Thursday, 26 April, 2018

LSE to buy Citi's bond data and indexes business for $685 mln

LSE logo The LSE pointed out the deal will increase its benchmark assets under management to around US$15trln
Preston Stone | 31 May, 2017, 00:47

London Stock Exchange Group (LSE) has reached an agreement to purchase Citigroup's fixed-income analytics platform and index business for $685m (£534.6m) in a cash deal.

Citi said the businesses, which it made a decision to dispose of following a strategic review, have a client base of more than 350 institutions.

The acquisition follows the group's acquisitions of the Russell indices for £1.6bn in 2014 and US-based Mergent in November a year ago.

LSE, which had said it would be looking out for investments after the collapse of its proposed merger with Deutsche Boerse, said the deal would boost the data and analytics capabilities of its information and FTSE Russell indexes business and take assets under management using its indexes to about $15 trillion. This transaction will give Citi clients a partner who is fully committed to investing in and growing its fixed income analytics and indices businesses.

Citi's sale of its Yield Book fixed income analytics system, and the Fixed Income Indices-including the World Government Bond Index (WGBI)-isn't a surprise, as the company has been looking to divest non-core business holdings and it's been exploring a sale since last summer. The businesses' mortgage models are widely considered to set the industry standard.

Despite rumours the LSE could pursue another merger, Bank of America analysts said the Yield Book takeover showed the LSE had a clear strategy to remain as a stand-alone business.

Manchester police arrest man, 25, in bomb probe
A 23-year-old was held in the small seaside town on suspicion of terror offences in the early hours of Monday morning, GMP said. Prime Minister Theresa May made the announcement after leading a meeting of the government's emergency committee Cobra.

After integration LSEG's indices will benchmark US$15trn of assets. These indices, created to appeal to a wide range of market participants, are widely followed and broadly published.

Mark Makepeace, Group Director of Information Services and CEO of FTSE Russell, said: "The acquisition of The Yield Book and Citi Fixed Income Indices supports the continued strong growth and development of London Stock Exchange Group's Information Services division".

Citi Fixed Income Indices has been producing fixed income indices for more than 30 years.

Citi was advised by its own Institutional Clients Group with Barclays acting for LSEG. The indices will continue to be maintained based on existing design criteria and calculation methodologies, and will continue to align with regulatory requirements such as the IOSCO principles.

By combining the businesses into the LSE's operations, the London-based exchange said it expects to generate new sources of revenue totaling $30 million over the first three years after the deal's completion by adding new index customers and developing new products. We look forward to a long-term, productive partnership between London Stock Exchange Group and Citi.

Recommended

  • WH communications director Michael Dubke resigns

    WH communications director Michael Dubke resigns

    Bossie encouraged the American people to say enough is enough, and reject the concept of "the celebrity press conference". More attorneys with deep experience in Washington investigations are expected to be added in the weeks ahead.

    'Animaniacs' is your latest childhood obsession to get a reboot

    How did the " Animaniacs " theme song go again? Indiewire has word of the reboot, which hails from Amblin TV and Warner Bros. No one knows for certain, although the report did say Spielberg is "expected to be on board in crafting the updated version".

    Irving's 42 carry Cavs to win, 3-1 lead over Celtics

    Irving scored 36 points after that, including 21 during a game-turning third quarter in which Cleveland outscored Boston 40-23. But then things changed. "He saw Bron went out and he wanted to put the team on his shoulders", Cavs coach Tyronn Lue said.
  • Madras High Court stays ban on cattle trade for slaughter

    Madras High Court stays ban on cattle trade for slaughter

    There have been protests in Tamil Nadu and neighbouring states like Kerala and Karnataka against the Centre's order. She had said that her state won't obey the rules and would also challenge it.
    Could Nolan Carroll's DWI arrest lead to his release from Cowboys?

    Could Nolan Carroll's DWI arrest lead to his release from Cowboys?

    Dallas Cowboys cornerback Nolan Carroll was arrested for suspicion of DWI on Monday afternoon, reports ESPN's Todd Archer . Carroll came over from Philadelphia where he led all National Football League cornerbacks in coverage penalties in 2016.
    High society: Pippa Middleton to marry at almost-royal event

    High society: Pippa Middleton to marry at almost-royal event

    The bride's parents, Carole and Michael Middleton, have had an elaborate glass marquee built on their estate for the reception. But despite Meghan not being married or engaged to Harry , she attended Pippa Middleton's wedding reception regardless.
  • BA aims to restore normal flight service after IT failure

    The airline has suffered other IT glitches recently, leading to severe delays for passengers in July and September a year ago . Customers who saw their flights cancelled are being refunded or rebooked onto new services "as quickly as possible".

    Sofia Coppola takes directing prize at Cannes

    Kidman wasn't at the French Riviera ceremony on Sunday night but sent a video message from her home in Nashville, Tennessee. The Palme d'Or award for best picture at the Cannes Film Festival has been awarded to Ruben Ostlund's The Square .
    French Open to start with Petra Kvitova's return to court

    French Open to start with Petra Kvitova's return to court

    Also, like, fitness-wise is when you are not moving so good. "So then, of course, I'm not feeling good from the defence". This was her first win over a reigning world No1 and she entered the contest with a 0-4 record against such opposition.
  • Notre Dame Students Walk Out During Vice President Mike Pence's Commencement Speech

    Notre Dame is located in South Bend, Indiana - the same state where Pence served as governor for four years. Browne also said that protests will take place as long as students didn't disturb the celebration.

    United Kingdom resumes intelligence sharing with US

    President Donald Trump during a North Atlantic Treaty Organisation summit in Brussels on Thursday. His older brother, 23-year-old Ismail, was arrested by Manchester police on Tuesday.
    Ronaldo's double puts Real on verge of La Liga title

    Ronaldo's double puts Real on verge of La Liga title

    Real Madrid head to Celta Vigo on Wednesday night looking to push themselves ahead of rivals Barcelona in the battle for the LaLiga title.

Tougher than ever, 90th National Spelling Bee gets underway The shortest stumper: Google users in Rhode Island were apparently flummoxed by the four-letter "liar". Three states: Arizona, Colorado and Wisconsin, have trouble with tomorrow, according to Google.

Officer who fatally shot Tamir Rice fired Samaria Rice settled a federal civil rights lawsuit with the city past year for $ 6 million . "We still need accountability". Timothy Loehmann opened fire on Tamir Rice as he played with a pellet gun, sparking widespread protests.

Germany detains Syrian allegedly planning Berlin attack Germany detains Syrian allegedly planning Berlin attack According to the paper, the teen has been living in a home for unaccompanied minor refugees in Uckermark since 2016. German security officials have repeatedly warned that the country is in the crosshairs of global terrorist groups.

Killed keeper Rosa King was zoo's 'shining light' Killed keeper Rosa King was zoo's 'shining light' An investigation is underway and the zoo, 130 kilometers (80 miles) north of London , has been closed. Holmes said she and her family ducked into an office until an employee said it was safe to leave.

Top Congressman Calls For Review Of Jared Kushner's Security Clearance Trump already has the resignation of his communications director Michael Dubke . That could include Corey Lewandowski, David Bossie, and Sam Nunberg.

Donald Trump 'to pull U.S. out of Paris climate change agreement' Donald Trump 'to pull U.S.  out of Paris climate change agreement' President Donald Trump has decided that the United States will leave the Paris Agreement on climate change , according to a new report.

Jeb Bush Drops Pursuit Of Marlins Jeb Bush Drops Pursuit Of Marlins Sources said the Jeter-Bush group approached prospective buyers from other groups about joining forces with them. The potential sale of the Miami Marlins took a step back Tuesday with former Florida Gov.

Are There Any Catalysts to Propel Vornado Realty Trust (NYSE:VNO) Forward? Are There Any Catalysts to Propel Vornado Realty Trust (NYSE:VNO) Forward? Following volatility data can help measure how much the stock price has fluctuated over the specified time period. Moreover, Old Mutual Customised Solutions (Proprietary) has 0.02% invested in Brandywine Realty Trust (NYSE:BDN).

Frenchman Hamou kicked out of French Open after kissing journalist Frenchman Hamou kicked out of French Open after kissing journalist Maybe Hamou should spend a little more time focusing on behaving appropriately instead of tennis. The 116th edition of French Open is underway in Paris .

Senzar Asset Management LLC Has Lowered Sanofi (SNY) Stake by $8.02 Million Senzar Asset Management LLC Has Lowered Sanofi (SNY) Stake by $8.02 Million The analysts estimated EPS for the higher end at 0.76 and lower end at 0.76 while the year ago reported earnings per share was 0. Shares for $10.75M were sold by Sheedy William M . $52,275 worth of RealPage Inc (NASDAQ:RP) was sold by Glover Ashley Chaffin.

Mulvaney defends Trump budget's social safety net cuts And Medicaid spending would fall from 2 percent of the economy to 1.7 percent in 2027 due to the reductions in Trump's budget . Mulvaney defended the budget and the more-than-rosy assumptions that he made to get the budget to balance in a decade.

Basebrawl! Harper, Strickland punch away, Nats-Giants fight I mean, that's the prime time to hit somebody if you're going to hit them, it looked like it was intentional to me, ' he said . Remember when Bryce Harper homered off the Giants reliever in Games 1 and 4 of the NLDS? Strickland denied any intent.

Oil languishes after OPEC fails to deepen supply cuts, Asia stocks retreat JAPAN PRICES: Inflation ticked up to a two-year high last month on rising energy costs, according to the latest official data. Economists had been expecting a more modest upward revision to the pace of GDP growth to approximately 0.9 percent.

South African ruling party debates fate of president South African ruling party debates fate of president According to the news portal, Zuma continues to dominate the highest levels of the ANC despite growing internal challenges. He said on Friday he was "not opposed to establishing a commission of inquiry", without specifying a timeframe.

French Open: Rafael Nadal, Novak Djokovic advance to second round French Open: Rafael Nadal, Novak Djokovic advance to second round Pliskova, who is the highest-ranked player at Roland Garros after world No. 1 Angelique Kerber lost on Sunday, triumphed 7-5, 6-2. No. 10 seed David Goffin of Belgium beat French qualifier Paul Henri-Mathieu 6-2, 6-2, 6-2.