| Total current borrowings | |||
and lease liabilities | 1,592 | 2,166 | |
Total borrowings and lease liabilities | 9,965 | 9,699 | |
| Total borrowings excluding | |||
lease liabilities | 16.1 | 9,331 | 9,063 |
Lease liabilities | 16.2 | 634 | 636 |
Total borrowings and lease liabilities | 9,965 | 9,699 |
Notes to the consolidated financial statements continued
205 London Stock Exchange Group plc
Annual Report 2024
Financial Statements
Notes to the consolidated financial statements continued
16. Borrowings, lease liabilities and net debt continued
| Carrying value | |||||
| Facility/bond | 2024 | 2023 | Interest rate | ||
| Maturity date | £m | £m | £m | % | |
| Committed bank facilities | |||||
Multi-currency revolving credit facility | Dec 2027 | 1,925 | (2) | (5) | see note 2 |
Multi-currency revolving credit facility | Dec 2027 | 1,075 | (2) | (3) | see note 2 |
Tradeweb multi-currency revolving credit facility | Nov 2028 | 400 | (2) | – | see note 3 |
Total committed bank facilities 1 | 3,400 | (6) | (8) | ||
Commercial paper | 1,037 | 1,206 | 0.578 | ||
| Bonds | |||||
$500 million bond, issued April 2021 | Apr 2024 | – | – | 392 | 0.650 |
€500 million bond, issued September 2017 | Sep 2024 | – | – | 433 | 0.875 |
€500 million bond, issued April 2021 | Apr 2025 | 415 | 415 | 433 | – |
$1,000 million bond, issued April 2021 | Apr 2026 | 799 | 798 | 782 | 1.375 |
€700 million bond, issued September 2023 | Sep 2026 | 581 | 592 | 620 | 4.125 |
$500 million bond, issued March 2024 | Mar 2027 | 400 | 397 | – | 4.875 |
€600 million bond, issued September 2024 | Sep 2027 | 498 | 494 | – | 2.750 |
$100 million bond , issued September 2024 | Sep 2027 | 80 | 79 | – | 4.000 |
€500 million bond, issued December 2018 | Dec 2027 | 415 | 413 | 431 | 1.750 |
€500 million bond, issued April 2021 | Apr 2028 | 415 | 414 | 431 | 0.250 |
$1,000 million bond, issued April 2021 | Apr 2028 | 799 | 797 | 781 | 2.000 |
€500 million bond, issued September 2017 | Sep 2029 | 415 | 413 | 431 | 1.750 |
£500 million bond, issued April 2021 | Apr 2030 | 500 | 496 | 495 | 1.625 |
€700 million bond, issued September 2023 | Sep 2030 | 581 | 608 | 634 | 4.231 |
$1,000 million bond, issued April 2021 4 | Apr 2031 | 799 | 795 | 976 | 2.500 |
€500 million bond, issued April 2021 | Apr 2033 | 415 | 410 | 428 | 0.750 |
$750 million bond, issued March 2024 | Mar 2034 | 599 | 587 | – | 5.297 |
$750 million bond, issued April 2021 | Apr 2041 | 599 | 592 | 580 | 3.200 |
Total bonds | 8,310 | 8,300 | 7,847 | ||
Trade finance loans | Nov 2025 | – | 1 | 7.274 | |
Bank overdraft | – | 17 | |||
Total borrowings excluding lease liabilities | 9,331 | 9,063 |
London Stock Exchange Group plc
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206
16. Borrowings, lease liabilities and net debt continued
| Significant | Significant | |||
| Quoted prices in | observable | unobservable | ||
| active markets | inputs | inputs | ||
| (Level 1) | (Level 2) | (Level 3) | Total | |
| 31 December 2024 | £m | £m | £m | £m |
Bonds | 7,694 | 78 | – | 7,772 |
Commercial paper | – | 1,040 | – | 1,040 |
| Significant | Significant | |||
| Quoted prices in | observable | unobservable | ||
| active markets | inputs | inputs | ||
| (Level 1) | (Level 2) | (Level 3) | Total | |
| 31 December 2023 | £m | £m | £m | £m |
Bonds | 7,208 | – | – | 7,208 |
Commercial paper | – | 1,206 | – | 1,206 |
Bank borrowings and trade finance loan | – | 10 | – | 10 |
Notes to the consolidated financial statements continued
207 London Stock Exchange Group plc
Annual Report 2024
Financial Statements
Notes to the consolidated financial statements continued
16. Borrowings, lease liabilities and net debt continued
2024 | 2023 | |||||
| Drawn | Swapped 1 | Effective | Drawn | Swapped 1 | Effective | |
| Currency | £m | £m | £m | £m | £m | £m |
Sterling | 566 | – | 566 | 652 | – | 652 |
Euro | 3,968 | (1,376) | 2,592 | 4,148 | (1,818) | 2,330 |
US dollar | 4,797 | 1,376 | 6,173 | 4,263 | 1,818 | 6,081 |
Total borrowings excluding lease liabilities | 9,331 | – | 9,331 | 9,063 | – | 9,063 |
London Stock Exchange Group plc
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208
16. Borrowings, lease liabilities and net debt continued
| 2024 | 2023 | ||
| Notes | £m | £m | |
1 January | 636 | 672 | |
Lease liabilities assumed on acquisition of subsidiaries | – | 1 | |
Leases terminated early | (1) | (2) | |
New lease contracts | 81 | 66 | |
Lease modifications | 10 | 72 | 74 |
Lease interest expense | 5 | 20 | 17 |
Lease payments – principal | (156) | (156) | |
Lease payments – interest | (20) | (17) | |
Foreign exchange translation | 2 | (19) | |
31 December | 634 | 636 | |
Non-current lease liabilities | 494 | 518 | |
current lease liabilities | 140 | 118 | |
Total lease liabilities | 634 | 636 |
| 2024 | 2023 | ||
| Notes | £m | £m | |
| Non-current | |||
Bank borrowings | 16.1 | 6 | 8 |
Bonds | 16.1 | (7,885) | (7,022) |
Trade finance loans | 16.1 | – | (1) |
Lease liabilities | 16.2 | (494) | (518) |
Derivative financial assets | 17.1 | 63 | 94 |
Derivative financial liabilities | 17.2 | (63) | (22) |
Total due after one year | (8,373) | (7,461) | |
| Current | |||
Cash and cash equivalents | 14 | 3,475 | 3,580 |
Bank borrowings | 16.1 | – | (17) |
Commercial paper | 16.1 | (1,037) | (1,206) |
Bonds | 16.1 | (415) | (825) |
Lease liabilities | 16.2 | (140) | (118) |
Derivative financial assets | 17.1 | 50 | 11 |
Derivative financial liabilities | 17.2 | (14) | (60) |
Total due within one year | 1,919 | 1,365 | |
Net debt | (6,454) | (6,096) |
Notes to the consolidated financial statements continued
209 London Stock Exchange Group plc
Annual Report 2024
Financial Statements
Notes to the consolidated financial statements continued
16. Borrowings, lease liabilities and net debt continued
| Bank | Commercial | Trade finance | Lease | Total | ||
| borrowings | Bonds | paper | loans | liabilities | borrowings | |
| £m | £m | £m | £m | £m | £m | |
1 January 2023 | 1,290 | 6,860 | – | 1 | 672 | 8,823 |
Cash flows from financing activities | (1,244) | 1,206 | 1,166 | – | (156) | 972 |
Arrangement fees paid 2 | (5) | (5) | – | – | – | (10) |
Other movements 3 | 3 | 51 | 34 | – | 139 | 227 |
Foreign exchange translation | (35) | (265) | 6 | – | (19) | (313) |
31 December 2023 | 9 | 7,847 | 1,206 | 1 | 636 | 9,699 |
Cash flows from financing activities | (17) | 572 | (164) | – | (156) | 235 |
Interest paid 1 | – | – | (72) | – | – | (72) |
Arrangement fees paid 2 | – | (11) | – | – | – | (11) |
Other movements 3 | 2 | (27) | 70 | (1) | 152 | 196 |
Foreign exchange translation | – | (81) | (3) | – | 2 | (82) |
31 December 2024 | (6) | 8,300 | 1,037 | – | 634 | 9,965 |
London Stock Exchange Group plc
Annual Report 2024
210
Notes to the consolidated financial statements continued
211 London Stock Exchange Group plc
Annual Report 2024
Financial Statements
Notes to the consolidated financial statements continued
17. Financial assets and financial liabilities continued
London Stock Exchange Group plc
Annual Report 2024
212
17. Financial assets and financial liabilities continued
| Amortised | ||||
| cost | FVOCI | FVPL | Total | |
| 31 December 2024 | £m | £m | £m | £m |
Clearing business financial assets 1 | ||||
— Clearing member trading assets | – | – | 594,555 | 594,555 |
— Other receivables from clearing members | 6,882 | – | – | 6,882 |
— Other financial assets 2 | – | 18,134 | – | 18,134 |
— Clearing member cash and cash equivalents 2 | 72,909 | – | – | 72,909 |
Total clearing member assets | 79,791 | 18,134 | 594,555 | 692,480 |
Trade and other receivables 3 | 1,583 | – | – | 1,583 |
Cash and cash equivalents | 3,475 | – | – | 3,475 |
Investments in financial assets – equity instruments | – | 50 | – | 50 |
Investments in financial assets – debt instruments | – | 8 | – | 8 |
| Derivative financial instruments designated as net investment hedges | ||||
— Foreign exchange forward contracts | – | – | 2 | 2 |
| Derivative financial instruments designated as fair value hedges | ||||
— Interest rate swaps | – | – | 57 | 57 |
| Derivative financial instruments not designated as hedges | ||||
— Foreign exchange forward contracts | – | – | 27 | 27 |
— Embedded foreign exchange contracts | – | – | 27 | 27 |
Total derivative financial instruments | – | – | 113 | 113 |
Total financial assets | 84,849 | 18,192 | 594,668 | 697,709 |
| Amortised cost | FVOCI | FVPL | Total | |
| 31 December 2023 | £m | £m | £m | £m |
| Clearing business financial assets | ||||
— Clearing member trading assets | – | – | 652,593 | 652,593 |
— Other receivables from clearing members | 7,139 | – | – | 7,139 |
— Other financial assets | – | 17,275 | – | 17,275 |
— Clearing member cash and cash equivalents | 86,528 | – | – | 86,528 |
Total clearing member assets | 93,667 | 17,275 | 652,593 | 763,535 |
Trade and other receivables 1,2 | 1,955 | – | 15 | 1,970 |
Cash and cash equivalents | 3,580 | – | – | 3,580 |
Investments in financial assets – equity instruments | – | 372 | – | 372 |
| Derivative financial instruments designated as fair value hedges | ||||
— Interest rate swaps | – | – | 47 | 47 |
| Derivative financial instruments not designated as hedges | ||||
— Cross-currency interest rate swaps | – | – | 45 | 45 |
— Foreign exchange forward contracts | – | – | 7 | 7 |
— Embedded foreign exchange contracts | – | – | 6 | 6 |
Total derivative financial instruments | – | – | 105 | 105 |
Total financial assets | 99,202 | 17,647 | 652,713 | 769,562 |
Notes to the consolidated financial statements continued
213 London Stock Exchange Group plc
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Financial Statements
Notes to the consolidated financial statements continued
17. Financial assets and financial liabilities continued
| Amortised | |||
| cost | FVPL | Total | |
| 31 December 2024 | £m | £m | £m |
| Clearing business financial liabilities | |||
— Clearing member trading liabilities | – | 594,555 | 594,555 |
— Other payables to clearing members | 98,085 | – | 98,085 |
Total clearing member financial liabilities | 98,085 | 594,555 | 692,640 |
Trade and other payables 1 | 2,261 | – | 2,261 |
Borrowings and lease liabilities | 9,965 | – | 9,965 |
| Derivative financial instruments designated as net investment hedges | |||
— Cross-currency interest rate swaps | – | 25 | 25 |
| Derivative financial instruments designated as fair value hedges | |||
— Interest rate swaps | – | 1 | 1 |
| Derivative financial instruments not designated as hedges | |||
— Cross-currency interest rate swaps | – | 37 | 37 |
— Foreign exchange forward contracts | – | 12 | 12 |
— Embedded foreign exchange contracts | – | 2 | 2 |
Total derivative financial instruments | – | 77 | 77 |
Total financial liabilities | 110,311 | 594,632 | 704,943 |
| Amortised | |||
| cost | FVPL | Total | |
| 31 December 2023 | £m | £m | £m |
| Clearing business financial liabilities | |||
— Clearing member trading liabilities | – | 652,593 | 652,593 |
— Other payables to clearing members | 111,448 | – | 111,448 |
Total clearing member financial liabilities | 111,448 | 652,593 | 764,041 |
Trade and other payables 1 | 2,300 | 21 | 2,321 |
Borrowings and lease liabilities | 9,699 | – | 9,699 |
| Derivative financial instruments designated as net investment hedges | |||
— Cross-currency interest rate swaps | – | 52 | 52 |
| Derivative financial instruments not designated as hedges | |||
— Foreign exchange forward contracts | – | 11 | 11 |
— Embedded foreign exchange contracts | – | 19 | 19 |
Total derivative financial instruments | – | 82 | 82 |
Total financial liabilities | 123,447 | 652,696 | 776,143 |
London Stock Exchange Group plc
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214
17. Financial assets and financial liabilities continued
| Quoted prices | Significant | Significant | ||
| in active | observable | unobservable | ||
| markets | inputs | inputs | ||
| (Level 1) | (Level 2) | (Level 3) | Total | |
| 31 December 2024 | £m | £m | £m | £m |
| Clearing business financial assets | ||||
— Derivative instruments | – | 4,367 | – | 4,367 |
— Non-derivative instruments | – | 590,188 | – | 590,188 |
— Other financial assets | 18,134 | – | – | 18,134 |
18,134 | 594,555 | – | 612,689 | |
Investments in financial assets – equity instruments | – | – | 50 | 50 |
Investments in financial assets – debt instruments | – | – | 8 | 8 |
| Derivative financial instruments designated as net investment hedges | ||||
— Foreign exchange forward contracts | – | 2 | – | 2 |
| Derivative financial instruments designated as fair value hedges | ||||
— Interest rate swaps | – | 57 | – | 57 |
| Derivative financial instruments not designated as hedges | ||||
— Foreign exchange forward contracts | – | 27 | – | 27 |
— Embedded foreign exchange contracts | – | 27 | – | 27 |
Total financial assets measured at fair value 1 | 18,134 | 594,668 | 58 | 612,860 |
| Quoted prices | Significant | Significant | ||
| in active | observable | unobservable | ||
| markets | inputs | inputs | ||
| (Level 1) | (Level 2) | (Level 3) | Total | |
| 31 December 2023 | £m | £m | £m | £m |
| Clearing business financial assets | ||||
— Derivative instruments | 10 | 7,271 | – | 7,281 |
— Non-derivative instruments | – | 645,312 | – | 645,312 |
— Other financial assets | 17,275 | – | – | 17,275 |
17,285 | 652,583 | – | 669,868 | |
Investments in financial assets – equity Instruments | – | – | 372 | 372 |
| Derivative financial instruments designated as fair value hedges | ||||
— Interest rate swaps | – | 47 | – | 47 |
| Derivative financial instruments not designated as hedges | ||||
— Cross-currency interest rate swaps | – | 45 | – | 45 |
— Foreign exchange forward contracts | – | 7 | – | 7 |
— Embedded foreign exchange contracts | – | 6 | – | 6 |
— Trade and other receivables – other | – | – | 15 | 15 |
Total financial assets measured at fair value 1 | 17,285 | 652,688 | 387 | 670,360 |
Notes to the consolidated financial statements continued
215 London Stock Exchange Group plc
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Financial Statements
Notes to the consolidated financial statements continued
17. Financial assets and financial liabilities continued
| Quoted prices | Significant | Significant | ||
| in active | observable | unobservable | ||
| markets | inputs | inputs | ||
| (Level 1) | (Level 2) | (Level 3) | Total | |
| 31 December 2024 | £m | £m | £m | £m |
| Clearing business financial liabilities | ||||
— Derivative instruments | – | 4,367 | – | 4,367 |
— Non-derivative instruments | – | 590,188 | – | 590,188 |
– | 594,555 | – | 594,555 | |
| Derivative financial instruments designated as net investment hedges | ||||
— Cross-currency interest rate swaps | – | 25 | – | 25 |
| Derivative financial instruments designated as fair value hedges | ||||
— Interest rate swaps | – | 1 | – | 1 |
| Derivative financial instruments not designated as hedges | ||||
— Cross-currency interest rate swaps | – | 37 | – | 37 |
— Foreign exchange forward contracts | – | 12 | – | 12 |
— Embedded foreign exchange contracts | – | 2 | – | 2 |
Total financial liabilities measured at fair value 1 | – | 594,632 | – | 594,632 |
| Quoted prices | Significant | Significant | ||
| in active | observable | unobservable | ||
| markets | inputs | inputs | ||
| (Level 1) | (Level 2) | (Level 3) | Total | |
| 31 December 2023 | £m | £m | £m | £m |
| Clearing business financial liabilities | ||||
— Derivative instruments | 10 | 7,271 | – | 7,281 |
— Non-derivative instruments | – | 645,312 | – | 645,312 |
10 | 652,583 | – | 652,593 | |
Contingent consideration payable | – | – | 21 | 21 |
| Derivative financial instruments designated as net investment hedges | ||||
— Cross-currency interest rate swaps | – | 52 | – | 52 |
| Derivative financial instruments not designated as hedges | ||||
— Foreign exchange forward contracts | – | 11 | – | 11 |
— Embedded foreign exchange contracts | – | 19 | – | 19 |
Total financial liabilities measured at fair value 1 | 10 | 652,665 | 21 | 652,696 |
London Stock Exchange Group plc
Annual Report 2024
216
17. Financial assets and financial liabilities continued
Bonds and cross-currency interest rate swaps
In 2017 and 2018, the Group issued three €500 million bonds,
maturing in September 2024, December 2027 and September 2029
(refer to note 16.1).
The €500 million bond which matured in September 2024 and
€200 million of the bond maturing in September 2029 had been
swapped to US$836 million through a series of cross-currency interest
rate swaps, maturing on the same dates as the bonds. The cross-
currency interest rate swaps effectively exchange the obligations
and coupons of the bonds from euros into US dollars. The combined
€700 million bonds and cross-currency interest rate swaps have been
designated as hedging instruments in the Group’s net investment in
US dollar reporting subsidiaries.
The €500 million bond maturing in December 2027 and €300 million of
the bond maturing in September 2029, which has not been swapped
into US dollars, have been designated as hedging instruments in the
Group’s net investment in euro reporting subsidiaries.
In September 2024, the €500 million bond and cross-currency interest
rate swaps, used to swap €500 million into US$597 million, matured.
This reduced the nominal value of the bonds designated as hedging
instruments from €1,500 million to €1,000 million and the nominal
value of the cross-currency interest rate swaps designated as hedging
instruments from US$836 million to US$239 million.
Euro denominated bonds | 2024 | 2023 |
Carrying value of debt on the balance sheet | (£827m) | (£1,295m) |
Nominal value of hedging instrument | €1,000m | €1,500m |
Hedge ratio | 1:1 | 1:1 |
Hedge effectiveness | 100% | 100% |
Change in carrying value of hedging instrument | £50m | £31m |
Change in value of net investment | (£50m) | (£31m) |
Cumulative gain held in hedging reserve for continuing hedges | £59m | £29m |
| Gain held in the hedging reserve for relationships | ||
for which hedge accounting no longer applies | £22m | – |
Cross-currency interest rate swap | 2024 | 2023 |
| Fair value of derivative liability on the | ||
balance sheet | (£25m) | (£52m) |
Nominal value of hedging instrument | $239m | $836m |
Hedge ratio | 1:1 | 1:1 |
Hedge effectiveness | 100% | 100% |
Change in fair value of derivative | (£3m) | £32m |
Change in value of net investment | £3m | (£32m) |
Cumulative loss held in hedging reserve for continuing hedges | (£24m) | (£52m) |
| Loss held in the hedging reserve for relationships | ||
for which hedge accounting no longer applies | (£31m) | – |
Foreign exchange forward contracts
In November 2024, the Group entered into foreign exchange forward
contracts to hedge Japanese Yen 39 billion and Swiss Franc 50 million
of its investments in foreign operations.
GBP/JPY foreign exchange forward contracts | 2024 | 2023 |
Fair value of derivative asset on the balance sheet | £1m | – |
Nominal value of hedging instrument | JPY39b | – |
Hedge ratio | 1:1 | – |
Hedge effectiveness | 100% | – |
Change in fair value of derivative | – | – |
Change in value of net investment | – | – |
Cumulative loss held in the hedging reserve for continuing hedges | – | – |
GBP/CHF foreign exchange forward contracts | 2024 | 2023 |
Fair value of derivative asset on the balance sheet | £1m | – |
Nominal value of hedging instrument | CHF50m | – |
Hedge ratio | 1:1 | – |
Hedge effectiveness | 100% | – |
Change in fair value of derivative | – | – |
Change in value of net investment | – | – |
Cumulative gain held in the hedging reserve for continuing hedges | – | – |
Notes to the consolidated financial statements continued
217 London Stock Exchange Group plc
Annual Report 2024
Financial Statements
Notes to the consolidated financial statements continued
17. Financial assets and financial liabilities continued
€1,400 million interest rate swaps | 2024 | 2023 |
Fair value of derivative asset on the balance sheet | £57m | £47m |
Change in fair value of the derivative | (£2m) | £47m |
Nominal value of the hedging instruments | €1,400m | €1,400m |
Hedge ratio | 1:1 | 1:1 |
Carrying amount of the borrowings on the balance sheet | (£1,200m) | (£1,254m) |
Accumulated amounts of fair value adjustment on the hedged items | (£43m) | (£45m) |
Change in value of hedged items | £2m | (£45m) |
| Hedge ineffectiveness recorded in net finance | ||
costs in the income statement | £1m | (£2m) |
US$750 million interest rate swaps | 2024 | 2023 |
Fair value of derivative asset on the balance sheet | (£1m) | – |
Change in fair value of the derivative | (£9m) | – |
Nominal value of the hedging instruments | US$750m | – |
Hedge ratio | 1:1 | – |
Carrying amount of the borrowings on the balance sheet | (£587m) | – |
Accumulated amounts of fair value adjustment on the hedged items | £9m | – |
Change in value of hedged items | £9m | – |
| Hedge ineffectiveness recorded in net finance | ||
costs in the income statement | – | – |
London Stock Exchange Group plc
Annual Report 2024
218
17. Financial assets and financial liabilities continued
| Traded against US | ||||
| Traded against sterling | dollars | |||
| 2024 | 2023 | 2024 | 2023 | |
| Sell/(buy) | £m | £m | £m | £m |
Euro | (55) | (598) | 121 | 97 |
US dollar | (1) | 635 | – | – |
Japanese yen | (49) | (29) | – | – |
Singapore dollar | (33) | (22) | – | – |
Hong Kong dollar | (32) | (32) | – | – |
Romanian leu | (22) | (22) | – | – |
Australian dollar | (15) | (20) | – | – |
Canadian dollar | (14) | (13) | – | – |
South African rand | 12 | 9 | – | – |
Danish krone | (9) | (7) | – | – |
Taiwan dollar | (8) | – | – | – |
Swiss franc | (6) | (8) | – | – |
Other currencies | (18) | (12) | – | – |
| 2024 | 2023 | ||
| Note | £m | £m | |
1 January | (40) | (102) | |
| Net gains on net | |||
investment hedges | 18.2 | 47 | 63 |
Amounts recycled to the income statement | 18.2 | 6 | (3) |
Foreign exchange translation | – | 2 | |
31 December | 13 | (40) |
Notes to the consolidated financial statements continued
219 London Stock Exchange Group plc
Annual Report 2024
Financial Statements
Notes to the consolidated financial statements continued
17. Financial assets and financial liabilities continued
| 2024 | 2023 | |
| Book value of capital | £m | £m |
Total shareholders’ funds | 23,013 | 23,807 |
Group borrowings excluding lease liabilities | 9,331 | 9,063 |
| 2024 | 2023 | |
| Regulatory and operational capital | £m | £m |
Regulatory cash and cash equivalents | 1,342 | 1,329 |
Letters of credit | 16 | 19 |
Total regulatory and operational capital | 1,358 | 1,348 |
London Stock Exchange Group plc
Annual Report 2024
220
17. Financial assets and financial liabilities continued
| 2024 | 2023 | ||
| Total collateral held | £bn | £bn | |
Collateral security | Cash received | 92 | 110 |
Non-cash pledged | 177 | 172 | |
Guarantees pledged | 1 | 2 | |
Total collateral as at 31 December | 270 | 284 | |
Maximum collateral held during the year | 334 | 312 |
| 2024 | 2023 | |
| £bn | £bn | |
Total investment portfolio | 90 | 104 |
Maximum portfolio size during the year | 110 | 147 |
| Additional portfolio information: | ||
Amount invested securely | 99.98% | 99.99% |
Weighted average maturity (days) | 72 | 65 |
Notes to the consolidated financial statements continued
221 London Stock Exchange Group plc
Annual Report 2024
Financial Statements
Notes to the consolidated financial statements continued
17. Financial assets and financial liabilities continued
| Trade receivables | ||||
| Fees | ||||
| receivable | <180 days | >180 days | Total | |
| 31 December 2024 | £m | £m | £m | £m |
Expected credit loss rate | <1% | <1% | 18.0% | |
Total receivables | 300 | 865 | 86 | 1,251 |
Expected credit loss | – | (2) | (18) | (20) |
Net trade and fees receivables | 300 | 863 | 68 | 1,231 |
| Fees | Trade receivables | |||
| receivable | <180 days | >180 days | Total | |
| 31 December 2023 | £m | £m | £m | £m |
Expected credit loss rate | <1% | <1% | 14.2% | |
Total receivables | 244 | 870 | 71 | 1,185 |
Expected credit loss | – | (3) | (10) | (13) |
Net trade and fees receivables | 244 | 867 | 61 | 1,172 |
| 2024 | 2023 | |
| Country/organisation | £bn | £bn |
France | 20 | 22 |
US | 17 | 13 |
UK | 10 | 11 |
European Union (supranational) | 2 | 2 |
Other | 2 | 2 |
London Stock Exchange Group plc
Annual Report 2024
222
17. Financial assets and financial liabilities continued
| Less than | Between 1 | Between 2 | Over | ||
| 1 year | and 2 years | and 5 years | 5 years | Total | |
| 31 December 2024 | £m | £m | £m | £m | £m |
Borrowings (excluding lease liabilities) | 1,664 | 1,584 | 3,423 | 3,932 | 10,603 |
Lease liabilities | 158 | 113 | 215 | 213 | 699 |
Trade and other payables | 1,845 | – | – | – | 1,845 |
Clearing member liabilities | 692,640 | – | – | – | 692,640 |
Other non-current payables | – | 28 | 335 | 195 | 558 |
| Less than | Between 1 | Between 2 | Over | ||
| 1 year | and 2 years | and 5 years | 5 years | Total | |
| 31 December 2023 | £m | £m | £m | £m | £m |
Borrowings (excluding lease liabilities) 1 | 2,209 | 581 | 3,394 | 3,930 | 10,114 |
Lease liabilities | 137 | 113 | 235 | 253 | 738 |
Trade and other payables 1 | 1,853 | – | – | – | 1,853 |
Clearing member liabilities | 764,041 | – | – | – | 764,041 |
Other non-current payables | – | 55 | 314 | 241 | 610 |
Notes to the consolidated financial statements continued
223 London Stock Exchange Group plc
Annual Report 2024
Financial Statements
Notes to the consolidated financial statements continued
17. Financial assets and financial liabilities continued
| Less than 1 | Between 1 | Between 2 | Over 5 | ||
| year | and 2 years | and 5 years | years | Total | |
| 31 December 2024 | £m | £m | £m | £m | £m |
Gross inflow | 3,250 | 642 | 277 | 669 | 4,838 |
Gross outflow | (3,253) | (671) | (355) | (689) | (4,968) |
| Less than 1 | Between 1 | Between 2 | Over | ||
| year | and 2 years | and 5 years | 5 years | Total | |
| 31 December 2023 | £m | £m | £m | £m | £m |
Gross inflow | 3,881 | 61 | 724 | 833 | 5,499 |
Gross outflow | (3,960) | (90) | (758) | (850) | (5,658) |
London Stock Exchange Group plc
Annual Report 2024
224
17. Financial assets and financial liabilities continued
2024 | 2023 | ||||
| Profit | Profit | ||||
| after tax | Equity | after tax | Equity | ||
| £m | £m | £m | £m | ||
Euro | Sterling weakens | 18 | (66) | 5 | (68) |
Sterling strengthens | (16) | 60 | (4) | 64 | |
US dollar | Sterling weakens | 18 | (19) | 7 | (66) |
Sterling strengthens | (16) | 7 | (6) | 60 |
Notes to the consolidated financial statements continued
225 London Stock Exchange Group plc
Annual Report 2024
Financial Statements
Notes to the consolidated financial statements continued
17. Financial assets and financial liabilities continued
London Stock Exchange Group plc
Annual Report 2024
226
17. Financial assets and financial liabilities continued
| Amounts not | |||||
| Amount as | netted, but | ||||
| reported in | available in | ||||
| the balance | event of | ||||
| Gross amount | Amount offset | sheet | default 1 | Net amount | |
| 31 December 2024 | £m | £m | £m | £m | £m |
Other financial assets 2,3 | 1,804,271 | (1,799,904) | 4,367 | (4,367) | – |
Reverse repurchase agreements 2 | 686,211 | (96,023) | 590,188 | (590,188) | – |
Derivative financial instruments 4 | 86 | – | 86 | (48) | 38 |
Total assets | 2,490,568 | (1,895,927) | 594,641 | (594,603) | 38 |
Other financial liabilities 2,3 | (1,819,018) | 1,814,651 | (4,367) | 4,367 | – |
Repurchase agreements 2 | (686,211) | 96,023 | (590,188) | 590,188 | – |
Derivative financial instruments 4 | (75) | – | (75) | 48 | (27) |
Total liabilities | (2,505,304) | 1,910,674 | (594,630) | 594,603 | (27) |
| Amounts not | |||||
| netted, but | |||||
| Amount as | available in | ||||
| reported in the | event of | ||||
| Gross amount | Amount offset | balance sheet | default 1 | Net amount | |
| 31 December 2023 | £m | £m | £m | £m | £m |
Other financial assets 2,3 | 2,340,881 | (2,333,561) | 7,320 | (7,320) | – |
Reverse repurchase agreements 2 | 769,971 | (124,698) | 645,273 | (645,273) | – |
Derivative financial instruments 4 | 115 | – | 115 | (12) | 103 |
Total assets | 3,110,967 | (2,458,259) | 652,708 | (652,605) | 103 |
Other financial liabilities 2,3 | (2,353,867) | 2,346,547 | (7,320) | 7,320 | – |
Repurchase agreements 2 | (769,971) | 124,698 | (645,273) | 645,273 | – |
Derivative financial instruments 4 | (69) | – | (69) | 12 | (57) |
Total liabilities | (3,123,907) | 2,471,245 | (652,662) | 652,605 | (57) |
Notes to the consolidated financial statements continued
227 London Stock Exchange Group plc
Annual Report 2024
Financial Statements
Notes to the consolidated financial statements continued
| Number of | Ordinary | Share | ||
shares 1 | share capital 1 | premium 2 | Total | |
| millions | £m | £m | £m | |
1 January 2023 | 554 | 39 | 978 | 1,017 |
Share buyback | (15) | (1) | – | (1) |
Issue of shares to the Employee Benefit Trust 3 | 2 | – | – | – |
31 December 2023 | 541 | 38 | 978 | 1,016 |
Share buyback | (11) | – | – | – |
Issue of shares to the Employee Benefit Trust 3 | 1 | – | – | – |
31 December 2024 | 531 | 38 | 978 | 1,016 |
London Stock Exchange Group plc
Annual Report 2024
228
Notes to the consolidated financial statements continued
18. Share capital, share premium and other reserves continued
| Foreign | |||||||
| Merger | Capital | Reverse | exchange | ||||
| relief | redemption | acquisition | Hedging | translation | |||
reserve 1 | reserve 2 | reserve 3 | reserve 4 | reserve 5 | Total | ||
| Note | £m | £m | £m | £m | £m | £m | |
1 January 2023 | 18,286 | 514 | (512) | (102) | 2,953 | 21,139 | |
Shares cancelled | – | 1 | – | – | – | 1 | |
Net gains on net investment hedges | 17.4e | – | – | – | 63 | – | 63 |
Amounts recycled to income statement | 17.4e | – | – | – | (3) | – | (3) |
Foreign exchange differences on translation of foreign operations | – | – | – | 2 | (1,328) | (1,326) | |
31 December 2023 | 18,286 | 515 | (512) | (40) | 1,625 | 19,874 | |
Shares cancelled | – | – | – | – | – | – | |
Net gains on net investment hedges | 17.4e | – | – | – | 47 | – | 47 |
Amounts recycled to income statement | 17.4e | – | – | – | 6 | – | 6 |
Foreign exchange differences on translation of foreign operations | – | – | – | – | 191 | 191 | |
31 December 2024 | 18,286 | 515 | (512) | 13 | 1,816 | 20,118 |
229 London Stock Exchange Group plc
Annual Report 2024
Financial Statements
| Proportion of economic interest held by | ||
non-controlling interests | 2024 | 2023 |
Tradeweb group | 49.2% | 49.0% |
LCH Group 1 | 5.8% | 17.4% |
Turquoise Global Holdings Limited | 15.8% | 15.8% |
| Profit for the year allocated to | 2024 | 2023 | |
non-controlling interests | Notes | £m | £m |
Tradeweb group | 19.1 | 184 | 110 |
LCH Group | 19.2 | 53 | 77 |
Other | (1) | – | |
236 | 187 |
| Accumulated balance of | 2024 | 2023 | |
non-controlling interests | Notes | £m | £m |
Tradeweb group | 19.1 | 2,026 | 1,828 |
LCH Group | 19.2 | 106 | 300 |
Other | 8 | 9 | |
2,140 | 2,137 |
Summarised financial information for the Tradeweb and LCH groups is
provided below.
19.1 Tradeweb group
The Group has a 45.5% economic interest in Tradeweb Markets Inc,
a US company. Tradeweb Markets Inc is the parent company of
Tradeweb Markets LLC in which the Group holds a further direct
interest. This gives the Group an effective economic interest of 50.8%
in Tradeweb Markets LLC (2023: 51.0%).
The Tradeweb group's summarised financial information below differs
from that reported by Tradeweb. The numbers disclosed here include
adjustments to bring their accounting policies in line with those used
by the Group and include the impact of acquisition accounting.
| Summarised financial information | 2024 | 2023 |
attributable to non-controlling interests 1 | £m | £m |
Profit for the year attributable to non-controlling interests | 184 | 110 |
| Total comprehensive income for the year | ||
attributable to non-controlling interests | 222 | 3 |
| Dividends paid to non-controlling interests | ||
in the year | 37 | 33 |
1 The summarised financial information includes any amortisation and impairment of goodwill
and purchased intangible assets, and the related deferred tax benefit, attributable to
non-controlling interests.
| 2024 | 2023 | |
Summarised balance sheet 1 | £m | £m |
Non-current assets | 8,814 | 7,909 |
Current assets | 1,406 | 1,846 |
Current liabilities | (345) | (540) |
Non-current liabilities | (492) | (504) |
Net assets | 9,383 | 8,711 |
| Attributable to: | ||
Equity holders of the company | 7,357 | 6,883 |
Non-controlling interests | 2,026 | 1,828 |
Total equity | 9,383 | 8,711 |
1 The summarised balance sheet includes goodwill and purchased intangible assets together
with associated amortisation, impairment and deferred tax.
| Summarised total comprehensive | 2024 | 2023 |
income 1 and cash flows | £m | £m |
Total income for the year | 1,350 | 1,078 |
Total profit for the year 2 | 446 | 338 |
Total comprehensive income for the year 2 | 544 | 75 |
| Net (decrease)/increase in cash and cash | ||
equivalents | (268) | 288 |
1 The summarised total comprehensive income of the Tradeweb group excludes any
amortisation and impairment of goodwill and purchased intangible assets (together with any
associated deferred tax).
2 For 2023, the total profit and comprehensive income for the year have been restated to
include the results of the Tradeweb Markets Inc consolidated group. Previously the results
of Tradeweb Markets LLC sub-group were shown.
London Stock Exchange Group plc
Annual Report 2024
230
Notes to the consolidated financial statements continued
19. Non-controlling interests continued
19.2 LCH Group
The Group owns 94.2% (2023: 82.6%) of LCH Group Holdings Limited,
which is the parent of LCH Limited, based in the UK, and LCH SA,
based in France. During the year, the Group acquired an additional
11.6% non-controlling interest in LCH Group.
| Summarised financial information | 2024 | 2023 |
attributable to non-controlling interests 1 | £m | £m |
Profit for the year attributable to non-controlling interests | 53 | 77 |
| Total comprehensive income for the year | ||
attributable to non-controlling interests | 45 | 65 |
| Dividends paid to non-controlling interests | ||
in the year | 38 | 47 |
1 The summarised financial information includes any amortisation and impairment of goodwill
and purchased intangible assets, and the related deferred tax benefit, attributable to
non-controlling interests.
| 2024 | 2023 | |
Summarised balance sheet 1 | £m | £m |
Non-current assets | 487 | 501 |
Current assets | 694,487 | 765,621 |
Current liabilities | (693,265) | (764,511) |
Non-current liabilities | (46) | (24) |
Net assets | 1,663 | 1,587 |
| Attributable to: | ||
Equity holders of the company | 1,557 | 1,287 |
Non-controlling interests | 106 | 300 |
Total equity | 1,663 | 1,587 |
1 The summarised balance sheet includes goodwill and purchased intangible assets together
with associated amortisation, impairment and deferred tax.
Summarised total comprehensive income 1 | 2024 | 2023 |
| and cash flows | £m | £m |
Total income for the year | 1,070 | 1,063 |
Total profit for the year | 407 | 418 |
Total comprehensive income for the year | 356 | 356 |
Net increase in cash and cash equivalents | 101 | 239 |
1 The summarised total comprehensive income of the LCH Group excludes any amortisation
and impairment of goodwill and purchased intangible assets (together with any associated
deferred tax).
| 2024 | 2023 | ||
| Notes | £m | £m | |
Group share plans 1 | 20.1 | 92 | 87 |
| Shares issued to Management | |||
Incentive Plan (MIP) participants | – | 2 | |
92 | 89 | ||
| Tradeweb share schemes | |||
(recognised in non-controlling interests) | 20.2 | 73 | 54 |
Total share-based payment expense | 4.1 | 165 | 143 |
| 2024 | 2023 | |
| £m | £m | |
Share-based payments | 89 | 86 |
Cash receipts from employees on vesting | 13 | 6 |
102 | 92 |
231 London Stock Exchange Group plc
Annual Report 2024
Financial Statements
Notes to the consolidated financial statements continued
20. Share-based payments continued
20.1 Group share plans
In April 2024, the Equity Incentive Plan (EIP) was approved by ordinary
resolution of shareholders at the Annual General Meeting, replacing the
Long Term Incentive Plan 2014 (LTIP) and the Restricted Share Award
Plan 2018 (RSAP). No awards have been granted under these legacy
plans since April 2024.
The Group has the following active share plans:
— LSEG Equity Incentive Plan
Awards over performance share units (PSU) are granted at nil cost
to employees. Vesting of PSU awards is dependent on both market
and non-market performance conditions and continuing employment.
The performance conditions include achievement of relative TSR
(40%) and adjusted EPS (60%) targets.
Awards over restricted share units (RSU) are granted at nil cost to
employees and generally vest in tranches after one, two and three
years, subject to continuing employment.
Awards granted under the EIP may attract dividend equivalents in
shares or cash and a post-vesting holding period may be applied.
All awards are subject to malus and clawback provisions.
Unvested PSU and RSU awards granted before April 2024 are
subject to the rules of the LTIP and RSAP respectively. Awards
granted under the LTIP and RSAP do not attract dividend equivalents.
— LSEG Deferred Bonus Plan (DBP)
DBP awards are granted at nil cost to employees. Awards usually
either vest after three years or in tranches after one, two and three
years, subject to continuing employment and malus and clawback
provisions. Awards granted under the DBP may attract dividend
equivalents in shares or cash.
— Save As You Earn and International Sharesave Plan 2018 (SAYE)
The SAYE plans provide for grants of options over the Company’s
shares to employees who enter into a savings contract. The options
are granted at 20% below the market price on the date of grant and
vest after three years, subject to continuing employment. The holders
of the share options are not entitled to receive dividends declared
during the vesting period.
— International Share Incentive Plan (ISIP)
The ISIP is a plan in which employees can buy shares in the Company
monthly via salary deduction. For every two shares purchased by
the employee (purchased shares), the Group awards them one
additional share (accumulated shares) which vests after completion
of a three-year plan cycle. Accumulated shares are not entitled to
receive dividends declared during the vesting period.
Further details on the Group’s share plans are provided in the Directors’
Remuneration Report on pages 122 to 147.
The Company has an Employee Benefit Trust (EBT) to administer the
share plans and to acquire Company shares to meet the commitments
to Group employees. At 31 December 2024, 1,605,133 Company shares
were held by the trust (2023: 1,178,957). The EBT is fully funded by
the Company via loans, cash gifts and the issue and transfer of shares.
The cost of the Group’s shares held by the EBT is recognised directly
in equity.
Movements in the number of share options and awards outstanding and
their weighted average exercise prices are as follows:
| PSU/RSU/ | ||||
| SAYE | DBP 1 | ISIP 1 | ||
| Weighted | ||||
| average | ||||
| exercise | ||||
| price | ||||
| Number | £ | Number | Number | |
1 January 2023 | 534,270 | 62.57 | 3,085,671 | 14,852 |
Granted | 185,579 | 65.97 | 1,567,358 | 18,619 |
Exercised | (115,432) | 56.53 | (978,175) | (351) |
Lapsed/forfeited | (58,319) | 62.78 | (506,727) | (1,787) |
31 December 2023 | 546,098 | 64.98 | 3,168,127 | 31,333 |
Granted | 218,628 | 81.73 | 1,349,115 | 46,978 |
Exercised | (193,401) | 64.91 | (944,652) | (482) |
Lapsed/forfeited | (43,906) | 65.79 | (571,860) | (3,634) |
31 December 2024 | 527,419 | 71.88 | 3,000,730 | 74,195 |
Exercisable at 31 December 2024 | 37,177 | 66.99 | – | – |
31 December 2023 | 10,804 | 64.61 | – | – |
1 The PSU, RSU, DBP and ISIP awards have a nil exercise price. No matching shares were
granted under the RSAP in the year (2023: 9,192).
The weighted average share price of London Stock Exchange Group plc
shares during the year was £97.73 (2023: £81.66).
London Stock Exchange Group plc
Annual Report 2024
232
Notes to the consolidated financial statements continued
20. Share-based payments continued
The range of exercise prices and weighted average remaining
contractual life of awards and options outstanding are as follows:
2024 | 2023 | |||
| Weighted | Weighted | |||
| average | average | |||
| remaining | remaining | |||
| contractual | contractual | |||
| Number | life | Number | life | |
| outstanding | Years | outstanding | Years | |
| SAYE | ||||
— Less than £60 | – | – | 414 | 0.1 |
— Between £60 and £65 | 147,911 | 0.7 | 364,237 | 1.3 |
— Between £65 and £70 | 163,037 | 1.8 | 181,447 | 2.9 |
— Between £80 and £85 | 216,471 | 2.8 | – | – |
PSU/RSU/DBP | 3,000,730 | 1.2 | 3,168,127 | 1.3 |
ISIP | 74,195 | 1.6 | 31,333 | 1.7 |
Total | 3,602,344 | 3,745,558 |
A Monte Carlo simulation was used to calculate the fair value of the
PSU awards granted during the year that are subject to a relative TSR
condition. The model simulates the TSR and compares it against the
constituents of the UK FTSE 100 and global peers.
The valuation of RSU, DBP, SAYE and ISIP awards and the remaining
60% of PSU awards that are subject to adjusted EPS targets depends
on whether they are entitled to dividend equivalents. The market price
at grant date is deemed to reflect the fair value for the awards that are
eligible for dividend equivalents. The Black-Scholes model was used to
determine the related fair value for the awards and options that are not
eligible for dividend equivalents.
The inputs into both models include the share price at grant date,
expected volatility, dividend yields, risk-free interest rate and expected
life of the awards. The volatility assumption is based on the historical
three-year volatility of the Company’s share price as at the date of
grant. The risk-free interest rate represents the yield available on
a UK zero-coupon government bond on the date of grant for a term
commensurate with the vesting period of the award. The expected life
refers to the time from the date of grant to the date the awards vest.
The key assumptions used in the valuations of awards not eligible for dividend equivalents were as follows:
RSU | SAYE | ISIP | ||||||
Date of grant | from | 13-Mar | 26-Apr | 14-Jun | 11-Sep | 12-Dec | 30-Sep | 1-Jan |
to | 31-Dec | |||||||
Grant date share price (£) | from | 93.68 | 88.90 | 93.62 | 103.75 | 113.30 | 102.75 | 89.89 |
to | 115.21 | |||||||
Expected life (years) | from | 0.00 | 1.00 | 0.26 | 0.50 | 0.23 | 3.34 | 2.20 |
to | 4.01 | 4.01 | 2.25 | 2.00 | 2.26 | 3.20 | ||
Exercise price (£) | nil | nil | nil | nil | nil | 81.73 | nil | |
Dividend yield (%) | from | 1.11 | 1.13 | 1.06 | 1.23 | 1.13 | 1.22 | 1.17 |
to | 1.31 | 1.30 | 1.32 | 1.29 | 1.27 | 1.28 | ||
Risk-free interest rate (%) | from | 4.00 | 4.35 | 3.74 | 3.22 | 3.86 | 3.58 | 3.34 |
to | 4.66 | 4.86 | 4.32 | 4.10 | 4.15 | 4.14 | ||
Volatility (%) | from | 10.56 | 13.48 | 13.08 | 13.11 | 13.27 | 21.00 | 15.32 |
to | 27.76 | 27.56 | 21.88 | 15.96 | 15.74 | 24.58 | ||
Fair value (£) | from | 89.62 | 84.97 | 91.11 | 101.11 | 110.09 | 29.95 | 95.89 |
to | 93.68 | 87.77 | 93.32 | 103.11 | 113.00 |
233 London Stock Exchange Group plc
Annual Report 2024
Financial Statements
Notes to the consolidated financial statements continued
20. Share-based payments continued
| PSU | ||||
Date of grant | 26-Apr | 14-Jun | 11-Sep | |
Grant date share price (£) | 88.90 | 93.62 | 103.75 | |
Expected life (years) | from | 2.89 | 2.76 | 3.00 |
to | 4.01 | |||
Exercise price (£) | nil | nil | nil | |
Dividend yield (%) | 1.12 | |||
Risk-free interest rate (%) | from | 4.35 | 4.17 | 3.63 |
to | 4.51 | |||
Volatility (%) | from | 22.04 | 21.59 | 21.13 |
to | 27.56 | |||
Fair value TSR (£) | from | 38.97 | 44.36 | 47.08 |
to | 42.43 | 47.44 | 61.59 | |
Fair value EPS (£) | 84.97 |
20.2 Tradeweb share schemes
Tradeweb grants awards, including performance-based restricted share
units (PRSUs), performance share units (PSUs), stock options, restricted
stock units (RSUs) and dividend equivalent rights. The awards may have
performance-based and time-based vesting conditions. Stock options
have a maximum contractual term of 10 years.
— PRSUs (Equity-Settled)
PRSUs are promises to issue shares at the end of a three-year vesting
period. The number of shares a participant will receive upon vesting
is determined by a performance modifier, which is adjusted based on
Tradeweb’s financial performance in the grant year. The fair value of
the equity-settled PRSUs is calculated as at the grant date using the
share price.
— PSUs (Equity-Settled)
PSUs are promises to issue shares at the end of a three-year vesting
period. The number of shares a participant will receive upon vesting
is determined by a performance modifier, which is adjusted based on
Tradeweb’s total shareholder return over a three-year performance
period. The fair value of the equity-settled PSUs is calculated as at
the grant date using the Monte Carlo Simulation model.
London Stock Exchange Group plc
Annual Report 2024
234
Notes to the consolidated financial statements continued
21.1 Details of businesses acquired
| Voting | ||||
| equity | ||||
| Acquisition | interest | |||
Acquired business | Description of business | Reason for acquisition | date | acquired |
r8fin | Specialises in algorithmic-based | r8fin complements Tradeweb's existing Dealerweb | 19 January | 100% |
| execution for US Treasuries and | Active Streams, Dealerweb Central Limit Order Book, | 2024 | ||
| interest rate futures. | Request-for-Quote and AiEX offerings. | |||
ICD | A provider of institutional | ICD complements Tradeweb’s existing focus on | 1 August | 100% |
| investment technology for | institutional, wholesale and retail clients. | 2024 | ||
| corporate treasury organisations | ||||
| trading short-term investments. |
235 London Stock Exchange Group plc
Annual Report 2024
Financial Statements
Notes to the consolidated financial statements continued
21. Business combinations continued
21.2 Consideration transferred, assets acquired and liabilities assumed, and resulting goodwill
Goodwill arising from the acquisitions has been recognised as follows:
| r8fin | ICD 1 | Total | ||
| Note | £m | £m | £m | |
| Purchase consideration | ||||
— Cash (including settlement of share options) | 71 | 614 | 685 | |
— Equity consideration 2 | 29 | 3 | 32 | |
Total purchase consideration | 100 | 617 | 717 | |
| Less: Fair value of identifiable net assets acquired | ||||
— Intangible assets: Customer and supplier relationships 3 | 9 | (44) | (263) | (307) |
— Intangible assets: Software 3 | 9 | (22) | (124) | (146) |
— Intangible assets: Trade names 3 | 9 | – | (3) | (3) |
— Other non-current assets, excluding deferred tax assets | – | (1) | (1) | |
— Cash and cash equivalents | (1) | (18) | (19) | |
— Other current assets | (1) | (10) | (11) | |
— Total liabilities, excluding deferred tax liabilities | 1 | 8 | 9 | |
— Deferred tax liabilities 4 | – | 19 | 19 | |
Fair value of identifiable net assets acquired | (67) | (392) | (459) | |
Goodwill | 9 | 33 | 225 | 258 |
Allocated to cash-generating unit | Tradeweb | Tradeweb |
1 This purchase price allocation has been prepared on a provisional basis in accordance with IFRS 3 Business Combinations. If new information obtained within one year of the acquisition date,
about facts and circumstances that existed at the acquisition date, identifies adjustments to the amounts or any additional provisions that existed at the date of acquisition, then the accounting
for the acquisition will be revised.
2 Tradeweb issued 374,601 and 41,705 shares as partial consideration for the r8fin and ICD acquisitions respectively. The fair value of the shares issued was based on the closing share price
on the acquisition dates. The fair value of the shares issued for the r8fin acquisition was allocated to consideration transferred and of the fair value of the shares issued for the ICD acquisition,
£3 million was allocated to consideration transferred and £1 million will be recognised as a share-based payment expense over the service period subsequent to the acquisition date.
3 The fair values of the net assets acquired were determined based on assumptions that reasonable market participants would use in the principal (or most advantageous) market and primarily
included significant unobservable inputs (Level 3 of the fair value hierarchy). The following valuation methodologies were used to determine fair value:
– Customer relationships: multi-period excess earnings method (MEEM) (income approach)
– Software and trade names: relief from royalty method (income approach)
4 The deferred tax liability mainly comprises the tax effect of the intangible assets.
The goodwill is attributable to the anticipated growth in the underlying business and future technology not yet developed.
Goodwill recognised of £217 million is expected to be deductible for income tax purposes.
21.3 Revenue and profit contribution
If the acquisitions had all occurred on 1 January 2024, estimated Group
revenue and profit before tax would have been as follows:
| 2024 | |
| Pro-forma | |
| Group | |
| £m | |
Revenue | 8,622 |
Profit before tax | 1,254 |
From the acquisition date, for the period ended 31 December 2024, ICD
contributed revenue of £33 million and profit before tax of £2 million.
21.4 Acquisition-related costs
Acquisition-related costs, which include retention bonuses and advisor
fees, are recognised as non-underlying items in the income statement
(see note 2.3). The Group incurred acquisition-related costs as follows:
| 2024 | ||
| r8fin | ICD | |
| £m | £m | |
Acquisition-related costs | 1 | 14 |
London Stock Exchange Group plc
Annual Report 2024
236
Notes to the consolidated financial statements continued
Contract | Description | Minimum commitment | |
10-year strategic partnership with Microsoft | To architect LSEG’s data infrastructure using the | Minimum cloud-related spend of $2.8 billion | |
| Microsoft Cloud, and to jointly develop new | over the term of the partnership 1 | ||
| products and services for data and analytics | |||
| Agreement with Reuters News, entered into | To receive news and editorial content | Minimum CPI adjusted payment, which was | |
in 2018, | for a 30-year term | US$384 million for 2024 | |
Lease for Tradeweb’s New York City headquarters | Lease signed but not yet commenced as of | Future minimum lease payments of £127 million | |
| 31 December 2024, expected to commence | over an expected initial lease term of approximately | ||
| in mid-2025 | 16 years |
For many of these matters it is too early to determine the likely outcome,
or to reliably estimate the amount of any loss as a consequence and
therefore no provision is made. While the outcome of legal, tax and
regulatory matters can be inherently difficult to assess and/or the
potential loss often cannot be reliably estimated, we do not believe that
the liabilities, if any, which could result from the resolution of the legal,
tax and regulatory matters that arise in the normal course of business
are likely to have a material adverse effect on our consolidated financial
position, profit, or cash resources. However, it is possible that future
results could be materially affected by any developments relating to
any such legal, tax and regulatory matters.
24. Events after the reporting period
We plan to execute an ordinary share buyback of £500 million.
The share buyback programme will commence as soon as is
practicable and is expected to be completed by July 2025.
237 London Stock Exchange Group plc
Annual Report 2024
Financial Statements
London Stock Exchange Group plc
Company Financial Statements
Year ended 31 December 2024
Registered number 5369106
London Stock Exchange Group plc
Annual Report 2024
237
London Stock Exchange Group plc
Annual Report 2024
238
At 31 December Notes
2024
£m
2023
£m
Assets
Non-current assets
Investments in subsidiaries 3 24,954 24,954
Other receivables 4 138 143
Deferred tax assets 16 16
25,108 25,113
Current assets
Trade and other receivables 4 853 1,489
Cash and cash equivalents 5 4 5
857 1,494
Total assets 25,965 26,607
Liabilities
Current liabilities
Trade and other payables 6 604 991
Borrowings 7 – 433
Derivative financial instruments – 35
604 1,459
Non-current liabilities
Borrowings 7 1,318 1,350
Other payables 6 883 172
Derivative financial instruments 25 16
2,226 1,538
Total liabilities 2,830 2,997
Net assets 23,135 23,610
Equity
Capital and reserves attributable to the Company's equity holders
Ordinary share capital 38 38
Share premium 978 978
Retained earnings
1
3,321 3,796
Other reserves 18,798 18,798
Total equity 23,135 23,610
1 As permitted by Section 408 of the Companies Act 2006, the Company's income statement has not been presented in these financial statements. The profit for the year was £1,070 million
(2023: £2,252 million).
The financial statements on pages 238 to 251 were approved by the Board on 26 February 2025 and signed on its behalf by:
David Schwimmer Michel-Alain Proch
Chief Executive Officer Chief Financial Officer
26 February 2025
London Stock Exchange Group plc
Registered number 5369106
Company balance sheet
239 London Stock Exchange Group plc
Annual Report 2024
Financial Statements
Note
Number of
shares
1
millions
Ordinary
share capital
£m
Share
premium
£m
Retained
earnings
£m
Other reserves
Total
attributable to
equity holders
£m
Merger relief
reserve
2
£m
Capital
redemption
reserve
3
£m
1 January 2023 554 39 978 2,996 18,283 514 22,810
Profit for the year – – – 2,252 – – 2,252
Dividends – – – (611) – – (611)
Share buyback (15) (1) – (1,007) – 1 (1,007)
Issue of shares to the
Employee Benefit Trust (EBT) 2 – – – – – –
Share-based payments 8 – – – 83 – – 83
Reversal of impairment of loans
to the EBT – – – 77 – – 77
Cash receipts from employees
on vesting – – – 6 – – 6
31 December 2023 541 38 978 3,796 18,283 515 23,610
Profit for the year – – – 1,070 – – 1,070
Dividends
4
– – – (642) – – (642)
Share buyback
5
(11) – – (1,005) – – (1,005)
Issue of shares to the EBT
6
2 – – – – – –
Share-based payments 8 – – – 89 – – 89
Cash receipts from employees
on vesting – – – 13 – – 13
31 December 2024 532 38 978 3,321 18,283 515 23,135
1 At 31 December 2024, the Company held 12,122,106 (2023: 7,632,733) treasury shares which were acquired as part of its share buyback programme.
2 The merger relief reserve is a potentially distributable reserve arising as a result of shares issued to acquire subsidiaries.
3 The capital redemption reserve was set up as a result of a court approved capital reduction scheme and is non-distributable.
4 Dividends declared and paid are disclosed in note 8 of the Group's consolidated financial statements. The Board proposed a final dividend in respect of the year ended 31 December 2024 of
89.0p per share (31 December 2023: 79.3p per share).
5 The share buyback is disclosed in note 18 of the Group's consolidated financial statements.
6 The Board approved the allotment and issue of 176,777 ordinary shares at par to the EBT (2023: 98,158 ordinary shares at par) and the transfer of 1,375,000 treasury shares (2023: 1,904,252)
to settle employee share plans.
Company statement of changes in equity
London Stock Exchange Group plc
Annual Report 2024
240
Reporting entity
These financial statements have been prepared for London Stock Exchange Group plc (the “Company”). The Company is a public limited company,
incorporated and domiciled in England and Wales. The address of its registered office is 10 Paternoster Square, London, EC4M 7LS.
1. Accounting policies
This section describes the Company’s material accounting policy
information that relates to its financial statements and notes as a whole.
Where an accounting policy relates to a particular note, it is disclosed
in that note. These policies have been consistently applied to all the
periods presented, unless otherwise stated.
Notes to the Company financial statements
1.1 Basis of preparation
The Company’s financial statements are prepared in accordance
with the Companies Act 2006 and Financial Reporting Standard
(FRS) 101 Reduced Disclosure Framework.
The following disclosure exemptions under FRS 101 have been
considered and applied where deemed to be applicable:
— Paragraphs 45(b) and 46 to 52 of IFRS 2 Share-based Payment
(details of the number and weighted-average exercise prices
of share options, and how the fair value of goods or services
received was determined)
— IFRS 7 Financial Instruments: Disclosures
— Paragraphs 91 to 99 of IFRS 13 Fair Value Measurement
(including disclosure of valuation techniques and inputs used
for fair value measurement of assets and liabilities)
— The following paragraphs of IAS 1 Presentation of
Financial Statements
— 10(d) (statement of cash flows)
— 16 (statement of compliance with all IFRS)
— 111 (cash flow information)
— 134-136 (capital management disclosures)
— IAS 7 Statement of Cash Flows
— Paragraphs 30 and 31 of IAS 8 Accounting Policies, Changes in
Accounting Estimates and Errors (requirement for the
disclosure of information when an entity has not applied
a new IFRS that has been issued but is not yet effective)
— The requirements in IAS 24 Related Party Disclosures to
disclose related party transactions entered into between two or
more members of a group, provided that any subsidiary which
is a party to the transaction is wholly owned by such a member
— Paragraphs 17 and 18A of IAS 24 (key management
compensation and amounts incurred for key management
services provided by a separate management entity)
— IAS 36 Impairment of Assets disclosure of impairment reviews
— Paragraphs 88C and 88D of IAS 12 Income Taxes (qualitative
and quantitative information about its exposure to Pillar Two
income taxes)
The financial statements are prepared on a historical cost basis
except for derivative financial instruments which are measured
at fair value. The financial statements have been prepared on
a going concern basis (see note 1.2 to the consolidated financial
statements for this assessment).
As permitted by Section 408 of the Companies Act 2006, the
Company’s income statement has not been presented in these
financial statements.
1.2 Significant accounting estimates, assumptions
and judgements
Estimates, assumptions and judgements are regularly reviewed
based on historical experience, current circumstances and
expectations of future events. There are no significant accounting
estimates, assumptions and judgements in the preparation of the
Company financial statements that have a significant effect on
the amounts recognised in its financial statements.
1.3 Material accounting policy information applied in the
current reporting period that relates to the Company financial
statements as a whole
Foreign currencies
The financial statements are presented in sterling, which is the
Company’s functional currency.
Transactions in foreign currencies are initially recorded and
translated into the functional currency at the exchange rate ruling
at the date of the transaction. Monetary assets and liabilities
denominated in foreign currencies are translated into sterling
at the exchange rate prevailing at the reporting date. Foreign
exchange gains and losses resulting from the settlement of such
foreign currency transactions or from the translation of monetary
assets and liabilities denominated in foreign currencies are
recognised in the income statement, either within operating
expenses or net finance costs depending on the nature of the
item or transaction.
Non-monetary items measured in terms of historical cost in
a foreign currency are not retranslated. Non-monetary items
measured at fair value that are denominated in foreign currencies
are retranslated at the exchange rate at the date when the fair
value was determined. The foreign exchange gain or loss on
assets and liabilities carried at fair value is reported as part of the
fair value gain or loss. This means foreign exchange gains and
losses on non-monetary assets and liabilities held at fair value
through profit or loss are recognised in the income statement
within operating expenses.
Taxation
Current income tax assets and liabilities are measured at the amount
expected to be recovered from or paid to taxation authorities.
Dividends
Dividend distributions to the Company’s equity holders are
recognised as a liability in the Company financial statements
in the period in which the dividends are approved by the
Company’s shareholders.
241 London Stock Exchange Group plc
Annual Report 2024
Financial Statements
2. Income statement
2.1 Employees
The Company had no employees in the year (2023: nil). Details of
Directors’ emoluments are disclosed in the Remuneration Report on
pages 122 to 147.
2.2 Auditors’ fees
The fees paid or are payable to the Company’s auditors, Deloitte LLP,
and its associates for 2024 in respect of audit services were £0.1 million.
3. Investments in subsidiaries
Accounting policy
Investments in subsidiaries, as well as loans and other
contributions to subsidiaries, are recognised at cost less
accumulated impairment.
Investments in subsidiaries are reviewed for impairment when
events indicate the carrying amount may not be recoverable.
When an indication of impairment is identified, the investment’s
recoverable amount is estimated as the higher of its fair value
less costs of disposal and its value-in-use. An impairment loss is
recognised when the recoverable amount of an investment is
less than its carrying amount.
2024
£m
2023
£m
Cost
1 January 26,287 25,485
Additional investments in subsidiaries – 2,599
Disposals – (1,797)
31 December 26,287 26,287
Accumulated impairment
1 January 1,333 563
Impairment – 770
31 December 1,333 1,333
Net book value
31 December 24,954 24,954
A full list of the Group's subsidiaries as at 31 December 2024 is provided
in note 10.1.
4. Trade and other receivables
Accounting policy
Amounts due from Group companies are initially measured at
fair value and are subsequently reported at amortised cost less
provision for expected credit losses. Allowances for expected
credit losses are made based on the risk of non-payment, taking
into account ageing, previous experience, economic conditions
and forward-looking data.
The Company has a tax indemnity receivable from Thomson
Reuters for any tax liabilities incurred before Refinitiv (previously
the Thomson Reuters Financial & Risk Business) separated from
Thomson Reuters on 1 October 2018. The tax indemnity
receivable is measured on the same basis as the corresponding
indemnified tax liabilities. When there is a change in the
indemnified tax liabilities, which is recognised within tax in
the income statement, there is an offsetting change in the
tax indemnity receivable. This change is recognised within
operating expenses in the income statement.
2024
£m
2023
£m
Non-current
Tax indemnity receivable 43 47
Amounts due from Group companies
1
95 96
Total non-current other receivables 138 143
Current
Amounts due from Group companies
2
665 1,330
Group relief receivable 177 142
Other receivables – 6
Prepayments 11 11
Total current trade and other receivables 853 1,489
Total receivables 991 1,632
1 Amounts falling due from Group companies after more than one year are unsecured,
repayable on demand and interest free, however, there is no intention to seek repayment of
these amounts before 31 December 2025.
2 Amounts falling due from Group companies within one year are unsecured, repayable on
demand and are predominantly interest bearing.
5. Cash and cash equivalents
2024
£m
2023
£m
Cash at bank 4 5
Total cash and cash equivalents 4 5
Notes to the Company financial statements continued
London Stock Exchange Group plc
Annual Report 2024
242
Notes to the Company financial statements continued
6. Trade and other payables
Accounting policy
Amounts due to group companies are initially recognised at fair
value and are subsequently measured at amortised cost.
Accrued expenses are recognised for goods and services
received before the end of the year for which no invoice has
been received. They are measured at amortised cost.
The Company has a tax indemnity payable to Thomson Reuters
with a matching tax receivable. The tax indemnity payable is
measured on the same basis as the indemnified tax receivable.
When there is a change in the indemnified tax receivable, which
is recognised within tax in the income statement, there is an
offsetting change in the tax indemnity payable. This change is
recognised within operating expenses in the income statement.
2024
£m
2023
£m
Non-current
Tax indemnity payable 178 172
Amounts due to Group companies
1
705 –
Total non-current other payables 883 172
Current
Trade payables 4 6
Other payables 22 52
Accrued expenses 27 15
Amounts due to Group companies² 551 918
Total current trade and other payables 604 991
Total payables 1,487 1,163
1 Amounts falling due to Group companies after more than one year are unsecured,
interest bearing and repayable at maturity, in September 2034.
2 Amounts falling due to Group companies within one year are unsecured, repayable on
demand and are predominantly interest bearing.
7. Borrowings
Accounting policy
Borrowings are initially recorded at the fair value of amounts
received, net of capitalised direct issue costs and arrangement
fees (including upfront facility fees).
Subsequently, these liabilities are carried at amortised cost.
Interest payable on the borrowings, direct issue costs and
arrangement fees (including upfront facility fees) are recognised
in the income statement over the period of the borrowings using
the effective interest method.
2024
£m
2023
£m
Non-current
Bank borrowings – committed bank facilities
1
(4) (8)
Bonds 1,322 1,358
Total non-current borrowings 1,318 1,350
Current
Bonds – 433
Total current borrowings – 433
Total borrowings 1,318 1,783
1 Balances are shown net of capitalised arrangement fees. Where there are no amounts
borrowed on a particular facility, this gives rise to a negative balance.
243 London Stock Exchange Group plc
Annual Report 2024
Financial Statements
Notes to the Company financial statements continued
7. Borrowings continued
The Company has the following committed bank facilities and unsecured bonds:
Maturity
date
Facility/
bond
£m
Carrying value
Interest
rate
%
2024
£m
2023
£m
Committed bank facilities
Multi-currency revolving credit facility Dec 2027 1,925 (2) (5) see note
2
Multi-currency revolving credit facility Dec 2027 1,075 (2) (3) see note
2
Total committed bank facilities
1
3,000 (4) (8)
Bonds
€500 million bond, issued September 2017 Sep 2024 – – 433 0.875
€500 million bond, issued December 2018 Dec 2027 415 413 431 1.750
€500 million bond, issued September 2017 Sep 2029 415 413 432 1.750
£500 million bond, issued April 2021 Apr 2030 500 496 495 1.625
Total bonds 1,330 1,322 1,791
Total borrowings 1,318 1,783
1 Negative balances represent the value of unamortised arrangement fees.
2 Interest is payable at the risk free rate plus a margin and credit adjustment spread (CAS). The CAS is variable and depends on the tenor and currency of the borrowings.
8. Share-based payments
Accounting policy
The Group operates a number of equity-settled share-based
payment plans for the employees of its subsidiaries using
the Company’s equity instruments. The share-based payment
is recharged to its subsidiaries by the Company with a
corresponding increase in retained earnings within equity.
The expense is determined by the fair value (using a stochastic
valuation model) of the options granted or shares awarded at
the date of the grant. The calculated expenses are recognised
over the relevant vesting periods.
Further details on the share plans are provided in the Directors’
Remuneration Report on pages 122 to 147 and note 20 to the
consolidated financial statements.
The Company has an Employee Benefit Trust (EBT) to administer the
share plans and to acquire Company shares to meet the commitments
to Group employees. At 31 December 2024, 1,605,133 Company shares
were held by the trust (2023: 1,178,957). The EBT is fully funded by the
Company via loans, cash gifts and the issue and transfer of shares.
The cost of the shares held by the EBT is recognised directly in equity.
9. Financial guarantees
The Company has guaranteed unsecured bonds and commercial
paper issued by LSEGA Financing Plc, LSEG Netherlands B.V. and
LSEG US Fin Corp which at 31 December 2024 amount to £8,020 million
(2023: £7,269 million).
London Stock Exchange Group plc
Annual Report 2024
244
Notes to the Company financial statements continued
10. Group companies
10.1 Subsidiaries
A full list of the Company's subsidiaries as at 31 December 2024 is provided below.
Companies owned directly by the Company
Name, address and country
of incorporation
Class of
share held
Share ownership %
Parent Group
United Kingdom – England & Wales
10 Paternoster Square, London
EC4M 7LS
London Stock Exchange (C) Limited Ordinary £ 100.0
100.0
Ordinary € 100.0
London Stock Exchange Group
(Services) Limited
Ordinary 100.0 100.0
London Stock Exchange Group
Holdings (Italy) Limited
Ordinary 100.0 100.0
London Stock Exchange Group
Holdings (R) Limited
Ordinary 100.0 100.0
London Stock Exchange Group
Holdings Limited
Ordinary 100.0 100.0
London Stock Exchange plc Ordinary 100.0 100.0
London Stock Exchange
Reg Holdings Limited
Ordinary 100.0 100.0
LSEGA Financing plc Ordinary 100.0 100.0
LSEGA Limited Ordinary 100.0 100.0
LSEGA2 Limited Ordinary 100.0 100.0
LSEGH (Luxembourg) Limited Ordinary 100.0 100.0
Cayman Islands
C/o Intertrust Corporate Services
(Cayman) Ltd, 1 Nexus Way, Camana
Bay, Grand Cayman, KY1-9005
Refinitiv Parent Limited Ordinary
1
70.5 100.0
Netherlands
10th Floor, Eduard van Beinumstraat 24,
Amsterdam 1077 CZ
LSEG Netherlands B.V. Ordinary 100.0 100.0
United States
C/o United Agent Group Inc, Suite 201,
Brandywine Plaza, 1521 Concord Pike,
Wilmington DE 19803
LSEGH US PT, Inc. Common
Stock
100.0 100.0
Companies owned indirectly by the Company
Name, address and country
of incorporation
Class of
share held
Share ownership %
Parent Group
Australia
Level 10, 60 Margaret Street,
Sydney, NSW 2000
EnergybankLink Pty Limited Ordinary 100.0 100.0
Global Data Consortium
Australia Pty Limited
Ordinary 100.0 100.0
Lipper Australia Pty Limited Ordinary 100.0 100.0
Refinitiv Australia Pty Limited Ordinary 100.0 100.0
Telfer Investments
Australia Pty Limited
Ordinary 100.0
100.0
Special 100.0
Telfer Pty Limited Ordinary 100.0
100.0
Special 100.0
Tora Trading Services Pty Limited Ordinary 100.0 100.0
The Red Flag Group (Australia)
Pty Limited
Ordinary 100.0 100.0
Level 6, 14 Martin Place,
Sydney, NSW 2000
Tradeweb Australia Pty Ltd Ordinary A 100.0
50.8
Ordinary B 100.0
TWAS Holding I Pty Limited Ordinary 100.0 50.8
TWAS Holding II Pty Limited Ordinary 100.0 50.8
Austria
The ICON Vienna, Wiedner Gürtel 13,
A/12.OG/1123, 1100 Vienna
Refinitiv Austria GmbH Ordinary 100.0 100.0
Bahrain
Flat 1002, Building 1459, Road 4626,
Block 346, Manama
R.M.E. Bahrain Limited W.L.L. Ordinary 100.0 100.0
Bermuda
C/o Conyers Corporate Services
(Bermuda) Ltd, Clarendon House,
2 Church Street, Hamilton, HM 11
Refinitiv (Canvas) Holdings 1 Limited Common 100.0 100.0
Refinitiv (Canvas) Holdings 2 Limited Common 100.0 100.0
Refinitiv (Canvas) Holdings 3 Limited Common 100.0 100.0
Refinitiv UK Holding Company Limited Ordinary 100.0 100.0
Brazil
Avenida Doutor Cardoso de Melo
1855, Vila Olimpia, Sao Paulo
04548-005
Refinitiv Brasil Servicos
Economicos Limitada
Ordinary 100.0 100.0
Refinitiv Tecnologia em Sistemas
Brasil Limitada
Ordinary 100.0 100.0
485, Rua Apeninos, room 12,
Aclimação, in the City of São Paulo,
State of São Paulo, 01533-000, Brazil
245 London Stock Exchange Group plc
Annual Report 2024
Financial Statements
Notes to the Company financial statements continued
Name, address and country
of incorporation
Class of
share held
Share ownership %
Parent Group
Tradeweb Brasil Ltda Ordinary 100.0 50.8
British Virgin Islands
C/o Harkom Corporate Services, Jayla
Place, Wickhams Cay I, 2nd Floor,
Road Town, Tortola, VG1110
The Red Flag Group (BVI) Limited Ordinary 100.0 100.0
Canada
C/o Miller Thompson LLP, Suite 5800,
40 King Street West, Toronto,
ON M5H 3S1
FTSE Global Debt Capital Markets, Inc Ordinary 100.0 100.0
Suite 2400, 333 Bay Street, Toronto,
ON M5H 2T6
Millennium IT Software (Canada) Inc Common 100.0 100.0
Suite 400, 333 Bay Street, Toronto,
ON M5H 2R2
Refinitiv Canada Holdings Limited Common 100.0 100.0
Cayman Islands
C/o Intertrust Corporate Services
(Cayman) Ltd, 1 Nexus Way, Camana
Bay, Grand Cayman, KY1-9005
Caspian Holdings Limited Ordinary 100.0 100.0
Refinitiv TW Holdings Limited Ordinary 100.0 100.0
Tora Trading Services Limited Ordinary 100.0 100.0
Zawya Limited Common 100.0 100.0
C/o Vistra (Cayman) Limited,
P.O. Box 31119, Hibiscus Way,
802 West Bay Road, Grand Cayman,
KY1-1205 Cayman Islands
TWC Limited Ordinary 100.0 50.8
China
Room 8B, 18th Floor, E1 Office Building,
Oriental Plaza, East Chang’an Street,
Dongchen District, Beijing, China
FTSE (Beijing) Consulting Limited Ordinary 100.0 100.0
Room 1811, The Towers Offices at
Oriental Plaza, 1 East Chang'an
Avenue, Beijing 100006
Refinitiv Financial Technology
Information Service (China) Group
Co. Limited
Contribution
Unit
100.0 100.0
Room 2026-33, 5th Floor,
1st to 16th Floor, Inner 01, Building 2,
No.3 Court, Jinli South Road,
Fengtai District, Beijing China
Refinitiv Information Services (China)
Co. Limited
Contribution
Unit
100.0 100.0
A2 Tower, ZhongGuanCun #1,
81 BeiQing Road, Haidian District,
Beijing 100193
Refinitiv Technology (China)
Co. Limited
Contribution
Unit
100.0 100.0
3F Agile International Plaza,
525 Middle Xizang Road,
Huangpu District, Shanghai
Name, address and country
of incorporation
Class of
share held
Share ownership %
Parent Group
The Red Flag Group
(Shanghai) Limited
Ordinary 100.0 100.0
No.2 Lane 690 Yong Jia Road,
Xuhui District, Shanghai 200031
Tradeweb Information Technology
Services (Shanghai) Co. Ltd.
Contribution
Unit
100.0 50.8
Room 312-04, New Times Plaza, 1 Taizi
Road, Shenzhen, Guangdong 518067
Zhi Cheng Worldwide Management
Consulting (Shenzhen) Co. Limited
Ordinary 100.0 100.0
Cook Islands
C/o Cook Islands Trust Corporation,
1st Floor, BCI House, PO Box 141,
Avaura, Rarotonga
Alta Limited Ordinary 100.0 100.0
Data Development Services Limited Ordinary 100.0 100.0
Lipper Asia Limited Ordinary 100.0 100.0
Monitor Services Hong Kong Limited Ordinary 100.0 100.0
Costa Rica
San Jose-Santa Ana radial a San
Antionio de Belen, Doscientos metros
norte de la Cruz Roja de Santa Ana,
Edificio Murano, Piso Uno, Oficina 13
Refinitiv Costa Rica Srl Ordinary 100.0 100.0
Cyprus
Neas Egkomis 33, 1st floor, Flat/Office
208, Egkomi, Nicosia 2409
Refinitiv Cyprus Limited Ordinary 100.0 100.0
Czechia
Na Perstyne 342/1, Staré Mesto,
110 00 Praha 1
Refinitiv Czech Republic s.r.o. Ordinary 100.0 100.0
Denmark
Vesterbrogade 1E, 4.Sal, DK-1620,
Copenhagen V
Refinitiv Denmark A/S Ordinary 100.0 100.0
Finland
Spaces Postitalo, Mannerheiminaukio
1A, Helsinki 00100
Refinitiv Finland OY AB Ordinary 100.0 100.0
France
Le Centorial, 18 rue du Quatre-
Septembre, 75002 Paris
Banque Centrale de
Compensation (LCH SA)
Ordinary 100.0 94.2
Beyond Ratings Ordinary 100.0 100.0
Refinitiv France Holdings SARL Ordinary 100.0 100.0
Refinitiv France SAS Ordinary 100.0 100.0
20 Avenue Andre Malraux,
92300 Levallois-Perret
The Red Flag Group (France) SAS Ordinary 100.0 100.0
10. Group companies continued
London Stock Exchange Group plc
Annual Report 2024
246
Notes to the Company financial statements continued
Name, address and country
of incorporation
Class of
share held
Share ownership %
Parent Group
Germany
Maurenbrecher Strasse 16,
47803 Krefeld
Quaternion Risk Management
Deutschland GmbH
Ordinary 100.0 100.0
Friedrich-Ebert-Anlage 49,
60327 Frankfurt am Main
Refinitiv Germany GmbH Ordinary 100.0 100.0
Refinitiv Germany Holdings GmbH Ordinary 100.0 100.0
Greece
53 Solonos Street, 10672 Athens
Refinitiv Hellas Single Member SA Ordinary 100.0 100.0
Guernsey
C/o Alternative Risk Management Ltd,
Level 5, Mill Court, La Charroterie,
St. Peter Port GY1 1EJ
Refinitiv Europe Middle East and Africa
(Central Region) Limited
Ordinary 100.0 100.0
Hong Kong SAR
18/F ICBC Tower,
3 Garden Road, Central
FTSE China Index Limited Ordinary 100.0 100.0
FTSE International
(Hong Kong) Limited
Ordinary 100.0 100.0
IntegraScreen Limited Ordinary 100.0 100.0
LSEG HK Financing Limited Ordinary 100.0 100.0
The Red Flag Group (HK) Limited Ordinary 100.0 100.0
The Red Flag Group Limited Ordinary 100.0 100.0
The Red Flag Group Products
(HK) Limited
Ordinary 100.0 100.0
Tora Trading Services (Asia) Limited Ordinary 100.0 100.0
Tora Trading Services Limited Ordinary 100.0 100.0
Hungary
Szervita tér 8, Budapest 1052
Refinitiv Hungary Kft. Ordinary 100.0 100.0
India
One World Center, 12th Floor,
Tower 1, 841 Senapati Bapat Marg,
Mumbai 400013
Millennium Information Technologies
(India) (Private) Limited
Ordinary 100.0 100.0
Refinitiv Global Private Limited Ordinary 100.0 100.0
Refinitiv India Private Limited Ordinary 100.0 100.0
Refinitiv India Shared Services
Private Limited
Ordinary 100.0 100.0
Refinitiv India Transaction Services
Private Limited
Ordinary 100.0 100.0
Ascend Coworks, 1304, FP463,
Opp Cadbury Co, Khopat, Thane,
Maharashtra, 400601, India
TW Technology and Trading
Private Limited
Ordinary 100.0 50.8
Name, address and country
of incorporation
Class of
share held
Share ownership %
Parent Group
Indonesia
Menara Astra, #37-118, Jl. Jendral
Sudirman Kav 5-6, Jakarta Pusat,
Jakarta 10220
PT Refinitiv Services
Indonesia
Ordinary
Bearer
100.0 100.0
PT LSEG Transaction
Services Indonesia
Class A
2
100.0 49.00
Class B: nil –
Ireland
12/13 Exchange Place, IFSC,
Dublin, D01 P8H1
Financial & Risk Transaction Services
Ireland Limited
Ordinary 100.0 100.0
Refinitiv Ireland Limited Ordinary 100.0 100.0
Quaternion Risk Management Limited Ordinary 100.0 100.0
Unit 3100, Lake Drive, Citywest
Business Campus, Dublin 24,
D24 AK82
LSEG Ireland Limited Ordinary 100.0 100.0
LSEG Ireland 2 Limited Ordinary 100.0 100.0
LSEG Ireland 3 Limited Ordinary 100.0 100.0
Israel
121-123 Derech Menachem Begin,
Azrieli Sarona Building, 30 Fl,
Tel Aviv 6701203
Refinitiv Israel Limited Ordinary 100.0 100.0
Italy
Piazza Generale Armando Diaz 2,
Milan 20123
FTSE Italy S.p.a. Ordinary 100.0 100.0
Refinitiv Italy Holding S.p.a. Ordinary 100.0 100.0
Refinitiv Italy S.p.a. Ordinary 100.0 100.0
Japan
30/F Akasaka Biz Tower, 5-3-1
Akasaka, Minato-Ku, Tokyo 107-6330
AcadiaSoft Japan GK Ordinary 100.0 100.0
Mergent Japan KK Ordinary 100.0 100.0
Refinitiv Japan KK Ordinary 100.0 100.0
Tora Trading Services KK Ordinary 100.0 100.0
JP Tower 2-7-2 Marunouchi,
Chiyoda-ku, Level 14, Tokyo, 100-7014
Tradeweb Japan KK Ordinary 100.0 50.8
Jersey
C/o Crestbridge Jersey, 47 Esplanade,
St Helier JE1 0BD
LSEGA Jersey Limited Ordinary 100.0 100.0
Refinitiv Hong Kong Limited Ordinary 100.0 100.0
13 Castle Street, St Helier JE2 3BT
Tora Trading Services (Jersey) Limited Ordinary 100.0 100.0
10. Group companies continued
247 London Stock Exchange Group plc
Annual Report 2024
Financial Statements
Notes to the Company financial statements continued
Name, address and country
of incorporation
Class of
share held
Share ownership %
Parent Group
Korea
9F S Tower, 82 Saemunan-ro,
Jongno-gu, Seoul 03185
Refinitiv Korea Limited Common
– Voting
100.0 100.0
Luxembourg
C/o Crestbridge Luxembourg,
33 Avenue J.F. Kennedy,
L-1855 Luxembourg.
globeSettle S.à r.l. Ordinary 100.0 100.0
LSEG LuxCo 1 S.à r.l. Ordinary 100.0 100.0
LSEG LuxCo 2 S.à r.l. Ordinary 100.0 100.0
Malaysia
Suite 13.03, 13th floor, Menara Tan &
Tan, 207 Jalan Tun Razak, Kuala
Lumpur 50400
IntegraScreen (Malaysia) Sdn Bhd Ordinary 100.0 100.0
LSEG Malaysia Sdn Bhd Ordinary 100.0 100.0
Refinitiv Malaysia Sdn Bhd Ordinary 100.0 100.0
Refinitiv Transaction Services
Malaysia Sdn Bhd
Ordinary 100.0 100.0
The Red Flag Group (Malaysia)
Sdn Bhd
Ordinary 100.0 100.0
Mauritius
C/o International Proximity, 5th Floor,
Ebene Esplanade, 24 Bank Street,
Cybercity, Ebene, Mauritius
Reuters Asia Pacific Limited Ordinary 100.0 100.0
Mexico
Torre 3, Privada Paseo de los
Tamarindos 120, Bosques de las
Lomas, Mexico City 05120
FTSE Mexico S de R.L. de C.V. Ordinary 100.0 100.0
Torre Esmeralda II, Blvd. Manuel Avila
Camacho 36, Piso 19, Lomas de
Chapultepec, Mexico City 11000
Refinitiv de Mexico, S.A. de C.V. Common 100.0 100.0
Netherlands
Zuidas 2, Barbara Strozzilaan 201,
Amsterdam 1083 HN
Global Data Consortium
Netherlands B.V.
Ordinary 100.0 100.0
10th Floor, Eduard van Beinumstraat
24, Amsterdam 1077 CZ
LSEG Regulatory Reporting B.V.
(formerly UnaVista TRADEcho B.V.)
Ordinary 100.0 100.0
Quantile B.V. Ordinary 100.0
100.0
Preference 100.0
Refinitiv Netherlands B.V. Ordinary 100.0 100.0
Refinitiv Netherlands Finance B.V. Ordinary 100.0 100.0
Refinitiv Netherlands Holdings B.V. Ordinary 100.0 100.0
Name, address and country
of incorporation
Class of
share held
Share ownership %
Parent Group
Refinitiv Netherlands Overseas
Holdings B.V.
Ordinary 100.0 100.0
Turquoise Global Holdings Europe B.V. Ordinary 100.0 84.2
Strawinskylaan 457 1077 XX,
Amsterdam
Tradeweb EU B.V. Ordinary 100.0 50.8
Tradeweb Execution Services B.V. Ordinary 100.0 50.8
New Zealand
C/o Business Advisory Group Limited,
Level 9, 55 Shortland Street,
Auckland 1010
Refinitiv New Zealand Limited Ordinary 100.0 100.0
Norway
Dronning Eufemias gate 16, 0191 Oslo
Refinitiv Norge AS Ordinary 100.0 100.0
Panama
The Century Tower, Via Ricardo J.
Alfaro y Calle 65, Oeste Piso 10,
Local 1005, Panama
IntegraScreen (Panama), Inc. Ordinary 100.0 100.0
Obarrio, 55th East, “Santa Rita O” St.,
SFC Tower, 15th Floor, Office 15-ABC,
Panama City, Panama
The Red Flag Group International
(Panama) S.A.
Ordinary 100.0 100.0
Peru
102 Real 2, Avenida Victor Andrés
Belaúnde 147, Lima 15073
Refinitiv Peru Srl Ordinary 100.0 100.0
Philippines
Level 6, Ayala Triangle Gardens,
Tower 2, Paseo de Roxas Cor Makati
Ave,Bel Air, Makati City, Philippines
The Red Flag Group (Philippines) Inc. Ordinary 100.0 100.0
AcadiaSoft Philippines Inc. Ordinary 100.0 100.0
Poland
Ul. Opolska 22, 40-084 Katowice
IntegraScreen Sp. z o.o. Ordinary 100.0 100.0
Ul. Marszalkowska 126/134,
00-008 Warsaw
Refinitiv Poland Sp. z o.o. Ordinary 100.0 100.0
UI. Kotlarska 11, 31-539 Krakow
The Red Flag Group (Poland) Sp. z o.o. Ordinary 100.0 100.0
Portugal
Rua Mouzinho da Silveira 10,
Lisboa, 1250-167
Refinitiv Portugal Unipessoal Limitada Ordinary 100.0 100.0
Praça Marquês de Pombal, nº14,
1º piso, Lisboa, 1250 162
ICD Europa – Empresa De
Investimento, S.A.
Ordinary 100.0 50.8
10. Group companies continued
London Stock Exchange Group plc
Annual Report 2024
248
Notes to the Company financial statements continued
Name, address and country
of incorporation
Class of
share held
Share ownership %
Parent Group
Romania
6L Iuliu Maniu Boulevard, Campus 6.1,
4th Floor, District 6, Bucharest 061344
LSEG Business Services RM S.R.L. Ordinary 100.0 100.0
Refinitiv Romania S.R.L. Ordinary 100.0 100.0
77, 21 Decembrie 1989 Boulevard,
Building E, Floor 1 Cluj-Napoca,
Cluj County
Tora Trading Services S.R.L. Ordinary 100.0 100.0
Russian Federation
5 Petrovka Street, Berlin House,
Business Centre, Moscow 107031
Refinitiv RUS LLC Ordinary 100.0 100.0
Saudi Arabia
4962 Ibn Rawahah, 6933 Al
Muhammadiyah Dist., Riyadh, 12361
Refinitiv Saudi for Information and
Communication Technology
Ordinary
3
75.0 75.0
Singapore
1 Raffles Quay, #28-01,
Singapore 048583
Global Data Consortium
Singapore Pte Ltd
Ordinary 100.0 100.0
Infosight Singapore Pte Ltd Ordinary 100.0 100.0
Refinitiv Asia Pte Ltd Ordinary 100.0 100.0
Refinitiv Transaction Services Pte Ltd Ordinary 100.0 100.0
The Red Flag Group Pte Ltd Ordinary 100.0 100.0
9 Raffles Place, #26-01, Republic
Plaza, Singapore 048619
Tora Trading Services Pte Ltd Ordinary 100.0 100.0
Spain
Paseo de la Castellana 95, 7a,
Edificio Torre Europa, Madrid 28046
Refinitiv SL Ordinary 100.0 100.0
Sri Lanka
Exchange House, Trace Expert City,
Maradana, Colombo 10
LSEG Business Services Colombo
(Private) Limited
Ordinary 100.0 100.0
65/2, Sir Chittampalam A Gardiner
Mawatha, Colombo 02
Millennium IT Services (Private) Limited Ordinary 100.0 100.0
1 Millennium Drive, Malabe,
Colombo 10115
Millennium IT Software
(Private) Limited
Ordinary 100.0 100.0
Sweden
PO Box 1732, SE-111 87 Stockholm
Refinitiv Sweden AB Ordinary 100.0 100.0
Switzerland
Rue de Lausanne 17, 1201 Genève
Refinitiv International Holdings SARL Ordinary 100.0 100.0
Name, address and country
of incorporation
Class of
share held
Share ownership %
Parent Group
Refinitiv SA Ordinary 100.0 100.0
Baarerstrasse 112, 6300 Zug
The Red Flag Group (Switzerland) AG Ordinary 100.0 100.0
Taiwan, China
26F, 100 Song Ren Road, Xinyi District,
Taipei City 110
FTSE International Taiwan Limited Ordinary 100.0 100.0
Thailand
U Chu Liang Building, 34th Floor,
968 Rama IV Road, Silom, Bangrak,
Bangkok 10500
Refinitiv (Thailand) Limited A Ordinary
2
100.0
49.00
B Preference
2
100.0
Refinitiv Holdings (Thailand) Limited Preference
2
–
49.00
Ordinary
2
100.0
Refinitiv Software (Thailand) Limited Ordinary
2
100.0 49.00
Turkey
Is Kuleleri, Kule 2, Kat 1-2, 4. Levent,
Istanbul 34330
Refinitiv Enformasyon Limited Sirketi Ordinary 100.0 100.0
United Arab Emirates
Office 15501, Level 15, The Gate
Building, Dubai International Finance
Centre, PO Box 121208, Dubai
FTSE International (MEA) Limited Ordinary 100.0 100.0
Premises 501, 5th Floor, Thomson
Reuters Building, Dubai Media City,
PO Box 1426, Dubai
Refinitiv Middle East FZ-LLC Ordinary 100.0 100.0
Office 104, Building 3, PO Box 500
630, Dubai Internet City, Dubai
The Red Flag Group FZ-LLC Ordinary 100.0 100.0
Unit GD-GB-00-15-BC-52-0 Level 15,
Gate District Gate Building, Dubai
International Financial Centre, Dubai
Tradeweb (DIFC) Limited Ordinary 100.0 50.8
P.O. Box 41640, Green Tower,
District-Deira, Dubai
Zawya Internet Content Provider LLC Ordinary
2
49.0 49.0
United Kingdom – England & Wales
1 Fore Street Avenue, London
EC2Y 9DT
Institutional Cash Distributors Limited Ordinary 100.0 50.8
Tradeweb Europe Limited Ordinary 100.0 50.8
Tradeweb Execution Services Limited Ordinary 100.0 50.8
Suite 1, 7th Floor, 50 Broadway,
London SW1H 0BL
AcadiaSoft (UK) Ltd Ordinary 100.0 100.0
10 Paternoster Square, London
EC4M 7LS
Avox Limited Ordinary 100.0 100.0
10. Group companies continued
249 London Stock Exchange Group plc
Annual Report 2024
Financial Statements
Notes to the Company financial statements continued
Name, address and country
of incorporation
Class of
share held
Share ownership %
Parent Group
Blaxmill (Eleven) Limited Ordinary 100.0 100.0
Blaxmill (Nine) Limited Ordinary 100.0 100.0
Blaxmill (Ten) Limited Ordinary 100.0 100.0
Blaxmill (Thirteen) Limited Ordinary 100.0 100.0
Blaxmill (Thirty-Three) Limited Ordinary 100.0 100.0
Blaxmill (Twelve) Limited Ordinary 100.0 100.0
Blaxmill (Twenty-Eight) Limited Ordinary 100.0 100.0
Criminal Law Week Limited Ordinary 100.0 100.0
Enterprise Risk Management
Technology Limited
Ordinary 100.0 100.0
FTSE (Australia) Limited Ordinary 100.0 100.0
FTSE (Japan) Limited Ordinary 100.0 100.0
FTSE Fixed Income Europe Limited Ordinary 100.0 100.0
FTSE Global Debt Capital
Markets Limited
Ordinary 100.0 100.0
FTSE International Limited Ordinary 100.0 100.0
International Commodities
Clearing House Limited
Ordinary 100.0 94.2
LCH Group Holdings Limited Ordinary 94.2 94.2
LCH Limited Ordinary 100.0 94.2
LCH.Clearnet Group Limited Ordinary 100.0 94.2
London Stock Exchange
Connectivity Solutions LP
Partnership
interest
4
– –
London Stock Exchange LEI Limited Ordinary 100.0 100.0
LSEG (ELT) Limited Ordinary 100.0 100.0
LSEG (F) Limited Ordinary 100.0 100.0
LSEG (M) Financing Limited Ordinary 100.0 100.0
LSEG B1 Limited Ordinary 100.0 100.0
LSEG B2 Limited Ordinary 100.0 100.0
LSEG B3 Limited Ordinary 100.0 100.0
LSEG Business Services Limited Ordinary 100.0 100.0
LSEG Employment Services Limited Ordinary 100.0 100.0
LSEG F1 Limited Ordinary
5
99.5 100.0
LSEG F2 Limited Ordinary 100.0 100.0
LSEG F3 Limited Ordinary 100.0 100.0
LSEG Foundation (charitable
incorporated organisation)
–
6
– –
LSEG International Financing Limited Ordinary 100.0 100.0
LSEG Pension Trustees Limited Ordinary 100.0 100.0
LSEG Post Trade Services Limited Ordinary 100.0 100.0
LSEG Regulatory Reporting Limited
(formerly UnaVista Limited)
Ordinary 100.0 100.0
LSEG Technology Limited Ordinary 100.0 100.0
LUH Financing Limited Limited by
guarantee
4
– –
Monitor Trading Limited Ordinary 100.0 100.0
Refinitiv Group Nominees Limited Limited by
guarantee
4
– –
Name, address and country
of incorporation
Class of
share held
Share ownership %
Parent Group
Refinitiv UK Financial Limited Ordinary 100.0 100.0
SSC Global Business Services Limited Ordinary 100.0 100.0
SwapAgent Limited Ordinary 100.0 94.2
The London Clearing House Limited Ordinary 100.0 94.2
The London Produce
Clearing House Limited
Ordinary 100.0 94.2
The Stock Exchange
(Holdings) Limited
Ordinary 100.0 100.0
TicketAid Limited Ordinary 100.0 100.0
Tora Trading Services Limited Ordinary 100.0 100.0
Turquoise Global
Holdings Limited
Ordinary A 100.0
84.2
Ordinary B 67.5
UK LSEG Financing 1 Limited Ordinary 100.0 100.0
UK LSEG Financing Limited Ordinary 100.0 100.0
Five Canada Square, Canary Wharf,
London E14 5AQ
Financial & Risk Organisation Limited Ordinary 100.0 100.0
Global World-Check Ordinary 100.0 100.0
Global World-Check Holdings
(Nominee) Limited
Ordinary 100.0 100.0
Global World-Check Holdings Limited Ordinary 100.0 100.0
Lipper Limited Ordinary 100.0 100.0
REDI Technologies Limited Ordinary 100.0 100.0
Refinitiv Benchmark Services
(UK) Limited
Ordinary 100.0 100.0
Refinitiv Limited Ordinary 100.0 100.0
Refinitiv Transaction Services Limited Ordinary 100.0 100.0
Refinitiv UK (Rest Of World)
Holdings Limited
Ordinary 100.0 100.0
Refinitiv UK Eastern Europe Limited Ordinary 100.0 100.0
Refinitiv UK Holdings Limited Ordinary 100.0 100.0
Refinitiv UK Overseas
Holdings Limited
Ordinary 100.0 100.0
Refinitiv UK Parent Limited Ordinary 100.0 100.0
Reuters Pension Fund Limited Limited by
guarantee
7
– –
Reuters SPS Trustee Limited Limited by
guarantee
7
– –
RRP Pension Trustee Limited Limited by
guarantee
7
– –
Cannon Green Building, 27 Bush
Lane, London, EC4R 0AN
Quantile Group Limited Ordinary 100.0 100.0
Quantile Technologies Limited Ordinary 100.0 100.0
United Kingdom – Scotland
Exchange Tower, 19 Canning Street,
Edinburgh EH3 8EG
Lilac Energy Software
Solutions Limited
Ordinary 100.0 100.0
10. Group companies continued
London Stock Exchange Group plc
Annual Report 2024
250
Notes to the Company financial statements continued
Name, address and country
of incorporation
Class of
share held
Share ownership %
Parent Group
United States
C/o Corporation Service Company,
251 Little Falls Drive, Wilmington,
DE 19808
BondDesk Group LLC Membership
Interest
100.0 50.8
DW SEF LLC Membership
Interest
100.0 50.8
ICD Intermediate Holdco 1, LLC Membership
Interest
100.0 50.8
ICD Intermediate Holdco 2, LLC Membership
Interest
100.0 50.8
Institutional Cash Distributors
Technology LLC
Membership
Interest
100.0 50.8
r8fin Holdings LP Limited
Partnership
8
– –
r8fin LLC Membership
Interest
100.0 50.8
r8fin Technology Services LLP Membership
Interest
100.0 50.8
Refinitiv US Tradeweb LLC Ordinary
9
100.0 45.5
Tech Hackers LLC Membership
Interest
100.0 50.8
Tradeweb Direct LLC Contribution
Unit
100.0 50.8
Tradeweb Global Holding LLC Ordinary 100.0 50.8
Tradeweb Global LLC Ordinary 100.0 50.8
Tradeweb IDB Markets, Inc. Ordinary 100.0 50.8
Tradeweb LLC Common 100.0 50.8
Tradeweb Markets Inc. Class A
9
–
45.5
Class B
9
100.0
Class C
9
100.0
Class D
9
98.3
Tradeweb Markets LLC Membership
Interest
100.0 50.8
TW SEF LLC Limited
Liability
Company
Interest
100.0 50.8
TWEL Holding LLC Limited
Liability
Company
Interest
100.0 50.8
TWICD I Inc Ordinary 100.0 50.8
TWICD II Inc Ordinary 100.0 50.8
C/o Corporation Service Company,
80 State Street, Albany, NY 12207
Dealerweb Inc. Common 100.0 50.8
C/o Corporation Service Company,
Princeton South Corporate Center,
Suite 160, 100 Charles Ewing Blvd,
Ewing, NJ 08628
Name, address and country
of incorporation
Class of
share held
Share ownership %
Parent Group
Institutional Cash Distributors LLC Membership
Interest
100.0 50.8
C/o United Agent Group Inc, Suite 201,
Brandywine Plaza, 1521 Concord Pike,
Wilmington DE 19803
FTSE Fixed Income LLC Membership
Interest
100.0 100.0
FX Alliance International, LLC Common 100.0 100.0
FX Alliance, LLC Common 100.0 100.0
Giact Systems, LLC Membership
Interest
100.0 100.0
IAG US LLC Member
Shares
100.0 100.0
Intrinsic Research Systems, Inc. Common 100.0 100.0
LCH.Clearnet LLC Ordinary 100.0 94.2
LSEG Information Services (US) Inc. Ordinary 100.0 100.0
LSEG Financing Corporation Ordinary 100.0 100.0
LSEG Financing LLC Membership
Units
100.0 100.0
LSEG US Fin Corp Ordinary 100.0 100.0
LSEG US Holdco, Inc. Common 100.0 100.0
LSEGA, Inc. Common
Stock
100.0 100.0
LSEGH (I) LLC Ordinary 100.0 100.0
LSEGH Inc. Common 100.0 100.0
Maystreet Inc. Common
Stock
100.0 100.0
Mergent, Inc. Ordinary 100.0 100.0
Millennium IT (USA) Inc. Common 100.0 100.0
Refinitiv Global Markets Inc. Common 100.0 100.0
Refinitiv US IP Corp Ordinary 100.0 100.0
Refinitiv US LLC Member
Interest
100.0 100.0
Refinitiv US Organization LLC Member
Interest
100.0 100.0
Refinitiv US Personal Focus Inc. Ordinary 100.0 100.0
Refinitiv US PME LLC Class A 100.0
100.0
Class B 100.0
Refinitiv US SEF LLC Ordinary 100.0 100.0
Refinitiv US Services Corp Ordinary 100.0 100.0
The Red Flag Group Inc. Ordinary 100.0 100.0
The Yield Book, Inc. Common 100.0 100.0
Tora Holdings, Inc. Common 100.0 100.0
Tora Trading Investments LLC Common 100.0 100.0
Tora Trading Services LLC Common 100.0 100.0
Turquoise Global Holdings US, Inc. Common 100.0 84.2
Yield Book Tangible Property BRE LLC Member
Interest
100.0 100.0
10. Group companies continued
251 London Stock Exchange Group plc
Annual Report 2024
Financial Statements
Notes to the Company financial statements continued
Name, address and country
of incorporation
Class of
share held
Share ownership %
Parent Group
Yield Book Software BRE LLC Member
Interest
100.0 100.0
C/o Corporation Service Company,
1821 Logan Avenue, Cheyenne,
WY 82001
TIPS LLC Member
Interest
100.0 50.8
C/o Corporation Trust Company, 1209
Orange Street, Wilmington, DE 19801
AcadiaSoft Inc. Common
stock
100.0 100.0
C/o United Agent Group Inc, 155 E.
Boardwalk #490, Fort Collins,
CO 80525
Lipper Inc. Ordinary 100.0 100.0
C/o United Agent Group Inc,
707 W. Main Avenue #B1, Spokane,
WA 99201
Frank Russell Company Common 100.0 100.0
C/o United Agent Group Inc,
600 Mamaroneck Avenue #400,
Harrison, NY 10528
FTSE Americas, Inc. Ordinary 100.0 100.0
REDI Global Technologies LLC Member
Interest
100.0 100.0
1 29.5% is held by the Company indirectly.
2 The Group's equity interest is 49.0%, but the ultimate economic interest is 100.0%.
3 The Group's equity interest is 75.0%, but the ultimate economic interest is 100.0%.
4 The Group's voting and economic interest is 100.0%.
5 0.5% directly held by the Company.
6 The Group has control through its right to appoint a majority of trustees.
7 The Group has control through its right to appoint a majority of directors.
8 The Group's voting and economic interest is 50.8%.
9 The Group's voting interest in Tradeweb Markets Inc. is 89.9%.
10.2 Associates and joint ventures
As at 31 December 2024, the Company does not directly own any
associates or joint ventures.
The Group’s associate and joint ventures undertakings are:
Name, address and
country of incorporation
Identity of
each class of
share held
Share
ownership %
held by the
investing
company
Ultimate
Group share
ownership %
Australia
Level 10, 60 Margaret Street,
Sydney, NSW2000
ASX Refinitiv Charity
Foundation Ltd
Charitable
incorporated
organisation 50.0 50.0
British Virgin Islands
OMC Chambers, Wickhams
Cay 1, Road Town, Tortola
LabCi Holding Inc Ordinary 47.6 47.6
United Kingdom –
England & Wales
3 Spring Mews, London
SE11 5AN
Citywire Holdings Limited Ordinary 21.0 18.2
107 Cheapside, London
EC2V 6DN
Fomtech Limited Ordinary 39.8 39.8
All associates have the same year end as the Group, except Fomtech
Limited which has a 31 August year end.
11. Events after the reporting period
We plan to execute an ordinary share buyback of £500 million. The share buyback programme will commence as soon as is practicable and is
expected to be completed by July 2025.
10. Group companies continued
London Stock Exchange Group plc
Annual Report 2024
252
Glossary
Alternative performance measures
An alternative performance measure (APM) is a financial measure
of historical or future financial performance, financial position or
cash flow, other than a financial measure defined or specified
in the applicable financial reporting framework. APMs should
be considered in addition to, and not as a substitute for, IFRS
measures of financial performance and liquidity. The Group’s
APMs are defined below.
Non-underlying items
The Group classifies income or expenses as non-underlying
when they do not arise in the normal course of business and they
are material by amount or nature. Non-underlying items typically
reflect the impact of mergers, acquisitions and disposals and
other significant restructuring activity that would otherwise not
be recognised or incurred. This can include: amortisation and
impairment of goodwill and purchased intangible assets;
incremental amortisation and impairment of any fair value
adjustments of intangible assets recognised as a result of
acquisitions; impairment of software and other non-current assets
linked to a change in strategy or operating model and tax on
non-underlying items, as well as any other income or expenses
not considered to drive the operating results of the Group.
More information can be found in note 2.3 to the consolidated
financial statements on page 175.
‘Adjusted’ measures
We use ‘adjusted’ measures including adjusted EBITDA to assess
the profitability and performance of our business.
The ‘adjusted’ measures reported by the Group are:
— Adjusted operating expenses before depreciation, amortisation
and impairment
— Adjusted EBITDA
— Adjusted EBITDA margin
1
— Adjusted depreciation, amortisation and impairment
— Adjusted operating profit
— Adjusted net finance costs
— Adjusted profit before tax
— Adjusted profit for the year
2
— Adjusted earnings per share (EPS)
2,3
These are not measures of performance under IFRS but provide
supplemental data that helps convey an understanding of the
Group’s financial performance and exclude non-underlying items
per the above definition above. For more information on our
adjusted measures, refer to note 2 to the financial statements
on page 173.
1 Calculated as adjusted EBITDA divided by total income excluding recoveries.
2 Adjusted profit for the year is used to calculate adjusted EPS and adjusted diluted
EPS and is reconciled to profit for the year in note 7 to the consolidated financial
statements on page 188 and on the face of the consolidated income statement
on page 164.
3 While basic EPS reflects all Group activities, diluted EPS takes into account the
dilutive effect that would arise on conversion or vesting of all outstanding share
options and share awards under the Group’s share option and award schemes.
Constant currency growth
We serve customers in over 170 different countries and a
significant proportion of our income is generated in currencies
other than our reporting currency, sterling. Movements in
exchange rates can therefore have a significant impact on our
reported financial growth rates and so it can be helpful for us
to remove this volatility when assessing business performance.
We calculate constant currency growth rates – for P&L items
down to and including the operating profit line – on the basis of
consistent FX rates applied across the current and prior year period.
Organic (constant currency) growth
We measure organic growth rates in order to compare business
performance with prior periods independent of acquisition and
disposal activity. Organic growth is calculated on a constant
currency basis, adjusting the results to remove disposals from
the entirety of the current and prior year periods, and by including
acquisitions from the date of acquisition with a comparable
adjustment to the prior year.
(Equity) free cash flow
We use equity free cash flow to determine residual cash inflow
or outflow, after operational usages of cash such as interest
payments, taxes paid, dividends paid to minority interests
and capital expenditure. Equity free cash flow represents the
cash that we have available to distribute to shareholders via
dividends and buybacks, and for other uses such as M&A activity.
Unless specified otherwise, references to free cash flow in the
Annual Report should be taken to mean equity free cash flow.
For a reconciliation from equity free cash flow to reported
cash flow, refer to page 54.
(Dividend) payout ratio
Our dividend payout ratio or payout ratio represents the ratio of
the total amount of dividends paid to shareholders relative to our
adjusted earnings per share.
Annual Subscription Value (ASV) growth
Our ASV growth metric measures the year-on-year expansion
in the annualised value of our book of subscription contracts,
at a point in time. By annualising the value of contracts that have
recently been initiated, the metric should act as a leading
indicator of Data & Analytics subscription growth (98% of Data
& Analytics revenue).
Cost and revenue synergies
We use our cost and revenue synergy programmes to quantify
the financial value directly generated by LSEG’s acquisition
of Refinitiv, which closed in January 2021. Our runrate synergy
achievement figures represent the incremental annual revenue
or cost savings delivered as a result of synergies between
the two legacy organisations, which were identified prior to
the acquisition.
Capex intensity
We use capex intensity as a measure of our rate of investment,
relative to the income we generate. Following a period of
heightened capex intensity – as we deliver synergies from the
Refinitiv integration and address historic underinvestment in the
infrastructure of that business – we expect capex intensity to
reduce from 11-12% in 2024 to a high-single digit percentage of
revenue over the medium term. Capex intensity is calculated
as cash capex (excluding sales commissions), divided by total
income excluding recoveries.
253 London Stock Exchange Group plc
Annual Report 2024
Financial statements
Glossary continued
$
US dollar, unless otherwise specified.
Acadia
Acquired March 2023, provider of automated
uncleared margin processing and integrated
risk and optimisation services for the global
derivatives community.
ADV
Average daily volumes or average daily
value traded.
AI
Artificial intelligence.
AIM
The Group’s market for smaller and growing
companies established in London.
API
Application programming interface.
ASV
Annual Subscription Value. A point in time
measure of our recurring book of subscription
contracts versus 12 months ago.
BETA
A securities processing system that LSEG
divested to Clearlake Capital Group L.P and
Motive Partners in July 2022. BETA previously
sat within the Wealth Solutions business.
Beyond Ratings
LSEG completed the acquisition of
Beyond Ratings in 2019. Beyond Ratings
is a provider of ESG data and analytics
for fixed income investors.
CAGR
Compound annual growth rate.
CCP
Central Counterparty – stands between two
parties to a trade to eliminate counterparty
risk by ensuring that settlement takes place.
CDSClear
LCH’s over-the-counter credit default swap
(CDS) clearing service.
CFC
Controlled foreign company.
CMIT
The UK Capital Markets Industry Taskforce
comprises CEOs, chairs and industry leaders
representing private and publicly listed
companies, asset owners and managers,
and the advisory services that support
their access to capital and investments.
Combined Group
Combination of LSEG and Refinitiv following
completion of the Refinitiv acquisition on
29 January 2021.
Company
London Stock Exchange Group plc.
Derivatives
Tradable financial instruments whose value
is determined by the value of underlying
instruments; this could be equity, an index,
a commodity or any other tradable instrument.
— Exchange traded derivatives (ETD)
Listed derivatives traded on an electronic
trading venue such as an exchange and
cleared through a clearing house.
— Over the counter (OTC)
Derivatives are negotiated privately
between two parties and may be cleared
through a clearing house.
EBITDA
Earnings before interest, tax, depreciation
and amortisation.
Exchange-traded fund (ETF)
Low-cost and flexible investments that track
indices and sectors.
FCA
Financial Conduct Authority, the current
regulator of conduct of providers of financial
services in the UK and of UK trading venues
such as recognised investment exchanges
(RIEs) and MTFs.
Fintech
Financial technology.
ForexClear
LCH’s over-the-counter foreign exchange
clearing service.
FTSE Russell
FTSE International Limited and its subsidiaries,
the Group subsidiary that is a leading global
provider of index and analytics solutions.
FXall
The Group’s dealer-to-client electronic
FX trading and workflow platform.
FX Matching
The Group’s dealer-to-dealer FX trading venue.
GDC
Global Data Consortium. Acquired May 2022,
a provider of identity verification data to
support clients with KYC requirements.
GIACT
The Group’s digital identity and payments
verification platform. Refinitiv acquired GIACT
in December 2020 and it was included in
the acquisition of Refinitiv in January 2021.
Green Economy Mark
Mark recognising equity issuers on
London Stock Exchange with 50% or
more green revenues.
Group/LSEG
The Company and its Group undertakings.
Hampton-Alexander Review
An independent, business-led initiative
established in 2016 to increase the
representation of women in senior
leadership positions and on boards of
FTSE 350 companies.
IPO
Initial public offering – the process whereby
companies join our markets and raise capital
for the first time.
KYC
‘Know your customer’ screening.
LCH or LCH Group
LCH Group Limited and its subsidiaries,
the Group’s 94.2% owned global clearing
and risk management business.
Lipper
Lipper provides global, independent fund
performance data in a precise, granular
fund classification system, and includes
mutual funds, closed-end funds (CEFs),
exchange-traded funds (ETFs), hedge funds,
domestic retirement funds, pension funds,
and insurance products.
LSE
London Stock Exchange plc.
Main Market
The market for companies that have been
admitted to trading on the London Stock
Exchange’s principal market.
MayStreet
Acquired May 2022, a provider of global
low-latency technology and market data
to industry participants including banks,
asset managers and hedge funds.
Mergent Inc.
LSEG completed the acquisition of Mergent
Inc., a provider of business and financial
data on public and private companies,
in January 2017 and it has been integrated
within FTSE Russell.
Multilateral trading facility (MTF)
Alternative electronic trading systems as
categorised under the Markets in Financial
Instruments Directive (MiFID).
Non-Executive Director (NED)
A Non-Executive Director (NED) is a member
of the Board who is not part of the Company’s
executive management team.
NTI
Net treasury income. Income earned on cash
deposited with LCH (the Central Counterparty)
as margin and default funds as part of the risk
management process.
London Stock Exchange Group plc
Annual Report 2024
254
Glossary continued
OTC
Over-the-counter trades in financial
instruments executed outside a Regulated
Market or MTF – see also Derivatives.
Paris Agreement
A legally binding international treaty on
climate change, signed at the COP21
conference in Paris in 2015.
Parker Review
An independent review commissioned in
2017 to consider how to improve the ethnic
and cultural diversity of UK boards.
PrimaryBid
A technology platform that connects retail
investors with listed companies raising capital,
of which LSEG is a minority owner.
Primary Market
The listing of securities for the first time via
an IPO or introduction of existing securities.
Prospectus
LSEG published a shareholder prospectus
on 9 December 2020, ahead of the Refinitiv
transaction completion and readmission of
the new LSEG to trading on London Stock
Exchange’s main market.
PRS
Pricing and Reference Services.
Quantile
Acquired December 2022, a provider of
portfolio, margin and capital optimisation
and compression services for the global
financial services market.
Race to Zero
A UN-led campaign to rally leadership and
support from businesses, cities, regions and
investors for a healthy, resilient, zero carbon
recovery. All members are committed to
achieving net zero emissions as soon as
possible, and by 2050 at the very latest.
Refinitiv
Refinitiv, a global provider of financial market
data and infrastructure, was founded in 2018.
It became a subsidiary of London Stock
Exchange Group as of 29 January 2021.
Refinitiv transaction/acquisition
The all-share acquisition of Refinitiv by London
Stock Exchange Group plc, completed on
29 January 2021.
Red Flag
The Group’s provider of workflow, data,
due diligence and ratings solutions that help
corporate compliance customers to evaluate
money laundering, bribery and corruption,
reputational and ESG risk. Refinitiv acquired
Red Flag in October 2020 and it was included
in the acquisition of Refinitiv in January 2021.
Regulated Market
A multilateral system that brings together
multiple third-party buying and selling in
financial instruments in accordance with
rules authorised under provisions of MiFID.
Relationship Agreement
The relationship agreement effective
29 January 2021 between the Company,
York Parent Limited, York Holdings II Limited,
York Holdings III Limited and BCP York
Holdings (Delaware) L.P. which governs the
relationship between the parties following
completion of the Refinitiv acquisition. Further
information on the Relationship Agreement can
be found at pages 65–70 of the shareholder
prospectus dated 9 December 2020 and
available on the LSEG website.
Repo
Repurchase agreement – the process of
borrowing money by combining the sale
and subsequent repurchase of an asset
cleared through LCH.
RNS
Regulatory News Service, the Group’s Primary
Information Provider, for dissemination of
regulatory and non-regulatory news to
the market.
Science Based Targets initiative (SBTi)
A coalition established in 2015 between the
CDP, the United Nations Global Compact,
World Resources Institute and WWF which
aims to enable companies to set emission
reduction targets in line with leading
climate science.
Secondary Market
The public market on which securities once
issued are traded.
SEDOL
The Group’s securities identification service.
SETS
The electronic order book operated by the
London Stock Exchange for the trading of
the most liquid securities.
Sustainable Bond Market (SBM)
A dedicated segment of London Stock
Exchange for social and sustainable bonds.
Sustainable issuers
The total number of issuers across the
Sustainable Bond Market and the Voluntary
Carbon Market, plus those that display the
Green Economy Mark.
SwapAgent
LCH’s service designed to simplify the
processing, margining and settlement
of non-cleared derivatives.
SwapClear
LCH’s over-the-counter interest rate swap
clearing service.
The Yield Book
The Yield Book provides fixed income
analytics that enables market makers and
institutional investors to perform portfolio
analysis and risk management. LSEG acquired
The Yield Book in August 2017 and
incorporated it within FTSE Russell.
Tick History Data
LSEG’s historical archive of real-time pricing
data, covering OTC and exchange-traded
instruments from trading venues and
third-party contributors.
TORA
Acquired August 2022, our cloud-based
multi-asset trading software, with functions
including order management and portfolio
rebalancing.
Turquoise
Turquoise Global Holdings Limited, the Group’s
84.2% owned pan-European MTF equity
trading subsidiary, a venture between the
Group and a number of global investment
bank clients.
UnaVista
The Group’s web-based matching,
reconciliation and data integration engine
that provides matching of post trade data in
a simple, automated process and the Trade
Repository approved by ESMA.
Voluntary Carbon Market (VCM)
The Voluntary Carbon Market enables
private investors, governments,
non-governmental organisations and
businesses to voluntarily purchase carbon
offsets to offset their emissions.
Workspace
LSEG’s data and analytics workflow solution
designed to provide access to company
financial data and economic indicators as
well as news, analytics and productivity tools.
World-Check
The Group’s risk intelligence database
designed to assist organisations in meeting
their KYC and third-party due diligence
screening obligations.
255 London Stock Exchange Group plc
Annual Report 2024
Financial statements
Investor relations
Shareholder services
Equiniti registrars Shareview services
Shareholders who hold London Stock Exchange Group shares in
certificated form or within an Equiniti Investment Account or ISA
can access Shareview. Shareview is a free service provided by
our registrars, Equiniti. It may be accessed through the internet at:
www.shareview.co.uk.
By creating a Shareview portfolio, shareholders will gain online access
to information about their London Stock Exchange Group shares and
other investments, including:
— Direct access to information held for you on the share register
including share movements
— A daily indicative valuation of all investments held in your portfolio
— A range of information and practical help for shareholders
To register at Shareview shareholders will need their shareholder
reference (which can be found on your share certificate) and they
will be asked to select their own personal identification number.
A user ID will then be posted to them.
If shareholders have any problems in registering their portfolio for the
Shareview service, contact Equiniti on 0371 384 2544. For calls from
outside the UK, contact Equiniti on +44 (0)121 415 7047.
Group’s share price service
To obtain share price information for London Stock Exchange Group plc,
see our website at: www.lseg.com.
By clicking on the Investor Relations tab, you will find the Company’s
share price, historical closing prices and volumes and an interactive
share price graph.
Substantial shareholders
As at 26 February 2025 the Company had been informed of the
following notifiable voting rights in the issued share capital of the
Company in accordance with DTR 5 of the FCA’s Disclosure Guidance
and Transparency Rules:
— Qatar Investment Authority 5.9%
— Blackrock, Inc. 5.5%
— The Capital Group Companies, Inc. 4.9%
— Microsoft Corporation 4.0%
— Lindsell Train Limited 3.9%
In October 2024, Refinitiv’s former owners – a consortium made up of
Thomson Reuters Corporation and certain investment funds managed
by Blackstone Group Inc. – completed the sale of their remaining stake
in the Group. From this date, the former Refinitiv shareholders do not
hold an interest in the Company.
Financial calendar (provisional)
— AGM – 1 May 2025
— Q1 Trading Statement (revenues only) – 1 May 2025
— Ex dividend date for final dividend – 17 April 2025
— Final dividend record date – 22 April 2025
— Final dividend payment – 21 May 2025
— Half year end – 30 June 2025
— Interim results (for six months ended 30 June 2025) – 31 July 2025
— Q3 Trading Statement (revenues only) – 23 October 2025
— Financial year end 31 December 2025
— Preliminary results February 2026
Please refer to our website: www.lseg.com/investor-relations
and click on the shareholder services section for up-to-date details.
For Tradeweb's reporting dates please refer to their website:
investors.tradeweb.com.
2025 AGM
The AGM for the year ended 31 December 2024 will be held
on 1 May 2025 at '87 Barts Close', 87 Bartholomew Close,
London EC1A 7EB, starting at 10.30am.
Investor Relations
London Stock Exchange Group plc
10 Paternoster Square
London
EC4M 7LS
For enquiries relating to shareholdings in London Stock Exchange
Group plc:
Shareholder helpline: +44 (0)20 7797 3322. Email: ir@lseg.com
Visit the Investor Relations section of our website for up-to-date
information including the latest share price, announcements,
financial reports and details of analysts and consensus forecasts:
www.lseg.com/en/investor-relations.
Registered office
London Stock Exchange Group plc
10 Paternoster Square
London
EC4M 7LS
Registered company number
London Stock Exchange Group plc: 5369106
Registrar information
Equiniti
Aspect House
Spencer Road
Lancing
West Sussex
BN99 6DA
T +44 (0)371 384 2030 or +44
(0)121 415 7047
Lines open 8:30 to 17:30 Monday
to Friday.
www.shareview.co.uk
Independent auditors
Deloitte LLP
2 New Street Square
London
EC4A 3HQ
Principal legal adviser
Freshfields Bruckhaus Deringer
LLP
65 Fleet Street
London
EC4Y 1HS
T +44 (0)20 7936 4000
Corporate brokers
Citi
33 Canada Square
Canary Wharf
London
E14 5LB
T +44 (0)20 7500 5000
www.citigroup.com
Morgan Stanley
25 Cabot Square
Canary Wharf
London
E14 4QA
T +44 (0)20 7425 8000
www.morganstanley.com
Goldman Sachs
Plumtree Court
25 Shoe Lane
London
EC4A 4AU
T +44 (0)20 7774 1000
www.goldmansachs.com
London Stock Exchange Group plc
Annual Report 2024
256
Disclaimers
AIM, London Stock Exchange, London Stock Exchange Group, LSE,
the London Stock Exchange Coat of Arms Device, FTSE Russell,
SEDOL, SETS and UnaVista, are registered trademarks of London
Stock Exchange plc. Main Market and the Green Economy Mark
are unregistered trademarks of London Stock Exchange plc.
Beyond Ratings is a registered trademark of Beyond Ratings.
CDSClear is a registered trademark of LCH S.A.
FTSE, FTSE Russell is a registered trademark of the London Stock
Exchange Group companies and is used by FTSE International
Limited under licence.
GIACT is a registered trademark of Giact Systems, LLC.
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