LONDON STOCK EXCHANGE GROUP PLC

LONDON STOCK EXCHANGE GROUP PLC

Previous company name
LONDON STOCK EXCHANGE GROUP LIMITED
Name change date
12/7/2005
Company Overview
London Stock Exchange Group PLC is a group which is engaged in providing the markets and means of raising capital for the United Kingdom and international companies through equity, debt and depository receipt issues investors of all types the opportunity to buy and sell shares on the companies of their choice. It has its registered office address in London, United Kingdom. It is one of the world’s oldest stock exchanges and its history can be traced back in more than 300 years.
London Stock Exchange is one of Europe’s leading stock exchanges and one of the world’s leading equity exchanges and a leading provider of services that facilitate the raising of capital and the trading of shares. The group is at the heart of global financial markets and is home to some of the best companies in the world. Its aim is to compete in the global market for financial transaction services to become the supplier of choice, providing customers with the most efficient, trusted and reliable services, and shareholders with the most successful exchange business.
London Stock Exchange’s revenues are derived from activities in three main business areas which include issuer services, broker services and information services. It also has a smaller growing business area, the derivatives services. In line with the group’s strategy, these services have a shared focus on maintaining and enhancing high standards of customer service while looking to increase the reach and scale of its businesses by building on the core capabilities.
Business Summary
The principal activities of the Company and its subsidiaries are the admission of securities to trading, the delivery of trading systems, clearing and settlement of trading in securities, the organisation and regulation of markets in securities and the provision of associated information services.
Description and history
The principal activities of the Company and its subsidiaries are the admission of securities to trading, the delivery of trading systems, clearing and settlement of trading in securities, the organisation and regulation of markets in securities and the provision of associated information services.

Their revenues are derived from activities in 3 main business areas: Issuer Services, Broker Services and Information Services. They also have a smaller growing business area – Derivatives Services.

Issuer Services:
The Issuer Services division provides access to their markets, which facilitate the raising of capital and the trading of a wide range of securities. They seek to attract securities issued by UK and international companies, government agencies and sovereigns that wish to have their equity and debt securities admitted to trading on a public market. Issuer Services also manages their relationship with issuers and develops products and services to meet their needs, and includes RNS – the UK’s leading distributor of company news.

Broker Services:
The Broker Services division develops their trading markets and related products and services, and attracts and admits new customers to their markets. These customers are wholesale and retail broking firms from around the world. They operate a range of electronic trading services, including the SETS electronic order book for the most liquid stocks, which facilitates price formation and trade execution. They intend to expand their customer base and capitalise on their extensive network of market participants to provide new value added products and services.

Information Services:
Accurate, real-time price data is essential for the users of their markets to make informed and timely trading and investment decisions. The Information Services division markets and sells London Market Information and other specialist securities information to their member firms, information vendors, companies and investors. It includes SEDOL – the emerging global standard for instrument identification and Proquote – London’s fourth largest market data vendor. It also enables customers to access their technology networks, including the Extranex network, as well as the STX private telephone service for market participants.

History
The Company was incorporated on 18 February 2005 and listed on the Alternative Investment Market of the London Stock Exchange on 15 May 2006

October 1986 Big Bang.
– Trading moved from the market floor to a new regime in which prices were disseminated over SEAQ (the Stock Exchange Automated Quote system) and deals completed over the telephone or face to face.
– Firms able to operate in a dual capacity as broker dealer/market maker.
– 100% ownership of member firms by an outside corporation is allowed.
– Minimum scales of commission were abolished.
– Individual members ceased to have voting rights.
November 1986: Exchange incorporated as a private limited company.
– Amalgamation of stock exchanges in the UK, the Republic of Ireland, the Isle of Man and the Channel Islands with the International Securities Regulatory Organisation. They were incorporated as a private limited company registered in England and Wales with the name The International Stock Exchange of the United Kingdom and the Republic of Ireland Limited.

July 1991: the Company’s Board of Directors was created.
– They adopted a modern memorandum and articles of association in place of the Deed of Settlement. The Council of the Stock Exchange was replaced with a Board of Directors.

June 1995: Exchange launches AIM.
– They launched AIM, a market targeted at assisting growing companies.
December 1995: Irish Stock Exchange devolved from them.
– The Irish Stock Exchange was re-established as a separate stock exchange. The International Stock Exchange changed its name to the London Stock Exchange Limited.

July 1996 – April 1997: Settlement transferred from Talisman to CREST.

October 1997: Exchange introduces SETS.
– SETS was launched, initially for the constituent shares of the FTSE 100 Index, bringing greater speed and efficiency to the market.
July 1998: The Exchange and Deutsche Boerse sign Memorandum.
– The Exchange and Deutsche Boerse (Frankfurt) signed a Memorandum of Understanding to form a strategic alliance. The Memorandum underlined their commitment to harmonise the markets for their leading securities and, ultimately to develop a joint electronic trading platform.

May 1999: European Exchanges sign agreement.
– The Heads of the 8 leading stock exchanges in Europe signed a Memorandum of Understanding in Madrid confirming their ongoing commitment to continue to work towards harmonising the markets for their leading securities and establishing a pan-European equity market. The exchanges comprised Amsterdam, Brussels, Frankfurt, London, Madrid, Milan, Paris and Switzerland.

November 1999: Launch of techMARK an index for technology companies .

March 2000: Exchange votes to demutualise.
– At an extraordinary general meeting, B shareholders approved the necessary resolutions to enable the Company to become a public company with transferable shares. This enabled them to make the constitutional changes necessary to re-register as a public company with the name ‘London Stock Exchange plc’.

May 2000: Exchange transfers regulation responsibility to FSA.
– Role of UK Listing Authority transferred to the Financial Services Authority (FSA).

May 2000: Exchange and Deutsche Boerse announce intention to merge.
– They and Deutsche Boerse announced their plans for a merger of equals to create a leading international exchange organisation, called iX-international exchanges.
– They and Deutsche Boerse also signed a memorandum of understanding with Nasdaq to create a pan-European, high growth market.

April 2000: Exchange appoint new Chairman.
– Don Cruickshank was appointed as a Chairman, designated to taking over from Sir John Kemp-Welch on 25 May 2000.

June 2000: Exchange re-registered as plc.

July 2000: Their shares commence trading.
– The Exchange’s shares commenced trading on matched bargain facility operated by Cazenove.

August 2000: Rejection of Approach from OM AB.
-They received an approach from OM AB, regarding a possible offer for the Exchange, which was rejected by the Board of the Exchange.
September 2000: iX merger proposal withdrawn.
– They withdrew its merger plan with Deutsche Boerse.

November 2000: Exchange confirmed OM AB’s failed bid.
– They noted OM’s announcement that it has failed to receive sufficient acceptances for its hostile offer and that the offer had now lapsed.

January 2001: Exchange appointed new Chief Executive.
– They announced the appointment of Clara Furse as their Chief Executive. She was appointed to the Board of the Exchange with immediate effect and commenced duties as Chief Executive on 5 February 2001.
February 2001: Successful launch of Central Counterparty (CCP).
– They, along with LCH and CRESTCo, successfully launched the Central Counterparty (CCP) service for the Company’s electronic order book.

March 2001: Exchange redeems debenture.
On 28 February 2001, at an Extraordinary General meeting shareholders approved an amendment to the Trust Deed enabling them to redeem the 101/8% Mortgage Debenture Stock 2016 (the Stock) in its entirety at any time. Following execution of the amendments to the Trust Deed on 1 March 2001, they exercised their rights and redeemed the Stock in full on 8 March 2001.

April 2001: Launch of International Retail Service.
– They launched the International Retail Service which enabled private investors to utilise their existing broker relationship to trade in international securities.

July 2001: Exchange shares listed and commence trading on the main market.
– The listing of their shares followed the approval by shareholders at an EGM on 19 July 2001 to remove the 4.9% shareholding limit and a 9 for 1 bonus issue.

September 2001: Exchange announced intention to bid for LIFFE.
– They announced that they had made an approach to LIFFE regarding a possible offer.

April 2002: RNS started operating on fully commercial basis.
– Following the completion of the FSA review of regulatory news dissemination, RNS (the Exchange’s Regulatory News Service) started operating on fully commercial basis.

May 2002: Launch of JSE SETS.
– A new trading system goes live at the stock exchange of Johannesburg, JSE SETS, built and supported by the Exchange based on the SETS platform.

July 2002: New CCP netting service introduced.
– They and the London Clearing House (LCH) introduced a new facility for netting trades, including optional settlement netting for trades executed through SETS, cleared through the LCH EquityClear service, and settled in CREST.

October 2002: Launch of Covered Warrants
– The Exchange launched its new covered warrant market, making them available to the UK private investor for the first time.

December 2002: The Exchange and OM AB create EDX London.
– The Exchange and OM AB announced they are to develop and provide derivatives market services specifically tailored for equity market participants through the creation of a new international equity derivatives business, EDX London.

January 2003: Exchange purchases Proquote.
– The Exchange announced it has agreed terms to acquire Proquote Limited, a supplier of financial market software and data services, in a strategic move that will enhance its range of information products.

November 2003: SETSmm.
– Launch of SETSmm the new trading service for FTSE 250 and other leading non order book securities. By combining the best features of the existing SETS and SEAQ trading services, SETSmm appeals to market users who want to trade electronically, as well as those customers who use the market making system.

March 2004: SEDOL.
– Launch of new web based system to provide unique instrument identification for all global securities.

On 1 October 2007, the Company completed its merger with Borsa Italiana S.p.A.
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Business Line
Engaged in providing the markets and means of raising capital for the United Kingdom and international companies through equity, debt and depository receipt issues investors of all types the opportunity to buy and sell shares on the companies of their choice
Subsidiary
B.I.S. NOMINEES LIMITED
Advisor
PRICEWATERHOUSECOOPERS LLP
IPO date
5/15/2006
US SIC Code
6211
Company Address
10, Paternoster Square

City province or state postal code
EC4M 7LS, LONDON
Phone: +44 20 7797 1000
Fax:
Country address: UNITED KINGDOM
Website url: www.londonstockexchange.com