The British are coming.
According to a recent report in the Wall Street Journal, the chief executive of London Stock Exchange Group said that his exchange and clearing company needs to expand into the U.S. markets. The Journal revealed that the UK bourse was in bids to acquire Seattle-based stock index and asset-management business Russell Investments.
The LSE passed a milestone thanks to its 3exchange, data and clearing services. The British bourse reported revenue for the year ending on March 31 was $1.8 billion, compared with $891 million in the previous year. According to CEO Xavier Rolet, $443 million of this revenue came from post-trade services such as clearing and settlement made by LCH.Clearnet.
The Journal adds that the LSE recently launched futures contracts based on FTSE indexes. “We’re not fully balanced because we don’t have a big futures engine,” he said, adding that he hoped to build one “organically.” “It takes a long time; you have got to get the clearing and settlement right,” he said. “But as long as you keep costs low you can innovate.”