What is London Stock Exchange Group Doing in Canada?
The short answer to this question is more than you think. London Stock Exchange Group (LSEG) is more than just a stock exchange located in London and the organization is doing quite a bit to serve the Canadian markets and investor community here in Toronto and across Canada.
LSEG is a leading diversified global markets infrastructure provider with a number of global businesses helping investors across the market ecosystem. And LSEG has a number of these businesses at work here on the ground in Canada.
FTSE Russell, LSEG’s global indexes, analytics and market data provider, has been operating in Canada since 1947, originally as part of Scotia Capital, and has the largest Canadian presence of any index provider. FTSE Russell Canada works with a wide range of institutional and retail investors to provide tools for measuring investment performance, analyzing markets and constructing index-based investment portfolios. The FTSE Canada Universe Bond Index is the broadest and most widely used measure of Canadian bond market performance and FTSE Russell’s global fixed income, equity and specialty indexes are used as the benchmark for approximately $16 trillion in invested assets across Canada and globally.
LSEG’s primary markets division works with global issuers to help them access a more diversified investor base to support their long-term growth. With the recent listing of Yamana Gold, 27 Canadian companies, including 12 since 2018, worth approximately CA$11.5 billion have chosen to list in London, many of them dual listings with the TSX. LSEG helps these Canadian companies tap into international investment and liquidity opportunities, fueling their contribution to the Canadian economy and, importantly, to their end clients. This involvement is not limited to the equity markets. The provinces of Quebec, Montreal, Alberta and Ontario have all used bonds issued through LSEG’s markets.
London Clearing House, or LCH, LSEG’s global clearing arm, continues to grow in Canada with 105 Canadian clearing members including large pension funds. LCH supports direct registration (as used in Canada) and harmonized cross-border regulatory regimes. In March of this year, we were pleased to announce that Royal Bank of Canada (RBC) as Canadian bank clearing member at LCH SA’s RepoClear service, enabling the bank to access the largest European and UK pools of cleared debt and benefit from the risk management efficiencies of central clearing.
More broadly, LSEG is focused on helping Canadians meet the climate challenges of the future through its sustainable finance offerings. LSEG’s comprehensive sustainable finance approach for Canada is focused on two key areas; green financing for issuers (both debt and equity) and information services, including indices and analytics, that enable investors to incorporate climate change and sustainability considerations into their investment process.
In 2020, like all Canadians and global citizens for that matter, LSEG is learning to adapt to the “new normal” created by the onset of the global pandemic. Worldwide, LSEG responded quickly to the pandemic and was an early adopter of transitioning to a work-from-home environment for employees. Our Toronto office has been successfully serving clients and managing our index operations with all of our staff at home since March. Like our LSEG colleagues around the world, we have continued to engage with clients and manage our business effectively through telephone, video and electronic messaging, but we look forward to the day when we can re-engage with our Canadian client base in person.
So, I am hoping in the future when Canadians hear the question “what is London Stock Exchange Group doing in Canada,” the answer increasingly comes as “quite a lot in fact.” And, now, LSEG is very proud to become part of Toronto Finance International. Our two organizations share a common goal of working together and investing our time and resources to foster a globally competitive financial sector and help drive economic growth for Canada and its financial markets.
For more information, please contact Paul Bowes, Head of Canada at email@example.com.