First, a summary of LSE. Pre-Refinitiv, LSE's business can be grouped into 3 buckets: 50% FTSE Russell - indices & data 40% LCH - swaps & FX clearing 10% Other - cash equities, listings & tech services What is LSE getting w/ Refinitiv?
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Refinitiv did $6.3B in 2018 revenue - 3x LSE's. Key products include: Eikon: a cheaper Bloomberg terminal Risk & post trade solutions FX trading platform FXall Controlling interest in Tradeweb
$TW Combining with LSE would boost almost every business unit.Show this thread -
Some examples: Swaps trading (Tradeweb)
Swaps clearing (LCH)
FX trading (FXall)
FX clearing (LCH)
Data delivery (Eikon)
Data creation (FTSE Russell)
ETF trading (Tradeweb)
ETF indices (FTSE Russell)
Risk Solutions (Refinitiv)
Post Trade (LSE)Show this thread -
Eikon may be the #2 terminal to Bloomberg, but it's still a monster in the space. Stats below - 190,000 users (23% market share) at anywhere from $3,600 - $22,000 per year each.pic.twitter.com/EI9vHbF565
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TLDR: Don't overlook the LSE Refinitiv deal. Just because it's taking a long time to close doesn't mean the industry impact isn't huge. LSE is buying a crown jewel in Refinitiv, and the benefits of combination should make competitors sweat.
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Sources: https://www.lseg.com/sites/default/files/content/documents/LSEG%20Annual%20Report%2031%20December%202019.pdf … https://www.wallstreetprep.com/knowledge/bloomberg-vs-capital-iq-vs-factset-vs-thomson-reuters-eikon/ … https://ir.thomsonreuters.com/static-files/dd5b380d-7e0e-4316-b693-bec293daaece …
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