LSE swoops on US rival with £535m data deal

THE London Stock Exchange has beaten US rivals to snap up an international bond business for £535m – making it by far the world’s biggest provider of indices data.

The firm’s FTSE Russell arm has acquired Citi’s world-leading bond index, used by 350 trading desks around the globe. It has also acquired an IT analysis business from the American bank. FTSE Russell indices are now tracked by £12.8trillion of cash – far ahead of its closest rival, MSCI, on £8.6trillion.

It follows a torrid few months for the exchange, which had been battling to secure a £21bn tie-up with Frankfurt-based Deutsche Boerse. Campaigners successfully warned the plan would give Germany too much influence over the City and damage Britain’s national interest during Brexit negotiations.

LSE bosses are hoping the acquisition shows it remain a major global player, making FTSE Russell a one- stop shop for stocks and bonds indices. Analysts at Bank of America Merrill Lynch said the Citi deal showed ‘a clear strategy as a standalone business’.

LSE shares rose 1.5pc, or 51p, to 3442p.