Financial assets at FVPL include all other financial assets not classified as amortised cost or FVOCI. They include CCP businesses\u2019 clearing member trading balances comprising derivatives, as well as equity and debt instruments that are marked to market on a daily basis . Financial liabilities \u2014 Financial liabilities at FVPL include the CCP businesses\u2019 clearing member trading balances, comprising derivatives, as well as equity and debt instruments that are marked to market on a daily basis. \u2014 Financial liabilities at amortised cost are all financial liabilities that are not classified as financial liabilities at FVPL. They include trade and other payables, borrowings and other payables to clearing members. Impairment The Group adopts a forward-looking approach to estimating impairment losses on financial assets. An expected credit loss (ECL) arises if the expected cash flows are lower than the contractual cash flows due. The difference is discounted at the asset\u2019s original effective interest rate and recognised as an impairment of the original value of the asset. \u2014 Financial assets at amortised cost \u2013 the ECL for trade receivables (including fees receivable), contract assets, and lease receivables is derived using the simplified approach in IFRS 9 Financial Instruments to calculate a lifetime ECL. The allowance is based on historical experience of collection rates, adjusted for forward looking factors specific to each counterparty and the economic environment at large, to create an expected loss matrix. The ECL on other financial assets held at amortised cost and those at fair value that are held to collect and sell is measured using the general approach. An allowance is calculated based on the 12-month ECL at each reporting date unless there is a significant increase in the financial instrument\u2019s credit risk, in which case a loss allowance based on the lifetime ECL is calculated. \u2014 Financial assets at FVOCI \u2013 debt instruments held at FVOCI comprise high-quality government bonds that have a low credit risk. The Group\u2019s policy is to calculate a 12-month ECL on these assets. If there is a significant increase in credit risk, then a lifetime ECL will be recognised. A significant increase in credit risk is considered to have occurred when contractual payments are more than 30 days past due. \u2014 Financial assets at FVOCI \u2013 equity instruments are revalued to fair value on a regular basis and no further impairment analysis is required. \u2014 Financial assets at FVPL \u2013 no ECL is calculated for assets held at FVPL as any expected loss is already recognised in the recorded fair value of the asset. Notes to the financial statements continued 213 London Stock Exchange Group plc Annual Report 2022 FINANCIAL ST Notes to the financial statements continued 23. Financial assets and financial liabilities Offsetting Financial assets and financial liabilities are offset and the net amount reported in the balance sheet when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis, or to realise the asset and settle the liability simultaneously. Fair value hierarchy The Group uses the following valuation hierarchy for determining and disclosing the fair value of financial instruments: \u2014 Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities \u2014 Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly \u2014 Level 3: techniques which use inputs, which have a significant effect on the recorded fair value, that are not based on observable market data For Level 1, the fair value is based on market price quotations at the reporting date. For assets and liabilities classified as Level 2, the fair value is calculated using one or more valuation techniques (e.g. the market approach or the income approach) with market observable inputs. The selection of the appropriate valuation techniques may be affected by the availability and reliability of the relevant inputs. The inputs may include currency rates, interest rates, forward rate curves, and net asset values. When observable market data is not available, the Group uses one or more valuation techniques for which sufficient and reliable data is available. The inputs used in estimating the fair value of Level 3 financial instruments typically include expected timing and amount of future cash flows, timing of settlement, discount rates and the net asset values of certain investments. The Group determines whether a transfer between levels has occurred by reviewing the categorisation of assets and liabilities at the end of each reporting period, based on the lowest level input that is significant to the valuation. Derivative financial instruments and hedging activities Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently remeasured to their fair value at regular intervals. The method of recognising any resulting measurement gain or loss depends on whether or not the derivative is designated as a hedging instrument and the nature of the item being hedged. The Group has embedded foreign currency derivatives, primarily in revenue contracts where the currency of the contract is different from the functional or local currencies of the parties involved. The Group records these derivative instruments at fair value in the balance sheet as either assets or liabilities. Changes in fair value are recognised in the income statement. The Group hedges a proportion of its net investment in foreign subsidiaries by designating some euro and US dollar borrowings and derivative instruments as net investment hedges. Any gain or loss on the hedging instrument relating to the effective portion of the hedge is recognised in other comprehensive income and remains in the hedging reserve until the underlying asset or liability is derecognised. In order to qualify for hedge accounting, a transaction must meet strict criteria regarding documentation, effectiveness, probability of occurrence, and reliability of measurement. We document the relationship between hedging instruments and hedged items at the inception of the transaction, as well as documenting the risk management objectives and strategy for undertaking various hedging transactions. The effectiveness of the hedge is tested at each reporting date and at the commencement and conclusion of any hedge in order to verify that it continues to satisfy all the criteria for hedge accounting. Any ineffective portion is recognised in the income statement as finance income or expense. Amounts that have accumulated through other comprehensive income in the hedging reserve are recognised in the income statement in the period when the hedged item affects profit or loss (for example, when the forecast transaction that is hedged takes place). When a hedging instrument expires or is sold, or when a hedge no longer meets the criteria for hedge accounting, any cumulative gain or loss remains in the hedging reserve: it is only recognised in the income statement when the forecast transaction itself is ultimately recognised in the income statement. When a forecast transaction is no longer expected to occur, the cumulative gain or loss that was reported through other comprehensive income is immediately recognised in the income statement. The profit or loss on a derivative which is not designated as a hedging instrument is recognised directly in the income statement . London Stock Exchange Group plc Annual Report 2022 214 23. Financial assets and financial liabilities continued 23.1 Financial assets 31 December 2022 Group Company Amortised cost \u00a3m FVOCI \u00a3m FVPL \u00a3m Total \u00a3m Amortised cost \u00a3m FVPL \u00a3m Total \u00a3m Clearing business financial assets 1 \u2014 Clearing member trading assets 1,997 \u2013 661,370 663,367 \u2013 \u2013 \u2013 \u2014 Other receivables from clearing members 5,945 \u2013 \u2013 5,945 \u2013 \u2013 \u2013 \u2014 Other financial assets 2 \u2013 18,415 \u2013 18,415 \u2013 \u2013 \u2013 \u2014 Clearing member cash and cash equivalents 2 104,707 \u2013 \u2013 104,707 \u2013 \u2013 \u2013 Total clearing member assets 112,649 18,415 661,370 792,434 \u2013 \u2013 \u2013 Trade and other receivables 1,344 \u2013 12 1,356 1,360 \u2013 1,360 Cash and cash equivalents 3,209 \u2013 \u2013 3,209 77 \u2013 77 Investments in financial assets \u2013 debt instruments \u2013 226 \u2013 226 \u2013 \u2013 \u2013 Investments in financial assets \u2013 equity instruments \u2013 394 \u2013 394 \u2013 \u2013 \u2013 Derivative financial instruments \u2013 \u2013 48 48 \u2013 11 11 Total financial assets 117,202 19,035 661,430 797,667 1,437 11 1,448 1 At 31 December 2022, there are no provisions for expected credit losses in relation to any of the CCP businesses\u2019 financial assets held at amortised cost or FVOCI (2021: nil). The Group closely monitors its CCP investment portfolio and invests only in government debt and other collateralised instruments where the risk of loss is minimal. There was no increase in credit risk in the year and none of the assets are past due (2021: nil). 2 Clearing member cash and cash equivalents represents amounts received from the clearing members to cover initial and variation margins, and default fund contributions that are not invested in bonds. These amounts are deposited with banks, including central banks, or invested securely in short-term reverse repurchase contracts (reverse repos). Other financial assets represent the CCP investment in government bonds. 31 December 2021 Group Company Amortised cost \u00a3m FVOCI \u00a3m FVPL \u00a3m Total \u00a3m Amortised cost \u00a3m FVPL \u00a3m Total \u00a3m Clearing business financial assets \u2014 Clearing member trading assets 1,476 \u2013 645,587 647,063 \u2013 \u2013 \u2013 \u2014 Other receivables from clearing members 4,184 \u2013 \u2013 4,184 \u2013 \u2013 \u2013 \u2014 Other financial assets \u2013 13,784 \u2013 13,784 \u2013 \u2013 \u2013 \u2014 Clearing member cash and cash equivalents 83,795 \u2013 \u2013 83,795 \u2013 \u2013 \u2013 Total clearing member assets 89,455 13,784 645,587 748,826 \u2013 \u2013 \u2013 Trade and other receivables 1,020 \u2013 6 1,026 1,578 \u2013 1,578 Cash and cash equivalents 2,665 \u2013 \u2013 2,665 142 \u2013 142 Investments in financial assets \u2013 equity instruments \u2013 351 \u2013 351 \u2013 \u2013 \u2013 Derivative financial instruments \u2013 \u2013 27 27 \u2013 10 10 Total financial assets 93,140 14,135 645,620 752,895 1,720 10 1,730 Notes to the financial statements continued 215 London Stock Exchange Group plc Annual Report 2022 FINANCIAL STATEMENTS Notes to the financial statements continued 23. Financial assets and financial liabilities continued 23.2 Financial liabilities 31 December 2022 Group Company Amortised cost \u00a3m FVPL \u00a3m Total \u00a3m Amortised cost \u00a3m FVPL \u00a3m Total \u00a3m Clearing business financial liabilities \u2014 Clearing member trading liabilities 1,997 661,370 663,367 \u2013 \u2013 \u2013 \u2014 Other payables to clearing members 129,227 \u2013 129,227 \u2013 \u2013 \u2013 Total clearing member financial liabilities 131,224 661,370 792,594 \u2013 \u2013 \u2013 Trade and other payables 3,211 38 3,249 1,682 \u2013 1,682 Borrowings 8,151 \u2013 8,151 1,815 \u2013 1,815 Derivative financial instruments \u2013 96 96 \u2013 84 84 Total financial liabilities 142,586 661,504 804,090 3,497 84 3,581 31 December 2021 Group Company Amortised cost \u00a3m FVPL \u00a3m Total \u00a3m Amortised cost \u00a3m FVPL \u00a3m Total \u00a3m Clearing business financial liabilities \u2014 Clearing member trading liabilities 1,476 645,587 647,063 \u2013 \u2013 \u2013 \u2014 Other payables to clearing members 101,581 \u2013 101,581 \u2013 \u2013 \u2013 Total clearing member financial liabilities 103,057 645,587 748,644 \u2013 \u2013 \u2013 Trade and other payables 2,727 \u2013 2,727 846 \u2013 846 Borrowings 7,654 \u2013 7,654 1,740 \u2013 1,740 Derivative financial instruments \u2013 52 52 \u2013 48 48 Total financial liabilities 113,438 645,639 759,077 2,586 48 2,634 London Stock Exchange Group plc Annual Report 2022 216 23. Financial assets and financial liabilities continued 23.3 Fair values Other than borrowings, we have assessed that the fair values of financial assets and financial liabilities categorised as being at amortised cost approximate to their carrying values. The fair values of the Group\u2019s borrowings are disclosed in note 22. Fair value measurement hierarchy The Group\u2019s financial assets and financial liabilities held at fair value consist largely of securities which are restricted in use for the operations of the Group\u2019s CCPs as managers of their respective clearing and guarantee systems. The following tables provide the fair value measurement hierarchy of the Group\u2019s financial assets and financial liabilities measured at fair value. Financial assets 31 December 2022 Group Quoted prices in active markets (Level 1) \u00a3m Significant observable inputs (Level 2) \u00a3m Significant unobservable inputs (Level 3) \u00a3m Total \u00a3m Clearing business financial assets \u2014 Derivative instruments 98 7,418 \u2013 7,516 \u2014 Non-derivative instruments \u2013 653,854 \u2013 653,854 \u2014 Other financial assets 18,415 \u2013 \u2013 18,415 18,513 661,272 \u2013 679,785 Investments in financial assets \u2013 debt 226 \u2013 \u2013 226 Investment in financial assets \u2013 equity \u2013 \u2013 394 394 Derivatives not designated as hedges: \u2014 Foreign exchange forward contracts \u2013 48 \u2013 48 \u2014 Trade and other receivables \u2013 convertible loan notes \u2013 \u2013 12 12 Total financial assets measured at fair value 1 18,739 661,320 406 680,465 1 There were no transfers between levels during the year. Company: At 31 December 2022, the Company\u2019s derivative assets of \u00a311 million were all classified as Level 2. 31 December 2021 Group Quoted prices in active markets (Level 1) \u00a3m Significant observable inputs (Level 2) \u00a3m Significant unobservable inputs (Level 3) \u00a3m Total \u00a3m Clearing business financial assets \u2014 Derivative instruments 47 2,631 \u2013 2,678 \u2014 Non-derivative instruments \u2013 642,909 \u2013 642,909 \u2014 Other financial assets 13,784 \u2013 \u2013 13,784 13,831 645,540 \u2013 659,371 Investment in financial assets \u2013 equity 1 \u2013 350 351 Derivatives not designated as hedges: \u2014 Foreign exchange forward contracts \u2013 27 \u2013 27 \u2014 Trade and other receivables \u2013 convertible loan notes \u2013 \u2013 6 6 Total financial assets measured at fair value 1 13,832 645,567 356 659,755 1 There were no transfers between levels during 2021. Company: At 31 December 2021, the Company\u2019s derivative assets of \u00a310 million were all classified as Level 2 . Notes to the financial statements continued 217 London Stock Exchange Group plc Annual Report 2022 FINANCIAL STATEMENTS Notes to the financial statements continued 23. Financial assets and financial liabilities continued Financial liabilities 31 December 2022 Group Quoted prices in active markets (Level 1) \u00a3m Significant observable inputs (Level 2) \u00a3m Significant unobservable inputs (Level 3) \u00a3m Total \u00a3m Clearing business financial liabilities \u2014 Derivative instruments 98 7,418 \u2013 7,516 \u2014 Non-derivative instruments \u2013 653,854 \u2013 653,854 98 661,272 \u2013 661,370 Contingent consideration payable \u2013 \u2013 38 38 Derivatives not designated as hedges: \u2014 Foreign exchange forward contracts \u2013 12 \u2013 12 Derivatives designated as hedges: \u2014 Cross-currency interest rate swaps \u2013 84 \u2013 84 Total financial liabilities measured at fair value 1 98 661,368 38 661,504 1 There were no transfers between levels during the year. Company: At 31 December 2022, the Company\u2019s derivative liabilities of \u00a384 million were all classified as Level 2. 31 December 2021 Group Quoted prices in active markets (Level 1) \u00a3m Significant observable inputs (Level 2) \u00a3m Significant unobservable inputs (Level 3) \u00a3m Total \u00a3m Clearing business financial liabilities \u2014 Derivative instruments 47 2,631 \u2013 2,678 \u2014 Non-derivative instruments \u2013 642,909 \u2013 642,909 47 645,540 \u2013 645,587 Derivatives not designated as hedges: \u2014 Foreign exchange forward contracts \u2013 8 \u2013 8 Derivatives designated as hedges: \u2014 Cross-currency interest rate swaps \u2013 44 \u2013 44 Total financial liabilities measured at fair value 1 47 645,592 \u2013 645,639 1 There were no transfers between levels during 2021. Company: At 31 December 2021, the Company\u2019s derivative liabilities of \u00a348 million were all classified as Level 2. 23.4 Hedging activities and derivatives The Group hedges its exposure to foreign exchange and interest rate movements using derivative instruments. This includes net investment hedges, foreign currency forwards and interest rate swaps, where the Group hedges its currency risk from its investment in foreign operations, cash flows and movements in interest rates, respectively. Net investment hedges The Group has designated some of its euro borrowings as net investment hedges. In addition, a proportion of the euro borrowings have been swapped into US dollar debt via cross-currency interest rate swaps that are also designated as a net investment hedge. There is an economic relationship between the hedged items and the hedging instruments (the borrowings) as the euro and US dollar borrowings are matched by the Group\u2019s investments in euro and US dollar assets. The Group has established a ratio of 1:1 for the hedging relationships as the underlying foreign exchange risk of the borrowings is identical to the investments. To ensure the hedge is effective, the Group makes sure that the borrowings are always less than the value of the investments. Hedge ineffectiveness only arises if the value of the hedging instrument exceeds the value of the underlying net investment. The hedging instruments are detailed below. London Stock Exchange Group plc Annual Report 2022 218 23. Financial assets and financial liabilities continued Cross-currency interest rate swaps In 2017, the Group entered into cross-currency interest rate swaps in order to more closely match the Group\u2019s currency of borrowing to the currency of its net assets and earnings. As disclosed in note 22, two \u20ac500 million bonds (maturing in 2024 and 2029) were issued in 2017. \u20ac700 million of these bonds were swapped into US$836 million through a series of cross-currency interest rate swaps which mature on the same dates as the bonds. These instruments effectively exchange some of the obligations and coupons of the bonds from euros into US dollars. These swaps have been designated as a hedge of the Group\u2019s net investments in its US dollar reporting subsidiaries and qualify for hedge accounting. \u20ac700 million cross-currency interest rate swap 2022 2021 Fair value of derivative liability on the balance sheet (\u00a384m) (\u00a344m) Nominal value of hedging instrument $836m $836m Hedge ratio 1:1 1:1 Hedge effectiveness 100% 100% Change in fair value of derivative (\u00a340m) (\u00a333m) Change in value of net investment \u00a340m \u00a333m Cumulative amount held in hedging reserve (\u00a384m) (\u00a344m) Non-derivative hedges Non-derivative hedges relate to euro borrowings which are matched against the Group\u2019s investments in euro denominated subsidiaries. The remaining \u20ac300 million of the two \u20ac500 million bonds issued in 2017 which were not swapped into US dollars, together with the \u20ac500 million bond issued in 2018 (see note 22), qualify as hedging instruments against euro denominated subsidiaries and qualify for hedge accounting. The \u20ac700 million that has been swapped is included below and is netted against the fair value movement of the US dollar derivative in the hedging reserve. Euro denominated bonds 2022 2021 Carrying value of debt on the balance sheet (\u00a31,326m) (\u00a31,253m) Nominal value of hedging instrument \u20ac1,500m \u20ac1,500m Hedge ratio 1:1 1:1 Hedge effectiveness 100% 100% Change in carrying value of hedging instrument (\u00a373m) \u00a394m Change in value of net investment \u00a373m (\u00a394m) Cumulative amount held in hedging reserve (\u00a32m) \u00a371m During the year the Group drew down on its committed bank facilities in euros and US dollars, but these drawings were not designated as net investment hedges. In 2021, the Group had also drawn down on these facilities, which were designated as hedges of the Group\u2019s net investments. At 31 December 2022 and 31 December 2021, there were no amounts drawn down on these facilities. There were no issuances of commercial paper in the year. In 2021, the Group issued euro denominated commercial paper and designated this as a hedge of the Group\u2019s net investments. The commercial paper was repaid by 31 December 2021. Revolving credit facility, bridge facility and commercial paper 2022 2021 Change in carrying value of hedging instruments \u2013 \u00a326m Change in value of net investments \u2013 (\u00a326m) Cumulative amount held in hedging reserve \u00a38m \u00a38m Cash flow hedges Interest rate swaps In February 2021, the Group entered into a series of US dollar interest rate swaps with tenures of 3, 5 and 10 years, with aggregate principal amounts of US$500 million, US$1,000 million and US$1,250 million respectively. The interest rate swaps were designated as cash flow hedges with the hedged item being planned bond issuances that were deemed highly probable at the time and related to the Refinitiv acquisition. The interest rate swaps were settled in March and April 2021 when the new bonds were issued (refer to note 22 for details). At the date of settlement, a gain of US$31 million (\u00a322 million) was recognised in the hedging reserve, representing the effective portion of the gain on the hedging instrument. This will be recycled to the income statement over the term of the debt. During the year \u00a33 million (2021: \u00a32 million) was recycled to the income statement within continuing operations. Hedging reserve Note 2022 \u00a3m 2021 \u00a3m 1 January 14 (110) Net gains on cash flow hedges taken out in the year \u2013 22 Amounts recycled to the income statement \u2013 continuing operations 24 (3) (2) Amounts recycled to the income statement \u2013 discontinued operations \u2013 17 Net (losses)/gains on net investment hedges 24 (113) 87 31 December (102) 14 As at 31 December 2022, \u00a340 million of losses (2021: \u00a340 million of losses) remain in reserves that have not been recycled to the income statement, as the Group continues to hold the underlying investments. Notes to the financial statements continued 219 London Stock Exchange Group plc Annual Report 2022 FINANCIAL STATEMENTS Notes to the financial statements continued 23. Financial assets and financial liabilities continued Foreign currency forwards The Group uses foreign exchange contracts to manage foreign exchange risk. It has a series of exchange contracts to purchase or sell certain currencies against sterling and US dollars in the future at fixed amounts. The cumulative sterling notional amounts of contracts outstanding as at 31 December 2022 and 2021 were as follows: Sell/(buy) Traded against sterling Traded against US dollars 2022 \u00a3m 2021 \u00a3m 2022 \u00a3m 2021 \u00a3m US dollar (40) 408 \u2013 \u2013 Euro (784) (237) 48 (1) Sterling \u2013 \u2013 (309) (109) Japanese Yen \u2013 \u2013 (36) (28) Singapore Dollar \u2013 \u2013 (32) (19) Australian Dollar \u2013 \u2013 (22) (17) Canadian Dollar \u2013 \u2013 (14) (12) Swiss Franc \u2013 \u2013 (8) \u2013 The fair value of these derivatives as at 31 December 2022 was an asset of \u00a314 million (2021: \u00a314 million) and a liability of \u00a36 million (2021: \u00a35 million). Embedded derivatives The fair value of embedded derivatives as at 31 December 2022 was an asset of \u00a334 million (2021: \u00a313 million) and a liability of \u00a36 million (2021: \u00a33 million). The fair value gain has been recognised in the income statement. Hedge accounting is not applied to outstanding foreign currency forwards or embedded derivatives. London Stock Exchange Group plc Annual Report 2022 220 23. Financial assets and financial liabilities continued 23.5 Financial risk management The Group seeks to protect its financial performance and the value of its business from various risks including exposure to capital, credit, concentration, country, liquidity, settlement, custodial and market (including foreign exchange, cash flow and fair value interest rate) risks. Details of these risks, which should be read in conjunction with the Principal Risks and Uncertainties on pages 24-84, are provided below. Capital risk Risk description Risk management approach Capital risk relates to the Group\u2019s ability to meet regulatory capital requirements and minimum internal investment returns. There is a risk that the Group\u2019s entities may not maintain, or have continued access to, sufficient high-quality capital to meet their regulatory, or other obligations. This could result in a loss of regulatory approvals and/or the imposition of financial sanctions. Either separately, or in combination, the main capital risks faced by the Group are: \u2014 An increased regulatory capital requirement of its regulated companies \u2014 Realised, negative yields on its investments \u2014 An inability to raise debt or equity financing as a result of its own poor financial performance, or poor financing conditions The Group, which consists of both regulated and unregulated entities, is profitable and strongly cash generative. It can manage its capital structure (which consists of equity and debt capital) and react to changes in economic conditions by varying returns to shareholders, issuing new shares or increasing or reducing borrowings. The Board reviews dividend policy and funding capacity on a regular basis and the Group maintains comfortable levels of debt facility headroom. A high-level summary of the Group\u2019s capital structure is presented below: Book vale of capital 2022 \u00a3m 2021 \u00a3m Total shareholders\u2019 funds 25,996 23,640 Group borrowings 8,151 7,654 The Group maintains a Capital Management Policy, the execution of which is overseen by the Group\u2019s Financial, Investment and Capital Committee. The Group seeks to optimally allocate capital in order to maintain a strong balance sheet, meet regulatory requirements, drive growth and offer suitable returns to shareholders. Regulated entities within the Group monitor compliance with policy and the capital requirements set by their respective regulatory authorities. Regulatory and operational capital represents: \u2014 Amounts held as cash and cash equivalents and investments in financial assets by regulated entities to satisfy their local regulatory capital requirements \u2014 Letters of credit issued by the Group to customers and suppliers The Group\u2019s total regulatory and operational capital is shown below: Regulatory and operational capital 2022 \u00a3m 2021 \u00a3m Total regulatory and operational capital 1 1,427 1,294 Amount included in cash and cash equivalents 1,219 1,261 1 Includes investments in financial assets of \u00a3191 million (2021: nil) and letters of credit totalling \u00a317 million (2021: \u00a333 million). To ensure ongoing financial strength, access to new capital at a reasonable cost, and to sustain an investment grade credit rating, the Group monitors its leverage ratio against a target range of 1-2 times. Leverage is calculated as operating net debt (i.e. net debt after excluding amounts set aside for regulatory and operational purposes) to adjusted EBITDA before foreign exchange gains or losses. At 31 December 2022, leverage was 1.8 times (2021: 1.9 times). While the Group\u2019s bank borrowing facilities no longer include leverage and interest cover ratio covenants, the Group takes into account the potential impact to the key metrics monitored by credit rating agencies when considering whether to increase the size of its borrowings and net debt. The Group seeks to maintain a strong investment grade credit rating and will always seek to return leverage to its target range if it rises temporarily. Notes to the financial statements continued 221 London Stock Exchange Group plc Annual Report 2022 FINANCIAL STATEMENTS Notes to the financial statements continued 23. Financial assets and financial liabilities continued Credit and concentration risk Risk description Risk management approach Credit risk relates to the potential for a Group counterparty (including CCP members, and any counterparty where there is exposure through payment, clearing or settlement processes) to be unable to meet its financial obligations to the Group when due. Credit concentration risk may arise through Group entities having large individual or connected exposures to groups of counterparties whose likelihood of default is driven by common underlying factors. Group Credit risk is governed by policies developed at Group level by the Group Risk function. Limits and thresholds for credit and concentration risk are reviewed regularly. Group companies make judgements on the credit quality of their clients. This is based on the client\u2019s financial position, the recurring nature of billing and collection arrangements and historical evidence relating to the client\u2019s ability to meet its financial liabilities as they fall due. The Group is exposed to a large number of clients and so management deems concentration risk on the Group\u2019s receivables to be low. The Group\u2019s main credit risk exposure arises on the financial assets shown earlier in note 23.1. There have been no significant increases in credit risk for these assets and no estimated credit losses have been recognised on other financial instruments. Non-CCP entities The principal source of non-CCP credit risk is the creditworthiness of the investment counterparties with which the Group deposits cash. The Group manages its credit risk by outlining the maximum financial exposure that may be taken against any one counterparty, based on an assessment of the counterparty\u2019s credit quality. Cash and cash equivalents are held with authorised counterparties of a high credit standing. Cash is held in unsecured interest bearing current and call accounts. Cash equivalents comprise short-term deposits and AAA-rated money market funds. Derivative transactions (and other treasury receivable structures) must be in line with the Group\u2019s policy framework and may only be undertaken with highly rated counterparties. CCPs The principal source of CCP credit risk lies in the potential for one or more clearing members to default. Group CCPs manage this risk through robust financial risk management. Clearing members are selected based on an assessment of their supervisory capital as well as their technical and organisational strength. Each member must pay margins to the relevant Group CCP. This must include a minimum level of cash and can also include highly liquid securities. Clearing members also contribute to default funds managed by the Group CCPs. These aim to protect the integrity of the markets in the event of multiple defaults in extreme market circumstances. Group CCPs use stress tests to determine the appropriate margin and default fund requirements. These are reviewed by CCP risk committees who can take action as appropriate. CCPs are required by regulation to hold a minimum amount of capital (regulatory capital). Each of the Group\u2019s CCPs maintains this regulatory capital requirement, together with an additional holding of its own capital. This additional capital is to help manage credit risk during a significant market stress event or member default. The total clearing member contributions of margin and default funds across the Group CCPs is shown below: Total collateral held 2022 \u00a3bn 2021 \u00a3bn Collateral security Cash received 127 96 Non-cash pledged 147 135 Guarantees pledged 2 2 Total collateral as at 31 December 276 233 Maximum collateral held during the year 310 246 Group CCPs manage the credit risk associated with margin and default fund contributions by investing the cash element in instruments or structures deemed \u2018secure\u2019 by the relevant regulatory bodies. This includes direct investments in highly rated, \u2018regulatory qualifying\u2019 sovereign bonds and supra-national debt, investments in tri-party and bilateral reverse repos (receiving high-quality government securities as collateral) and, in certain jurisdictions, deposits with the central bank. The small proportion of cash that is invested unsecured is placed for short durations with highly rated counterparties where limits are applied with respect to credit quality, concentration and tenor. 2022 \u00a3bn 2021 \u00a3bn Total investment portfolio 123 98 Maximum portfolio size during the year 157 108 Additional portfolio information: Amount invested securely 99.99% 99.94% Weighted average maturity (days) 53 33 London Stock Exchange Group plc Annual Report 2022 222 Risk description Risk management approach Associated liquidity risks are considered in the investment mix and discussed further below in the Liquidity, Settlement and Custodial risk section. To address concentration risk, the Group maintains a diversified portfolio of high-quality, liquid investments and uses a broad range of custodians, payment and settlement banks and agents. The largest concentration of treasury exposures as at 31 December 2022 was with the French Government with an aggregate exposure of 40% of the total investment portfolio (2021: 41% with the French Government). Trade receivables (including fees receivable) An impairment analysis of trade and fees receivable is performed monthly using a provision matrix to measure expected credit losses based on factors such as the counterparty\u2019s historic payment practices, expected future payments and the economic environment at large. The calculation reflects current conditions together with forecasts of future economic conditions. None of the Group\u2019s trade receivables are material by individual counterparty. 31 December 2022 Trade receivables Fees receivable \u00a3m <180 days \u00a3m >180 days \u00a3m Total \u00a3m Expected credit loss rate <1% <1% 11.2% Total receivables 263 706 60 1,029 Expected credit loss \u2013 (2) (7) (9) Net trade and fees receivables 263 704 53 1,020 31 December 2021 Trade receivables Fees receivable \u00a3m <180 days \u00a3m >180 days \u00a3m Total \u00a3m Expected credit loss rate <1% <1% 15.2% Total receivables 230 463 34 727 Expected credit loss \u2013 (2) (5) (7) Net trade and fees receivables 230 461 29 720 Country risk Risk description Risk management approach Country risk relates to those risks that are inherent when doing business with, or operating in, a country. Some governments may be unable or find it difficult to service their debts. This could have adverse effects, particularly on the Group\u2019s CCPs, potentially impacting cleared products, margin collateral, investments, the clearing membership and the financial industry as a whole. In addition, geopolitical events could impact our ability to operate in a country or impact the value of our assets in that country. We may even need to relocate activities or change our operating model in response. The Group has a country risk framework which facilitates assessment and monitoring of the risk associated with doing business with, or operating in, a country. Group CCPs have specific risk management frameworks that address country risk for both clearing and margin operations. Contained in these frameworks are a suite of stress scenarios that consider deterioration of sovereign credit quality as well as other risk factors. These scenarios support CCPs in developing and maintaining the appropriate country risk measurement, monitoring and mitigation tools. Risk Committees oversee these risks and the associated policy frameworks to protect the Group against a potentially adverse impact arising from volatility in the sovereign debt markets. The Group CCPs\u2019 sovereign exposures at the end of the financial reporting periods were: Country/organisation 2022 \u00a3bn 2021 \u00a3bn France 30 28 European Union (supranational) 20 17 USA 15 11 UK 7 12 Other 2 \u2013 Germany \u2013 1 Notes to the financial statements continued 23. Financial assets and financial liabilities continued 223 London Stock Exchange Group plc Annual Report 2022 FINANCIAL STATEMENTS Notes to the financial statements continued 23. Financial assets and financial liabilities continued Liquidity, settlement and custodial risk Risk description Risk management approach The Group\u2019s liquidity risk relates to its ability to meet its short- and long-term payment obligations as they fall due. Additionally, the Group\u2019s CCPs, and certain other Group entities, must maintain a level of liquidity (consistent with regulatory requirements) to ensure the smooth operation of their respective services and to be able to continue to operate in the event of a significant stress event. The Group\u2019s settlement and custodial risks relate to the potential for a partner firm to default on its obligations in respect of custody, settlement, payment or other administration activities, or that no action is taken by the Group to mitigate these risks. This also includes the risk that client assets are immobilised as a result of a third-party bankruptcy. Group The Group maintains sufficient liquid resources to meet its financial obligations as they fall due, and to invest in capital expenditure, pay dividends, meet its pension commitments and appropriately support or fund acquisitions or repay borrowings. Subject to regulatory constraints impacting certain entities, funds can (generally) be lent across the Group and cash earnings remitted through regular dividend payments by subsidiary companies. This is an important component of the Group Treasury cash management policy and approach. The Group is profitable, has strong free cash flow and generates annuity-like revenue which is not significantly impacted by seasonal variations. Management monitors forecasts of the Group\u2019s cash flow and overlays sensitivities to these forecasts to reflect assumptions about more challenging market conditions or stress events. The Group will take the appropriate actions to satisfy working capital requirements when committing to large scale acquisitions, including making sure there is comfortable liquidity headroom projected over a reasonable time frame. Non-CCP entities The Group Treasury Policy requires the Group to maintain adequate credit facilities provided by a diversified lending group to cover its expected funding requirements and ensure a minimum level of headroom for at least the next 24 months. The financial strength of the Group\u2019s lenders is monitored regularly. For full details of the Group\u2019s borrowings and facilities, refer to note 22. CCPs In order to meet the cash requirements of the clearing and settlement cycle, the Group\u2019s CCPs maintain sufficient cash and cash equivalents and, in certain jurisdictions, have access to central bank refinancing or commercial bank credit lines. Regulations require CCPs to ensure that appropriate levels of back-up liquidity are in place to underpin the dynamics of a largely secured cash investment requirement, ensuring that the maximum potential outflow under extreme market conditions is covered (see credit and concentration risk section above). In the event of a member default, Group CCPs can liquidate the defaulting member\u2019s portfolio to cover both losses associated with the default and settlement of any other financial obligations of the defaulting member. In addition, certain Group companies, including the CCPs, maintain commercial bank facilities which support management of intraday and overnight liquidity. Custodians are subject to minimum eligibility requirements, ongoing credit assessments and robust contractual arrangements. They are also required to have appropriate contingency arrangements in place. Financial liability maturity The table below analyses the Group\u2019s financial liabilities into relevant maturity groupings based on the remaining period from the balance sheet date to the contractual maturity date. The amounts disclosed in the table reflect the contractual undiscounted cash flows. The borrowings and lease liabilities include future interest that has not been accrued at the balance sheet date. 30 December 2022 Less than 1 year \u00a3m Between 1 and 2 years \u00a3m Between 2 and 5 years \u00a3m Over 5 years \u00a3m Total \u00a3m Borrowings 1,440 967 2,008 4,754 9,169 Trade and other payables (excluding lease liabilities) 2,004 \u2013 \u2013 \u2013 2,004 Lease liabilities 158 110 216 283 767 Clearing member liabilities 792,594 \u2013 \u2013 \u2013 792,594 Derivative financial instruments 9 57 \u2013 30 96 Other non-current payables (excluding lease liabilities) \u2013 64 338 247 649 31 December 2021 Less than 1 year \u00a3m Between 1 and 2 years \u00a3m Between 2 and 5 years \u00a3m Over 5 years \u00a3m Total \u00a3m Borrowings 78 1,467 2,229 4,870 8,644 Trade and other payables (excluding lease liabilities) 1,614 \u2013 \u2013 \u2013 1,614 Lease liabilities 149 124 204 275 752 Clearing member liabilities 748,644 \u2013 \u2013 \u2013 748,644 Derivative financial instruments 6 1 30 14 51 Other non-current payables (excluding lease liabilities) \u2013 14 3 495 512 London Stock Exchange Group plc Annual Report 2022 224 23. Financial assets and financial liabilities continued Market risk \u2013 foreign exchange risk Risk description Risk management approach The Group operates globally with primary centres in the UK, Europe and North America. It also has growing and strategically important businesses in Asia. The Group\u2019s principal currencies of operation are sterling, US dollars, and the euro. The Group is exposed to transactional foreign exchange risk and translational risk. Transactional risk arises when we buy or sell goods or services in a currency other than our entities\u2019 functional currencies. We may be exposed to movements in that currency. Translational risk arises due to the requirement to translate non-reporting currency earnings into an entity\u2019s reporting currency for the purpose of statutory reporting. Transactional foreign exchange risk may present itself in payment of intragroup dividends or when interest obligations, which are in a different currency, are due. However, both of these operations play their part in controlling the level of translational foreign exchange exposure the Group faces. Transactional foreign exchange risk may also arise when investing in, or divesting from, operations denominated in currencies other than sterling. In addition, the Group has some contracts/ cashflow profiles with a foreign exchange component that could trigger embedded derivative recognition and, as such, fair value accounting treatment. Translational risk The Group manages its translational risk, where possible, by matching the currency of its debt to the currency of its earnings, to make sure certain key financial ratios (leverage and interest coverage) are protected from material foreign exchange rate volatility. The Group also seeks to balance the currency of its assets with its liabilities. In order to mitigate the impact of unfavourable currency exchange rate movements on earnings and net assets, non-sterling cash earnings are centralised and applied to debt and interest payments in the same currency. Where required, currency of debt is re-balanced using cross-currency swaps to better match the currency of debt to the overall currency of earnings. A material proportion of the Group\u2019s debt is held in or swapped into euros and US dollars as noted below: Currency of debt 2022 \u00a3m 2021 \u00a3m Euro denominated drawn debt 2,652 2,630 Euro denominated cross-currency interest rate swaps (695) (619) US dollar denominated drawn debt 5,014 4,540 US dollar denominated cross-currency interest rate swaps 695 619 The cross-currency interest rate swaps are directly linked to euro fixed debt. The euro and US dollar denominated debt, including the cross-currency swaps, provide a hedge against the Group\u2019s net investment in euro and US dollar denominated entities. At 31 December 2022, the Group\u2019s designated hedges of its net investments were effective. Transactional risk While transactional foreign exchange exposure is limited, the Group mitigates this by either hedging material transactions with appropriate derivative instruments or by settling currency payables or receivables within a short timeframe. The Group Treasury Policy requires cash flows of single transactions or a series of linked transactions of more than \u00a310 million or equivalent per annum to be hedged. The risk is also minimised by the periodic exchange of cash into each Group entity\u2019s functional currency. Where appropriate, hedge accounting for derivatives is considered in order to mitigate material levels of income statement volatility. Governance and sensitivity The Group\u2019s Risk Committee reviewed the approach to foreign exchange risk management during the quarter ended 31 December 2022. In addition to projecting and analysing its earnings and debt profile by currency, the Group reviews sensitivities to movements in exchange rates. The Group has considered movements in the euro and the US dollar over 2022 and 2021 and, based on actual market observations between its principal currency pairs, has concluded that a 10% movement in rates is a reasonable level to illustrate the risk to the Group. The impact on profit after tax and equity is set out in the table below: 2022 2021 Profit after tax \u00a3m Equity \u00a3m Profit after tax \u00a3m Equity \u00a3m Euro Sterling weakens 6 (71) (13) (67) Sterling strengthens (5) 64 12 61 US dollar Sterling weakens 18 (68) 9 (62) Sterling strengthens (16) 61 (8) 56 The sensitivity of profit after tax reflects foreign exchange gains or losses on translation of financial assets and financial liabilities, including cash and borrowings. The sensitivity of equity reflects the foreign exchange gains or losses on translation of euro and US dollar borrowings that have been designated as hedges of a net investment in foreign operations. Notes to the financial statements continued 225 London Stock Exchange Group plc Annual Report 2022 FINANCIAL STATEMENTS Notes to the financial statements continued 23. Financial assets and financial liabilities continued Market risk \u2013 interest rate risk Risk description Risk management approach The Group\u2019s interest rate risk arises from the impact of changes in interest rates on cash held and investments in financial assets, and on borrowings held at floating rates. The Group may also face future interest rate exposure connected to M&A transactions where significant debt financing is involved. The Group\u2019s CCPs have member liabilities, and separately achieve returns which support the payment of these liabilities. A CCP\u2019s interest rate risk can increase if the reference rates used to calculate liabilities increase while the reference rates that underpin investment returns decrease (or do not increase by the same amount). Group companies that offer guaranteed settlement of traded securities can also be exposed to latent interest rate risk (and market risk more generally) in the event of a counterparty default. The Group\u2019s interest rate management policy focuses on protecting the Group\u2019s credit rating and limiting the impact of interest rate increases on Group earnings. To support this objective, the Group targets a minimum coverage of interest expense by adjusted EBITDA of 7 times, and a maximum debt floating rate component of 50%. This approach reflects: \u2014 a focus on the Group\u2019s cost of gross debt rather than its net debt given the material cash and cash equivalents set aside for regulatory purposes; \u2014 the short duration allowed for investments of cash and cash equivalents held for regulatory purposes which, by their nature, generate low investment yields; and \u2014 the broad natural hedge of floating rate borrowings provided by the significant balances of cash and cash equivalents held effectively at floating rates of interest At 31 December 2022, consolidated net interest expense cover by adjusted EBITDA was 19.0 times (2021: 17.9 times) and the floating rate component of total debt was 16% (2021: 18%). Where the Group has committed to M&A transactions and is exposed to prospective interest rate risk on borrowings, the Group Treasury function will assess the exposure and consider hedging solutions that conform with policy and seek to limit future interest costs. In the Group\u2019s CCPs, interest bearing assets are generally invested in secured instruments or structures and for a longer term than interest bearing liabilities, whose interest rate is reset daily. This makes investment returns vulnerable to volatility in overnight rates and shifts in spreads between overnight and term rates. Interest rate exposures (and the risk to CCP capital) are managed within defined risk appetite parameters against which sensitivities are monitored daily. In its review of the sensitivities to potential movements in interest rates, the Group has considered interest rate volatility over the last year and prospects for rates over the next 12 months. It has concluded that a 1 percentage point upward movement (with a limited prospect of material downward movement) reflects a reasonable level of risk to current rates. If interest rates on cash and cash equivalents and borrowings had been 1 percentage point higher, with all other variables held constant, profit after tax for 2022 would have been \u00a38 million higher (2021: \u00a310 million higher) mainly as a result of higher interest income on floating rate cash and cash equivalents, partially offset by higher interest expense on floating rate borrowings. At the CCP level (in aggregate), if interest rates on the common interest bearing member liability benchmarks of EONIA, Fed Funds and SONIA, (for euro, US dollar and sterling liabilities respectively), had been 1 percentage point higher, with all other variables held constant, the Group\u2019s profit after tax would have been \u00a31 million lower (2021: \u00a31 million lower). London Stock Exchange Group plc Annual Report 2022 226 23. Financial assets and financial liabilities continued 23.6 Offsetting financial assets and financial liabilities Accounting policy The Group reports financial assets and financial liabilities on a net basis on the balance sheet where there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis, or to realise the asset and settle the liabilities simultaneously. The Group applies the rules of legal right of set off and intent to net settle within clearing member balances. The carrying values of the balances are offset at an appropriate level to arrive at the net balances reported in the balance sheet. The approach adopted is reviewed on a regular basis to ensure it remains the most appropriate. Any change in approach would not materially affect the net assets of the Group . The following tables show the impact of netting arrangements on all financial assets and financial liabilities that are reported net on the balance sheet: 31 December 2022 Gross amount \u00a3m Amount offset \u00a3m Net amount as reported \u00a3m Other financial assets 2,404,794 (2,397,255) 7,539 Repurchase agreements 798,844 (145,013) 653,831 Total assets 3,203,638 (2,542,268) 661,370 Other financial liabilities (2,413,095) 2,405,556 (7,539) Reverse repurchase agreements (798,844) 145,013 (653,831) Total liabilities (3,211,939) 2,550,569 (661,370) 31 December 2021 Gross amount \u00a3m Amount offset \u00a3m Net amount as reported \u00a3m Other financial assets 1,286,359 (1,283,682) 2,677 Repurchase agreements 794,543 (150,157) 644,386 Total assets 2,080,902 (1,433,839) 647,063 Other financial liabilities (1,302,809) 1,300,132 (2,677) Reverse repurchase agreements (794,543) 150,157 (644,386) Total liabilities (2,097,352) 1,450,289 (647,063) All offset amounts are clearing member trading assets and trading liabilities within the Group\u2019s CCP businesses\u2019 financial instruments. The Group\u2019s CCP companies sit in the middle of members\u2019 transactions and hold default funds and margin amounts as a contingency against the default of a member. As such, further amounts are available to offset in the event of a default reducing the asset and liability of \u00a3661,370 million (2021: \u00a3647,063 million) to nil. 24. Share capital, share premium and other reserves This note details our share capital, share premium and other capital reserves. During the year, a number of shares were repurchased under the share buyback programme launched in August 2022. Accounting policy The share capital of the Company is the number of shares in issue at their par value and includes balances relating to the Company\u2019s ordinary equity shares, own shares held by the Employee Benefit Trust (EBT) and any treasury shares held by the Company. Shares acquired by the Company from the open market as part of share buyback programmes are referred to as treasury shares and are held by the Company. The consideration payable is deducted from retained earnings. The par value of purchased treasury shares is recorded as a transfer from the Company\u2019s ordinary equity shares to treasury shares within share capital. No gain or loss is recognised by the Company in the income statement on the purchase, sale, issue or cancellation of the Company\u2019s treasury shares or of own shares held by the EBT. When the Company issues new shares to the EBT at par, the share capital of the Company is increased by the par value of these own shares, and a corresponding deduction or debit is recorded in the share-based payment reserve. The Company may also issue new shares to the EBT to satisfy vesting of specific employee share schemes. These shares may be issued at a subscription price above par value, reflecting the option cost payable by the participant in the employee share scheme. In such instances, the share capital of the Company is increased by the par value of these own shares and the difference between the subscription price and the par value is recorded in share premium. A corresponding deduction or debit is recognised in the share-based payment reserve. Notes to the financial statements continued 227 London Stock Exchange Group plc Annual Report 2022 FINANCIAL STATEMENTS Notes to the financial statements continued 24. Share capital, share premium and other reserves continued Ordinary share capital issued and fully paid Number of shares millions Ordinary share capital 1 \u00a3m Share premium 2 \u00a3m Total \u00a3m 1 January 2021 351 24 971 995 Acquisition of subsidiaries 204 15 \u2013 15 Issue of shares to the Employee Benefit Trust 3 2 \u2013 7 7 31 December 2021 557 39 978 1,017 Issue of shares to the Employee Benefit Trust 3 1 \u2013 \u2013 \u2013 Share buyback 4 (4) \u2013 \u2013 \u2013 31 December 2022 554 39 978 1,017 1 Ordinary share capital consists of ordinary shares of 6 79/86 pence. 2 Share premium is the amount subscribed for share capital in excess of par value. 3 The Board approved the allotment and issue of 883,174 ordinary shares at par to the EBT (2021: 1,368,896 ordinary shares at par and 177,894 at a weighted average price of \u00a335.74) to settle employee share plans. A share premium of \u00a3nil (2021: \u00a37 million) has been recognised in the year in respect of these. 4 At 31 December 2022, the Group held 3,797,344 (2021: nil) treasury shares which were acquired as part of its share buyback programme. Share buyback programme In August 2022, the Company launched a \u00a3750 million share buyback programme which will be phased over multiple tranches over a 12 month period. During the year, the Company repurchased 3.8 million of its own shares from the market for \u00a3300 million, which are being held as treasury shares. Total costs directly attributable to the share buyback programme was \u00a33 million. The consideration paid and costs incurred have been deducted from retained earnings. The Company entered into an irrevocable commitment with its corporate brokers to repurchase shares as part of tranche two of the programme, which in part covers the close period from 1 January 2023 up to the announcement of the Group\u2019s full year results. At 31 December 2022, the remaining obligation in relation to the share purchase was \u00a3200 million and is presented within trade and other payables. See note 27 for shares repurchased after the reporting date. Other reserves Note Merger relief reserve 1 \u00a3m Capital redemption reserve 2 \u00a3m Reverse acquisition reserve 3 \u00a3m Hedging reserve 4 \u00a3m Foreign exchange translation reserve 5 \u00a3m Total \u00a3m 1 January 2021 1,305 514 (512) (110) 608 1,805 Acquisition of subsidiaries 16,981 \u2013 \u2013 \u2013 \u2013 16,981 Amounts recycled on disposal \u2013 \u2013 \u2013 17 (62) (45) Foreign exchange differences on translation of foreign operations \u2013 \u2013 \u2013 \u2013 (41) (41 ) Amount recycled to income statement \u2013 \u2013 \u2013 (2) \u2013 (2) Changes in fair value recognised \u2013 \u2013 \u2013 109 \u2013 109 31 December 2021 18,286 514 (512) 14 505 18,807 Foreign exchange differences on translation of foreign operations \u2013 \u2013 \u2013 \u2013 2,448 2,448 Amount recycled to income statement 23.4 \u2013 \u2013 \u2013 (3) \u2013 (3) Changes in fair value recognised 23.4 \u2013 \u2013 \u2013 (113) \u2013 (113 ) 31 December 2022 18,286 514 (512) (102) 2,953 21,139 1 The merger relief reserve is a potentially distributable reserve arising as a result of shares issued to acquire subsidiaries. The Group applied merger relief, as required by section 612 of the Companies Act 2006, to the issue of shares by the Company to acquire Refinitiv. The Group acquired a 100% equity holding in Refinitiv and recognised the excess of the fair value above the nominal share capital issued in the merger relief reserve and retained earnings. 2 The capital redemption reserve was set up as a result of a court approved capital reduction scheme and is non-distributable. 3 The reverse acquisition reserve arose as a result of the acquisition of London Stock Exchange plc in 2007. It is recognised on consolidation as a result of a capital reduction scheme and is non-distributable. 4 The hedging reserve represents the cumulative fair value adjustments recognised in respect of net investment and cash flow hedges entered into in accordance with hedge accounting principles. It is distributable under certain circumstances. Net gains and losses are recognised in other comprehensive income and balances remain in equity until both the hedging instrument and the underlying instrument are derecognised. Gains realised on cash flow hedges during the year are amortised through the income statement over the life of the underlying instrument. During the year \u00a33 million (2021: \u00a32 million) was recycled back through the income statement. 5 The foreign exchange translation reserve records the cumulative impact of foreign exchange rate movements on the translation of non-sterling subsidiary companies into sterling. It is distributable under certain circumstances. Net gains and losses on translation are recognised in other comprehensive income and amounts remain in equity until the subsidiary is derecognised. London Stock Exchange Group plc Annual Report 2022 228 25. Share-based payments We operate various employee share-based compensation plans which allow employees to receive or acquire shares in the Company in different ways. This note describes our main share plans. Accounting policy The Group issues equity settled share-based awards to certain employees. The share-based payment expense recognised in the income statement is determined by the fair value (using a stochastic valuation model) of the options granted or shares awarded at the date of grant. The calculated expenses are recognised over the relevant vesting periods. The fair value of the awards granted: \u2014 includes any market performance conditions (for example, Total Shareholder Return (TSR)); and \u2014 excludes the impact of any service and non-market performance vesting conditions (for example, the need to remain an employee for a specified period of time). In very few countries where the Group cannot issue equity-settled awards due to restrictions, cash settled share-based awards are issued instead. The charges arising from equity-settled share-based payment plans are as follows: Continuing operations Note 2022 \u00a3m 2021 \u00a3m Group share plans 1 25.1 79 64 Shares issued to the MIP participants 25.2 16 10 95 74 Tradeweb share schemes (recognised in non-controlling interests) 25.3 63 67 Total share-based payment expense 5.1 158 141 1 Charges of \u00a31 million (2021: nil) relate to plans that are cash-settled as a result of local regulations. The following amounts were recognised in equity: Group Company 2022 \u00a3m 2021 \u00a3m 2022 \u00a3m 2021 \u00a3m Share-based payments 94 74 78 64 Fair value movement on loans to the Employee Benefit Trust \u2013 \u2013 (20) (4) Issue of shares to the Employee Benefit Trust \u2013 (6) \u2013 (6) Cash receipts from employees on vesting 5 8 4 6 99 76 62 60 25.1 Group share plans The Group has the following share plans: \u2014 Save As You Earn and International Sharesave Plan 2018 (SAYE) The SAYE schemes provide for grants of options over the Company\u2019s shares to employees who enter into a savings contract. The options are granted at 20% below the market price on the date of grant and vest after three years, subject to continuing employment. \u2014 Long-Term Incentive Plan 2014 (LTIP) Awards are granted at nil cost to employees. Vesting of LTIP awards is dependent on both market and non-market performance conditions. The performance conditions include achievement of relative TSR (40%) and adjusted EPS (60%) targets. \u2014 Restricted Share Award Plan 2018 (RSAP) The Group operates a restricted share plan, the RSAP. It consists of an award of restricted stock units and matching shares. Matching shares are linked to an investment by the employee in the Company\u2019s shares. Awards are granted at nil cost to employees and generally vest in tranches after one, two and three years, subject to continuing employment. \u2014 Deferred Bonus Plan (DBP) DBP awards are granted at nil cost to employees. Awards usually vest after two or three years, subject to continuing employment and malus and clawback provisions. \u2014 International Share Incentive Plan (ISIP) The ISIP is a scheme in which employees can buy shares in the Company monthly via salary deduction. For every four shares purchased by the employee, the Group awards them one additional share which vests after completion of a three-year plan cycle. Notes to the financial statements continued 229 London Stock Exchange Group plc Annual Report 2022 FINANCIAL STATEMENTS Notes to the financial statements continued 25. Share-based payments continued Further details on the Group\u2019s share plans are provided in the Directors\u2019 Remuneration Report on pages 113-141. The Company has an EBT to administer the share plans and to acquire Company shares to meet the commitments to Group employees. At 31 December 2022, 259,129 Company shares were held by the trust (2021: 566,034). The EBT is fully funded by the Company via loans, cash gifts and the issue and transfer of shares. The cost of the Group\u2019s shares held by the EBT are recognised directly in equity. Movements in the number of share options and awards outstanding and their weighted average exercise prices are as follows: SAYE LTIP/RSAP 1,2 ISIP 2 Number Weighted average exercise price \u00a3 Number Number 1 January 2021 568,246 42.42 3,053,099 470 Granted 307,961 64.94 1,371,625 638 Exercised (227,265) 35.15 (1,222,619) \u2013 Lapsed/forfeited (66,768) 47.65 (355,671) (90) 31 December 2021 582,174 56.57 2,846,434 1,018 Granted 150,359 63.71 1,527,435 14,662 Exercised (127,662) 38.83 (1,038,073) \u2013 Lapsed/forfeited (70,601) 58.47 (250,125) (828) 31 December 2022 534,270 62.57 3,085,671 14,852 Exercisable at 31 December 2022 3,183 63.39 \u2013 \u2013 31 December 2021 10,822 52.45 \u2013 \u2013 1 At 31 December 2022, RSAP awards of 1,078,328 shares were outstanding (2021: 812,746). 2 The LTIP/RSAP and ISIP awards have a nil exercise price. 106,637 matching shares were granted under the RSAP in the year (2021: nil). The weighted average share price of London Stock Exchange Group plc shares during the year was \u00a376.11 (2021: \u00a377.76). The range of exercise prices and weighted average remaining contractual life of awards and options outstanding are as follows: 2022 2021 Number outstanding Weighted average remaining contractual life Years Number outstanding Weighted average remaining contractual life Years SAYE \u2014 Between \u00a330 and \u00a350 \u2013 \u2013 135,130 0.4 \u2014 More than \u00a350 534,270 1.8 447,044 2.3 LTIP/RSAP 3,085,671 1.3 2,846,434 1.1 ISIP 14,852 2.1 1,018 1.8 Total 3,634,793 3,429,626 A Monte Carlo simulation was used to calculate the fair value of the 40% of the LTIP awards granted during the year that are subject to a relative TSR condition. The model simulates the TSR and compares it against the constituents of the UK FTSE 100. For the remaining 60% of LTIP awards that are subject to adjusted EPS, and all other share awards including the SAYE, the Black-Scholes model was used to determine the related fair value. The inputs into both models include the share price at grant date, expected volatility, dividend yields and the annual risk-free interest rate. The volatility assumption is based on the historical 3-year volatility of the LSEG plc share price as at the date of grant. The risk-free interest rate represents the yield available on a UK zero-coupon government bond on the date of grant for a term commensurate with the vesting period of the award. The expected life refers to the time from the date of grant to the date the awards vest. Holders of share awards and share options are not entitled to receive dividends declared during the vesting period. London Stock Exchange Group plc Annual Report 2022 230 25. Share-based payments continued The key assumptions used in the valuations were as follows: Date of grant LTIP Performance Shares RSAP 6-Apr 13-Sep 6-Apr 28-Jun 13-Sep 15-Dec Grant date share price (\u00a3) 83.60 80.98 83.60 76.64 80.98 76.14 Expected life (years) from to 3.0 3.0 0.40 0.72 1.00 0.25 \u2013 \u2013 4.00 2.93 3.01 2.96 Exercise price (\u00a3) nil nil nil nil nil nil Dividend yield (%) from to 0.94 0.96 0.94 0.94 0.96 1.01 \u2013 \u2013 1.05 1.16 1.16 1.32 Risk-free interest rate (%) from to 1.59 2.90 1.28 2.10 2.75 3.37 \u2013 \u2013 1.59 2.19 2.99 3.58 Volatility (%) from to 32.15 31.58 27.56 28.99 28.43 25.05 \u2013 \u2013 32.86 32.55 31.57 31.18 Fair value (\u00a3) from to \u2013 \u2013 80.34 74.56 78.67 73.92 \u2013 \u2013 83.22 76.00 80.05 75.89 Fair value TSR (\u00a3) 63.50 62.43 \u2013 \u2013 \u2013 \u2013 Fair value EPS (\u00a3) 81.29 78.68 \u2013 \u2013 \u2013 \u2013 Date of grant from to SAYE DBP ISIP 29-Sep \u2013 6-Apr \u2013 1-Jan 31-Dec Grant date share price (\u00a3) from to 76.96 83.60 65.72 \u2013 \u2013 85.39 Expected life (years) from to 3.30 1.00 3.00 \u2013 3.00 \u2013 Exercise price (\u00a3) 63.71 nil nil Dividend yield (%) from to 1.11 \u2013 0.92 \u2013 \u2013 0.99 Risk-free interest rate (%) from to 4.28 1.28 1.01 \u2013 1.59 3.06 Volatility (%) from to 32.10 28.25 28.56 \u2013 32.20 34.68 Fair value (\u00a3) 26.07 83.60 74.58 25.2 Management Incentive Plan (MIP) Members of Refinitiv\u2019s senior management team participated in the MIP set up by Refinitiv Holding Limited (now York Parent Limited). At the time of the Refinitiv acquisition, 6,041,336 shares relating to MIP participants were transferred to York Parent Limited as a part of the purchase consideration. To improve the retention of the participants, amendments were made to the MIP to include additional service vesting conditions. The Group recognises the MIP as a share-based payment settled by an external shareholder under IFRS 2 and recognises post combination compensation until the end of the vesting period. The MIP share-based payment expense is classified as a non-underlying transaction cost (see note 6). 25.3 Tradeweb share schemes Tradeweb grants awards, including performance-based restricted share units (PRSUs), stock options, restricted stock units (RSUs) and dividend equivalent rights. The awards may have performance-based and time-based vesting conditions. Stock options have a maximum contractual term of 10 years. \u2014 PRSUs (Equity-Settled) PRSUs are promises to issue actual shares at the end of a three-year vesting period. The fair value of the equity-settled PRSUs is calculated as at the grant date using the share price. \u2014 Options Tradeweb awards options with a four-year graded vesting schedule, one half vesting based solely on the passage of time and one half vesting only if Tradeweb achieves certain performance targets. Costs related to options are recognised as an expense in the income statement over the service period. The fair value of options is calculated as at the grant date using the Black-Scholes model. \u2014 RSUs RSUs are promises to issue shares at the end of a vesting period. RSUs granted to employees vest over a three-year period. RSUs granted to non-employee directors vest after one year. The fair value of the RSUs is calculated as at the grant date using the share price. Notes to the financial statements continued 231 London Stock Exchange Group plc Annual Report 2022 FINANCIAL STATEMENTS Notes to the financial statements continued 26. Commitments and contingencies A commitment is a contractual obligation to make a payment in the future. These amounts are not recorded in the balance sheet as we have not yet received the related goods or services. The amounts below are the minimum amounts that we are committed to pay. The Group has the following contracts in place for future expenditure which are not provided for in the consolidated financial statements: Contract Description Minimum commitment Agreement with Reuters News, entered into in 2018, for a 30-year term To receive news and editorial content Minimum CPI adjusted payment, which was US$360 million for 2022 10-year strategic partnership with Microsoft To architect LSEG\u2019s data infrastructure using the Microsoft Cloud, and to jointly develop new products and services for data and analytics Minimum cloud-related spend of US$2.8 billion over the term of the partnership In the normal course of business, the Group can receive legal claims including, for example, in relation to commercial matters, service and product quality or liability, employee matters and tax audits. The Group is also involved in legal proceedings and actions, engagement with regulatory authorities and in dispute resolution processes. These are reviewed on a regular basis and, where possible, an estimate is made of the potential financial impact on the Group. In some cases a provision is recognised based on advice, best estimates and management judgement. Where it is too early to determine the likely outcome of these matters, no provision is made. Whilst the Group cannot predict the outcome of any such current or future matters with any certainty, it currently believes the likelihood of any material liabilities to be low, and that these will not have a material adverse effect on its consolidated income, financial position or cash flows. 27. Events after the reporting period Acadia acquisition On 19 December 2022, LSEG announced it has agreed to acquire Acadia Soft, Inc. (Acadia) a leading provider of automated uncleared margin processing and integrated risk and optimisation services for the global derivatives community. Acadia provides risk management, margining and collateral services to global financial institutions for the uncleared derivatives markets. Acadia\u2019s risk and margining products span all OTC derivative asset classes and provide direct connectivity to over 2,000 market participants. LSEG has held a minority stake in Acadia since 2018. Following completion, Acadia will be part of LSEG\u2019s Post Trade division. The purchase price consideration is $700 million (subject to customary adjustments) and the acquisition is expected to close in H1 2023, subject to regulatory approvals. Share buyback programme Since the reporting date, the Company repurchased 2.7 million of its own shares from the market for \u00a3196 million which are being held as treasury shares. London Stock Exchange Group plc Annual Report 2022 232 28. Transactions with related parties The Group has a number of related parties including associates, Directors and Executive Committee members. In addition, the Company transacts with some of its subsidiaries. A full list of subsidiaries is included in note 29.2. All significant transactions with related parties are carried out on an arm\u2019s length basis. 28.1 Transactions with subsidiaries For the year, the Company recognised the following recharges and charges, dividend receipts and balances with its subsidiaries: Note 2022 \u00a3m 2021 \u00a3m Other income (recharges) \u2013 services provided to subsidiaries 8 27 Operating expenses (charges) \u2013 services provided by subsidiaries (166) (119) Charges for share-based payment expense charged to subsidiaries 25 79 67 Dividends received from subsidiaries 250 3,303 Amounts due from group companies, split as: \u2014 Loans receivable 1,101 1,235 \u2014 Other receivables 118 138 18 1,219 1,373 Amounts due to group companies, split as: \u2014 Loans payable (1,071) (423) \u2014 Other payables (178) (174) 20 (1,249) (597) 28.2 Transactions with associates During the year, the Group recognised the following transactions with its associates: 2022 \u00a3m 2021 \u00a3m Sales to associates 1 1 Amounts due from associates 1 \u2013 Amounts owed to associates \u2013 1 28.3 Transactions with other related parties Stephen O\u2019Connor, a director of London Stock Exchange plc, is a director and former shareholder of Quantile, a company registered in England & Wales. The Group acquired Quantile during the year (see note 12). 29. Other information 29.1 Audit, audit-related and other non-audit services The following fees were paid or are payable to the company\u2019s auditors, Ernst and Young LLP and its associates: 2022 \u00a3m 202 1 \u00a3m Audit of parent and consolidated financial statements 6 7 Audit of subsidiary companies 7 6 Non-audit services 1 1 1 Total auditors\u2019 remuneration 14 14 1 Ernst and Young LLP provided non-audit services of \u00a30.9 million; 7% of total fees (2021: \u00a31.2 million; 8% of total fees). This comprised audit related assurance services of \u00a30.7 million (2021: \u00a30.8 million) and other non-audit services of \u00a30.2 million (2021: \u00a30.4 million ). Further details of the services provided by Ernst and Young LLP are given in the Report of the Audit Committee on pages 105-110. 29.2 Group subsidiary companies A company is considered to be a subsidiary company of the Group when the Parent Company is able to direct and control the activity of that company and to benefit from its variable returns. Accounting policy Interests in subsidiaries, as well as loans and other contributions to subsidiaries, are recognised by the Parent Company at cost less accumulated impairment. Interests in subsidiaries are reviewed for impairment when events indicate the carrying amount may not be recoverable. When an indication of impairment is identified, the interest\u2019s recoverable amount is estimated based on value-in-use calculations. An impairment loss is recognised when the recoverable amount of an interest is less than its carrying amount. Investment in subsidiaries The Company recognises the following amounts as investment in subsidiaries: Company Shares \u00a3m Other 1 \u00a3m Total \u00a3m 1 January 2021 5,789 1,017 6,806 Acquisition of subsidiaries 18,549 \u2013 18,549 Impairment (563) \u2013 (563) 31 December 2021 23,775 1,017 24,792 Additional investments in subsidiaries 2 130 \u2013 130 31 December 2022 23,905 1,017 24,922 1 Other includes amounts invested in subsidiaries by way of capital contributions and awards granted under the Group\u2019s share schemes. 2 During the year, the Company invested \u00a315 million in London Stock Exchange Group Holdings (R) Limited to fund the acquisition of an additional 32.8% of the issued shares of Turquoise Global Holdings Limited (see note 11.2) and \u00a3115 million in London Stock Exchange Reg Holdings Limited to fund acquisitions and investments. Notes to the financial statements continued 233 London Stock Exchange Group plc Annual Report 2022 FINANCIAL STATEMENTS Notes to the financial statements continued 29. Other information continued A list of the Group\u2019s subsidiaries as at 31 December 2022 is given below including the percentage of each class of share held and the Group\u2019s ownership percentages. The share ownership percentage records the percentage of each subsidiary\u2019s share capital owned by its immediate parent company. Shares owned directly by LSEG plc are listed as being a \u2018direct\u2019 shareholding; shares owned by other Group companies are listed as an \u2018indirect\u2019 shareholding. Where more than one LSEG Group company owns shares in a subsidiary these interests have been combined. The ultimate economic interest percentage is the Group\u2019s effective overall interest in a subsidiary, reflecting situations where subsidiaries are owned indirectly by intermediate subsidiaries who may themselves have non-controlling interests. Name of subsidiary undertaking Location of incorporation Registered office address Class of share held Direct or indirect holding Share ownership % LSEG plc ultimate economic interest % Alta Limited Cook Islands c/o Cook Islands Trust Corporation Limited, First Floor, BCI House, PO Box 141, Avaura, Rarotonga, Cook Islands Ordinary Indirect 100.00 100.00 Avox Limited England & Wales Five Canada Square, Canary Wharf, London, United Kingdom, E14 5AQ Ordinary Indirect 100.00 100.00 Banque Centrale de Compensation SA (LCH SA) France 18 Rue du Quatre-Septembre, 75002 Paris, France Ordinary Indirect 88.91 73.45 Beyond Ratings France 18 Rue du Quatre-Septembre, 75002 Paris, France Ordinary Indirect 100.00 100.00 Blaxmill (Eleven) Limited England & Wales Five Canada Square, Canary Wharf, London, United Kingdom, E14 5AQ Ordinary Indirect 100.00 100.00 Blaxmill (Nine) Limited England & Wales Five Canada Square, Canary Wharf, London, United Kingdom, E14 5AQ Ordinary Indirect 100.00 100.00 Blaxmill (Six) England & Wales Five Canada Square, Canary Wharf, London, United Kingdom, E14 5AQ Ordinary Indirect 100.00 100.00 Blaxmill (Ten) Limited England & Wales Five Canada Square, Canary Wharf, London, United Kingdom, E14 5AQ Ordinary Indirect 100.00 100.00 Blaxmill (Thirteen) Limited England & Wales Five Canada Square, Canary Wharf, London, United Kingdom, E14 5AQ Ordinary Indirect 100.00 100.00 Blaxmill (Thirty-Three) Limited England & Wales Five Canada Square, Canary Wharf, London, United Kingdom, E14 5AQ Ordinary Indirect 100.00 100.00 Blaxmill (Twelve) Limited England & Wales Five Canada Square, Canary Wharf, London, United Kingdom, E14 5AQ Ordinary Indirect 100.00 100.00 Blaxmill (Twenty-Eight) Limited England & Wales Five Canada Square, Canary Wharf, London, United Kingdom, E14 5AQ Ordinary Indirect 100.00 100.00 BondClear Limited England & Wales 10 Paternoster Square, London, United Kingdom, EC4M 7LS Ordinary Indirect 100.00 82.61 BondDesk Group LLC USA c/o Corporation Service Company, 251 Little Falls Drive, Wilmington, DE 19808, United States Membership Interest Indirect 100.00 51.24 Caspian Holdings, Ltd. Cayman Islands One Nexus Way, Camana Bay, Grand Cayman, KY1-9005, Cayman Islands Ordinary Indirect 100.00 100.00 Caspian, Ltd. Cayman Islands One Nexus Way, Camana Bay, Grand Cayman, KY1-9005, Cayman Islands Ordinary Indirect 100.00 100.00 CommodityClear Limited England & Wales 10 Paternoster Square, London, United Kingdom, EC4M 7LS Ordinary Indirect 100.00 82.61 Criminal Law Week Limited England & Wales Five Canada Square, Canary Wharf, London, United Kingdom, E14 5AQ Ordinary Indirect 100.00 100.00 Data Development Services Limited Cook Islands c/o Cook Islands Trust Corporation Limited, First Floor, BCI House, PO Box 141, Avaura, Rarotonga, Cook Islands Ordinary Indirect 100.00 100.00 Dealerweb Inc. USA c/o Corporation Service Company, 80 State Street, Albany, NY 12207, United States Common A Indirect 100.00 51.24 Common B Indirect 100.00 DW SEF LLC USA c/o Corporation Service Company, 251 Little Falls Drive, Wilmington, DE 19808, United States Membership Interest Indirect 100.00 51.24 EPIC Acquisition Sub LLC USA c/o United Agent Group Inc, 3411 Silverside Road, Tatnall Building #104, Wilmington, DE 19810, United States Membership Interest Indirect 100.00 100.00 EnergybankLink Pty Ltd Australia c/o TMF Corporate Services (Aust) Pty Limited, Suite 1, Level 11, 66 Goulburn Street, Sydney, NSW 2000, Australia Ordinary Indirect 100.00 100.00 London Stock Exchange Group plc
Annual Report 2022
234
Name of subsidiary
undertaking
Location of
incorporation Registered office address
Class of
share held
Direct or
indirect
holding
Share
ownership
%
LSEG plc
ultimate
economic
interest %
Enterprise Risk
Management
Technology Limited
England & Wales 5 Canada Square, Canary Wharf, London,
United Kingdom, E14 5AQ
Ordinary Indirect 100.00 100.00
EquityClear Limited England & Wales 10 Paternoster Square, London, United Kingdom,
EC4M 7LS
Ordinary Indirect 100.00 82.61
Financial & Risk
Organisation Limited
England & Wales Five Canada Square, Canary Wharf, London,
United Kingdom, E14 5AQ
Ordinary Indirect 100.00 100.00
Financial & Risk
Transaction Services
Ireland Limited
Ireland 12/13 Exchange Place, IFSC, Dublin, Ireland, D01P8H1 Ordinary Indirect 100.00 100.00
ForexClear Limited England & Wales 10 Paternoster Square, London, United Kingdom,
EC4M 7LS
Ordinary Indirect 100.00 82.61
Frank Russell Company USA c/o United Agent Group Inc. 707 W. Main Avenue #B1,
Spokane, WA 99201, United States
Common Indirect 100.00 100.00
FTSE (Australia) Limited England & Wales 10 Paternoster Square, London, United Kingdom,
EC4M 7LS
Ordinary Indirect 100.00 100.00
FTSE (Beijing) Consulting
Limited
China Room 02D-H, 6/F Dongwai Diplomatic Building, 23
Dongzhimenwai Dajie, Beijing, China
Ordinary Indirect 100.00 100.00
FTSE (Japan) Limited England & Wales 10 Paternoster Square, London, United Kingdom,
EC4M 7LS
Ordinary Indirect 100.00 100.00
FTSE Americas, Inc. USA c/o United Agent Group Inc. 600 Mamaroneck Avenue
#400, Harrison, NY 10528, United States
Ordinary Indirect 100.00 100.00
FTSE China Index Ltd. Hong Kong c/o Primasia Corporate Services Limited, Suite 1106-8,
Tai Yau Building, 181 Johnston Road, Wanchai, Hong Kong
Ordinary Indirect 100.00 100.00
FTSE Fixed Income LLC USA c/o United Agent Group Inc, 3411 Silverside Road, Tatnall
Building #104, Wilmington, DE 19810, United States
Membership
Interest
Indirect 100.00 100.00
FTSE Fixed Income
Europe Limited
England & Wales 10 Paternoster Square, London, United Kingdom,
EC4M 7LS
Ordinary Indirect 100.00 100.00
FTSE Global Debt Capital
Markets Inc.
Canada c/o Miller Thompson LLP, Suite 5800, 40 King Street West,
Toronto, ON, Canada, M5H 3S1
Ordinary Indirect 100.00 100.00
FTSE Global Debt Capital
Markets Limited
England & Wales 10 Paternoster Square, London, United Kingdom,
EC4M 7LS
Ordinary Indirect 100.00 100.00
FTSE International
(Hong Kong) Limited
Hong Kong c/o Primasia Corporate Services Limited, Suite 1106-8, Tai
Yau Building, 181 Johnston Road, Wanchai, Hong Kong
Ordinary Indirect 100.00 100.00
FTSE International
(MEA) Ltd
United Arab
Emirates
Office 50, Level 15, The Gate, PO Box 121208, Dubai,
United Arab Emirates
Ordinary Indirect 100.00 100.00
FTSE International Brasil
Representa\u00e7\u00f5es Limitada
Brazil Edificio Argentina, Praia de Botafogo 228, 16 andar,
Sala1617, Rio de Janeiro
Ordinary Indirect 100.00 100.00
FTSE International LimitedEngland & Wales 10 Paternoster Square, London, United Kingdom,
EC4M 7LS
Ordinary Indirect 100.00 100.00
FTSE Mexico Sociedad
de Responsabilidad
Limitada de Capital
Variable
Mexico Torre 3, Privada Paseo de los Tamarindos 120,
Bosques de las Lomas, Mexico City
Ordinary Indirect 100.00 100.00
FTSE International
Taiwan Limited
Taiwan 26/F, No. 100, Song Ren Road, Xinyi District,
Taipei City 11073, Taiwan
Ordinary Indirect 100.00 100.00
FTSE Italy S.P.A. Italy Piazza Generale Armando Diaz 2, Milan, 20123 Ordinary Indirect 100.00 100.00
FX Alliance
International, LLC
USA c/o United Agent Group Inc, 3411 Silverside Road, Tatnall
Building #104, Wilmington, DE 19810, United States
Common Indirect 100.00 100.00
FX Alliance, LLC USA c/o United Agent Group Inc, 3411 Silverside Road, Tatnall
Building #104, Wilmington, DE 19810, United States
Common Indirect 100.00 100.00
Giact Systems, LLC USA c/o United Agent Group Inc, 3411 Silverside Road, Tatnall
Building #104, Wilmington, DE 19810, United States
Membership
Interest
Indirect 100.00 100.00
Global Data Consortium
Australia Pty Limited
Australia 7C, BDO Services Pty Limited, Level 11, 1 Margaret St,
Sydney, NSW 2000, Australia
Ordinary Indirect 100.00 100.00
Notes to the financial statements continued
29. Other information continued
235 London Stock Exchange Group plc
Annual Report 2022
FINANCIAL STATEMENTS
Notes to the financial statements continued
29. Other information continued
Name of subsidiary
undertaking
Location of
incorporation Registered office address
Class of
share held
Direct or
indirect
holding
Share
ownership
%
LSEG plc
ultimate
economic
interest %
Global Data Consortium
Netherlands B.V.
Netherlands Barbara Strozzilan 201, Zuidas 2, 1083HN, Amsterdam,
Netherlands
Ordinary Indirect 100.00 100.00
Global Data Consortium
Singapore Pte. Ltd.
Singapore 11, Collyer Quay, 17-00 The Arcade, Singapore 04931 Ordinary Indirect 100.00 100.00
Global Data
Consortium, Inc.
USA c/o United Agent Group Inc,15720, Brixham Hill Avenue
#300, Charlotte, NC 28277, United States
Common Indirect 100.00 100.00
Global World-Check England & Wales Five Canada Square, Canary Wharf, London,
United Kingdom, E14 5AQ
Ordinary Indirect 100.00 100.00
Global World-Check
Holdings (Nominee)
Limited
England & Wales Five Canada Square, Canary Wharf, London,
United Kingdom, E14 5AQ
Ordinary Indirect 100.00 100.00
Global World-Check
Holdings Limited
England & Wales Five Canada Square, Canary Wharf, London,
United Kingdom, E14 5AQ
Ordinary Indirect 100.00 100.00
globeSettle S.\u00e0 r.l. Luxembourg c/o Crestbridge Luxembourg, 1 Boulevard de la Foire,
L-1528, Luxembourg
Ordinary Indirect 100.00 100.00
Guangzhou Data
Development Services
Limited
China Part 1-8 self compiled 21-016, 21 / F 15 Zhujiang West Road,
Guangzhou, Guangzhou, TianHe District
Contribution
Unit
Indirect 100.00 100.00
IAG US LLC USA c/o United Agent Group Inc, 3411 Silverside Road, Tatnall
Building #104, Wilmington, DE 19810, United States
Member
Shares
Indirect 100.00 100.00
Infosight Singapore Pte.
Ltd.
Singapore One Raffles Quay, #28-01, Singapore 048583 Ordinary Indirect 100.00 100.00
IntegraScreen (Malaysia)
Sdn. Bhd.
Malaysia 13.03 Menara Tan & Tan, 207 Jalan Tun Razak,
Kuala Lumpur 50400, Malaysia
Ordinary Indirect 100.00 100.00
IntegraScreen
(Panama), Inc.
Panama The Century Tower, Via Ricardo J. Alfaro y Calle 65,
Oeste Piso 10, Local 1005, Panama
Ordinary Indirect 100.00 100.00
IntegraScreen Limited Hong Kong c/o Primasia Corporate Services Limited, Suite 1106-8,
Tai Yau Building, 181 Johnston Road, Wanchai, Hong Kong
Ordinary Indirect 100.00 100.00
IntegraScreen
Spolka Z o.o.
Poland 40-084 Katowice, Ul. Opolska 22, Poland Ordinary Indirect 100.00 100.00
International Commodities
Clearing House Limited
England & Wales 10 Paternoster Square, London, United Kingdom,
EC4M 7LS
Ordinary Indirect 100.00 100.00
Intrinsic Research
Systems, Inc.
USA c/o United Agent Group Inc, 3411 Silverside Road, Tatnall
Building #104, Wilmington, DE 19810, United States
Common-A Indirect 100.00
100.00
Common-B Indirect 100.00
LCH Group Holdings
Limited
England & Wales 10 Paternoster Square, London, United Kingdom,
EC4M 7LS
Ordinary
(Voting)
Indirect 82.61 82.61
LCH Limited England & Wales 10 Paternoster Square, London, United Kingdom,
EC4M 7LS
Ordinary Indirect 100.00 82.61
LCH.Clearnet
Group Limited
England & Wales 10 Paternoster Square, London, United Kingdom,
EC4M 7LS
Ordinary Indirect 100.00 82.61
LCH.Clearnet LLC USA c/o United Agent Group Inc, 3411 Silverside Road, Tatnall
Building #104, Wilmington, DE 19810, United States
Ordinary Indirect 100.00 82.61
Lipper Asia Limited Cook Islands c/o Cook Islands Trust Corporation Limited, First Floor, BCI
House, PO Box 141, Avaura, Rarotonga, Cook Islands
Ordinary Indirect 100.00 100.00
Lipper Australia Pty Ltd Australia Level 10, 60 Margaret Street, Sydney, NSW, Australia 2000 Ordinary Indirect 100.00 100.00
Lipper Inc. USA c/o United Agent Group Inc, 155 E. Boardwalk #490,
Fort Collins, CO 80525, United States
Ordinary Indirect 100.00 100.00
Lipper Limited England & Wales Five Canada Square, Canary Wharf, London,
United Kingdom, E14 5AQ
Ordinary Indirect 100.00 100.00
London Produce Clearing
House Limited (The)
England & Wales 10 Paternoster Square, London, United Kingdom,
EC4M 7LS
Ordinary Indirect 100.00 82.61
London Stock Exchange
(C) Limited
England & Wales 10 Paternoster Square, London, United Kingdom,
EC4M 7LS
\u00a3 Ordinary Direct 100.00
100.00
\u20ac Ordinary Direct 100.00
London Stock Exchange
Connectivity Solutions LP
England & Wales 10 Paternoster Square, London, United Kingdom,
EC4M 7LS
Partnership
interest
Indirect 100.00 100.00
London Stock Exchange Group plc
Annual Report 2022
236
Name of subsidiary
undertaking
Location of
incorporation Registered office address
Class of
share held
Direct or
indirect
holding
Share
ownership
%
LSEG plc
ultimate
economic
interest %
London Stock Exchange
Group (Services) Limited
England & Wales 10 Paternoster Square, London, United Kingdom,
EC4M 7LS
Ordinary Direct 100.00 100.00
London Stock Exchange
Group Holdings Limited
England & Wales 10 Paternoster Square, London, United Kingdom,
EC4M 7LS
Ordinary Direct 100.00 100.00
London Stock Exchange
Group Holdings (Italy)
Limited
England & Wales 10 Paternoster Square, London, United Kingdom,
EC4M 7LS
Ordinary Direct 100.00 100.00
London Stock Exchange
Group Holdings (R)
Limited
England & Wales 10 Paternoster Square, London, United Kingdom,
EC4M 7LS
Ordinary Direct 100.00 100.00
London Stock Exchange
LEI Limited
England & Wales 10 Paternoster Square, London, United Kingdom,
EC4M 7LS
Ordinary Indirect 100.00 100.00
London Stock
Exchange plc
England & Wales 10 Paternoster Square, London, United Kingdom,
EC4M 7LS
Ordinary Direct 100.00 100.00
London Stock Exchange
Reg Holdings Limited
England & Wales 10 Paternoster Square, London, United Kingdom,
EC4M 7LS
Ordinary Direct 100.00 100.00
LSEG (ELT) Limited England & Wales 10 Paternoster Square, London, United Kingdom,
EC4M 7LS
Ordinary Indirect 100.00 100.00
LSEG (F) Limited England & Wales 10 Paternoster Square, London, United Kingdom,
EC4M 7LS
Ordinary Indirect 100.00 100.00
LSEG (G) Inc. USA c/o United Agent Group Inc, 3411 Silverside Road, Tatnall
Building #104, Wilmington, DE 19810, United States
Ordinary Indirect 100.00 100.00
LSEG (M)
Financing Limited
England & Wales 10 Paternoster Square, London, United Kingdom,
EC4M 7LS
Ordinary Indirect 100.00 100.00
LSEG Business Services
Colombo (Private) Limited
Sri Lanka Trace Expert City, Maradana, Colombo 10, Colombo,
Sri Lanka
Ordinary Indirect 100.00 100.00
LSEG Business
Services Limited
England & Wales 10 Paternoster Square, London, United Kingdom,
EC4M 7LS
Ordinary Indirect 100.00 100.00
LSEG Business
Services RM S.R.L
Romania Campus 6.1, Bulevardul Iuliu Maniu 6G, Bucuresti
061344, Romania
Ordinary Indirect 100.00 100.00
LSEG Employment
Services Limited
England & Wales 10 Paternoster Square, London, United Kingdom,
EC4M 7LS
Ordinary Indirect 100.00 100.00
LSEG Foundation
(formerly Refinitiv
Charities)
England & Wales 10 Paternoster Square, London, United Kingdom,
EC4M 7LS
Charitable
incorporated
organisation
\u2013 \u2013 \u2013
LSEG F1 Limited England & Wales 10 Paternoster Square, London, United Kingdom,
EC4M 7LS
Ordinary Direct 0.53
100.00
Ordinary Indirect 99.47
LSEG F2 Limited England & Wales 10 Paternoster Square, London, United Kingdom,
EC4M 7LS
Ordinary Indirect 100.00 100.00
LSEG F3 Limited England & Wales 10 Paternoster Square, London, United Kingdom,
EC4M 7LS
Ordinary Indirect 100.00 100.00
LSEG HK Financing
Limited
Hong Kong c/o Primasia Corporate Services Limited, Suite 1106-8,
Tai Yau Building, 181 Johnston Road, Wanchai, Hong Kong
Ordinary Indirect 100.00 100.00
LSEG Information
Services (US) Inc.
USA c/o United Agent Group Inc, 3411 Silverside Road, Tatnall
Building #104, Wilmington, DE 19810, United States
Ordinary Indirect 100.00 100.00
LSEG Financing
Corporation
USA c/o United Agent Group Inc, 3411 Silverside Road, Tatnall
Building #104, Wilmington, DE 19810, United States
Ordinary Indirect 100.00 100.00
LSEG Financing LLC USA c/o United Agent Group Inc, 3411 Silverside Road, Tatnall
Building #104, Wilmington, DE 19810, United States
Membership
Units
Indirect 100.00 100.00
LSEG Ireland Limited Ireland 10 Earlsfort Terrace, Dublin, Ireland, DO2 T380 Ordinary Indirect 100.00 100.00
LSEG Ireland 2 Limited Ireland 1 Stokes Place, St Stephen\u2019s Green, Dublin, Ireland
DO2 DE03
Ordinary Indirect 100.00 100.00
LSEG Ireland 3 Limited Ireland 1 Stokes Place, St Stephen\u2019s Green, Dublin, Ireland
DO2 DE03
Ordinary Indirect 100.00 100.00
Notes to the financial statements continued
29. Other information continued
237 London Stock Exchange Group plc
Annual Report 2022
FINANCIAL STATEMENTS
Notes to the financial statements continued
29. Other information continued
Name of subsidiary
undertaking
Location of
incorporation Registered office address
Class of
share held
Direct or
indirect
holding
Share
ownership
%
LSEG plc
ultimate
economic
interest %
LSEG LuxCo 1 S.\u00e0 r.l. Luxembourg c/o Crestbridge Luxembourg, 1 Boulevard de la Foire,
L-1528, Luxembourg
Ordinary Indirect 100.00 100.00
LSEG LuxCo 2 S.\u00e0 r.l. Luxembourg c/o Crestbridge Luxembourg, 1 Boulevard de la Foire,
L-1528, Luxembourg
Ordinary Indirect 100.00 100.00
LSEG Malaysia Sdn. Bhd. Malaysia 13.03 Menara Tan & Tan, 207 Jalan Tun Razak, Kuala
Lumpur 50400, Malaysia
Ordinary Indirect 100.00 100.00
LSEG Netherlands B.V. Netherlands Suite 108, Nieuwezijds Voorburgwal 162, Amsterdam,
1012 SJ, Netherlands
Ordinary Direct 100.00 100.00
LSEG Pension
Trustees Limited
England & Wales 10 Paternoster Square, London, United Kingdom,
EC4M 7LS
Ordinary Indirect 100.00 100.00
LSEG Post Trade
Services Limited
England & Wales 10 Paternoster Square, London, United Kingdom,
EC4M 7LS
Ordinary Indirect 100.00 100.00
LSEG Technology
Limited
England & Wales 10 Paternoster Square, London, United Kingdom,
EC4M 7LS
Ordinary Indirect 100.00 100.00
LSEG US Fin Corp
(formerly Refinitiv
US Fin Corp)
USA c/o United Agent Group Inc, 3411 Silverside Road, Tatnall
Building #104, Wilmington, DE 19810, United States
Ordinary Indirect 100.00 100.00
LSEG US Holdco, Inc. USA c/o United Agent Group Inc, 3411 Silverside Road, Tatnall
Building #104, Wilmington, DE 19810, United States
Common Direct 100.00 100.00
LSEGA Financing plc England & Wales 10 Paternoster Square, London, United Kingdom,
EC4M 7LS
Ordinary Direct 100.00 100.00
LSEGA Limited England & Wales 10 Paternoster Square, London, United Kingdom,
EC4M 7LS
Ordinary Direct 100.00 100.00
LSEGA, Inc. USA c/o United Agent Group Inc, 3411 Silverside Road, Tatnall
Building #104, Wilmington, DE 19810, United States
Common
Stock
Indirect 100.00 100.00
LSEGA Jersey Limited Jersey c/o Crestbridge Jersey, 47 Esplanade, St Helier,
JE1 0BD, Jersey
Ordinary Indirect 100.00 100.00
LSEGA2 Limited England & Wales 10 Paternoster Square, London, United Kingdom,
EC4M 7LS
Ordinary Direct 100.00 100.00
LSEGH (I) LLC USA c/o United Agent Group Inc, 3411 Silverside Road, Tatnall
Building #104, Wilmington, DE 19810, United States
Ordinary Indirect 100.00 100.00
LSEGH (Luxembourg)
Limited
England & Wales 10 Paternoster Square, London, United Kingdom,
EC4M 7LS
Ordinary Direct 100.00 100.00
LSEGH Inc. USA c/o United Agent Group Inc, 3411 Silverside Road, Tatnall
Building #104, Wilmington, DE 19810, United States
Common Indirect 100.00 100.00
LSEGH US PT, Inc. USA c/o United Agent Group Inc, 3411 Silverside Road, Tatnall
Building #104, Wilmington, DE 19810, United States
Common
Stock
Direct 100.00 100.00
LUH Financing Limited England & Wales 10 Paternoster Square, London, United Kingdom,
EC4M 7LS
Limited by
Guarantee
Indirect 100.00 100.00
Maystreet Inc. USA c/o United Agent Group Inc, 3411 Silverside Road, Tatnall
Building #104, Wilmington, DE 19810, United States
Common
Stock
Indirect 100.00 100.00
Mergent Japan K.K. Japan 1-2-1, Otemachi First Square East Tower 11F, Otemachi,
Chiyoda0ku, Tokyo, 100-0004
Ordinary Indirect 100.00 100.00
Mergent, Inc. USA c/o United Agent Group Inc, 3411 Silverside Road, Tatnall
Building #104, Wilmington, DE 19810, United States
Ordinary Indirect 100.00 100.00
Millennium Information
Technologies (India)
Private Limited
India One World Center, 12th Floor, Tower 1, 841 Senapati Bapat
Marg, Mumbai, 400013 India
Ordinary Indirect 100.00 100.00
Millennium IT (USA) Inc. USA c/o United Agent Group Inc, 3411 Silverside Road, Tatnall
Building #104, Wilmington, DE 19810, United States
Common Indirect 100.00 100.00
Millennium I.T. Services
(Private) Limited
Sri Lanka 65/2, Sir Chittampalam A Gardiner Mawatha, Colombo, 02 Ordinary Indirect 100.00 100.00
Millennium IT Software
(Canada) Inc.
Canada Suite 2400, 333 Bay Street, Toronto, Ontario, Canada,
M5H 2T6
Common Indirect 100.00 100.00
Millennium IT Software
(Private) Limited
Sri Lanka 1 Millennium Drive, Malabe, Colombo 10115, Sri Lanka Ordinary Indirect 100.00 100.00
London Stock Exchange Group plc
Annual Report 2022
238
Name of subsidiary
undertaking
Location of
incorporation Registered office address
Class of
share held
Direct or
indirect
holding
Share
ownership
%
LSEG plc
ultimate
economic
interest %
Monitor Services Hong
Kong Limited
Cook Islands c/o Cook Islands Trust Corporation Limited, First Floor,
BCI House, PO Box 141, Avaura, Rarotonga, Cook Islands
Ordinary Indirect 100.00 100.00
Monitor Trading Limited England & Wales Five Canada Square, Canary Wharf, London,
United Kingdom, E14 5AQ
Ordinary Indirect 100.00 100.00
PT Refinitiv Services
Indonesia
Indonesia Menara Astra, #37-118, Jl. Jendral Sudirman Kav 5-6,
Jakarta Pusat, Jakarta 10220, Indonesia
Ordinary Indirect 100.00 100.00
PT LSEG Transaction
Services Indonesia
Indonesia Menara Astra, #37-118, Jl. Jendral Sudirman Kav 5-6,
Jakarta Pusat, Jakarta 10220, Indonesia
Class A Indirect 100.00
100.00
1
Class B \u2013 \u2013
Quantile B.V. Netherlands Stadhouderskade 5H, 1054 ES Amsterdam, Netherlands Ordinary Indirect 100.00
100.00
Preference Indirect 100.00
Quantile Group Limited England & Wales Cannon Green Building, 27 Bush Lane, London,
United Kingdom, EC4R 0AN
Ordinary Indirect 100.00 100.00
Quantile Inc. USA c/o Corporation Service Company, 251 Little Falls Drive,
Wilmington, DE 19808, United States
Common Indirect 100.00 100.00
Quantile Technologies
Limited
England & Wales Cannon Green Building, 27 Bush Lane, London, United
Kingdom, EC4R 0AN
Ordinary Indirect 100.00 100.00
Quorate Technology
Limited
Scotland 8th Floor, Appleton Tower, 11 Crichton Street, Edinburgh,
Scotland, United Kingdom, EH8 9LE
Ordinary Indirect 100.00 100.00
R.M.E. Bahrain Limited
W.L.L.
Bahrain Flat 1002, Building 1459, Road 4626, Block 346, Manama Ordinary Indirect 100.00 100.00
REDI Technologies Ltd England & Wales Five Canada Square, Canary Wharf, London,
United Kingdom, E14 5AQ
Ordinary Indirect 100.00 100.00
REDI Global
Technologies LLC
USA c/o United Agent Group Inc, 600 Mamaroneck Avenue,
#400, Harrison, NY 10528, United States
Member
Interest
Indirect 100.00 100.00
Refinitiv (Canvas)
Holdings 1 Limited
Bermuda c/o Conyers Corporate Service (Bermuda) Limited,
Clarendon House, 2 Church Street, Hamilton,
Bermuda, HM 11
Common Indirect 100.00 100.00
Refinitiv (Canvas)
Holdings 2 Limited
Bermuda c/o Conyers Corporate Service (Bermuda) Limited,
Clarendon House, 2 Church Street, Hamilton,
Bermuda, HM 11
Common Indirect 100.00 100.00
Refinitiv (Canvas)
Holdings 3 Limited
Bermuda c/o Conyers Corporate Service (Bermuda) Limited,
Clarendon House, 2 Church Street, Hamilton,
Bermuda, HM 11
Common Indirect 100.00 100.00
Refinitiv (Thailand)
Limited
Thailand 968 U Chu Liang Building, 34th Floor, Rama IV Road,
Silom, Bangrak, Bangkok, Thailand, 10500
Ordinary Indirect 100.00
100.00
1
Preference Indirect 49.00
Refinitiv Asia Pte. Ltd. Singapore 1 Raffles Quay, #28-01, Singapore 048583 Ordinary Indirect 100.00 100.00
Refinitiv Australia
Pty Limited
Australia c/o TMF Corporate Services (Aust) Pty Limited, Suite 1,
Level 11, 66 Goulburn Street, Sydney, NSW 2000, Australia
Ordinary Indirect 100.00 100.00
Refinitiv Austria GmbH Austria The ICON Vienna, Wiedner G\u00fcrtel 13, A/12.OG/1123,
1100 Vienna, Austria
Ordinary Indirect 100.00 100.00
Refinitiv Benchmark
Services (UK) Limited
England & Wales Five Canada Square, Canary Wharf, London,
United Kingdom, E14 5AQ
Ordinary Indirect 100.00 100.00
Refinitiv Brasil Servicos
Economicos Limitada
Brazil Avenida Doutour Cardoso de Melo, 1855 \u2013 4 e 12
andares, Conj 41 e 122, Vila Olimpia, Sao Paulo \u2013
SP, Brazil CEP 04548-005
Ordinary Indirect 100.00 100.00
Refinitiv Canada
Holdings Limited
Canada Suite 400, 333 Bay Street, Suite 400, Toronto, Canada,
M5H 2R2
Common Indirect 100.00 100.00
Refinitiv Costa Rica
Sociedad De
Responsabilidad Limitada
Costa Rica San Jose, Santa Ana radial a San Antionio de Belen,
Doscientos metros norte de la Cruz Roja de Santa Ana,
Edificio Murano, Piso Uno, Oficina 13, Costa Rica
Ordinary Indirect 100.00 100.00
Refinitiv Cyprus Limited Cyprus Neas Egkomis 33, 1st floor, Flat/Office 208, Egkomi,
Nicosia, Cyprus, 2409
Ordinary Indirect 100.00 100.00
Refinitiv Czech
Republic s.r.o.
Czechia Na Perstyne 342/1, Star\u00e9 Mesto, 110 00 Praha 1, Czechia Ordinary Indirect 100.00 100.00
Notes to the financial statements continued
29. Other information continued
239 London Stock Exchange Group plc
Annual Report 2022
FINANCIAL STATEMENTS
Notes to the financial statements continued
29. Other information continued
Name of subsidiary
undertaking
Location of
incorporation Registered office address
Class of
share held
Direct or
indirect
holding
Share
ownership
%
LSEG plc
ultimate
economic
interest %
Refinitiv de Mexico,
S.A. de C.V.
Mexico Torre Esmeralda II. Blvd. Manuel Avila Camacho #36, Floor
19th, Lomas de Chapultepec, Mexico City, Mexico 11000
Common Indirect 100.00 100.00
Refinitiv Denmark A/S Denmark Vesterbrogade 1 E, 4, DK-1620, Copenhagen V, Denmark Ordinary Indirect 100.00 100.00
Refinitiv Enformasyon
Limited Sirketi
Turkey Is Kuleleri, Kule 2, Kat 1-2, 4. Levent, Istanbul,
Turkey, 34330
Ordinary Indirect 100.00 100.00
Refinitiv Europe Middle
East and Africa (Central
Region) Limited
Guernsey c/o Alternative Risk Management Limited, Level 5, Mill
Court, La Charroterie, St Peter Port, Guernsey, GY1 1EJ
Ordinary Indirect 100.00 100.00
Refinitiv Financial
Technology Information
Service (China)
Group Co. Ltd.
China Room 1811, The Towers Offices at Oriental Plaza,
No.1 East Chang\u2019an Avenue, WangFuJing, Dongcheng Qu,
Beijing 100006, China
Contribution
Unit
Indirect 100.00 100.00
Refinitiv Finland OY AB Finland Spaces Postitalo, Mannerheiminaukio 1A, Helsinki,
Finland 00100
Ordinary Indirect 100.00 100.00
Refinitiv France
Holdings S.\u00e0 r.l.
France 18 Rue du Quatre-Septembre, 75002 Paris, France Ordinary Indirect 100.00 100.00
Refinitiv France SAS France 18 Rue du Quatre-Septembre, 75002 Paris, France Ordinary Indirect 100.00 100.00
Refinitiv Germany GmbH Germany Friedrich-Ebert-Anlage 49, 60327 Frankfurt am Main,
Germany
Ordinary Indirect 100.00 100.00
Refinitiv Germany
Holdings GmbH
Germany Friedrich-Ebert-Anlage 49, 60327 Frankfurt am Main,
Germany
Ordinary Indirect 100.00 100.00
Refinitiv Global
Markets Inc.
USA c/o United Agent Group Inc, 3411 Silverside Road, Tatnall
Building #104, Wilmington, DE 19810, United States
Common Indirect 100.00 100.00
Refinitiv Global
Private Limited
India One World Center, 12th Floor, Tower 1, 841 Senapati
Bapat Marg, Maharashtra, Mumbai, 400013
Ordinary Indirect 100.00 100.00
Refinitiv Group
Nominees Limited
England & Wales Five Canada Square, Canary Wharf, London,
United Kingdom, E14 5AQ
Limited by
Guarantee
Indirect 100.00 100.00
Refinitiv Hellas
Single-member
Societe Anonyme
Greece 53 Solonos Street, Athens, Greece, 10672 Ordinary Indirect 100.00 100.00
Refinitiv Holdings
(Thailand) Limited
Thailand 30th floor, U Chu Liang Building, 968 Rama IV, Bangkok,
Silom Bangrak, Thailand, 10500
Ordinary Indirect 100.00
100.00
1
Preference \u2013 \u2013
Refinitiv Hong Kong
Limited
Jersey c/o Crestbridge Jersey, 47 Esplanade, St Helier, JE1 0BD,
Jersey
Ordinary Indirect 100.00 100.00
Refinitiv Hungary Kft. Hungary Alkot\u00e1s utca 53, A torony, 6. emelet, Budapest,
1123 Hungary
Ordinary Indirect 100.00 100.00
Refinitiv India
Private Limited
India One World Center, 12th Floor, Tower 1, 841 Senapati Bapat
Marg, Maharashtra, Mumbai, 400013
Ordinary Indirect 100.00 100.00
Refinitiv India Shared
Services Private Limited
India One World Center, 12th Floor, Tower 1, 841 Senapati Bapat
Marg, Maharashtra, Mumbai, 400013
Ordinary Indirect 100.00 100.00
Refinitiv India Transaction
Services Private Limited
India One World Center, 12th Floor, Tower 1, 841 Senapati Bapat
Marg, Maharashtra, Mumbai, 400013
Ordinary Indirect 100.00 100.00
Refinitiv Information
Services (China)
Co Limited
China Unit 3006, No 1223, Azia Centre, Lujiqzui Huang Road,
Shanghai, China
Contribution
Unit
Indirect 100.00 100.00
Refinitiv International
Holdings SARL
Switzerland 153 Route de Thonon, 1245 Collonge-Bellerive,
Switzerland
Ordinary Indirect 100.00 100.00
Refinitiv Ireland Limited Ireland 12/13 Exchange Place, IFSC, Dublin, Ireland, D01P8H1 Ordinary Indirect 100.00 100.00
Refinitiv Israel Ltd. Israel 121-123 Derech Menachem Begin, Azrieli Sarona Building
\u2013 30 Fl, Tel Aviv, Israel, 6701203
Ordinary Indirect 100.00 100.00
Refinitiv Italy
Holding S.P.A.
Italy Piazza Armando Diaz, 2, Milano, Italy, 20123 Ordinary Indirect 100.00 100.00
Refinitiv Italy S.P.A Italy Piazza Armando Diaz, 2, Milano, Italy, 20123 Ordinary Indirect 100.00 100.00
Refinitiv Japan K.K. Japan 30/F Akasaka Biz Tower, 5-3-1 Akasaka, Minato-Ku,
Tokyo 107-6330, Japan
Ordinary Indirect 100.00 100.00
London Stock Exchange Group plc
Annual Report 2022
240
Name of subsidiary
undertaking
Location of
incorporation Registered office address
Class of
share held
Direct or
indirect
holding
Share
ownership
%
LSEG plc
ultimate
economic
interest %
Refinitiv Korea Limited Korea 9F S Tower, 82 Saemunanro, Jongnogu, Korea, 03185 Common
\u2013 Voting
Indirect 100.00 100.00
Refinitiv Latam
Trading Limited
England & Wales Five Canada Square, Canary Wharf, London,
United Kingdom, E14 5AQ
Ordinary Indirect 100.00 100.00
Refinitiv Limited England & Wales Five Canada Square, Canary Wharf, London,
United Kingdom, E14 5AQ
Ordinary Indirect 100.00 100.00
Refinitiv Malaysia
Sdn. Bhd.
Malaysia Suite 13.03, 13th floor, Menara Tan & Tan, 207 Jalan Tun
Razak, Kuala Lumpur 50400, Malaysia
Ordinary Indirect 100.00 100.00
Refinitiv Middle East
FZ-LLC
United Arab
Emirates
Premises 501, 5th Floor, Building 01, Dubai,
United Arab Emirates
Ordinary Indirect 100.00 100.00
Refinitiv Netherlands B.V. Netherlands Antonio Vivaldistraat 50, 1083 HP Amsterdam, Netherlands Ordinary Indirect 100.00 100.00
Refinitiv Netherlands
Finance B.V.
Netherlands Antonio Vivaldistraat 50, 1083 HP Amsterdam, Netherlands Ordinary Indirect 100.00 100.00
Refinitiv Netherlands
Holdings B.V.
Netherlands Antonio Vivaldistraat 50, 1083 HP Amsterdam, Netherlands Ordinary Indirect 100.00 100.00
Refinitiv Netherlands
Overseas Holdings B.V.
Netherlands Antonio Vivaldistraat 50, 1083 HP Amsterdam, Netherlands Ordinary Indirect 100.00 100.00
Refinitiv New
Zealand Limited
New Zealand c/o The Business Advisory Group Limited, Level 9, 55
Shortland Street, Auckland, New Zealand, 1010
Ordinary Indirect 100.00 100.00
Refinitiv Norge AS Norway Dronning Eufemias gate 16, Oslo, Norway, 0191 Ordinary Indirect 100.00 100.00
Refinitiv Parent Limited Cayman Islands c/o Intertrust Corporate Services (Cayman) Limited,
1 Nexus Way, Camana Bay, Grand Cayman, KY1-9005,
Cayman Islands
Ordinary Direct 67.51
100.00
Indirect 32.49
Refinitiv Peru Srl Peru 102, WeWork Real 2, Avenida Victor Andr\u00e9s Bela\u00fande 147,
Via Principal 133, Lima, Peru, 15073
Ordinary Indirect 100.00 100.00
Refinitiv Poland
Spolka Z o.o.
Poland 126/134 Marszalkowska St, 00-008, Warsaw, Poland Ordinary Indirect 100.00 100.00
Refinitiv Portugal
Unipessoal Limitada
Portugal 10, Rua Mouzinho da Silveira, Lisboa, Portugal, 1250-167 Ordinary Indirect 100.00 100.00
Refinitiv Romania S.R.L. Romania 6L, Iuliu Maniu Boulevard, Campus 6.1, 4th Floor, District 6,
Bucharest, Romania, 061344
Ordinary Indirect 100.00 100.00
Refinitiv RUS LLC Russian
Federation
5 Petrovka Street, Berlin Haus, Business Centre,
Moscow, Russian Federation, 107031
Ordinary Indirect 100.00 100.00
Refinitiv SA Switzerland 153 Route de Thonon, 1245 Collonge-Bellerive,
Switzerland
Ordinary Indirect 100.00 100.00
Refinitiv Saudi for
Information and
Communication
Technology
Saudi Arabia Al Thalatten Commercial Centre, 2nd Floor, Olaya
Thalateen, Corner Dhabab Street, PO Box 62422, Riyadh,
Saudi Arabia, 11585
Ordinary Indirect 75.00 100.00
2
Refinitiv Software
(Thailand) Limited
Thailand U Chu Liang Building, 968 Rama IV Road, Silom, Bangrak,
Bangkok, Thailand, 10500
Ordinary Indirect 100.00 100.00
Refinitiv Sweden AB Sweden PO Box 1732, Stockholm, Sweden, SE 111 87 Ordinary Indirect 100.00 100.00
Refinitiv Technology
(China) Co., Limited
China A2 Tower, ZhongGuanCun #1, 81 BeiQing Road, Haidian
District, Beijing, China, 100193
Contribution
Unit
Indirect 100.00 100.00
Refinitiv Tecnologia em
Sistemas Brasil Limitada
Brazil Av. Doutor Cardoso de Melo 1855, Andar 4, Conj. 42, Vila
Olimpia, Sao Paulo, Brazil, 04548-005
Ordinary Indirect 100.00 100.00
Refinitiv Transaction
Services Limited
England & Wales Five Canada Square, Canary Wharf, London, United
Kingdom, E14 5AQ
Ordinary Indirect 100.00 100.00
Refinitiv Transaction
Services Malaysia
Sdn. Bhd.
Malaysia Suite 13.03, 13th floor, Menara Tan & Tan, 207 Jalan Tun
Razak, Kuala Lumpur 50400, Malaysia
Ordinary Indirect 100.00 100.00
Refinitiv Transaction
Services Pte. Ltd.
Singapore One Raffles Quay, #28-01, Singapore 048583 Ordinary Indirect 100.00 100.00
Refinitiv TW Holdings Ltd. Cayman Islands c/o Intertrust Corporate Services (Cayman) Limited,
1 Nexus Way, Camana Bay, Grand Cayman, KY1-9005,
Cayman Islands
Ordinary Indirect 100.00 100.00
Notes to the financial statements continued
29. Other information continued
241 London Stock Exchange Group plc
Annual Report 2022
FINANCIAL STATEMENTS
Notes to the financial statements continued
29. Other information continued
Name of subsidiary
undertaking
Location of
incorporation Registered office address
Class of
share held
Direct or
indirect
holding
Share
ownership
%
LSEG plc
ultimate
economic
interest %
Refinitiv UK (Rest Of
World) Holdings Limited
England & Wales Five Canada Square, Canary Wharf, London,
United Kingdom, E14 5AQ
Ordinary Indirect 100.00 100.00
Refinitiv UK Eastern
Europe Limited
England & Wales Five Canada Square, Canary Wharf, London,
United Kingdom, E14 5AQ
Ordinary Indirect 100.00 100.00
Refinitiv UK
Financial Limited
England & Wales Five Canada Square, Canary Wharf, London,
United Kingdom, E14 5AQ
Ordinary Indirect 100.00 100.00
Refinitiv UK Holding
Company Limited
Bermuda c/o Conyers Corporate Services (Bermuda) Limited,
Clarendon House, 2 Church Street, Hamilton,
Bermuda, HM 11
Ordinary indirect 100.00 100.00
Refinitiv UK
Holdings Limited
England & Wales Five Canada Square, Canary Wharf, London,
United Kingdom, E14 5AQ
Ordinary Indirect 100.00 100.00
Refinitiv UK Overseas
Holdings Limited
England & Wales Five Canada Square, Canary Wharf, London,
United Kingdom, E14 5AQ
Ordinary Indirect 100.00 100.00
Refinitiv UK
Parent Limited
England & Wales Five Canada Square, Canary Wharf, London,
United Kingdom, E14 5AQ
Ordinary Indirect 100.00 100.00
Refinitiv US IP Corp USA c/o United Agent Group Inc, 3411 Silverside Road, Tatnall
Building #104, Wilmington, DE 19810, United States
Ordinary Indirect 100.00 100.00
Refinitiv US LLC USA c/o United Agent Group Inc, 3411 Silverside Road, Tatnall
Building #104, Wilmington, DE 19810, United States
Member
Interest
Indirect 100.00 100.00
Refinitiv US
Organization LLC
USA c/o United Agent Group Inc, 3411 Silverside Road, Tatnall
Building #104, Wilmington, DE 19810, United States
Member
Interest
Indirect 100.00 100.00
Refinitiv US Personal
Focus Inc.
USA c/o United Agent Group Inc, 3411 Silverside Road, Tatnall
Building #104, Wilmington, DE 19810, United States
Ordinary Indirect 100.00 100.00
Refinitiv US PME LLC USA c/o United Agent Group Inc, 3411 Silverside Road, Tatnall
Building #104, Wilmington, DE 19810, United States
Class A Indirect 100.00
100.00
Class B Indirect 100.00
Refinitiv US SEF LLC USA c/o United Agent Group Inc, 3411 Silverside Road, Tatnall
Building #104, Wilmington, DE 19810, United States
Ordinary Indirect 100.00 100.00
Refinitiv US
Services Corp
USA c/o United Agent Group Inc, 3411 Silverside Road, Tatnall
Building #104, Wilmington, DE 19810, United States
Ordinary Indirect 100.00 100.00
Refinitiv US
Tradeweb LLC
USA c/o Corporation Service Company, 251 Little Falls Drive,
Wilmington, DE 19808, United States
Ordinary Indirect 100.00 46.67
3
Refinitiv, S.L. Spain Paseo de la Castellana 95, 7a, Edificio Torre Europa,
Madrid, Spain, 28046
Ordinary Indirect 100.00 100.00
RepoClear Limited England & Wales 10 Paternoster Square, London, United Kingdom,
EC4M 7LS
Ordinary Indirect 100.00 82.61
Reuters Asia
Pacific Limited
Mauritius c/o Ocorian Corporate Administrators Limited, 6th Floor
Tower A, Ebene, Cyber City, Mauritius, 72201
Ordinary Indirect 100.00 100.00
Reuters Pension
Fund Limited
England & Wales Five Canada Square, Canary Wharf, London,
United Kingdom, E14 5AQ
Limited by
Guarantee
Indirect 100.00 \u2013
Reuters SPS Trustee
Limited
England & Wales Five Canada Square, Canary Wharf, London,
United Kingdom, E14 5AQ
Limited by
Guarantee
Indirect 100.00 \u2013
RRP Pension Trustee
Limited
England & Wales Five Canada Square, Canary Wharf, London,
United Kingdom, E14 5AQ
Limited by
Guarantee
Indirect 100.00 \u2013
SSC Global Business
Services Limited
England & Wales 10 Paternoster Square, London, United Kingdom,
EC4M 7LS
Ordinary Indirect 100.00 100.00
SwapAgent Limited England & Wales 10 Paternoster Square, London, United Kingdom,
EC4M 7LS
Ordinary Indirect 100.00 82.61
SwapClear Limited England & Wales 10 Paternoster Square, London, United Kingdom,
EC4M 7LS
Ordinary Indirect 100.00 82.61
Stock Exchange
(Holdings) Limited (The)
England & Wales 10 Paternoster Square, London, United Kingdom,
EC4M 7LS
Ordinary Indirect 100.00 100.00
Tech Hackers LLC USA c/o Corporation Service Company, 251 Little Falls Drive,
Wilmington, DE 19808, United States
Membership
Interest
Indirect 100.00 51.24
Telfer Investments
Australia Pty Limited
Australia c/o TMF Corporate Services (Aust) Pty Limited, Suite 1,
Level 11, 66 Goulburn Street, Sydney, NSW 2000, Australia
Ordinary Indirect 100.00
100.00
Special Indirect 100.00
London Stock Exchange Group plc
Annual Report 2022
242
Name of subsidiary
undertaking
Location of
incorporation Registered office address
Class of
share held
Direct or
indirect
holding
Share
ownership
%
LSEG plc
ultimate
economic
interest %
Telfer Pty. Limited Australia c/o TMF Corporate Services (Aust) Pty Limited, Suite 1,
Level 11, 66 Goulburn Street, Sydney, NSW 2000, Australia
Ordinary Indirect 100.00
100.00
Special Indirect 100.00
The London Clearing
House Limited
England & Wales 10 Paternoster Square, London, United Kingdom,
EC4M 7LS
Ordinary Indirect 100.00 82.61
The Red Flag Group
(Australia) Pty Limited
Australia c/o Pilot Partners, Waterfront Place, Level 10, 1 Eagle
Street, Brisbane, QLD 4000, Australia
Ordinary Indirect 100.00 100.00
The Red Flag Group
(BVI) Limited
British Virgin
Islands
Jayla Place, 2nd Floor, Road Town, Tortola,
British Virgin Islands
Ordinary Indirect 100.00 100.00
The Red Flag Group
(France) SAS
France 20 Avenue Andre Malraux \u2013 92300, Levallois Perret,
France
Ordinary Indirect 100.00 100.00
The Red Flag Group
(HK) Limited
Hong Kong 18/F ICBC Tower, 3 Garden Road, Hong Kong Ordinary Indirect 100.00 100.00
The Red Flag Group
(Malaysia) Sdn. Bhd.
Malaysia 12th Floor, Menara Symphony, No. 5 Jalan Prof. Khoo Kay
Kim, Seksyen 13, 46200 Petaling Jaya, Selangor, Malaysia
Ordinary Indirect 100.00 100.00
The Red Flag Group
(Netherlands) B.V.
Netherlands Antonio Vivaldistraat 50, 1083 HP Amsterdam, Netherlands Ordinary Indirect 100.00 100.00
The Red Flag Group
(Philippines) Inc.
Philippines Unit 7-2, 7/F Net Square, 3rd Avenue Corner 28th Street
E-Square, Crescent Park West Bonifacio Global City,
Taguig Metro Manila, Philippines
Ordinary Indirect 100.00 100.00
The Red Flag Group
(Poland) Spolka Z o.o.
Poland UI. Kotlarska 11, 31-539, Krakow, Poland Ordinary Indirect 100.00 100.00
The Red Flag Group
(Shanghai) Limited
China 3F. Agile International Plaza, No. 525 Middle Xizang Road,
Huangpu District, Shanghai, China
Ordinary Indirect 100.00 100.00
The Red Flag Group
(Spain) SL
Spain Paseo de la Castellana, No 161, 2 Planta,
Madrid 28046, Spain
Ordinary Indirect 100.00 100.00
The Red Flag Group
(Switzerland) AG
Switzerland Baarerstrasse 112, 6300 Zug, Switzerland Ordinary Indirect 100.00 100.00
The Red Flag Group
(UK) Limited
England & Wales Five Canada Square, Canary Wharf, London,
United Kingdom, E14 5AQ
Ordinary Indirect 100.00 100.00
The Red Flag Group
FZ-LLC
United Arab
Emirates
Office 104, Building 3, PO Box 500 630, Dubai Internet
City, Dubai, United Arab Emirates
Ordinary Indirect 100.00 100.00
The Red Flag Group Inc. USA c/o United Agent Group Inc, 3411 Silverside Road, Tatnall
Building #104, Wilmington, DE 19810, United States
Ordinary Indirect 100.00 100.00
The Red Flag Group
International (Panama) SA
Panama Obarrio, 55th East, \u201cSanta Rita O\u201d St., SFC Tower,
15th Floor, Office 15-ABC, Panama City
Ordinary Indirect 100.00 100.00
The Red Flag
Group Limited
Hong Kong 18/F Champion Tower and ICBC Tower, 3 Garden Road,
Hong Kong
Ordinary Indirect 100.00 100.00
The Red Flag Group
Products (HK) Limited
Hong Kong 18/F Champion Tower and ICBC Tower, 3 Garden Road,
Hong Kong
Ordinary Indirect 100.00 100.00
The Red Flag Group Pte
Limited
Singapore 1 Raffles Quay, #28-01, Singapore 048583 Ordinary Indirect 100.00 100.00
The Yield Book, Inc. USA c/o United Agent Group Inc, 3411 Silverside Road, Tatnall
Building #104, Wilmington, DE 19810, United States
Common Indirect 100.00 100.00
TicketAid Limited England & Wales Five Canada Square, Canary Wharf, London, United
Kingdom, E14 5AQ
Ordinary Indirect 100.00 \u2013
TIPS LLC USA c/o Corporation Service Company, 1821 Logan Avenue,
Cheyenne, WY 82001, United States
Membership
Interest
Indirect 100.00 51.24
Tora Holdings, Inc. USA c/o United Agent Group Inc, 3411 Silverside Road, Tatnall
Building #104, Wilmington, DE 19810, United States
Common Indirect 100.00 100.00
Tora Trading
Investments, LLC
USA c/o CT Corporation, 1209 Orange Street, Wilmington,
DE 19801, United States
Common Indirect 100.00 100.00
Tora Trading Services
(Asia) Limited
Hong Kong 20th Floor, The Wellington, 198 Wellington St, Central,
Hong Kong
Ordinary Indirect 100.00 100.00
Tora Trading Services
(Jersey) Limited
Jersey De Carteret House, 7, Castle St, St. Helier, Jersey, JE2 3BT Ordinary Indirect 100.00 100.00
Notes to the financial statements continued
29. Other information continued
243 London Stock Exchange Group plc
Annual Report 2022
FINANCIAL STATEMENTS
Notes to the financial statements continued
29. Other information continued
Name of subsidiary
undertaking
Location of
incorporation Registered office address
Class of
share held
Direct or
indirect
holding
Share
ownership
%
LSEG plc
ultimate
economic
interest %
Tora Trading
Services K.K.
Japan KDX Kojimachi Bldg, 2nd Floor, 3-3-4 Kojimachi,
Chiyoda-ku, Tokyo, 102-0083, Japan
Ordinary Indirect 100.00 100.00
Tora Trading
Services, LLC
USA c/o CT Corporation, 1209 Orange Street, Wilmington,
DE 19801, United States
Common Indirect 100.00 100.00
Tora Trading
Services Limited
Cayman Islands 1 Nexus Way, Camana Bay, Grand Cayman, KY1-9005,
Cayman Islands
Ordinary Indirect 100.00 100.00
Tora Trading
Services Limited
Hong Kong 20th Floor, The Wellington, 198 Wellington St, Central,
Hong Kong
Ordinary Indirect 100.00 100.00
Tora Trading
Services Limited
England & Wales 10 Paternoster Square, London, United Kingdom,
EC4M 7LS
Ordinary Indirect 100.00 100.00
Tora Trading Services
Pte Ltd.
Singapore Level 58, Republic Plaza, 9, Raffles Place, Singapore
048619
Ordinary Indirect 100.00 100.00
Tora Trading
Services Pty Limited
Australia Level 5, Deutsche Bank Place, 126 Phillip St, Sydney,
NSW 2000, Australia
Ordinary Indirect 100.00 100.00
Tora Trading
Services S.R.L.
Romania Strada Nicolae Iorga 1, Cluj-Napoca 400063, Romania Ordinary Indirect 100.00 100.00
TradeWeb Commercial
Information Consulting
(Shanghai) Company
Limited
China Floors 3 & 4, No. 1 Lane, 65 Huanlong Road, Shanghai
Free Trade Zone
Contribution
Unit
Indirect 100.00 51.24
Tradeweb Direct LLC USA c/o Corporation Service Company, 251 Little Falls Drive,
Wilmington, DE 19808, United States
Contribution
Unit
Indirect 100.00 51.24
Tradeweb EU B.V. Netherlands Antonio Vivaldistraat 50, Amsterdam, 1083 HP,
Netherlands
Membership
Interest
Indirect 100.00 51.24
Tradeweb Europe Limited England & Wales 1 Fore Street Avenue, London, United Kingdom, EC2Y 9DT Ordinary Indirect 100.00 51.24
Tradeweb Execution
Services Limited
England & Wales 1 Fore Street Avenue, London, United Kingdom, EC2Y 9DT Ordinary Indirect 100.00 51.24
Tradeweb Execution
Services B.V.
Netherlands Strawinskylaan 4117, Amsterdam, 10777ZX Ordinary Indirect 100.00 51.24
Tradeweb Global
Holding LLC
USA c/o Corporation Service Company, 2711 Centerville Road,
Suite 400, DE 19808, United States
Ordinary Indirect 100.00 51.24
Tradeweb
Global LLC
USA c/o Corporation Service Company, 251 Little Falls Drive,
Wilmington, DE 19808, United States
Ordinary Indirect 100.00 51.24
Tradeweb IDB
Markets, Inc.
USA c/o Corporation Service Company, 251 Little Falls Drive,
Wilmington, DE 19808, United States
Ordinary Indirect 100.00 51.24
Tradeweb
Japan K.K.
Japan 30/F Akasaka Biz Tower, 5-3-1 Akasaka, Minato-Ku,
Tokyo 107-0052, Japan
Ordinary Indirect 100.00 51.24
Tradeweb LLC USA c/o Corporation Service Company, 251 Little Falls Drive,
Wilmington, DE 19808, United States
Common Indirect 100.00 51.24
Tradeweb Markets Inc. USA c/o Corporation Service Company, 251 Little Falls Drive,
Wilmington, DE 19808, United States
Common A \u2013 \u2013
46.67
3
Common B Indirect 100.00
Common C \u2013 \u2013
Common D Indirect 99.50
Tradeweb Markets LLC USA c/o Corporation Service Company, 251 Little Falls Drive,
Wilmington, DE 19808, United States
Membership
interest
Indirect 100.00 51.24
Turquoise Global
Holdings Europe B.V.
Netherlands Suite 108, Nieuwezijds Voorburgwal 162, Amsterdam,
1012 SJ, Netherlands
Ordinary Indirect 100.00 84.17
Turquoise Global
Holdings Limited
England & Wales 10 Paternoster Square, London, United Kingdom,
EC4M 7LS
Ordinary A Indirect 100.00 84.17
Ordinary B Indirect 67.46
Turquoise Global
Holdings US, Inc.
USA c/o United Agent Group Inc, 3411 Silverside Road, Tatnall
Building #104, Wilmington, DE 19810, United States
Common Indirect 100.00 84.17
TW SEF LLC USA c/o Corporation Service Company, 251 Little Falls Drive,
Wilmington, DE 19808, United States
Limited
Liability
Company
Interest
Indirect 100.00 51.24
London Stock Exchange Group plc
Annual Report 2022
244
Name of subsidiary
undertaking
Location of
incorporation Registered office address
Class of
share held
Direct or
indirect
holding
Share
ownership
%
LSEG plc
ultimate
economic
interest %
TWC Limited Cayman Islands 1 Nexus Way, Camana Bay, Grand Cayman, KY1-9005,
Cayman Islands
Ordinary Indirect 100.00 51.24
TWEL Holding LLC USA c/o Corporation Service Company, 251 Little Falls Drive,
Wilmington, DE 19808, United States
Limited
Liability
Company
Interest
Indirect 100.00 51.24
UK LSEG
Financing 1 Limited
England & Wales 10 Paternoster Square, London, United Kingdom,
EC4M 7LS
Ordinary Indirect 100.00 100.00
UK LSEG
Financing Limited
England & Wales 10 Paternoster Square, London, United Kingdom,
EC4M 7LS
Ordinary Indirect 100.00 100.00
Unavista Limited England & Wales 10 Paternoster Square, London, United Kingdom,
EC4M 7LS
Ordinary Indirect 100.00 100.00
UnaVista
TRADEcho B.V.
Netherlands Suite 108, Nieuwezijds Voorburgwal 162, Amsterdam,
1012 SJ, Netherlands
Ordinary Indirect 100.00 100.00
World Bureau of Metal
Statistics Limited
England & Wales 5 Canada Square, Canary Wharf, London,
United Kingdom, E14 5AQ
Ordinary Indirect 100.00 100.00
Yield Book Tangible
Property BRE LLC
USA c/o United Agent Group Inc, 3411 Silverside Road, Tatnall
Building #104, Wilmington, DE 19810, United States
Member
Interest
Indirect 100.00 100.00
Yield Book Software
BRE LLC
USA c/o United Agent Group Inc, 3411 Silverside Road, Tatnall
Building #104, Wilmington, DE 19810, United States
Member
Interest
Indirect 100.00 100.00
Zawya Internet Content
Provider LLC
United Arab
Emirates
P.O. Box 41640, Green Tower, District-Deira, Dubai,
PO Box 1426
Ordinary Indirect 49.00 100.00
1
Zawya Limited Cayman Islands 1 Nexus Way, Camana Bay, Grand Cayman, KY1-9005,
Cayman Islands
Common Indirect 100.00 100.00
Zhi Cheng Worldwide
Management Consulting
(Shenzhen) Co., Ltd.
China Room 312-04, New Times Square, No 1 Taizi Road,
Shuiwan Community, Zhao Shang Street, Nanshan District,
Shenzhen, China
Ordinary Indirect 100.00 100.00
1 The Group\u2019s equity interest is 49.00%, but the economic interest is 100.00%.
2 The Group\u2019s equity interest is 75.00%, but the economic interest is 100.00%.
3 The Group\u2019s voting interest is 91.2%.
Notes to the financial statements continued
29. Other information continued
245 London Stock Exchange Group plc Annual Report 2022 29.3 Associates An associate is where the Group is able to significantly influence the activity of an entity, but not control it. The Group\u2019s associate undertakings are: Associate name Location of incorporation Registered office address Identity of each class of share held in the associate undertaking Direct or indirect holding Share ownership % held by the investing company Group ultimate economic interest % AcadiaSoft, Inc. United States c/o The Corporation Trust Company, 1209 Orange Street, Wilmington, New Castle, 19801 United States Convertible Preferred Indirect 15.67 15.67 1 ASX Refinitiv Charity Foundation Ltd Australia Level 10,60 Margaret Street, Sydney , NSW2000, Australia Charitable incorporated organisation Indirect 50.00 \u2013 Citywire Holdings Limited England and Wales 3 Spring Mews, London, England, SE11 5AN Ordinary Indirect 16.40 16.40 2 Curve Global Limited 3 England and Wales 156 Great Charles Street, Queensway, Birmingham, England, B3 3HN Ordinary A Direct 43.99 40.90 Ordinary B Direct 46.01 Ordinary C \u2013 \u2013 Fomtech Limited England and Wales 107 Cheapside, London, England, EC2V 6DN Ordinary Indirect 19.50 19.50 2 LabCi Holding Inc. British Virgin Island OMC Chambers, Wickhams Cay1, Road Town, Tortola Ordinary Direct 47.62 47.62 Nivaura Ltd England and Wales 107 Cheapside, London, England, EC2V 6DN Ordinary Indirect 23.70 23.70 Seabridge Holdings Pte. Limited Singapore 80 Raffles Place, 32-01 UOB Plaza 1, Singapore, 048624 Ordinary Indirect 10.00 10.00 2 1 The Group has significant influence over AcadiaSoft, Inc. due to its right to appoint three of the company\u2019s directors. 2 The Group has significant influence over Citywire Holdings Limited, Fomtech Limited and Seabridge Holdings Pte. Limited due to its right to appoint one of the company\u2019s directors. 3 Curve Global Limited is in liquidation. All associates have the same year end as the Group, except Fomtech Limited which has a 31 August year end. 29. Other information continued",
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"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
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},
"fact-620": {
"value": "These financial statements have been prepared for London Stock Exchange Group plc (the Company) and its subsidiaries (the Group). ",
"dimensions": {
"concept": "ifrs-full:NameOfParentEntity",
"language": "en",
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"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
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},
"fact-677": {
"value": "These financial statements have been prepared for London Stock Exchange Group plc (the Company) and its subsidiaries (the Group). The Group is a diversified global financial markets infrastructure and data business. The Company is a public company, incorporated and domiciled in England and Wales. The address of its registered office is 10 Paternoster Square, London, EC4M 7LS. During 2022, the Group acquired the businesses listed below. The results of these businesses have been consolidated since the date of acquisition (see note 12). Acquired business Acquisition date Segment Global Data Consortium, Inc (GDC) 31 May 2022 Data & Analytics MayStreet Inc. (MayStreet) 31 May 2022 Data & Analytics Tora Holdings, Inc. (TORA) 9 August 2022 Data & Analytics Quantile Group Limited (Quantile) 30 November 2022 Post Trade On 1 July 2022, the Group disposed of the BETA, Maxit and Digital Investor businesses (collectively BETA) (see note 13). On 21 March 2022, the disposal of BETA was assessed to be highly probable and the business was treated as a disposal group from that date. BETA is also deemed to be a discontinued operation as it represented a separate major line of business of the Group. Its profits, losses and cash flows have therefore been separated from the Group\u2019s continuing operations and are shown as discontinued operations. The comparative period has been re-presented accordingly. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfGeneralInformationAboutFinancialStatementsExplanatory",
"language": "en",
"entity": "scheme:213800QAUUUP6I445N30",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-623": {
"value": "London Stock Exchange Group plc",
"dimensions": {
"concept": "ifrs-full:NameOfUltimateParentOfGroup",
"language": "en",
"entity": "scheme:213800QAUUUP6I445N30",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-7": {
"value": "London Stock Exchange Group plc",
"dimensions": {
"concept": "ifrs-full:NameOfReportingEntityOrOtherMeansOfIdentification",
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"entity": "scheme:213800QAUUUP6I445N30",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
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"fact-8": {
"value": "public company",
"dimensions": {
"concept": "ifrs-full:LegalFormOfEntity",
"language": "en",
"entity": "scheme:213800QAUUUP6I445N30",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-619": {
"value": "domiciled in England and Wales. The address of its registered office ",
"dimensions": {
"concept": "ifrs-full:DomicileOfEntity",
"language": "en",
"entity": "scheme:213800QAUUUP6I445N30",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-9": {
"value": "England and Wales",
"dimensions": {
"concept": "ifrs-full:CountryOfIncorporation",
"language": "en",
"entity": "scheme:213800QAUUUP6I445N30",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
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},
"fact-624": {
"value": "England and Wales",
"dimensions": {
"concept": "ifrs-full:PrincipalPlaceOfBusiness",
"language": "en",
"entity": "scheme:213800QAUUUP6I445N30",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
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},
"fact-10": {
"value": "10 Paternoster Square, London, EC4M 7LS",
"dimensions": {
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},
"fact-622": {
"value": "1. Accounting policies
This section describes the Group\u2019s significant policies and critical
accounting judgements and estimates that relate to the financial
statements and notes as a whole. Where an accounting policy or a
significant accounting judgement or estimate relates to a particular
note, it is disclosed in that note. These policies have been consistently
applied to all the periods presented, unless otherwise stated. We have
also detailed below the new accounting pronouncements that we
will adopt in future years and how we have assessed the impact of
climate change on our financial statements.
1.1 Compliance with International Financial Reporting
Standards (IFRS)
The Group\u2019s consolidated and the Company\u2019s financial statements are
prepared in accordance with UK-adopted international accounting
standards and endorsed by the UK Endorsement Board.
1.2 Basis of preparation
The financial statements are prepared on a historical cost basis except
for derivative financial instruments, debt and equity financial assets and
contingent consideration which are measured at fair value.
Going concern
The financial statements have been prepared on a going concern basis.
The Group\u2019s business activities (together with the factors likely to
affect its future development, performance and position), its objectives,
policies in managing risk and its capital are set out in the Strategic
Report on pages 2-85. In addition:
\u2014 the Group\u2019s borrowing facilities and respective repayment dates,
and the net debt position of the Group, are included in note 22
\u2014 the financial risk management objectives and policies of the Group,
together with its exposure to capital, credit and concentration,
country, liquidity, settlement, custodial and market risk are discussed
in note 23.5
Business planning process
The Group\u2019s forecasting and planning process includes the Group\u2019s
three-year business plan. The business plan makes certain assumptions
about the performance of the core revenue streams and segments,
the use of existing product lines as well as the take up of new product
lines. It also makes assumptions on appropriate levels of investment to
support expected performance, known inorganic activity, the ability to
refinance debt as required, and expected returns to shareholders.
Performance management
The Group\u2019s performance is analysed monthly by management, when
the monthly results are reviewed and compared with the plan a well as,
together with prior and updated full year forecasts. The key variances
and associated drivers are reviewed and reported, as necessary.
Cash flows and liquidity headroom
The Group\u2019s cash-flow and liquidity headroom are outputs of the
business plan and are the main factors considered in the going
concern assessment. The business plan is stress tested using
severe but plausible downside scenarios as determined by the
Financial Risk Committee, over the full three-year plan period. Impacts
on the performance of core revenue streams and segments are
modelled, with appropriate mitigating factors also considered.
The output of this stress-testing on the Group\u2019s cash flow and liquidity
are then tested against thresholds set by the Group\u2019s risk appetite.
These thresholds include liquidity headroom (cash less credit facilities),
leverage ratio (net debt to adjusted earnings before interest, tax,
depreciation, amortisation and impairment (EBITDA) and before
foreign exchange gains or losses) and interest cover (adjusted
EBITDA to interest expense).
No scenario over the three-year period leads to a breach in the Group\u2019s
risk appetite thresholds or would mean the Group is unable to meet its
obligations as a result of insufficient liquidity.
A reverse stress test has also been completed, to evaluate the financial
impacts that would breach the Group\u2019s risk appetite thresholds. The
scenarios required to breach the thresholds are all deemed improbable.
Conclusion The Directors, therefore, consider there to be no material uncertainties that may cast significant doubt on the Group and Company\u2019s ability to continue to operate as a going concern. The Directors have a reasonable expectation that the Group and the Company have adequate resources to continue in operational existence for 12 months from the date when these financial statements are authorised for issue. Accordingly, the going concern basis has been adopted in the preparation of these financial statements. Presentation of income statement The Group uses a columnar format for the presentation of its consolidated income statement to separately identify results before non-underlying items (\u201cadjusted\u201d). This is consistent with the way that financial performance is measured by management and reported to the Executive Committee and Board (see note 2). The \u201cadjusted\u201d measures reported by the Group include: \u2014 Adjusted operating expenses before depreciation, amortisation and impairment \u2014 Adjusted EBITDA \u2014 Adjusted depreciation, amortisation and impairment \u2014 Adjusted operating profit \u2014 Adjusted earnings per share (EPS) These measures are not measures of performance under IFRS and should be considered in addition to, and not as a substitute for, IFRS measures of financial performance and liquidity. Adjusted performance measures provide supplemental data relevant to an understanding of the Group\u2019s financial performance and exclude non-underlying items of income and expense that are material by their size and/or nature. The \u201cprofit before non-underlying items\u201d measure is used to calculate adjusted EPS. Profit before non-underlying items is reconciled to profit before taxation on the face of the income statement. Non-underlying items are disclosed in note 6. Non-underlying items include: \u2014 Amortisation and impairment of goodwill and other purchased intangible assets \u2014 Incremental amortisation and impairment of the fair value adjustments of intangible assets recognised as a result of acquisitions \u2014 Other income or expenses not considered to drive the operating results of the Group (including transaction, integration and separation costs related to acquisitions and disposals of businesses), as well as restructuring costs \u2014 Tax on non-underlying items As permitted by Section 408 of the Companies Act 2006, the Company\u2019s income statement has not been included in these financial statements. Current and non-current classification The Group presents assets and liabilities in the balance sheet based on current and non-current classification. An asset is current when it is: \u2014 Held primarily for trading purposes; \u2014 Expected to be realised within one year from the reporting period; \u2014 Expected to be realised or intended to be sold or consumed in the course of the Group\u2019s operating cycle; or \u2014 Cash or cash equivalents. All other assets are classified as non-current. A liability is current when it is: \u2014 Held primarily for trading purposes; \u2014 Expected to be settled in the course of the Group\u2019s operating cycle; or \u2014 Due to be settled within one year from the reporting period. All other liabilities are classified as non-current. Deferred tax assets and liabilities are classified as non-current assets and liabilities. 1.3 Basis of consolidation The consolidated financial statements comprise the financial statements of the Company and its subsidiaries. Subsidiaries are consolidated from the date on which control is obtained by the Group. They are deconsolidated from the date on which control ceases. Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. The results of subsidiaries are consolidated for the period to 31 December, even if the subsidiary\u2019s financial year-end is different. The acquisition method of accounting is used by the Group to account for business combinations (see note 12). Non-controlling interests in the results and equity of subsidiaries are shown separately in the consolidated income statement, statement of comprehensive income, balance sheet and statement of changes in equity (see note 11). Intercompany transactions and balances between group companies are eliminated on consolidation. Where necessary, adjustments are made to the results of subsidiaries and associates to bring their accounting policies in line with those of the Group. 1.4 Foreign currencies Functional and presentation currency The consolidated financial statements are presented in sterling, which is also the functional currency of London Stock Exchange Group plc, the Parent Company. The Group determines the functional currency for each of its subsidiary entities and items included in the financial statements of each entity are measured using that functional currency. 1. Accounting policies continued Transactions and balances in foreign currencies Transactions in foreign currencies are initially recorded and translated into the functional currency of the relevant Group entity at the exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated into the respective functional currency of the entity at the exchange rate prevailing at the reporting date. Foreign exchange gains and losses resulting from the settlement of such foreign currency transactions or from the translation of monetary assets and liabilities denominated in foreign currencies are recognised in the income statement within operating expenses. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated at the exchange rate at the date of the initial transaction. Non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rate at the date when the fair value was determined. The foreign exchange gain or loss on assets and liabilities carried at fair value are reported as part of the fair value gain or loss. This means foreign exchange gains and losses on non-monetary assets and liabilities held at fair value through profit or loss are recognised in the income statement (within operating expenses), and foreign exchange gains and losses on non-monetary assets classified as at fair value through other comprehensive income are recognised in other comprehensive income. Translation of non-sterling entities on consolidation The results and financial position of all Group entities that have a non-sterling functional currency are translated into sterling on consolidation into the Group\u2019s results as follows: \u2014 assets and liabilities (including goodwill, purchased intangible assets and fair value adjustments 1 ) are translated at the reporting date exchange rates \u2014 income and expenses and other comprehensive income are translated at the average exchange rate for the year. Where this average is not a reasonable approximation of the rate prevailing on the date of a material transaction, these items are translated at the rate on the date of the transaction \u2014 all resulting exchange differences are recognised in other comprehensive income On consolidation, exchange differences arising from the translation of net investments in foreign operations, borrowings and other currency instruments designated as hedging instruments (see note 23) are recognised in other comprehensive income. On disposal of a foreign currency operation, the cumulative exchange differences previously recognised in other comprehensive income relating to that operation are reclassified to the income statement as part of the profit or loss on disposal. 1 Any goodwill and any fair value adjustments to the carrying amounts of assets and liabilities on the acquisition of a foreign operation are treated as assets and liabilities of the foreign operation and translated at the reporting date exchange rate. 1.5 New and amended standards and interpretations Standards, interpretations and amendments to published standards effective for the year ended 31 December 2022 During the year, the following amendments to standards became effective. These have not had a material impact on the Group\u2019s financial statements: \u2014 Amendments to IFRS 3 Business Combinations: reference to the Conceptual Framework \u2014 Amendments to IAS 16 Property, Plant and Equipment: proceeds before intended use \u2014 Amendments to IAS 37 Provisions, Contingent Liabilities and Contingent Assets: onerous contracts \u2013 cost of fulfilling a contract \u2014 Annual Improvements to IFRS 2018-2020 Standards, interpretations and amendments to published standards which are not yet effective New and amended standards that have been issued, but are not yet effective, up to the date of the Group\u2019s financial statements are disclosed below. We intend to adopt these, if applicable, when they become effective. We are currently assessing their impact, but this is not expected to be material to the Group\u2019s financial statements: International accounting standards and interpretations Effective date IFRS 17 Insurance Contracts, including amendments to IFRS 17 (and initial application of IFRS 17 and IFRS 9 Financial Instruments \u2013 comparative information) 1 January 2023 Amendments to IAS 1 and IFRS Practice Statement 2: disclosure of accounting policies 1 January 2023 Amendments to IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors: definition of accounting estimate 1 January 2023 Amendments to IAS 12 Income Taxes: deferred tax related to assets and liabilities arising from a single transaction 1 January 2023 Amendments to IFRS 16 Leases: lease liability in a sale and leaseback 1 January 2024 1 Amendments to IAS 1 Presentation of Financial Statements: non-current liabilities with covenants and classification of liabilities as current or non-current 1 January 2024 1 Amendments to IFRS 10 Consolidated Financial Statements and IAS 28 Investments in Associates and Joint Ventures: sale or contribution of assets between an investor and its associate or joint venture Deferred 1 1 Not yet endorsed by UK Endorsement Board 1.6 Significant accounting estimates, assumptions and judgements
Estimates, assumptions and judgements are regularly reviewed based
on historical experience, current circumstances and expectations of
future events.
Significant accounting estimates and assumptions are those that have
a significant risk of resulting in a material adjustment to the carrying
amounts of assets and liabilities within the next financial year.
Significant judgements are those made by management in applying
the Group\u2019s significant accounting policies that have a material impact
on the amounts presented in the financial statements. Significant
judgement may be exercised in management\u2019s accounting estimates
and assumptions.
Estimates, assumptions and judgements are described in the
relevant notes to the financial statements (identified by the following
symbol/icon
)
Note
Significant
estimates
and
assumptions
Significant
judgement
6 Non-underlying items \u25cf
8.3 Uncertain tax positions \u25cf \u25cf
12 Business combinations \u25cf
14 Intangible assets \u25cf
17 Pension and other retirement
benefit schemes
\u25cf \u25cf
Management has discussed significant accounting estimates,
assumptions and judgements with the Audit Committee.
1.7 Climate change
We have considered the impact of climate change on the Group\u2019s
operations as outlined in the risks disclosed on pages 24-84 of the
Strategic Report as well as in the Climate Report. We have also reviewed
the potential impact of climate change on the Group\u2019s financial results
and position. The areas that are deemed to be most relevant to climate
change are set out below. Based on an assessment in each area, we
have concluded that climate change is not expected to have a material
impact on the Group\u2019s financial position, estimates or judgements.
The directors monitor this on an on-going basis.
\u2014 Going concern and viability \u2013 The Group has committed to a
long-term ambition to achieve net zero by 2040 and set targets to
reduce selected carbon emissions by 50% by 2030. There is no
other direct impact on the viability period of the Group. There is
no climate-related scenario that is deemed to have a probable
likelihood of occurring which could also impact the Group\u2019s going
concern assessment.
\u2014 Impairment of goodwill and intangible assets \u2013 Forecasted
cash flows are not expected to be impacted by climate change
over the period for which forecasts have been prepared, due to the
nature of the Group\u2019s revenue streams. The impact on costs mainly
relates to reducing our carbon footprint by encouraging responsible
employee travel.
\u2014 Useful lives of assets \u2013 The Group\u2019s assets consist mainly of property
and IT equipment. Given the type of IT equipment owned by the
Group, there is no expected impact of climate change on the future
useful lives of these assets. The useful lives of our property could be
impacted by climate change in the form of physical obsolescence of
assets or because of a natural disaster (such as flooding), however
any such impact on the carrying value of related assets is not
deemed material.
\u2014 Deferred tax assets \u2013 Deferred tax asset recoverability can be
affected by climate if there is an expectation that it will impact on
the future taxable profits that are expected to be generated. The
revenue of the Group is of such a nature that it is not expected to be
impacted by climate change over the period for which forecasts are
prepared. There is a potential reduction in costs as we reduce
our carbon footprint and encourage responsible employee travel.
\u2014 Pension scheme asset valuation and defined benefit liability \u2013
Changes in interest rates, as a result of climate change, could
impact the future valuation of defined benefit liabilities and pension
asset valuations. While these are considered in the valuation,
there was no discernible impact from climate change on the
current year\u2019s valuation.
\u2014 Trade and other receivables \u2013 The Group has a diverse client base
that operates in various industries. The Group\u2019s expected credit loss
provision considers the credit risk of its client base, which could be
impacted by the assessment of climate change in a particular market
or industry. Given that receivables are mainly due within one year, the
impact of climate change on the short term is unlikely to be material.
Accounting policy
IFRS 8 Operating Segments requires operating segments to be identified on the same basis as is reported internally for the review of
performance and allocation of resources by the \u201cchief operating decision maker\u201d. For the Group, this is the Executive Committee.
The Executive Committee uses a measure of adjusted EBITDA to assess the profitability and performance of the operating segments.
Accounting policy The Group reports total income, which is made up of: \u2014 Revenue \u2014 Net treasury income \u2014 Other income Revenue The main source of the Group\u2019s revenue is fees for services provided. Revenue is measured based on the consideration specified in a contract with a customer. The following are excluded from revenue: \u2014 value added tax and other sales related taxes \u2014 certain revenue share arrangements (whereby as part of an agreement amounts are due back to the customer) \u2014 certain pass-through costs where the Group acts as an agent and has arrangements to recover specific costs from its customers with no mark-up The Group recognises revenue as services are performed and as it satisfies its obligations to provide a product or service to a customer. The Group\u2019s revenue accounting policies are set out below: Data & Analytics The Data & Analytics division generates revenue by providing information and data products including indexes, benchmarks, real-time pricing data and trade reporting and reconciliation services. Data subscription and index licence fees are recognised over the licence or usage period in line with the Group\u2019s obligation to deliver data consistently throughout the licence period. Services are billed on a monthly, quarterly or annual basis. Other information services include licences to the regulatory news service and reference data businesses. Revenue from licences that grant the right to access intellectual property are recognised over time, consistent with the pattern of the service provision and how the performance obligation is satisfied throughout the licence period. Revenues from other information services, including from the sale of right to use licences, are recognised at the point the licence is granted or service is delivered. Various brokerage processing, risk solutions and professional services, which are generally billed in arrears, are recognised as revenue at the point in time when the Group meets its obligation to complete the transaction or service. Recoveries consist of fees for third-party content, such as exchange data that is distributed directly to customers, and communications fees. Recoveries are generally recognised over the contract term. Capital Markets Revenue in the Capital Markets division is generated from: Primary and Secondary market services; contracts to develop capital market technology solutions; software licences; network connections; and hosting services. We have assessed that primary market initial admission and the ongoing listing services represent one performance obligation. The Group therefore recognises revenue from initial admission and any subsequent issues over the period that the Group provides the listing services. All admission fees are billed to the customer at the time of admission to trading and become payable when invoiced. The estimated period for admission services (over which initial admission fees are spread) is determined using historical analysis of listing durations in respect of the companies on our markets. The estimated service period inherently incorporates an element of uncertainty in relation to the length of a customer listing, which is subject to factors outside the Group\u2019s control. We reassess the estimated service periods at each reporting date. The current estimated deferral period is five years or seven years, depending on the market. We estimate that a one-year decrease in the deferral period would cause an estimated \u00a324 million increase in revenue and a one-year increase in the deferral period would cause an estimated \u00a324 million decrease in revenue recognised in the year. Primary market annual fees, secondary market membership and subscription fees are generally paid in advance on the first day of membership or the subscription period. The Group recognises revenue on a straight-line basis over the period to which the fee relates, as this reflects the extent of the Group\u2019s progress towards completion of the performance obligation under the contract. Revenue from secondary market trading and associated capital market services is recognised on a per transaction basis at the point that the service is provided. Capital markets software licence contracts contain multiple deliverables including: providing licences; installing software; and ongoing maintenance services. The transaction price for each contract is allocated to these performance obligations based upon the relative standalone selling price. Revenue is recognised based on the actual service provided during the reporting period as a proportion of the total services to be provided. This is determined by measuring the inputs consumed in delivering the service (for example material and labour) relative to the total expected input consumption over the contract. This best reflects the transfer of economic benefits to the customer which generally occurs as the Group incurs costs on the contract. Network connection and hosting services revenues are recognised on a straight-line basis over the period to which the fee relates as this reflects the continuous transfer of technology services and measures the extent of progress towards the completion of the performance obligation. Post
Trade
Revenue in the Post Trade division is generated from clearing, settlement and other post trade services.
Over-the-counter (OTC) derivatives, and securities clearing and reporting generate fees from: individual transactions or contracts cleared and
settled; transaction reporting; risk management; and other financial resources management services. These revenues are earned at the point
in time when the Group meets its obligations to complete the transaction or service. Revenue is recognised and billed monthly in arrears.
Non-cash collateral fees are earned from handling non-cash collateral balances. These are recognised on a straight-line basis over the service
period, representing the continuous transfer of services during that time.
Fees received for third-party content or services, such as settlement fees, are recognised net within revenue on the date of the transaction.
Customer contracts across the Group that contain a single performance obligation at a fixed price do not require variable consideration to be
calculated. Some businesses in the Group provide services to customers under a tiered or tariff pricing structure that generates a degree of
variability in the revenue streams from the contract as a result of additional charges or discounts given. Where the future revenue from a contract
varies due to factors that are outside the Group\u2019s control, the Group limits the total transaction price at contract inception and recognises the
minimum expected revenue guaranteed by the terms of the contract over the contract period. Any variable element is subsequently recognised
in the period in which the variable condition is satisfied and there is no significant risk of reversal of that revenue.
Rebates given to customers as part of an operating agreement are calculated on a pro rata basis on revenue earned and recognised as they
fall due.
The Group does not have any contracts where the period between the transfer of services to a customer and when the customer is expected to
pay for that service is longer than one year. As a result, no adjustments are made to revenue for any financing component.
Net treasury income
The CCP businesses securely invest the cash collateral lodged with them and earn treasury income from various investments (including
government debt and reverse repos) and cash deposits with central banks. At the same time, the CCPs pay interest at an overnight benchmark
rate to their members on the collateral placed with the business, whilst charging a spread on that rate as a fee. The resulting net treasury
income is recognised within total income and disclosed separately from revenue.
Other income
Other income typically relates to operating lease income and fees from service agreements. Fees are generated from the provision of events
and media services, which are typically recognised as revenue at the point the service is rendered.
Cost of sales
Cost of sales comprises:
\u2014 Data and licence fees
\u2014 Data feed costs
\u2014 Royalties
\u2014 Expenses incurred in respect of profit share arrangements
\u2014 Costs directly attributable to the construction and delivery of goods or services
\u2014 Any other costs linked and directly incurred to generate revenues and provide services to customers
Profit share expenses recognised as cost of sales relate to arrangements with certain customers where the payment to the customer is linked to
the total profit of the particular business concerned.
Accounting policy Revenue relating to future periods is classified as a contract liability on the balance sheet to reflect the Group\u2019s obligation to transfer goods or services to a customer in the future for which it has received consideration, or an amount of consideration is due, from the customer. Contract liabilities are amortised and recognised as revenue over the period the services are rendered. Accounting policy Costs are recognised in the income statement as incurred and measured after deducting any time- and value-limited discounts from suppliers. Other discounts are spread over the contract term. Accounting policy The accounting policies for the following finance income and finance costs are described in the relevant notes to the financial statements: Note \u2014 Interest income on retirement benefit assets \u2014 Interest costs on retirement benefit obligations 17 Pension and other retirement benefit schemes \u2014 Lease interest income \u2014 Lease interest expense 21 Lease liabilities and net investments in leases \u2014 Interest on borrowings 22 Borrowings and net debt Interest earned on cash deposited with financial counterparties and interest paid on borrowings, which reflect the agreed market-based or contractual rate for each transaction, are calculated using the effective interest rate method. Where negative interest rates apply, the Group recognises interest paid on cash deposits as an expense and interest received on borrowings as income. Recurring fees and charges levied on committed bank facilities, cash management transactions and the payment services provided by the Group\u2019s banks are charged as accrued in other finance expenses. Credit facility arrangement fees are capitalised and then amortised over the term of the facility based on the projected utilisation of the facility Accounting policy Income tax comprises current and deferred tax. Current and deferred tax charges and benefits are recognised in the income statement except to the extent that they relate to items recognised directly in equity or in other comprehensive income. Current income tax is calculated based on the tax laws enacted or substantively enacted at the balance sheet date in the countries where the Group operates and generates taxable income. Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to taxation authorities. When applicable tax regulation is subject to interpretation, management evaluates the positions taken in tax returns and considers whether it is probable that a taxation authority will accept an uncertain tax treatment. The Group measures such tax balances either based on the most likely amount or the expected value, depending on which method provides a better prediction of the resolution of the uncertainty. Deferred tax is recognised using the liability method for temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for tax purposes. Deferred tax is determined using tax rates that are substantively enacted and expected to apply in the period when the asset is realised or the liability settled. Deferred tax is not recognised for: \u2014 Taxable temporary differences arising on the initial recognition of goodwill; \u2014 Temporary differences on the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither the accounting profit nor taxable profit or loss; and \u2014 Temporary differences associated with interests in subsidiaries and associates to the extent that the Group is able to control the timing of the reversal of the temporary differences and it is probable that the temporary differences will not reverse in the foreseeable future. Deferred tax assets are recognised for all deductible temporary differences, the carry forward of unused tax credits and any unused tax losses. Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against which these can be utilised, except: \u2014 When the deferred tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; and \u2014 In respect of deductible temporary differences associated with interests in subsidiaries and associates, deferred tax assets are recognised only to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the temporary differences can be utilised. The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised. Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered. Tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority on either the same taxable entity or on different taxable entities which intend to settle the current tax assets and liabilities on a net basis. Accounting policy Basic earnings per share is in respect of all activities. Diluted earnings per share takes into account the dilutive effect that would arise on conversion or vesting of all outstanding share options and share awards under the Group\u2019s share option and award schemes. Adjusted basic earnings per share and adjusted diluted earnings per share exclude non-underlying items from earnings. Accounting policy Dividend distributions to the Company\u2019s equity holders are recognised as a liability in the Group financial statements in the period in which the dividends are approved by the Company\u2019s shareholders. Accounting policy
Non-controlling interests
The Group recognises non-controlling interests in a business
either at fair value or at the non-controlling interest\u2019s proportionate
share of the net assets. This treatment is determined on an
acquisition-by-acquisition basis. After initial recognition, the carrying
value of the non-controlling interest is adjusted for any changes
in equity and the total comprehensive income attributable to
the non-controlling interest holders, less dividends paid.
Change in the ownership interest of a subsidiary company,
without loss of control
For acquisitions or disposals of non-controlling interests where
control of the subsidiary remains with the Group, the difference
between any consideration paid or received, and the relevant share
of net assets acquired or sold, is recognised in equity.
Accounting policy Business combinations are accounted for using the acquisition method: \u2014 Identifiable assets, liabilities and contingent liabilities acquired are measured at fair value at acquisition date. \u2014 The cost of an acquisition is measured as the aggregate of the consideration transferred and contingent consideration, which are measured at fair value, and the value of any non-controlling interests in the acquiree. \u2014 On an acquisition-by-acquisition basis, the Group elects whether to measure the non-controlling interests in the acquiree, if any, at fair value or at the proportionate share of the acquiree\u2019s identifiable net assets (see note 11.2). \u2014 Goodwill is initially measured at the amount by which the aggregate of the consideration transferred and the amount recognised for non-controlling interests (plus any previous interest held), exceeds the net identifiable assets acquired and liabilities assumed. The Group considers the nature of any compensation for the selling shareholders\u2019 continuing employment to determine if any contingent payments are for post-combination employee services. These are excluded from consideration and together with other acquisition- related costs are classified as a non-underlying transaction costs in the income statement (see note 6). Accounting policy The Group classifies disposal groups as held for sale if the carrying amounts will be recovered principally through a sale transaction rather than through continuing use. Disposal groups classified as held for sale are measured at the lower of the carrying amount or fair value less costs to sell. Costs to sell are the incremental costs directly attributable to the sale of a disposal group, excluding finance costs and income tax expense. The criteria for held for sale classification is regarded as met only when the sale is highly probable, and the disposal group is available for immediate sale in its present condition. Actions required to complete the sale should indicate that it is unlikely that significant changes to the disposal group will be made or that the decision to sell will be withdrawn. Management must be committed to the plan to sell the asset and the sale is expected to be completed within one year from the date of the classification. Assets and liabilities classified as held for sale are presented separately as current items on the balance sheet and measured at the lower of carrying amount and fair value less cost to sell. Property, plant and equipment and intangible assets are not depreciated or amortised once classified as held for sale. An operation is regarded as a discontinued operation if it is held for sale or has already been sold and comprised a major line of business or geographical area of operation. Discontinued operations are excluded from the results of continuing operations and are presented as a single amount of profit or loss after tax from discontinued operations in the income statement. The comparative results are re-presented accordingly to show the continuing operations. Accounting policy Goodwill Goodwill arising on the acquisition of a business is initially measured at cost, being the amount by which the aggregate of the consideration transferred and the amount recognised for non-controlling interests (plus any previous interest held), exceeds the net identifiable assets acquired and liabilities assumed. After initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the purpose of impairment testing, on the date of acquisition, goodwill acquired in a business combination is allocated to one or more of the Group\u2019s cash-generating units (CGUs) that are expected to benefit from the combination. Where goodwill has been allocated to a CGU and part of the operation within that unit is disposed of, the goodwill associated with the disposed operation is included in the carrying amount when determining its gain or loss on disposal. Goodwill disposed in these circumstances is measured based on the relative values of the disposed operation and the portion of the CGU retained. Purchased intangible assets Purchased intangible assets are initially recognised at cost. The cost of intangible assets acquired in a business combination is their fair value at the date of acquisition which is determined using valuation methodologies such as multi-period excess earnings method (MEEM) or relief from royalty. Following initial recognition, intangible assets are carried at cost less any accumulated amortisation and accumulated impairment losses. These assets are amortised on a straight-line basis over their useful economic lives which are as follows: \u2014 Customer and supplier relationships \u2013 2 to 25 years \u2014 Brands \u2013 10 to 25 years \u2014 Databases and content \u2013 5 to 12 years \u2014 Software, licences and intellectual property \u2013 1 to 25 years (the majority of material assets are amortised over a life not exceeding 5 years) Software and other Internally developed software Expenditure on internal product development is capitalised if: the costs can be reliably measured; the product or process is technically and commercially feasible; future economic benefits are probable; and the Group has sufficient resources to complete the development and to use or sell the asset. The assets are initially recorded at cost, which includes labour, directly attributable costs and any third-party expenses. They are then amortised over their useful economic lives of 3 to 12 years. Internally generated intangibles, excluding capitalised development costs, are expensed as incurred. Third-party software costs for the development and implementation of systems which enhance the services provided by the Group are capitalised and amortised over their estimated useful economic lives of 3 to 5 years. Contract costs Incremental costs of obtaining a customer contract, such as sales commissions paid to employees, are recognised as an intangible asset if the benefit of such costs is expected to be longer than one year. The asset is initially recognised at cost and is amortised over the period from which a customer benefits from the associated software technology supporting the underlying product or service. The Group has determined this to be between 3 and 5 years. The Group recognises the incremental cost of obtaining a contract as an expense when incurred, if the amortisation period is less than one year. Impairment of intangible assets, including goodwill Goodwill is tested for impairment annually. Impairment is determined for goodwill by assessing the recoverable amount of each CGU. When the recoverable amount of the CGU is less than its carrying amount, an impairment loss is recognised. Impairment losses relating to goodwill cannot be reversed in future periods. Intangible assets are assessed for any indicators of impairment at each balance sheet date. If any indication exists, or when annual impairment testing for an asset is required, the Group estimates the asset\u2019s recoverable amount. Where it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the CGU to which the asset belongs. An impairment loss is recognised when the recoverable amount of the asset, or CGU, is less than its carrying amount. Impairment losses are recognised in the income statement within depreciation, amortisation and impairment. CGU impairment losses are allocated first to reduce the carrying amount of any goodwill allocated to the CGU, and then to reduce the carrying amounts of the other assets in the CGU on a pro-rata basis. Accounting policy Property, plant and equipment Property, plant and equipment assets are recorded at cost less accumulated depreciation and accumulated impairment losses. Land is not depreciated. Freehold buildings, plant and equipment are depreciated to a residual value on a straight-line basis over their estimated useful economic lives as follows: \u2014 Freehold buildings \u2013 30 to 50 years \u2014 Plant and equipment \u2013 3 to 20 years Leasehold improvements are recorded at cost and depreciated to a residual value over the shorter of the period of the lease and the useful economic life of the asset. At each reporting date, the Group assesses whether there is an indication that an asset may be impaired. If any indication exists, the Group estimates the asset\u2019s recoverable amount. The recoverable amount is the higher of an asset\u2019s fair value less costs of disposal and its value in use. Where it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the CGU to which the asset belongs. An impairment loss is recognised when the recoverable amount of the asset, or CGU, is less than its carrying amount. Impairment losses are recognised in the income statement within depreciation, amortisation and impairment. CGU impairment losses are allocated first to reduce the carrying amount of any goodwill allocated to the CGU, and then to reduce the carrying amounts of the other assets in the CGU on a pro-rata basis. Right-of-use assets (leases) The Group recognises a right-of-use asset where it has control of an asset for a period of more than 12 months. Assets are recorded initially at cost and depreciated on a straight-line basis over the shorter of the lease term and the estimated useful economic life. Cost is defined as the net present value of the initial lease liability plus any initial costs and dilapidation provisions less any lease incentives received. The lease term is the non-cancellable term plus any periods for which the Group is reasonably certain to exercise any extension options. Where a property is no longer used by the business or there is surplus space, an impairment in the value of the right-of-use asset is recognised and the asset is recognised at its estimated recoverable value. Where a lease is terminated early, this is recognised as a disposal and any difference in value between the asset (being the carrying value of the right-of-use asset) and the liability (being the net present value of future lease obligation) is recognised as a profit or loss on disposal. Any penalty fees payable for early termination are recognised directly in the income statement as an operating expense. Accounting policy These financial assets are all recognised at fair value through other comprehensive income (FVOCI). See note 23 for the relevant accounting policy, specifically in relation to: \u2014 equity instruments \u2014 debt instruments Investments in equity instruments and convertible instruments (excluding listed instruments) are classified as Level 3 (of the fair value hierarchy described in the accounting policy of note 23). Listed instruments are classified as Level 1 Accounting policy For defined contribution schemes, the operating charge represents the contributions payable in the year and is recognised in the income statement as incurred. For the defined benefit schemes the income statement expense is allocated between service cost and net finance expense. The service charge represents benefits accruing to employees and is included as an operating expense. Costs of future employee benefits are accrued over the period in which employees earn the benefits. Scheme obligations and costs are determined by an independent qualified actuary, on a regular basis, in line with IAS 19 Employee Benefits, using the projected unit credit method. The obligations are measured by discounting the best estimate of future cash flows to be paid out of the scheme and are reflected in the Group balance sheet. Where a scheme has a net defined benefit liability, interest cost is recognised in finance expense, calculated by applying a discount rate to the net defined benefit liability at the start of each annual reporting period. Where a scheme has a net defined asset, interest is recognised in finance income and calculated in the same way. The discount rate used is based on market interest rates of high-quality, fixed-rate debt securities adjusted to reflect the duration of expected future cash outflows for pension benefit payments. The net asset or liability recognised on the balance sheet comprises the difference between the present value of pension obligations and the fair value of scheme assets. Actuarial gains and losses are recognised at each reporting date, net of tax, in the statement of comprehensive income. These gains and losses arise from experience adjustments, changes in actuarial assumptions or differences between actual and expected returns on assets. Accounting policy Trade receivables are initially recognised at the amount of the consideration that is unconditionally due to the Group. They are subsequently measured at amortised cost, less any expected credit loss (ECL). Our approach to calculating ECL provisions is described in note 23. The creation and release of such provisions are recognised in operating expenses in the income statement. Fees receivable are recognised when the Group has an unconditional right to consideration in exchange for goods or services transferred, but no fee invoice has been issued. Amounts are transferred to trade receivables when an invoice has been issued. Other receivables are initially recognised at fair value and subsequently at amortised cost, less any loss allowance as described in note 23. When a receivable is no longer expected to be recovered, the full amount is written off. We will continue to seek recovery and any subsequent amounts recovered against amounts previously written off are recognised in the income statement. See note 21 for the net investment in leases accounting policy, when the Group sub-lets property right-of-use assets. The Group has a tax indemnity receivable from Thomson Reuters for any tax liabilities incurred before Refinitiv (previously the Thomson Reuters Financial & Risk Business) separated from Thomson Reuters on 1 October 2018. The tax indemnity receivable is measured on the same basis as the corresponding indemnified tax liabilities. When there is a change in the indemnified tax liabilities, which is recognised within tax in the income statement, there is an offsetting change in the tax indemnity receivable. This change is recognised within operating expenses in the income statement. Contract assets are recognised when the Group has a conditional right to consideration from a customer in exchange for goods or services transferred. Contract assets are transferred to trade receivables when the entitlement to payment becomes unconditional and only the passage of time is required before payment is due. Accounting policy Trade payables are initially recognised at fair value, which is usually the amount invoiced. They are subsequently measured at amortised cost. Accrued expenses are recognised for goods and services received before the end of the year for which no invoice has been received. They are measured at amortised cost. Contingent consideration, resulting from business combinations, sometimes arises when additional consideration to the sellers will need to be paid if certain performance targets for the business are achieved. Contingent consideration is valued at fair value at the acquisition date as part of the business combination (see note 12). When the contingent consideration meets the definition of a financial liability, it is subsequently remeasured to fair value through profit or loss at each reporting date. The fair value gain or loss is classified as non-underlying transaction costs in the income statement (see note 6). The determination of the fair value is based on discounted cash flows. The key assumptions take into consideration the probability of meeting each performance target and the discount factor. Trade and other payables include the Tradeweb tax receivable agreement liability. In connection with Tradeweb\u2019s initial public offering (IPO), Tradeweb entered into a tax receivable agreement with the owners of Tradeweb Markets LLC (the LLC Owners) immediately prior to Tradeweb\u2019s IPO. Under the agreement, Tradeweb is required to make cash payments to the LLC Owners equal to 50% of the amount of any tax savings that Tradeweb realises as a result of certain future tax benefits which Tradeweb is entitled to. The Tradeweb tax receivable agreement liability is measured at amortised cost. The Group has a tax indemnity payable to Thomson Reuters with a matching tax receivable. The tax indemnity payable is measured on the same basis as the indemnified tax receivable. When there is a change in the indemnified tax receivable, which is recognised within tax in the income statement, there is an offsetting change in the tax indemnity payable. This change is recognised within operating expenses in the income statement. Accounting policy
Group as lessee
Lease liabilities
Lease liabilities are recognised at the net present value of the remaining future payments to be made over the lease term.
The net present value is determined using a discount rate equivalent to the incremental borrowing rate of the leasing entity unless there is
a rate implicit within the lease agreement. Subsequently, the value of the discount is recognised over the life of the lease on a reducing balance
basis as lease interest in finance expenses.
The Group leases many properties around the world and lease terms vary from monthly up to 15 years. Many of these leases contain option
clauses to extend the lease or break clauses to terminate the lease. The lease term recognised is the non-cancellable period of the lease plus
any periods for which the Group is reasonably certain of exercising any extension options. The Group values its right-of-use assets and lease
liabilities based on its intentions at the balance sheet date. Any change in these intentions is accounted for as a lease modification and the
assets and liabilities are amended accordingly. Any effect on the net assets of the Group is not significant.
Variable lease payments based on an index are estimated at the commencement date and revalued on an annual basis.
Lease payments due within 12 months are classified as current liabilities. Payments due after 12 months are classified as non-current liabilities.
Short-term leases and leases of low value assets
Rental costs for leased assets that are for less than 12 months or are for assets with an individual value of less than \u00a35,000 are recognised
directly in the income statement on a straight-line basis over the life of the lease .
Group as lessor
Finance leases
Where the Group sub-lets a property right-of-use asset for
substantially all the useful life of that asset, this is recognised as a
finance lease. On commencement of a finance sub-lease, the
property right-of-use asset is treated as disposed of and a net
investment in lease, equivalent to the net present value of the future
rent receipts is recognised (see note 18). The value of the discount
is recognised over the life of the sub-lease on a reducing balance
basis as interest income in finance income.
Where the value of the receipts from the sub-lease is lower than the
amount payable on the head-lease, we recognise a loss on disposal
of the right-of-use asset in the income statement.
Operating leases
A right-of-use asset that is sub-let for less than its expected useful life
is recognised as an operating lease and rental income is recognised
as received in other income. We continue to recognise the property
right-of-use asset on the balance sheet.
Accounting policy Borrowings are initially recorded at the fair value of amounts received, net of capitalised direct issue costs and arrangement fees (including upfront facility fees). Subsequently, these liabilities are carried at amortised cost. Interest payable on the borrowings is recognised in the income statement over the period of the borrowings using the effective interest rate method. Similarly, direct issue costs and arrangement fees (including upfront facility fees) are recognised in the income statement over the period of the borrowings using the effective interest rate method. Where borrowings are identified as a hedged item in a designated fair value hedge relationship, fair value adjustments are recognised in accordance with our policy (see note 23). Accounting policy Recognition and measurement Financial assets and financial liabilities are initially recognised at fair value. The Group classifies its financial instruments at: amortised cost; fair value through other comprehensive income (FVOCI); or fair value through profit or loss (FVPL). The classification depends on the Group\u2019s business model for managing its financial instruments and whether or not the cash flows generated are \u2018solely payments of principal and interest\u2019. Financial assets \u2014 Financial assets at amortised cost are financial assets that are held in order to collect the contractual cash flows and the contractual terms give rise to cash flows that are solely payments of principal and interest. These include: cash and cash equivalents; trade and other receivables; clearing member trading balances relating to certain collateralised transactions; and other receivables from clearing members of the CCP businesses. After initial recognition these assets are measured using the effective interest rate method. Interest income from these financial assets is included in finance income. Any gain or loss arising on derecognition is recognised directly in the income statement and presented in other income or operating expenses together with any foreign exchange gains and losses. \u2014 Financial assets at FVOCI \u2013 debt instruments are assets where the objective is achieved by both collecting the contractual cash flows and selling the asset. The contractual cash flows received are solely payments of principal and interest. They include quoted debt instruments (predominantly government bonds) held by the CCP businesses, which are used under the business model to both collect the contractual cash flows and, on occasion, to profit from their sale. Interest received from these assets is recognised in the income statement as finance income. Where negative interest rates apply, the interest is recognised in finance expense. Any accumulated profit or loss previously recognised in other comprehensive income is recycled to the income statement on derecognition of the asset. \u2014 Financial assets at FVOCI \u2013 equity instruments are strategic equity investments which are held for the long-term but do not give the Group control or significant influence. The Group has irrevocably elected to classify these investments as FVOCI. Dividends received from these investments are recognised in the income statement within other income when the right of receipt has been established. Accumulated gains or losses on equity instruments remain in equity on derecognition and are not recycled through the income statement. \u2014 Financial assets at FVPL include all other financial assets not classified as amortised cost or FVOCI. They include CCP businesses\u2019 clearing member trading balances comprising derivatives, as well as equity and debt instruments that are marked to market on a daily basis . Financial liabilities \u2014 Financial liabilities at FVPL include the CCP businesses\u2019 clearing member trading balances, comprising derivatives, as well as equity and debt instruments that are marked to market on a daily basis. \u2014 Financial liabilities at amortised cost are all financial liabilities that are not classified as financial liabilities at FVPL. They include trade and other payables, borrowings and other payables to clearing members. Impairment The Group adopts a forward-looking approach to estimating impairment losses on financial assets. An expected credit loss (ECL) arises if the expected cash flows are lower than the contractual cash flows due. The difference is discounted at the asset\u2019s original effective interest rate and recognised as an impairment of the original value of the asset. \u2014 Financial assets at amortised cost \u2013 the ECL for trade receivables (including fees receivable), contract assets, and lease receivables is derived using the simplified approach in IFRS 9 Financial Instruments to calculate a lifetime ECL. The allowance is based on historical experience of collection rates, adjusted for forward looking factors specific to each counterparty and the economic environment at large, to create an expected loss matrix. The ECL on other financial assets held at amortised cost and those at fair value that are held to collect and sell is measured using the general approach. An allowance is calculated based on the 12-month ECL at each reporting date unless there is a significant increase in the financial instrument\u2019s credit risk, in which case a loss allowance based on the lifetime ECL is calculated. \u2014 Financial assets at FVOCI \u2013 debt instruments held at FVOCI comprise high-quality government bonds that have a low credit risk. The Group\u2019s policy is to calculate a 12-month ECL on these assets. If there is a significant increase in credit risk, then a lifetime ECL will be recognised. A significant increase in credit risk is considered to have occurred when contractual payments are more than 30 days past due. \u2014 Financial assets at FVOCI \u2013 equity instruments are revalued to fair value on a regular basis and no further impairment analysis is required. \u2014 Financial assets at FVPL \u2013 no ECL is calculated for assets held at FVPL as any expected loss is already recognised in the recorded fair value of the asset. Offsetting Financial assets and financial liabilities are offset and the net amount reported in the balance sheet when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis, or to realise the asset and settle the liability simultaneously. Fair value hierarchy The Group uses the following valuation hierarchy for determining and disclosing the fair value of financial instruments: \u2014 Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities \u2014 Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly \u2014 Level 3: techniques which use inputs, which have a significant effect on the recorded fair value, that are not based on observable market data For Level 1, the fair value is based on market price quotations at the reporting date. For assets and liabilities classified as Level 2, the fair value is calculated using one or more valuation techniques (e.g. the market approach or the income approach) with market observable inputs. The selection of the appropriate valuation techniques may be affected by the availability and reliability of the relevant inputs. The inputs may include currency rates, interest rates, forward rate curves, and net asset values. When observable market data is not available, the Group uses one or more valuation techniques for which sufficient and reliable data is available. The inputs used in estimating the fair value of Level 3 financial instruments typically include expected timing and amount of future cash flows, timing of settlement, discount rates and the net asset values of certain investments. The Group determines whether a transfer between levels has occurred by reviewing the categorisation of assets and liabilities at the end of each reporting period, based on the lowest level input that is significant to the valuation. Derivative financial instruments and hedging activities Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently remeasured to their fair value at regular intervals. The method of recognising any resulting measurement gain or loss depends on whether or not the derivative is designated as a hedging instrument and the nature of the item being hedged. The Group has embedded foreign currency derivatives, primarily in revenue contracts where the currency of the contract is different from the functional or local currencies of the parties involved. The Group records these derivative instruments at fair value in the balance sheet as either assets or liabilities. Changes in fair value are recognised in the income statement. The Group hedges a proportion of its net investment in foreign subsidiaries by designating some euro and US dollar borrowings and derivative instruments as net investment hedges. Any gain or loss on the hedging instrument relating to the effective portion of the hedge is recognised in other comprehensive income and remains in the hedging reserve until the underlying asset or liability is derecognised. In order to qualify for hedge accounting, a transaction must meet strict criteria regarding documentation, effectiveness, probability of occurrence, and reliability of measurement. We document the relationship between hedging instruments and hedged items at the inception of the transaction, as well as documenting the risk management objectives and strategy for undertaking various hedging transactions. The effectiveness of the hedge is tested at each reporting date and at the commencement and conclusion of any hedge in order to verify that it continues to satisfy all the criteria for hedge accounting. Any ineffective portion is recognised in the income statement as finance income or expense. Amounts that have accumulated through other comprehensive income in the hedging reserve are recognised in the income statement in the period when the hedged item affects profit or loss (for example, when the forecast transaction that is hedged takes place). When a hedging instrument expires or is sold, or when a hedge no longer meets the criteria for hedge accounting, any cumulative gain or loss remains in the hedging reserve: it is only recognised in the income statement when the forecast transaction itself is ultimately recognised in the income statement. When a forecast transaction is no longer expected to occur, the cumulative gain or loss that was reported through other comprehensive income is immediately recognised in the income statement. The profit or loss on a derivative which is not designated as a hedging instrument is recognised directly in the income statement . Accounting policy The Group reports financial assets and financial liabilities on a net basis on the balance sheet where there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis, or to realise the asset and settle the liabilities simultaneously. The Group applies the rules of legal right of set off and intent to net settle within clearing member balances. The carrying values of the balances are offset at an appropriate level to arrive at the net balances reported in the balance sheet. The approach adopted is reviewed on a regular basis to ensure it remains the most appropriate. Any change in approach would not materially affect the net assets of the Group . Accounting policy The share capital of the Company is the number of shares in issue at their par value and includes balances relating to the Company\u2019s ordinary equity shares, own shares held by the Employee Benefit Trust (EBT) and any treasury shares held by the Company. Shares acquired by the Company from the open market as part of share buyback programmes are referred to as treasury shares and are held by the Company. The consideration payable is deducted from retained earnings. The par value of purchased treasury shares is recorded as a transfer from the Company\u2019s ordinary equity shares to treasury shares within share capital. No gain or loss is recognised by the Company in the income statement on the purchase, sale, issue or cancellation of the Company\u2019s treasury shares or of own shares held by the EBT. When the Company issues new shares to the EBT at par, the share capital of the Company is increased by the par value of these own shares, and a corresponding deduction or debit is recorded in the share-based payment reserve. The Company may also issue new shares to the EBT to satisfy vesting of specific employee share schemes. These shares may be issued at a subscription price above par value, reflecting the option cost payable by the participant in the employee share scheme. In such instances, the share capital of the Company is increased by the par value of these own shares and the difference between the subscription price and the par value is recorded in share premium. A corresponding deduction or debit is recognised in the share-based payment reserve. Accounting policy The Group issues equity settled share-based awards to certain employees. The share-based payment expense recognised in the income statement is determined by the fair value (using a stochastic valuation model) of the options granted or shares awarded at the date of grant. The calculated expenses are recognised over the relevant vesting periods. The fair value of the awards granted: \u2014 includes any market performance conditions (for example, Total Shareholder Return (TSR)); and \u2014 excludes the impact of any service and non-market performance vesting conditions (for example, the need to remain an employee for a specified period of time). In very few countries where the Group cannot issue equity-settled awards due to restrictions, cash settled share-based awards are issued instead. Accounting policy Interests in subsidiaries, as well as loans and other contributions to subsidiaries, are recognised by the Parent Company at cost less accumulated impairment. Interests in subsidiaries are reviewed for impairment when events indicate the carrying amount may not be recoverable. When an indication of impairment is identified, the interest\u2019s recoverable amount is estimated based on value-in-use calculations. An impairment loss is recognised when the recoverable amount of an interest is less than its carrying amount. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfSummaryOfSignificantAccountingPoliciesExplanatory",
"language": "en",
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"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-625": {
"value": "1.1 Compliance with International Financial Reporting Standards (IFRS) The Group\u2019s consolidated and the Company\u2019s financial statements are prepared in accordance with UK-adopted international accounting standards and endorsed by the UK Endorsement Board. ",
"dimensions": {
"concept": "ifrs-full:StatementOfIFRSCompliance",
"language": "en",
"entity": "scheme:213800QAUUUP6I445N30",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
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"fact-659": {
"value": "The Group\u2019s consolidated and the Company\u2019s financial statements are prepared in accordance with UK-adopted international accounting standards and endorsed by the UK Endorsement Board. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfConsolidatedAndSeparateFinancialStatementsExplanatory",
"language": "en",
"entity": "scheme:213800QAUUUP6I445N30",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
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"fact-626": {
"value": "1.2 Basis of preparation The financial statements are prepared on a historical cost basis except for derivative financial instruments, debt and equity financial assets and contingent consideration which are measured at fair value. Going concern The financial statements have been prepared on a going concern basis. The Group\u2019s business activities (together with the factors likely to affect its future development, performance and position), its objectives, policies in managing risk and its capital are set out in the Strategic Report on pages 2-85. In addition: \u2014 the Group\u2019s borrowing facilities and respective repayment dates, and the net debt position of the Group, are included in note 22 \u2014 the financial risk management objectives and policies of the Group, together with its exposure to capital, credit and concentration, country, liquidity, settlement, custodial and market risk are discussed in note 23.5 Business planning process The Group\u2019s forecasting and planning process includes the Group\u2019s three-year business plan. The business plan makes certain assumptions about the performance of the core revenue streams and segments, the use of existing product lines as well as the take up of new product lines. It also makes assumptions on appropriate levels of investment to support expected performance, known inorganic activity, the ability to refinance debt as required, and expected returns to shareholders. Performance management The Group\u2019s performance is analysed monthly by management, when the monthly results are reviewed and compared with the plan a well as, together with prior and updated full year forecasts. The key variances and associated drivers are reviewed and reported, as necessary. Cash flows and liquidity headroom The Group\u2019s cash-flow and liquidity headroom are outputs of the business plan and are the main factors considered in the going concern assessment. The business plan is stress tested using severe but plausible downside scenarios as determined by the Financial Risk Committee, over the full three-year plan period. Impacts on the performance of core revenue streams and segments are modelled, with appropriate mitigating factors also considered. The output of this stress-testing on the Group\u2019s cash flow and liquidity are then tested against thresholds set by the Group\u2019s risk appetite. These thresholds include liquidity headroom (cash less credit facilities), leverage ratio (net debt to adjusted earnings before interest, tax, depreciation, amortisation and impairment (EBITDA) and before foreign exchange gains or losses) and interest cover (adjusted EBITDA to interest expense). No scenario over the three-year period leads to a breach in the Group\u2019s risk appetite thresholds or would mean the Group is unable to meet its obligations as a result of insufficient liquidity. A reverse stress test has also been completed, to evaluate the financial impacts that would breach the Group\u2019s risk appetite thresholds. The scenarios required to breach the thresholds are all deemed improbable. Conclusion The Directors, therefore, consider there to be no material uncertainties that may cast significant doubt on the Group and Company\u2019s ability to continue to operate as a going concern. The Directors have a reasonable expectation that the Group and the Company have adequate resources to continue in operational existence for 12 months from the date when these financial statements are authorised for issue. Accordingly, the going concern basis has been adopted in the preparation of these financial statements. Presentation of income statement The Group uses a columnar format for the presentation of its consolidated income statement to separately identify results before non-underlying items (\u201cadjusted\u201d). This is consistent with the way that financial performance is measured by management and reported to the Executive Committee and Board (see note 2). The \u201cadjusted\u201d measures reported by the Group include: \u2014 Adjusted operating expenses before depreciation, amortisation and impairment \u2014 Adjusted EBITDA \u2014 Adjusted depreciation, amortisation and impairment \u2014 Adjusted operating profit \u2014 Adjusted earnings per share (EPS) These measures are not measures of performance under IFRS and should be considered in addition to, and not as a substitute for, IFRS measures of financial performance and liquidity. Adjusted performance measures provide supplemental data relevant to an understanding of the Group\u2019s financial performance and exclude non-underlying items of income and expense that are material by their size and/or nature. The \u201cprofit before non-underlying items\u201d measure is used to calculate adjusted EPS. Profit before non-underlying items is reconciled to profit before taxation on the face of the income statement. Non-underlying items are disclosed in note 6. Non-underlying items include: \u2014 Amortisation and impairment of goodwill and other purchased intangible assets \u2014 Incremental amortisation and impairment of the fair value adjustments of intangible assets recognised as a result of acquisitions \u2014 Other income or expenses not considered to drive the operating results of the Group (including transaction, integration and separation costs related to acquisitions and disposals of businesses), as well as restructuring costs \u2014 Tax on non-underlying items As permitted by Section 408 of the Companies Act 2006, the Company\u2019s income statement has not been included in these financial statements. Current and non-current classification The Group presents assets and liabilities in the balance sheet based on current and non-current classification. An asset is current when it is: \u2014 Held primarily for trading purposes; \u2014 Expected to be realised within one year from the reporting period; \u2014 Expected to be realised or intended to be sold or consumed in the course of the Group\u2019s operating cycle; or \u2014 Cash or cash equivalents. All other assets are classified as non-current. A liability is current when it is: \u2014 Held primarily for trading purposes; \u2014 Expected to be settled in the course of the Group\u2019s operating cycle; or \u2014 Due to be settled within one year from the reporting period. All other liabilities are classified as non-current. Deferred tax assets and liabilities are classified as non-current assets and liabilities. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfBasisOfPreparationOfFinancialStatementsExplanatory",
"language": "en",
"entity": "scheme:213800QAUUUP6I445N30",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-658": {
"value": "Going concern The financial statements have been prepared on a going concern basis. The Group\u2019s business activities (together with the factors likely to affect its future development, performance and position), its objectives, policies in managing risk and its capital are set out in the Strategic Report on pages 2-85. In addition: \u2014 the Group\u2019s borrowing facilities and respective repayment dates, and the net debt position of the Group, are included in note 22 \u2014 the financial risk management objectives and policies of the Group, together with its exposure to capital, credit and concentration, country, liquidity, settlement, custodial and market risk are discussed in note 23.5 ",
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"concept": "ifrs-full:DisclosureOfGoingConcernExplanatory",
"language": "en",
"entity": "scheme:213800QAUUUP6I445N30",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
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"fact-627": {
"value": "1.3 Basis of consolidation The consolidated financial statements comprise the financial statements of the Company and its subsidiaries. Subsidiaries are consolidated from the date on which control is obtained by the Group. They are deconsolidated from the date on which control ceases. Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. The results of subsidiaries are consolidated for the period to 31 December, even if the subsidiary\u2019s financial year-end is different. The acquisition method of accounting is used by the Group to account for business combinations (see note 12). Non-controlling interests in the results and equity of subsidiaries are shown separately in the consolidated income statement, statement of comprehensive income, balance sheet and statement of changes in equity (see note 11). Intercompany transactions and balances between group companies are eliminated on consolidation. Where necessary, adjustments are made to the results of subsidiaries and associates to bring their accounting policies in line with those of the Group. ",
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"concept": "ifrs-full:DisclosureOfBasisOfConsolidationExplanatory",
"language": "en",
"entity": "scheme:213800QAUUUP6I445N30",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
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"fact-628": {
"value": "1.4 Foreign currencies Functional and presentation currency The consolidated financial statements are presented in sterling, which is also the functional currency of London Stock Exchange Group plc, the Parent Company. The Group determines the functional currency for each of its subsidiary entities and items included in the financial statements of each entity are measured using that functional currency. Transactions and balances in foreign currencies Transactions in foreign currencies are initially recorded and translated into the functional currency of the relevant Group entity at the exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated into the respective functional currency of the entity at the exchange rate prevailing at the reporting date. Foreign exchange gains and losses resulting from the settlement of such foreign currency transactions or from the translation of monetary assets and liabilities denominated in foreign currencies are recognised in the income statement within operating expenses. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated at the exchange rate at the date of the initial transaction. Non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rate at the date when the fair value was determined. The foreign exchange gain or loss on assets and liabilities carried at fair value are reported as part of the fair value gain or loss. This means foreign exchange gains and losses on non-monetary assets and liabilities held at fair value through profit or loss are recognised in the income statement (within operating expenses), and foreign exchange gains and losses on non-monetary assets classified as at fair value through other comprehensive income are recognised in other comprehensive income. Translation of non-sterling entities on consolidation The results and financial position of all Group entities that have a non-sterling functional currency are translated into sterling on consolidation into the Group\u2019s results as follows: \u2014 assets and liabilities (including goodwill, purchased intangible assets and fair value adjustments 1 ) are translated at the reporting date exchange rates \u2014 income and expenses and other comprehensive income are translated at the average exchange rate for the year. Where this average is not a reasonable approximation of the rate prevailing on the date of a material transaction, these items are translated at the rate on the date of the transaction \u2014 all resulting exchange differences are recognised in other comprehensive income On consolidation, exchange differences arising from the translation of net investments in foreign operations, borrowings and other currency instruments designated as hedging instruments (see note 23) are recognised in other comprehensive income. On disposal of a foreign currency operation, the cumulative exchange differences previously recognised in other comprehensive income relating to that operation are reclassified to the income statement as part of the profit or loss on disposal. 1 Any goodwill and any fair value adjustments to the carrying amounts of assets and liabilities on the acquisition of a foreign operation are treated as assets and liabilities of the foreign operation and translated at the reporting date exchange rate",
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"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
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"fact-660": {
"value": "Functional and presentation currency The consolidated financial statements are presented in sterling, which is also the functional currency of London Stock Exchange Group plc, the Parent Company. The Group determines the functional currency for each of its subsidiary entities and items included in the financial statements of each entity are measured using that functional currency. ",
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"concept": "ifrs-full:DescriptionOfAccountingPolicyForFunctionalCurrencyExplanatory",
"language": "en",
"entity": "scheme:213800QAUUUP6I445N30",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
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"fact-661": {
"value": "1.5 New and amended standards and interpretations Standards, interpretations and amendments to published standards effective for the year ended 31 December 2022 During the year, the following amendments to standards became effective. These have not had a material impact on the Group\u2019s financial statements: \u2014 Amendments to IFRS 3 Business Combinations: reference to the Conceptual Framework \u2014 Amendments to IAS 16 Property, Plant and Equipment: proceeds before intended use \u2014 Amendments to IAS 37 Provisions, Contingent Liabilities and Contingent Assets: onerous contracts \u2013 cost of fulfilling a contract \u2014 Annual Improvements to IFRS 2018-2020 Standards, interpretations and amendments to published standards which are not yet effective New and amended standards that have been issued, but are not yet effective, up to the date of the Group\u2019s financial statements are disclosed below. We intend to adopt these, if applicable, when they become effective. We are currently assessing their impact, but this is not expected to be material to the Group\u2019s financial statements: International accounting standards and interpretations Effective date IFRS 17 Insurance Contracts, including amendments to IFRS 17 (and initial application of IFRS 17 and IFRS 9 Financial Instruments \u2013 comparative information) 1 January 2023 Amendments to IAS 1 and IFRS Practice Statement 2: disclosure of accounting policies 1 January 2023 Amendments to IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors: definition of accounting estimate 1 January 2023 Amendments to IAS 12 Income Taxes: deferred tax related to assets and liabilities arising from a single transaction 1 January 2023 Amendments to IFRS 16 Leases: lease liability in a sale and leaseback 1 January 2024 1 Amendments to IAS 1 Presentation of Financial Statements: non-current liabilities with covenants and classification of liabilities as current or non-current 1 January 2024 1 Amendments to IFRS 10 Consolidated Financial Statements and IAS 28 Investments in Associates and Joint Ventures: sale or contribution of assets between an investor and its associate or joint venture Deferred 1 1 Not yet endorsed by UK Endorsement Board ",
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"language": "en",
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"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
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"fact-629": {
"value": "1.5 New and amended standards and interpretations Standards, interpretations and amendments to published standards effective for the year ended 31 December 2022 During the year, the following amendments to standards became effective. These have not had a material impact on the Group\u2019s financial statements: \u2014 Amendments to IFRS 3 Business Combinations: reference to the Conceptual Framework \u2014 Amendments to IAS 16 Property, Plant and Equipment: proceeds before intended use \u2014 Amendments to IAS 37 Provisions, Contingent Liabilities and Contingent Assets: onerous contracts \u2013 cost of fulfilling a contract \u2014 Annual Improvements to IFRS 2018-2020 ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfInitialApplicationOfStandardsOrInterpretations",
"language": "en",
"entity": "scheme:213800QAUUUP6I445N30",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
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"fact-630": {
"value": "1.6 Significant accounting estimates, assumptions and judgements Estimates, assumptions and judgements are regularly reviewed based on historical experience, current circumstances and expectations of future events. Significant accounting estimates and assumptions are those that have a significant risk of resulting in a material adjustment to the carrying amounts of assets and liabilities within the next financial year. Significant judgements are those made by management in applying the Group\u2019s significant accounting policies that have a material impact on the amounts presented in the financial statements. Significant judgement may be exercised in management\u2019s accounting estimates and assumptions. Estimates, assumptions and judgements are described in the relevant notes to the financial statements (identified by the following symbol/icon ) Note Significant estimates and assumptions Significant judgement 6 Non-underlying items \u25cf 8.3 Uncertain tax positions \u25cf \u25cf 12 Business combinations \u25cf 14 Intangible assets \u25cf 17 Pension and other retirement benefit schemes \u25cf \u25cf Management has discussed significant accounting estimates, assumptions and judgements with the Audit Committee. Significant accounting judgements The Group uses its judgement to classify items as non-underlying. They include: \u2014 Amortisation and impairment of goodwill and purchased intangible assets. Purchased intangible assets include customer relationships, trade names, and databases and content, all of which are as a result of acquisitions \u2014 Incremental amortisation and impairment of any fair value adjustments of intangible assets recognised as a result of acquisitions \u2014 Other income or expenses not considered to drive the operating results of the Group (including transaction, integration and separation costs related to acquisitions and disposals of businesses), as well as restructuring costs \u2014 Tax on non-underlying items Significant accounting judgements and estimates Uncertain tax positions The Group is subject to taxation in the many countries in which it operates. The tax legislation of these countries differs, is often complex and is subject to interpretation by management and government authorities. These matters of judgement sometimes give rise to the need to create provisions for tax payments that may arise in future years with respect to transactions already undertaken. Provisions are made against individual exposures and take into account the specific circumstances of each case, including the strength of technical arguments, recent case law decisions or rulings on similar issues and relevant external advice. In accordance with IFRIC 23 Uncertainty over Income Tax Treatments, provisions are estimated based on one of two methods: the expected value method (the sum of the probability weighted amounts in a range of possible outcomes) or the single most likely amount method. The method chosen depends on which is expected to better predict the resolution of the uncertainty. Due to the uncertainty associated with tax audits it is possible that, at some future date, liabilities resulting from such audits or related litigation could vary significantly from our provisions. This would require the Group to make an adjustment in a subsequent period which could have a material impact on the Group\u2019s results. Significant accounting estimates and assumptions Intangible assets acquired as part of a business combination The fair value of acquired intangible assets (and therefore the resulting goodwill recognised on acquisition) is significantly affected by a number of factors. These include management\u2019s best estimates of future performance (i.e. forecast revenue, expected revenue attrition, forecast operating margin), any contributory assets changes and estimates of the return required to determine an appropriate discount rate (in order to calculate the net present value of the assets). Significant accounting estimates and assumptions Intangible assets and goodwill form a significant part of the balance sheet and are key assets for the Group\u2019s businesses. See note 12 for the significant accounting estimates of intangible assets obtained through the purchase of subsidiaries. Recoverable amounts of CGUs and intangible assets The recoverable amounts of CGUs and intangible assets are based on value-in-use calculations. The value-in-use calculations use cash flow projections based on business plans prepared by management for the three-year period ending 31 December 2025. These use management\u2019s best estimate of future performance together with estimates of the return required by investors, which is used to determine an appropriate discount rate to derive the present value. Estimated useful economic lives Intangible assets are amortised over their estimated useful economic lives, being management\u2019s best estimate of the period over which value from the intangible assets is realised. In determining useful economic life, management considers a number of factors including: customer attrition rates; product upgrade cycles for software and technology assets; market participant perspectives of brands; and pace of change of regulation . Significant accounting judgements The Group judges that, on the winding up of the schemes, it can expect any remaining pension surplus to be refunded in full to the Group. In line with the current accounting standards, it therefore continues to recognise these retirement benefit assets on the balance sheet in full. Significant accounting estimates and assumptions Defined benefit pension or liabilities are determined based on the present value of future pension obligations using assumptions determined by the Group with advice from an independent qualified actuary. An actuarial valuation involves making various assumptions that may differ from what actually happens in the future. The assumptions that are the most significant to the amounts reported are the discount rate, inflation rate, salary growth and mortality levels. Assumptions about these variables are based on the environment in each country. Due to the complexities involved in a valuation, and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. In particular, changes to the discount rate and inflation rate, could result in material changes to the carrying amounts of the group\u2019s pension and other post-retirement benefit obligations within the next financial year. ",
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"concept": "ifrs-full:DisclosureOfAccountingJudgementsAndEstimatesExplanatory",
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"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
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},
"fact-631": {
"value": "1.7 Climate change We have considered the impact of climate change on the Group\u2019s operations as outlined in the risks disclosed on pages 24-84 of the Strategic Report as well as in the Climate Report. We have also reviewed the potential impact of climate change on the Group\u2019s financial results and position. The areas that are deemed to be most relevant to climate change are set out below. Based on an assessment in each area, we have concluded that climate change is not expected to have a material impact on the Group\u2019s financial position, estimates or judgements. The directors monitor this on an on-going basis. \u2014 Going concern and viability \u2013 The Group has committed to a long-term ambition to achieve net zero by 2040 and set targets to reduce selected carbon emissions by 50% by 2030. There is no other direct impact on the viability period of the Group. There is no climate-related scenario that is deemed to have a probable likelihood of occurring which could also impact the Group\u2019s going concern assessment. \u2014 Impairment of goodwill and intangible assets \u2013 Forecasted cash flows are not expected to be impacted by climate change over the period for which forecasts have been prepared, due to the nature of the Group\u2019s revenue streams. The impact on costs mainly relates to reducing our carbon footprint by encouraging responsible employee travel. \u2014 Useful lives of assets \u2013 The Group\u2019s assets consist mainly of property and IT equipment. Given the type of IT equipment owned by the Group, there is no expected impact of climate change on the future useful lives of these assets. The useful lives of our property could be impacted by climate change in the form of physical obsolescence of assets or because of a natural disaster (such as flooding), however any such impact on the carrying value of related assets is not deemed material. \u2014 Deferred tax assets \u2013 Deferred tax asset recoverability can be affected by climate if there is an expectation that it will impact on the future taxable profits that are expected to be generated. The revenue of the Group is of such a nature that it is not expected to be impacted by climate change over the period for which forecasts are prepared. There is a potential reduction in costs as we reduce our carbon footprint and encourage responsible employee travel. \u2014 Pension scheme asset valuation and defined benefit liability \u2013 Changes in interest rates, as a result of climate change, could impact the future valuation of defined benefit liabilities and pension asset valuations. While these are considered in the valuation, there was no discernible impact from climate change on the current year\u2019s valuation. \u2014 Trade and other receivables \u2013 The Group has a diverse client base that operates in various industries. The Group\u2019s expected credit loss provision considers the credit risk of its client base, which could be impacted by the assessment of climate change in a particular market or industry. Given that receivables are mainly due within one year, the impact of climate change on the short term is unlikely to be material. ",
"dimensions": {
"concept": "lseg:DisclosureOfClimateChangeExplanatory",
"language": "en",
"entity": "scheme:213800QAUUUP6I445N30",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-678": {
"value": "2. Segment information The Group reports three main operating segments: \u2014 Data & Analytics includes the core Refinitiv business and the FTSE Russell businesses \u2014 Capital Markets includes the London Stock Exchange, Tradeweb, FXall and Turquoise \u2014 Post Trade includes the Group\u2019s CCPs (LCH) and other post trade services Selected financial data is presented for our operating segments below. Accounting policy IFRS 8 Operating Segments requires operating segments to be identified on the same basis as is reported internally for the review of performance and allocation of resources by the \u201cchief operating decision maker\u201d. For the Group, this is the Executive Committee. The Executive Committee uses a measure of adjusted EBITDA to assess the profitability and performance of the operating segments. During the year, some revenue items were reallocated between business lines to better reflect our operating model. The comparative results have been re-presented to reflect this. At a divisional level, the impact on the 2021 results previously reported is: \u2014 \u00a36 million of revenue from Capital Markets to Data & Analytics \u2014 \u00a37 million of revenue from Post Trade to Data & Analytics Results by operating segment for the year ended 31 December 2022 are as follows: Continuing operations Notes Data & Analytics \u00a3m Capital Markets \u00a3m Post Trade \u00a3m Other \u00a3m Group \u00a3m Revenue from external customers 1 3.1 5,259 1,459 736 \u2013 7,454 Net treasury income from CCP clearing business 3.1 \u2013 \u2013 255 \u2013 255 Other income 3.1 \u2013 \u2013 \u2013 34 34 Total income 5,259 1,459 991 34 7,743 Cost of sales (879) (34) (150) (1) (1,064) Gross profit 4,380 1,425 841 33 6,679 Adjusted operating expenses before depreciation, amortisation and impairment 4 (2,142) (665) (324) (9) (3,140) Income from equity investments \u2013 \u2013 \u2013 12 12 Share of loss after tax of associates \u2013 \u2013 \u2013 (1) (1 Adjusted EBITDA 2,238 760 517 35 3,550 Underlying depreciation, amortisation and impairment 14, 15 (607) (103) (112) \u2013 (822) Adjusted operating profit (before non-underlying items) 1,631 657 405 35 2,728 Non-underlying depreciation, amortisation and impairment 6, 14, 15 (1,078) Other non-underlying items excluding net finance expense 6 (233) Operating profit 1,417 Net finance costs (including non-underlying items) 7 (176) Profit before tax from continuing operations 1,241 Profit before tax from discontinued operations 13 692 Profit before tax 1,933 1 Data & Analytics revenue includes recoveries of \u00a3315 million. Post Trade revenue includes net settlement and similar expenses recovered through the CCP clearing businesses of \u00a312 million which comprises gross settlement income of \u00a347 million less gross settlement expenses of \u00a335 million. 2. Segment information continued
Re-presented results by operating segment for the year ended 31 December 2021 are as follows:
Continuing operations Notes
Data &
Analytics
\u00a3m
Capital
Markets
\u00a3m
Post Trade
\u00a3m
Other
\u00a3m
Group
\u00a3m
Revenue from external customers
1
3.1 4,427 1,171 699 \u2013 6,297
Net treasury income from CCP clearing business 3.1 \u2013 \u2013 207 \u2013 207
Other income 3.1 \u2013 \u2013 \u2013 31 31
Total income 4,427 1,171 906 31 6,535
Cost of sales (709) (27) (123) \u2013 (859)
Gross profit 3,718 1,144 783 31 5,676
Adjusted operating expenses before depreciation,
amortisation and impairment 4 (1,857) (536) (329) (3) (2,725)
Income from equity investments \u2013 \u2013 \u2013 22 22
Share of loss after tax of associates \u2013 \u2013 \u2013 (4) (4)
Adjusted EBITDA 1,861 608 454 46 2,969
Underlying depreciation, amortisation and impairment 14, 15 (481) (110) (96) \u2013 (687)
Adjusted operating profit (before non-underlying items) 1,380 498 358 46 2,282
Non-underlying depreciation, amortisation and impairment 6, 14, 15 (883)
Other non-underlying items excluding net finance expense 6 (334)
Operating profit 1,065
Net finance costs (including non-underlying items) 7 (171)
Profit before tax from continuing operations 894
Profit before tax from discontinued operations 13 2,702
Profit before tax 3,596
1 Data & Analytics revenue includes recoveries of \u00a3324 million. Post Trade revenue includes net settlement and similar expenses recovered through the CCP clearing businesses of \u00a312 million
which comprises gross settlement income of \u00a346 million less gross settlement expense of \u00a334 million.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfEntitysReportableSegmentsExplanatory",
"language": "en",
"entity": "scheme:213800QAUUUP6I445N30",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-632": {
"value": "Accounting policy IFRS 8 Operating Segments requires operating segments to be identified on the same basis as is reported internally for the review of performance and allocation of resources by the \u201cchief operating decision maker\u201d. For the Group, this is the Executive Committee. The Executive Committee uses a measure of adjusted EBITDA to assess the profitability and performance of the operating segments. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForSegmentReportingExplanatory",
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"entity": "scheme:213800QAUUUP6I445N30",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-679": {
"value": "3. Total income and contract liabilities
We report total income, which is made up of revenue, net treasury income and other income. Most of the Group\u2019s revenue is generated in the
Data & Analytics division. By geographic location, two-thirds of the Group\u2019s revenue is earned in the UK and USA. We report contract liabilities
where amounts received or receivable from a customer exceed revenue recognised for a contract, for example if the Group receives an advance
payment from a customer.
3.1. Total income
Accounting policy
The Group reports total income, which is made up of:
\u2014 Revenue
\u2014 Net treasury income
\u2014 Other income
Revenue
The main source of the Group\u2019s revenue is fees for services provided. Revenue is measured based on the consideration specified in a contract
with a customer. The following are excluded from revenue:
\u2014 value added tax and other sales related taxes
\u2014 certain revenue share arrangements (whereby as part of an agreement amounts are due back to the customer)
\u2014 certain pass-through costs where the Group acts as an agent and has arrangements to recover specific costs from its customers with
no mark-up
The Group recognises revenue as services are performed and as it satisfies its obligations to provide a product or service to a customer.
The Group\u2019s revenue accounting policies are set out below:
Data &
Analytics
The Data & Analytics division generates revenue by providing information and data products including indexes, benchmarks, real-time pricing
data and trade reporting and reconciliation services.
Data subscription and index licence fees are recognised over the licence or usage period in line with the Group\u2019s obligation to deliver data
consistently throughout the licence period. Services are billed on a monthly, quarterly or annual basis.
Other information services include licences to the regulatory news service and reference data businesses. Revenue from licences that grant
the right to access intellectual property are recognised over time, consistent with the pattern of the service provision and how the
performance obligation is satisfied throughout the licence period. Revenues from other information services, including from the sale of right
to use licences, are recognised at the point the licence is granted or service is delivered.
Various brokerage processing, risk solutions and professional services, which are generally billed in arrears, are recognised as revenue
at the point in time when the Group meets its obligation to complete the transaction or service.
Recoveries consist of fees for third-party content, such as exchange data that is distributed directly to customers, and communications fees.
Recoveries are generally recognised over the contract term.
Capital
Markets
Revenue in the Capital Markets division is generated from: Primary and Secondary market services; contracts to develop capital market
technology solutions; software licences; network connections; and hosting services.
We have assessed that primary market initial admission and the ongoing listing services represent one performance obligation. The Group
therefore recognises revenue from initial admission and any subsequent issues over the period that the Group provides the listing services.
All admission fees are billed to the customer at the time of admission to trading and become payable when invoiced.
The estimated period for admission services (over which initial admission fees are spread) is determined using historical analysis of listing
durations in respect of the companies on our markets. The estimated service period inherently incorporates an element of uncertainty in
relation to the length of a customer listing, which is subject to factors outside the Group\u2019s control. We reassess the estimated service periods
at each reporting date. The current estimated deferral period is five years or seven years, depending on the market. We estimate that a
one-year decrease in the deferral period would cause an estimated \u00a324 million increase in revenue and a one-year increase in the deferral
period would cause an estimated \u00a324 million decrease in revenue recognised in the year.
Primary market annual fees, secondary market membership and subscription fees are generally paid in advance on the first day of
membership or the subscription period. The Group recognises revenue on a straight-line basis over the period to which the fee relates,
as this reflects the extent of the Group\u2019s progress towards completion of the performance obligation under the contract.
Revenue from secondary market trading and associated capital market services is recognised on a per transaction basis at the point that
the service is provided.
Capital markets software licence contracts contain multiple deliverables including: providing licences; installing software; and ongoing
maintenance services. The transaction price for each contract is allocated to these performance obligations based upon the relative
standalone selling price. Revenue is recognised based on the actual service provided during the reporting period as a proportion of the total
services to be provided. This is determined by measuring the inputs consumed in delivering the service (for example material and labour)
relative to the total expected input consumption over the contract. This best reflects the transfer of economic benefits to the customer which
generally occurs as the Group incurs costs on the contract.
Network connection and hosting services revenues are recognised on a straight-line basis over the period to which the fee relates
as this reflects the continuous transfer of technology services and measures the extent of progress towards the completion of the
performance obligation.
Post Trade Revenue in the Post Trade division is generated from clearing, settlement and other post trade services. Over-the-counter (OTC) derivatives, and securities clearing and reporting generate fees from: individual transactions or contracts cleared and settled; transaction reporting; risk management; and other financial resources management services. These revenues are earned at the point in time when the Group meets its obligations to complete the transaction or service. Revenue is recognised and billed monthly in arrears. Non-cash collateral fees are earned from handling non-cash collateral balances. These are recognised on a straight-line basis over the service period, representing the continuous transfer of services during that time. Fees received for third-party content or services, such as settlement fees, are recognised net within revenue on the date of the transaction. Customer contracts across the Group that contain a single performance obligation at a fixed price do not require variable consideration to be calculated. Some businesses in the Group provide services to customers under a tiered or tariff pricing structure that generates a degree of variability in the revenue streams from the contract as a result of additional charges or discounts given. Where the future revenue from a contract varies due to factors that are outside the Group\u2019s control, the Group limits the total transaction price at contract inception and recognises the minimum expected revenue guaranteed by the terms of the contract over the contract period. Any variable element is subsequently recognised in the period in which the variable condition is satisfied and there is no significant risk of reversal of that revenue. Rebates given to customers as part of an operating agreement are calculated on a pro rata basis on revenue earned and recognised as they fall due. The Group does not have any contracts where the period between the transfer of services to a customer and when the customer is expected to pay for that service is longer than one year. As a result, no adjustments are made to revenue for any financing component. Net treasury income The CCP businesses securely invest the cash collateral lodged with them and earn treasury income from various investments (including government debt and reverse repos) and cash deposits with central banks. At the same time, the CCPs pay interest at an overnight benchmark rate to their members on the collateral placed with the business, whilst charging a spread on that rate as a fee. The resulting net treasury income is recognised within total income and disclosed separately from revenue. Other income Other income typically relates to operating lease income and fees from service agreements. Fees are generated from the provision of events and media services, which are typically recognised as revenue at the point the service is rendered. Cost of sales Cost of sales comprises: \u2014 Data and licence fees \u2014 Data feed costs \u2014 Royalties \u2014 Expenses incurred in respect of profit share arrangements \u2014 Costs directly attributable to the construction and delivery of goods or services \u2014 Any other costs linked and directly incurred to generate revenues and provide services to customers Profit share expenses recognised as cost of sales relate to arrangements with certain customers where the payment to the customer is linked to the total profit of the particular business concerned. 3. Total income and contract liabilities continued 3. Total income and contract liabilities continued
The Group\u2019s revenue from contracts with customers disaggregated by segment, major product and service line, and timing of revenue recognition
for the year ended 31 December 2022 is shown below:
Continuing operations
Data &
Analytics
\u00a3m
Capital
Markets
\u00a3m
Post Trade
\u00a3m
Other
\u00a3m
Group
\u00a3m
Revenue from external customers
Major product and service lines
Trading & banking solutions 1,612 \u2013 \u2013 \u2013 1,612
Enterprise data solutions 1,307 \u2013 \u2013 \u2013 1,307
Investment solutions 1,325 \u2013 \u2013 \u2013 1,325
Wealth solutions 275 \u2013 \u2013 \u2013 275
Customer & third-party risk solutions 425 \u2013 \u2013 \u2013 425
Recoveries 315 \u2013 \u2013 \u2013 315
Equities \u2013 248 \u2013 \u2013 248
FX \u2013 258 \u2013 \u2013 258
Fixed income, derivatives and other \u2013 953 \u2013 \u2013 953
OTC derivatives \u2013 \u2013 402 \u2013 402
Securities & reporting \u2013 \u2013 234 \u2013 234
Non-cash collateral \u2013 \u2013 100 \u2013 100
Total revenue 5,259 1,459 736 \u2013 7,454
Net treasury income
1
\u2013 \u2013 255 \u2013 255
Other income \u2013 \u2013 \u2013 34 34
Total income 5,259 1,459 991 34 7,743
Timing of revenue recognition
Services satisfied at a point in time 173 1,015 721 \u2013 1,909
Services satisfied over time 5,086 444 15 \u2013 5,545
Total revenue 5,259 1,459 736 \u2013 7,454
1 Net treasury income is earned from instruments held at amortised cost or fair value as follows:
\u2013 A net loss of \u00a369 million was recognised from financial assets and financial liabilities held at amortised cost (\u00a31,158 million income and \u00a31,227 million expense)
\u2013 A net gain of \u00a3324 million was earned from assets held at fair value (\u00a3326 million income and \u00a32 million expense)
3. Total income and contract liabilities continued The Group\u2019s re-presented revenue from contracts with customers disaggregated by segment, major product and service line, and timing of revenue recognition for the year ended 31 December 2021 is shown below: Continuing operations Data & Analytics \u00a3m Capital Markets \u00a3m Post Trade \u00a3m Other \u00a3m Group \u00a3m Revenue from external customers Major product and service lines Trading & banking solutions 1,369 \u2013 \u2013 \u2013 1,369 Enterprise data solutions 1,058 \u2013 \u2013 \u2013 1,058 Investment solutions 1,119 \u2013 \u2013 \u2013 1,119 Wealth solutions 227 \u2013 \u2013 \u2013 227 Customer & third-party risk solutions 330 \u2013 \u2013 \u2013 330 Recoveries 324 \u2013 \u2013 \u2013 324 Equities \u2013 241 \u2013 \u2013 241 FX \u2013 204 \u2013 \u2013 204 Fixed income, derivatives and other \u2013 726 \u2013 \u2013 726 OTC derivatives \u2013 \u2013 358 \u2013 358 Securities & reporting \u2013 \u2013 246 \u2013 246 Non-cash collateral \u2013 \u2013 95 \u2013 95 Total revenue 4,427 1,171 699 \u2013 6,297 Net treasury income 1 \u2013 \u2013 207 \u2013 207 Other income \u2013 \u2013 \u2013 31 31 Total income 4,427 1,171 906 31 6,535 Timing of revenue recognition Services satisfied at a point in time 154 790 670 \u2013 1,614 Services satisfied over time 4,273 381 29 \u2013 4,683 Total revenue 4,427 1,171 699 \u2013 6,297 1 Net treasury income is earned from instruments held at amortised cost or fair value as follows: \u2013 A net gain of \u00a3195 million was earned from financial assets and financial liabilities held at amortised cost (\u00a3399 million income and \u00a3204 million expense) \u2013 A net gain of \u00a312 million was earned from assets held at fair value (\u00a323 million income and \u00a311 million expense) 3. Total income and contract liabilities continued Total revenue by geographical location The Group\u2019s revenue from continuing operations disaggregated by geographical location of service provided is as follows: Continuing operations 2022 \u00a3m 2021 (Re- presented) \u00a3m UK 2,292 2,035 USA 2,685 2,120 EU countries 982 875 Asia 963 787 Other 532 480 Total revenue 7,454 6,297 3.2. Contract liabilities Accounting policy Revenue relating to future periods is classified as a contract liability on the balance sheet to reflect the Group\u2019s obligation to transfer goods or services to a customer in the future for which it has received consideration, or an amount of consideration is due, from the customer. Contract liabilities are amortised and recognised as revenue over the period the services are rendered. The Group has the following contract liabilities: Group 2022 \u00a3m 2021 \u00a3m Current 257 245 Non-current 89 101 Total contract liabilities 346 346 The changes in the Group\u2019s contract liabilities during the year are as follows: Notes 2022 \u00a3m 2021 \u00a3m 1 January 346 262 Contract liabilities assumed on acquisition of subsidiaries 12 4 612 Disposal of business 13 (11) (14) Recognised as revenue during the year (249) (764) Deferred during the year 243 254 Foreign exchange translation 13 (4) 31 December 346 346 ",
"dimensions": {
"concept": "lseg:DisclosureOfTotalIncomeAndContractLiabilities",
"language": "en",
"entity": "scheme:213800QAUUUP6I445N30",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-707": {
"value": "3.1. Total income Accounting policy The Group reports total income, which is made up of: \u2014 Revenue \u2014 Net treasury income \u2014 Other income Revenue The main source of the Group\u2019s revenue is fees for services provided. Revenue is measured based on the consideration specified in a contract with a customer. The following are excluded from revenue: \u2014 value added tax and other sales related taxes \u2014 certain revenue share arrangements (whereby as part of an agreement amounts are due back to the customer) \u2014 certain pass-through costs where the Group acts as an agent and has arrangements to recover specific costs from its customers with no mark-up The Group recognises revenue as services are performed and as it satisfies its obligations to provide a product or service to a customer. The Group\u2019s revenue accounting policies are set out below: Data & Analytics The Data & Analytics division generates revenue by providing information and data products including indexes, benchmarks, real-time pricing data and trade reporting and reconciliation services. Data subscription and index licence fees are recognised over the licence or usage period in line with the Group\u2019s obligation to deliver data consistently throughout the licence period. Services are billed on a monthly, quarterly or annual basis. Other information services include licences to the regulatory news service and reference data businesses. Revenue from licences that grant the right to access intellectual property are recognised over time, consistent with the pattern of the service provision and how the performance obligation is satisfied throughout the licence period. Revenues from other information services, including from the sale of right to use licences, are recognised at the point the licence is granted or service is delivered. Various brokerage processing, risk solutions and professional services, which are generally billed in arrears, are recognised as revenue at the point in time when the Group meets its obligation to complete the transaction or service. Recoveries consist of fees for third-party content, such as exchange data that is distributed directly to customers, and communications fees. Recoveries are generally recognised over the contract term. Capital Markets Revenue in the Capital Markets division is generated from: Primary and Secondary market services; contracts to develop capital market technology solutions; software licences; network connections; and hosting services. We have assessed that primary market initial admission and the ongoing listing services represent one performance obligation. The Group therefore recognises revenue from initial admission and any subsequent issues over the period that the Group provides the listing services. All admission fees are billed to the customer at the time of admission to trading and become payable when invoiced. The estimated period for admission services (over which initial admission fees are spread) is determined using historical analysis of listing durations in respect of the companies on our markets. The estimated service period inherently incorporates an element of uncertainty in relation to the length of a customer listing, which is subject to factors outside the Group\u2019s control. We reassess the estimated service periods at each reporting date. The current estimated deferral period is five years or seven years, depending on the market. We estimate that a one-year decrease in the deferral period would cause an estimated \u00a324 million increase in revenue and a one-year increase in the deferral period would cause an estimated \u00a324 million decrease in revenue recognised in the year. Primary market annual fees, secondary market membership and subscription fees are generally paid in advance on the first day of membership or the subscription period. The Group recognises revenue on a straight-line basis over the period to which the fee relates, as this reflects the extent of the Group\u2019s progress towards completion of the performance obligation under the contract. Revenue from secondary market trading and associated capital market services is recognised on a per transaction basis at the point that the service is provided. Capital markets software licence contracts contain multiple deliverables including: providing licences; installing software; and ongoing maintenance services. The transaction price for each contract is allocated to these performance obligations based upon the relative standalone selling price. Revenue is recognised based on the actual service provided during the reporting period as a proportion of the total services to be provided. This is determined by measuring the inputs consumed in delivering the service (for example material and labour) relative to the total expected input consumption over the contract. This best reflects the transfer of economic benefits to the customer which generally occurs as the Group incurs costs on the contract. Network connection and hosting services revenues are recognised on a straight-line basis over the period to which the fee relates as this reflects the continuous transfer of technology services and measures the extent of progress towards the completion of the performance obligation. Post Trade Revenue in the Post Trade division is generated from clearing, settlement and other post trade services. Over-the-counter (OTC) derivatives, and securities clearing and reporting generate fees from: individual transactions or contracts cleared and settled; transaction reporting; risk management; and other financial resources management services. These revenues are earned at the point in time when the Group meets its obligations to complete the transaction or service. Revenue is recognised and billed monthly in arrears. Non-cash collateral fees are earned from handling non-cash collateral balances. These are recognised on a straight-line basis over the service period, representing the continuous transfer of services during that time. Fees received for third-party content or services, such as settlement fees, are recognised net within revenue on the date of the transaction. Customer contracts across the Group that contain a single performance obligation at a fixed price do not require variable consideration to be calculated. Some businesses in the Group provide services to customers under a tiered or tariff pricing structure that generates a degree of variability in the revenue streams from the contract as a result of additional charges or discounts given. Where the future revenue from a contract varies due to factors that are outside the Group\u2019s control, the Group limits the total transaction price at contract inception and recognises the minimum expected revenue guaranteed by the terms of the contract over the contract period. Any variable element is subsequently recognised in the period in which the variable condition is satisfied and there is no significant risk of reversal of that revenue. Rebates given to customers as part of an operating agreement are calculated on a pro rata basis on revenue earned and recognised as they fall due. The Group does not have any contracts where the period between the transfer of services to a customer and when the customer is expected to pay for that service is longer than one year. As a result, no adjustments are made to revenue for any financing component. Net treasury income The CCP businesses securely invest the cash collateral lodged with them and earn treasury income from various investments (including government debt and reverse repos) and cash deposits with central banks. At the same time, the CCPs pay interest at an overnight benchmark rate to their members on the collateral placed with the business, whilst charging a spread on that rate as a fee. The resulting net treasury income is recognised within total income and disclosed separately from revenue. Other income Other income typically relates to operating lease income and fees from service agreements. Fees are generated from the provision of events and media services, which are typically recognised as revenue at the point the service is rendered. Cost of sales Cost of sales comprises: \u2014 Data and licence fees \u2014 Data feed costs \u2014 Royalties \u2014 Expenses incurred in respect of profit share arrangements \u2014 Costs directly attributable to the construction and delivery of goods or services \u2014 Any other costs linked and directly incurred to generate revenues and provide services to customers Profit share expenses recognised as cost of sales relate to arrangements with certain customers where the payment to the customer is linked to the total profit of the particular business concerned. 3. Total income and contract liabilities continued 3. Total income and contract liabilities continued The Group\u2019s revenue from contracts with customers disaggregated by segment, major product and service line, and timing of revenue recognition for the year ended 31 December 2022 is shown below: Continuing operations Data & Analytics \u00a3m Capital Markets \u00a3m Post Trade \u00a3m Other \u00a3m Group \u00a3m Revenue from external customers Major product and service lines Trading & banking solutions 1,612 \u2013 \u2013 \u2013 1,612 Enterprise data solutions 1,307 \u2013 \u2013 \u2013 1,307 Investment solutions 1,325 \u2013 \u2013 \u2013 1,325 Wealth solutions 275 \u2013 \u2013 \u2013 275 Customer & third-party risk solutions 425 \u2013 \u2013 \u2013 425 Recoveries 315 \u2013 \u2013 \u2013 315 Equities \u2013 248 \u2013 \u2013 248 FX \u2013 258 \u2013 \u2013 258 Fixed income, derivatives and other \u2013 953 \u2013 \u2013 953 OTC derivatives \u2013 \u2013 402 \u2013 402 Securities & reporting \u2013 \u2013 234 \u2013 234 Non-cash collateral \u2013 \u2013 100 \u2013 100 Total revenue 5,259 1,459 736 \u2013 7,454 Net treasury income 1 \u2013 \u2013 255 \u2013 255 Other income \u2013 \u2013 \u2013 34 34 Total income 5,259 1,459 991 34 7,743 Timing of revenue recognition Services satisfied at a point in time 173 1,015 721 \u2013 1,909 Services satisfied over time 5,086 444 15 \u2013 5,545 Total revenue 5,259 1,459 736 \u2013 7,454 1 Net treasury income is earned from instruments held at amortised cost or fair value as follows: \u2013 A net loss of \u00a369 million was recognised from financial assets and financial liabilities held at amortised cost (\u00a31,158 million income and \u00a31,227 million expense) \u2013 A net gain of \u00a3324 million was earned from assets held at fair value (\u00a3326 million income and \u00a32 million expense) 3. Total income and contract liabilities continued The Group\u2019s re-presented revenue from contracts with customers disaggregated by segment, major product and service line, and timing of revenue recognition for the year ended 31 December 2021 is shown below: Continuing operations Data & Analytics \u00a3m Capital Markets \u00a3m Post Trade \u00a3m Other \u00a3m Group \u00a3m Revenue from external customers Major product and service lines Trading & banking solutions 1,369 \u2013 \u2013 \u2013 1,369 Enterprise data solutions 1,058 \u2013 \u2013 \u2013 1,058 Investment solutions 1,119 \u2013 \u2013 \u2013 1,119 Wealth solutions 227 \u2013 \u2013 \u2013 227 Customer & third-party risk solutions 330 \u2013 \u2013 \u2013 330 Recoveries 324 \u2013 \u2013 \u2013 324 Equities \u2013 241 \u2013 \u2013 241 FX \u2013 204 \u2013 \u2013 204 Fixed income, derivatives and other \u2013 726 \u2013 \u2013 726 OTC derivatives \u2013 \u2013 358 \u2013 358 Securities & reporting \u2013 \u2013 246 \u2013 246 Non-cash collateral \u2013 \u2013 95 \u2013 95 Total revenue 4,427 1,171 699 \u2013 6,297 Net treasury income 1 \u2013 \u2013 207 \u2013 207 Other income \u2013 \u2013 \u2013 31 31 Total income 4,427 1,171 906 31 6,535 Timing of revenue recognition Services satisfied at a point in time 154 790 670 \u2013 1,614 Services satisfied over time 4,273 381 29 \u2013 4,683 Total revenue 4,427 1,171 699 \u2013 6,297 1 Net treasury income is earned from instruments held at amortised cost or fair value as follows: \u2013 A net gain of \u00a3195 million was earned from financial assets and financial liabilities held at amortised cost (\u00a3399 million income and \u00a3204 million expense) \u2013 A net gain of \u00a312 million was earned from assets held at fair value (\u00a323 million income and \u00a311 million expense3. Total income and contract liabilities
continued
Total revenue by geographical location
The Group\u2019s revenue from continuing operations disaggregated
by geographical location of service provided is as follows:
Continuing operations
2022
\u00a3m
2021
(Re-
presented)
\u00a3m
UK 2,292 2,035
USA 2,685 2,120
EU countries 982 875
Asia 963 787
Other 532 480
Total revenue 7,454 6,297
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfRevenueExplanatory",
"language": "en",
"entity": "scheme:213800QAUUUP6I445N30",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-633": {
"value": "Revenue The main source of the Group\u2019s revenue is fees for services provided. Revenue is measured based on the consideration specified in a contract with a customer. The following are excluded from revenue: \u2014 value added tax and other sales related taxes \u2014 certain revenue share arrangements (whereby as part of an agreement amounts are due back to the customer) \u2014 certain pass-through costs where the Group acts as an agent and has arrangements to recover specific costs from its customers with no mark-up The Group recognises revenue as services are performed and as it satisfies its obligations to provide a product or service to a customer. The Group\u2019s revenue accounting policies are set out below: Data & Analytics The Data & Analytics division generates revenue by providing information and data products including indexes, benchmarks, real-time pricing data and trade reporting and reconciliation services. Data subscription and index licence fees are recognised over the licence or usage period in line with the Group\u2019s obligation to deliver data consistently throughout the licence period. Services are billed on a monthly, quarterly or annual basis. Other information services include licences to the regulatory news service and reference data businesses. Revenue from licences that grant the right to access intellectual property are recognised over time, consistent with the pattern of the service provision and how the performance obligation is satisfied throughout the licence period. Revenues from other information services, including from the sale of right to use licences, are recognised at the point the licence is granted or service is delivered. Various brokerage processing, risk solutions and professional services, which are generally billed in arrears, are recognised as revenue at the point in time when the Group meets its obligation to complete the transaction or service. Recoveries consist of fees for third-party content, such as exchange data that is distributed directly to customers, and communications fees. Recoveries are generally recognised over the contract term. Capital Markets Revenue in the Capital Markets division is generated from: Primary and Secondary market services; contracts to develop capital market technology solutions; software licences; network connections; and hosting services. We have assessed that primary market initial admission and the ongoing listing services represent one performance obligation. The Group therefore recognises revenue from initial admission and any subsequent issues over the period that the Group provides the listing services. All admission fees are billed to the customer at the time of admission to trading and become payable when invoiced. The estimated period for admission services (over which initial admission fees are spread) is determined using historical analysis of listing durations in respect of the companies on our markets. The estimated service period inherently incorporates an element of uncertainty in relation to the length of a customer listing, which is subject to factors outside the Group\u2019s control. We reassess the estimated service periods at each reporting date. The current estimated deferral period is five years or seven years, depending on the market. We estimate that a one-year decrease in the deferral period would cause an estimated \u00a324 million increase in revenue and a one-year increase in the deferral period would cause an estimated \u00a324 million decrease in revenue recognised in the year. Primary market annual fees, secondary market membership and subscription fees are generally paid in advance on the first day of membership or the subscription period. The Group recognises revenue on a straight-line basis over the period to which the fee relates, as this reflects the extent of the Group\u2019s progress towards completion of the performance obligation under the contract. Revenue from secondary market trading and associated capital market services is recognised on a per transaction basis at the point that the service is provided. Capital markets software licence contracts contain multiple deliverables including: providing licences; installing software; and ongoing maintenance services. The transaction price for each contract is allocated to these performance obligations based upon the relative standalone selling price. Revenue is recognised based on the actual service provided during the reporting period as a proportion of the total services to be provided. This is determined by measuring the inputs consumed in delivering the service (for example material and labour) relative to the total expected input consumption over the contract. This best reflects the transfer of economic benefits to the customer which generally occurs as the Group incurs costs on the contract. Network connection and hosting services revenues are recognised on a straight-line basis over the period to which the fee relates as this reflects the continuous transfer of technology services and measures the extent of progress towards the completion of the performance obligation. Post Trade Revenue in the Post Trade division is generated from clearing, settlement and other post trade services. Over-the-counter (OTC) derivatives, and securities clearing and reporting generate fees from: individual transactions or contracts cleared and settled; transaction reporting; risk management; and other financial resources management services. These revenues are earned at the point in time when the Group meets its obligations to complete the transaction or service. Revenue is recognised and billed monthly in arrears. Non-cash collateral fees are earned from handling non-cash collateral balances. These are recognised on a straight-line basis over the service period, representing the continuous transfer of services during that time. Fees received for third-party content or services, such as settlement fees, are recognised net within revenue on the date of the transaction. Customer contracts across the Group that contain a single performance obligation at a fixed price do not require variable consideration to be calculated. Some businesses in the Group provide services to customers under a tiered or tariff pricing structure that generates a degree of variability in the revenue streams from the contract as a result of additional charges or discounts given. Where the future revenue from a contract varies due to factors that are outside the Group\u2019s control, the Group limits the total transaction price at contract inception and recognises the minimum expected revenue guaranteed by the terms of the contract over the contract period. Any variable element is subsequently recognised in the period in which the variable condition is satisfied and there is no significant risk of reversal of that revenue. Rebates given to customers as part of an operating agreement are calculated on a pro rata basis on revenue earned and recognised as they fall due. The Group does not have any contracts where the period between the transfer of services to a customer and when the customer is expected to pay for that service is longer than one year. As a result, no adjustments are made to revenue for any financing component. Net treasury income The CCP businesses securely invest the cash collateral lodged with them and earn treasury income from various investments (including government debt and reverse repos) and cash deposits with central banks. At the same time, the CCPs pay interest at an overnight benchmark rate to their members on the collateral placed with the business, whilst charging a spread on that rate as a fee. The resulting net treasury income is recognised within total income and disclosed separately from revenue. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForRecognitionOfRevenue",
"language": "en",
"entity": "scheme:213800QAUUUP6I445N30",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-728": {
"value": "The Group\u2019s re-presented revenue from contracts with customers disaggregated by segment, major product and service line, and timing of revenue
recognition for the year ended 31 December 2021 is shown below:
Continuing operations
Data &
Analytics
\u00a3m
Capital
Markets
\u00a3m
Post Trade
\u00a3m
Other
\u00a3m
Group
\u00a3m
Revenue from external customers
Major product and service lines
Trading & banking solutions 1,369 \u2013 \u2013 \u2013 1,369
Enterprise data solutions 1,058 \u2013 \u2013 \u2013 1,058
Investment solutions 1,119 \u2013 \u2013 \u2013 1,119
Wealth solutions 227 \u2013 \u2013 \u2013 227
Customer & third-party risk solutions 330 \u2013 \u2013 \u2013 330
Recoveries 324 \u2013 \u2013 \u2013 324
Equities \u2013 241 \u2013 \u2013 241
FX \u2013 204 \u2013 \u2013 204
Fixed income, derivatives and other \u2013 726 \u2013 \u2013 726
OTC derivatives \u2013 \u2013 358 \u2013 358
Securities & reporting \u2013 \u2013 246 \u2013 246
Non-cash collateral \u2013 \u2013 95 \u2013 95
Total revenue 4,427 1,171 699 \u2013 6,297
Net treasury income
1
\u2013 \u2013 207 \u2013 207
Other income \u2013 \u2013 \u2013 31 31
Total income 4,427 1,171 906 31 6,535
Timing of revenue recognition
Services satisfied at a point in time 154 790 670 \u2013 1,614
Services satisfied over time 4,273 381 29 \u2013 4,683
Total revenue 4,427 1,171 699 \u2013 6,297
1 Net treasury income is earned from instruments held at amortised cost or fair value as follows:
\u2013 A net gain of \u00a3195 million was earned from financial assets and financial liabilities held at amortised cost (\u00a3399 million income and \u00a3204 million expense)
\u2013 A net gain of \u00a312 million was earned from assets held at fair value (\u00a323 million income and \u00a311 million expense)
Total revenue by geographical location The Group\u2019s revenue from continuing operations disaggregated by geographical location of service provided is as follows: Continuing operations 2022 \u00a3m 2021 (Re- presented) \u00a3m UK 2,292 2,035 USA 2,685 2,120 EU countries 982 875 Asia 963 787 Other 532 480 Total revenue 7,454 6,297 3.2. Contract liabilities Accounting policy Revenue relating to future periods is classified as a contract liability on the balance sheet to reflect the Group\u2019s obligation to transfer goods or services to a customer in the future for which it has received consideration, or an amount of consideration is due, from the customer. Contract liabilities are amortised and recognised as revenue over the period the services are rendered. The Group has the following contract liabilities: Group 2022 \u00a3m 2021 \u00a3m Current 257 245 Non-current 89 101 Total contract liabilities 346 346 The changes in the Group\u2019s contract liabilities during the year are as follows: Notes 2022 \u00a3m 2021 \u00a3m 1 January 346 262 Contract liabilities assumed on acquisition of subsidiaries 12 4 612 Disposal of business 13 (11) (14) Recognised as revenue during the year (249) (764) Deferred during the year 243 254 Foreign exchange translation 13 (4) 31 December 346 346 ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfRevenueFromContractsWithCustomersExplanatory",
"language": "en",
"entity": "scheme:213800QAUUUP6I445N30",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-634": {
"value": "Revenue relating to future periods is classified as a contract liability on the balance sheet to reflect the Group\u2019s obligation to transfer goods or services to a customer in the future for which it has received consideration, or an amount of consideration is due, from the customer. Contract liabilities are amortised and recognised as revenue over the period the services are rendered. ",
"dimensions": {
"concept": "lseg:DescriptionOfAccountingPolicyForContractLiabilities",
"language": "en",
"entity": "scheme:213800QAUUUP6I445N30",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00"
}
},
"fact-708": {
"value": "4. Operating expenses before depreciation, amortisation and impairment Operating expenses mainly relate to staff costs, IT costs and professional fees. Accounting policy Costs are recognised in the income statement as incurred and measured after deducting any time- and value-limited discounts from suppliers. Other discounts are spread over the contract term. Continuing operations Notes 2022 \u00a3m 2021 (Re- presented) \u00a3m Staff costs 5 1,896 1,666 IT costs 567 447 Professional fees 420 327 Short-term lease costs 13 43 Other costs 243 252 Foreign exchange losses/(gains) 1 (10) Underlying operating expenses before depreciation, amortisation and impairment 3,140 2,725 Non-underlying operating expenses before depreciation, amortisation and impairment 6 389 334 Total operating expenses before depreciation, amortisation and impairment 3,529 3,059 ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfOtherOperatingExpenseExplanatory",
"language": "en",
"entity": "scheme:213800QAUUUP6I445N30",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-680": {
"value": "4. Operating expenses before depreciation, amortisation and impairment Operating expenses mainly relate to staff costs, IT costs and professional fees. Accounting policy Costs are recognised in the income statement as incurred and measured after deducting any time- and value-limited discounts from suppliers. Other discounts are spread over the contract term. Continuing operations Notes 2022 \u00a3m 2021 (Re- presented) \u00a3m Staff costs 5 1,896 1,666 IT costs 567 447 Professional fees 420 327 Short-term lease costs 13 43 Other costs 243 252 Foreign exchange losses/(gains) 1 (10) Underlying operating expenses before depreciation, amortisation and impairment 3,140 2,725 Non-underlying operating expenses before depreciation, amortisation and impairment 6 389 334 Total operating expenses before depreciation, amortisation and impairment 3,529 3,059 ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfOtherOperatingIncomeExpenseExplanatory",
"language": "en",
"entity": "scheme:213800QAUUUP6I445N30",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-635": {
"value": "Costs are recognised in the income statement as incurred and measured after deducting any time- and value-limited discounts from suppliers. Other discounts are spread over the contract term. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForExpensesExplanatory",
"language": "en",
"entity": "scheme:213800QAUUUP6I445N30",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-681": {
"value": "5. Staff costs and employees This note shows amounts earned by employees (including Executive Directors), the average number of employees during the year and their location and amounts paid to \u201ckey management personnel\u201d as defined by IAS 24 Related Party Disclosures. Key management personnel are those employees that have authority for planning, directing and controlling the activities of the Group. The Group recognises all executive directors and the Executive Committee (see pages 90-93) as its key management personnel. 5.1. Staff costs Continuing operations Notes 2022 \u00a3m 2021 (Re- presented) \u00a3m Salaries and other benefits 1,905 1,626 Social security costs 191 164 Pension costs 17.1 81 81 Share-based payment expense 25 158 141 Total payments made to employees 2,335 2,012 Amounts capitalised as development costs 14 (281) (190) Total staff costs from continuing operations 2,054 1,822 Underlying staff costs 1,896 1,666 Non-underlying staff costs 158 156 Total staff costs from continuing operations 2,054 1,822 Discontinued operations Note 2022 \u00a3m 2021 (Re- presented) 1 \u00a3m Salaries and other benefits 18 53 Social security costs 2 7 Pension costs 1 3 Share-based payment expense \u2013 3 Total payments made to employees 21 66 Amounts capitalised as development costs 14 (1) (2) Total staff costs from discontinued operations 20 64 Underlying staff costs 20 62 Non-underlying staff costs \u2013 2 Total staff costs from discontinued operations 20 64 1 The 2021 discontinued operations staff costs have been re-presented to include the costs from BETA and the Borsa Italiana group (see note 13). Compensation for key management personnel 2022 \u00a3m 2021 \u00a3m Salaries and other benefits 16 19 Pension costs 1 1 Share-based payments 8 9 Total compensation 25 29 Details of Directors\u2019 emoluments are included in the Remuneration Report on pages 113-141. 5.2. Employees The average number of employees 1 , including executive directors, in the Group from continuing operations was: Continuing operations 2022 2021 (Re- presented) UK 4,559 4,416 USA 3,127 3,664 India 6,113 5,737 EU countries 2,292 2,132 Philippines 2,090 1,974 Sri Lanka 1,572 1,423 Mainland China 1,452 1,373 Other Asia 1,860 1,717 Africa and Middle East 623 640 Other 753 792 Average number of employees 24,441 23,868 1 Average employee numbers represent full time equivalent members of staff. They are calculated from the date of acquisition of subsidiary companies purchased in the year and up to the date of disposal of businesses sold in the year. The average number of employees from discontinued operations during the year was 285 (2021: 1,000). Employees from discontinued operations in 2022 were located in the USA and India (2021: USA, India, UK, and EU countries). The Company had no employees in the year (2021: nil). ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfInformationAboutEmployeesExplanatory",
"language": "en",
"entity": "scheme:213800QAUUUP6I445N30",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-709": {
"value": "Compensation for key management personnel 2022 \u00a3m 2021 \u00a3m Salaries and other benefits 16 19 Pension costs 1 1 Share-based payments 8 9 Total compensation 25 29 Details of Directors\u2019 emoluments are included in the Remuneration Report on pages 113-141. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfInformationAboutKeyManagementPersonnelExplanatory",
"language": "en",
"entity": "scheme:213800QAUUUP6I445N30",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-682": {
"value": "6. Non-underlying items The Group separately identifies results before non-underlying items (we refer to these results as \u2018adjusted\u2019). These measures are not measures of performance under IFRS and should be considered in addition to, and not as a substitute for, IFRS measures of financial performance and liquidity. This note explains the main non-underlying items in the year, most of which have arisen as a result of acquisition or disposal activity. Significant accounting judgements The Group uses its judgement to classify items as non-underlying. They include: \u2014 Amortisation and impairment of goodwill and purchased intangible assets. Purchased intangible assets include customer relationships, trade names, and databases and content, all of which are as a result of acquisitions \u2014 Incremental amortisation and impairment of any fair value adjustments of intangible assets recognised as a result of acquisitions \u2014 Other income or expenses not considered to drive the operating results of the Group (including transaction, integration and separation costs related to acquisitions and disposals of businesses), as well as restructuring costs \u2014 Tax on non-underlying items 6. Non-underlying items continued
Continuing operations Notes
2022
\u00a3m
2021
(Re-
presented)
\u00a3m
Non-underlying operating expenses
before interest, tax, depreciation,
amortisation and impairment
Transaction costs 85 109
Integration and separation costs 278 225
Restructuring and other costs 26 \u2013
389 334
Profit on disposal of property, plant
and equipment (133) \u2013
Remeasurement gain 12.1 (23) \u2013
(156) \u2013
Non-underlying operating expenses
before interest, tax, depreciation,
amortisation and impairment 233 334
Non-underlying depreciation,
amortisation and impairment
Amortisation and impairment of
purchased intangible assets 14 1,044 851
Depreciation of property,
plant and equipment 15 15 10
Impairment of property,
plant and equipment 15 12 22
Impairment of other non-current assets 7 \u2013
1,078 883
Non-underlying items before
interest and tax 1,311 1,217
Non-underlying finance costs 7.2 16 5
Non-underlying items before tax 1,327 1,222
Non-underlying tax (278) (130)
Non-underlying items after tax 1,049 1,092
The main non-underlying items are as follows:
Transaction costs
Transaction costs mainly relate to the following acquisitions:
\u2014 Refinitiv \u2013 mainly fair value adjustment to the outstanding Tradeweb
equity-settled awards (as if the acquisition date were the grant date)
of \u00a326 million (2021: \u00a336 million) and post-acquisition Management
Incentive Plan (MIP) share-based payment expense of \u00a316 million
(2021: \u00a310 million)
\u2014 GDC, MayStreet, TORA and Quantile (see note 12.4)
Integration and separation costs
Integration and separation costs relate to activities to:
\u2014 Integrate acquired businesses with the Group and mainly consist
of Refinitiv integration costs of \u00a3242 million (2021: \u00a3201 million)
\u2014 Separate disposed businesses and mainly consists of BETA
separation costs of \u00a312 million (2021: \u00a324 million to separate the
Thomson Reuters Financial & Risk Business from Thomson Reuters
and then restructure it)
Profit on disposal of property, plant and equipment
On 5 January 2022, the Group completed the sale of one of its freehold
properties in the UK for a cash sum of \u00a3153 million realising a gain on
disposal of \u00a3133 million.
Remeasurement gain
Prior to the acquisition of GDC on 31 May 2022, LSEG held an 11% equity
interest in GDC. The acquisition date fair value of the previously held
interest resulted in a remeasurement gain of \u00a323 million.
Depreciation, amortisation and impairment
Amortisation of intangibles of \u00a31,044 million (2021: \u00a3851 million) mainly
relates to the amortisation of intangible assets recognised as a result
of the acquisition of Refinitiv.
We have continued to review our property needs following the
acquisition of Refinitiv. The decision to exit and sub-lease some of our
property has resulted in \u00a327 million of accelerated depreciation and
impairment (2021: \u00a332 million) to right-of-use property assets and
some fixtures and fittings.
Taxation
We have recognised a \u00a3278 million (2021: \u00a3130 million) non-underlying
tax benefit which mainly reflects the tax impact of the Group\u2019s
non-underlying items computed based on the tax rates applicable
to the respective territories.
",
"dimensions": {
"concept": "lseg:DisclosureOfNonunderlyingItems",
"language": "en",
"entity": "scheme:213800QAUUUP6I445N30",
"period": "2021-01-01T00:00:00/2022-01-01T00:00:00"
}
},
"fact-729": {
"value": "7. Net finance costs Finance income includes interest on cash deposits and interest income on retirement benefit assets. Finance costs include interest on borrowings, interest costs on retirement benefit obligations and lease interest expense. Accounting policy The accounting policies for the following finance income and finance costs are described in the relevant notes to the financial statements: Note \u2014 Interest income on retirement benefit assets \u2014 Interest costs on retirement benefit obligations 17 Pension and other retirement benefit schemes \u2014 Lease interest income \u2014 Lease interest expense 21 Lease liabilities and net investments in leases \u2014 Interest on borrowings 22 Borrowings and net debt Interest earned on cash deposited with financial counterparties and interest paid on borrowings, which reflect the agreed market-based or contractual rate for each transaction, are calculated using the effective interest rate method. Where negative interest rates apply, the Group recognises interest paid on cash deposits as an expense and interest received on borrowings as income. Recurring fees and charges levied on committed bank facilities, cash management transactions and the payment services provided by the Group\u2019s banks are charged as accrued in other finance expenses. Credit facility arrangement fees are capitalised and then amortised over the term of the facility based on the projected utilisation of the facility . 7. Net finance costs continued 7.1 Finance income Continuing operations Note 2022 \u00a3m 2021 \u00a3m Bank deposit and other interest income 29 3 Lease interest income 1 2 Interest income on retirement benefit assets 17.1 81 41 Underlying finance income 111 46 7.2 Finance costs Continuing operations Notes 2022 \u00a3m 2021 \u00a3m Interest payable on bank and other borrowings 1 (156) (151) Amortisation of arrangement fees (10) (12) Lease interest expense 21 (15) (12) Other finance expenses (20) (2) Interest cost on retirement benefit obligations 17.1 (70) (35) Underlying finance costs (271) (212) Non-underlying finance costs 6 (16) (5) Total finance costs (287) (217) 1 Interest payable on bank and other borrowings includes amounts where the Group suffers negative interest on its cash deposits. It is net of amortisation of the realised gain on interest rate derivatives held in the hedging reserve",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFinanceCostExplanatory",
"language": "en",
"entity": "scheme:213800QAUUUP6I445N30",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-710": {
"value": "7. Net finance costs Finance income includes interest on cash deposits and interest income on retirement benefit assets. Finance costs include interest on borrowings, interest costs on retirement benefit obligations and lease interest expense. Accounting policy The accounting policies for the following finance income and finance costs are described in the relevant notes to the financial statements: Note \u2014 Interest income on retirement benefit assets \u2014 Interest costs on retirement benefit obligations 17 Pension and other retirement benefit schemes \u2014 Lease interest income \u2014 Lease interest expense 21 Lease liabilities and net investments in leases \u2014 Interest on borrowings 22 Borrowings and net debt Interest earned on cash deposited with financial counterparties and interest paid on borrowings, which reflect the agreed market-based or contractual rate for each transaction, are calculated using the effective interest rate method. Where negative interest rates apply, the Group recognises interest paid on cash deposits as an expense and interest received on borrowings as income. Recurring fees and charges levied on committed bank facilities, cash management transactions and the payment services provided by the Group\u2019s banks are charged as accrued in other finance expenses. Credit facility arrangement fees are capitalised and then amortised over the term of the facility based on the projected utilisation of the facility 7. Net finance costs continued 7.1 Finance income Continuing operations Note 2022 \u00a3m 2021 \u00a3m Bank deposit and other interest income 29 3 Lease interest income 1 2 Interest income on retirement benefit assets 17.1 81 41 Underlying finance income 111 46 7.2 Finance costs Continuing operations Notes 2022 \u00a3m 2021 \u00a3m Interest payable on bank and other borrowings 1 (156) (151) Amortisation of arrangement fees (10) (12) Lease interest expense 21 (15) (12) Other finance expenses (20) (2) Interest cost on retirement benefit obligations 17.1 (70) (35) Underlying finance costs (271) (212) Non-underlying finance costs 6 (16) (5) Total finance costs (287) (217) 1 Interest payable on bank and other borrowings includes amounts where the Group suffers negative interest on its cash deposits. It is net of amortisation of the realised gain on interest rate derivatives held in the hedging reserve. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFinanceIncomeExplanatory",
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"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-683": {
"value": "7. Net finance costs Finance income includes interest on cash deposits and interest income on retirement benefit assets. Finance costs include interest on borrowings, interest costs on retirement benefit obligations and lease interest expense. Accounting policy The accounting policies for the following finance income and finance costs are described in the relevant notes to the financial statements: Note \u2014 Interest income on retirement benefit assets \u2014 Interest costs on retirement benefit obligations 17 Pension and other retirement benefit schemes \u2014 Lease interest income \u2014 Lease interest expense 21 Lease liabilities and net investments in leases \u2014 Interest on borrowings 22 Borrowings and net debt Interest earned on cash deposited with financial counterparties and interest paid on borrowings, which reflect the agreed market-based or contractual rate for each transaction, are calculated using the effective interest rate method. Where negative interest rates apply, the Group recognises interest paid on cash deposits as an expense and interest received on borrowings as income. Recurring fees and charges levied on committed bank facilities, cash management transactions and the payment services provided by the Group\u2019s banks are charged as accrued in other finance expenses. Credit facility arrangement fees are capitalised and then amortised over the term of the facility based on the projected utilisation of the facility . 7. Net finance costs continued 7.1 Finance income Continuing operations Note 2022 \u00a3m 2021 \u00a3m Bank deposit and other interest income 29 3 Lease interest income 1 2 Interest income on retirement benefit assets 17.1 81 41 Underlying finance income 111 46 7.2 Finance costs Continuing operations Notes 2022 \u00a3m 2021 \u00a3m Interest payable on bank and other borrowings 1 (156) (151) Amortisation of arrangement fees (10) (12) Lease interest expense 21 (15) (12) Other finance expenses (20) (2) Interest cost on retirement benefit obligations 17.1 (70) (35) Underlying finance costs (271) (212) Non-underlying finance costs 6 (16) (5) Total finance costs (287) (217) 1 Interest payable on bank and other borrowings includes amounts where the Group suffers negative interest on its cash deposits. It is net of amortisation of the realised gain on interest rate derivatives held in the hedging reserve. ",
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"fact-662": {
"value": "Accounting policy The accounting policies for the following finance income and finance costs are described in the relevant notes to the financial statements: Note \u2014 Interest income on retirement benefit assets \u2014 Interest costs on retirement benefit obligations 17 Pension and other retirement benefit schemes \u2014 Lease interest income \u2014 Lease interest expense 21 Lease liabilities and net investments in leases \u2014 Interest on borrowings 22 Borrowings and net debt Interest earned on cash deposited with financial counterparties and interest paid on borrowings, which reflect the agreed market-based or contractual rate for each transaction, are calculated using the effective interest rate method. Where negative interest rates apply, the Group recognises interest paid on cash deposits as an expense and interest received on borrowings as income. Recurring fees and charges levied on committed bank facilities, cash management transactions and the payment services provided by the Group\u2019s banks are charged as accrued in other finance expenses. Credit facility arrangement fees are capitalised and then amortised over the term of the facility based on the projected utilisation of the facility . ",
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"fact-636": {
"value": "The accounting policies for the following finance income and finance costs are described in the relevant notes to the financial statements: Note \u2014 Interest income on retirement benefit assets \u2014 Interest costs on retirement benefit obligations 17 Pension and other retirement benefit schemes \u2014 Lease interest income \u2014 Lease interest expense 21 Lease liabilities and net investments in leases \u2014 Interest on borrowings 22 Borrowings and net debt Interest earned on cash deposited with financial counterparties and interest paid on borrowings, which reflect the agreed market-based or contractual rate for each transaction, are calculated using the effective interest rate method. Where negative interest rates apply, the Group recognises interest paid on cash deposits as an expense and interest received on borrowings as income. Recurring fees and charges levied on committed bank facilities, cash management transactions and the payment services provided by the Group\u2019s banks are charged as accrued in other finance expenses. Credit facility arrangement fees are capitalised and then amortised over the term of the facility based on the projected utilisation of the facility . ",
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"fact-684": {
"value": "8. Taxation
This note explains how our Group tax charge arises. The note also
provides information on deferred tax and uncertain tax positions.
Accounting policy
Income tax comprises current and deferred tax. Current and deferred
tax charges and benefits are recognised in the income statement
except to the extent that they relate to items recognised directly in
equity or in other comprehensive income.
Current income tax is calculated based on the tax laws enacted
or substantively enacted at the balance sheet date in the countries
where the Group operates and generates taxable income. Current
income tax assets and liabilities are measured at the amount
expected to be recovered from or paid to taxation authorities.
When applicable tax regulation is subject to interpretation,
management evaluates the positions taken in tax returns and
considers whether it is probable that a taxation authority will accept
an uncertain tax treatment. The Group measures such tax balances
either based on the most likely amount or the expected value,
depending on which method provides a better prediction of the
resolution of the uncertainty.
Deferred tax is recognised using the liability method for temporary
differences between the carrying amount of assets and liabilities for
financial reporting purposes and the amounts used for tax purposes.
Deferred tax is determined using tax rates that are substantively
enacted and expected to apply in the period when the asset is
realised or the liability settled.
Deferred tax is not recognised for: \u2014 Taxable temporary differences arising on the initial recognition of goodwill; \u2014 Temporary differences on the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither the accounting profit nor taxable profit or loss; and \u2014 Temporary differences associated with interests in subsidiaries and associates to the extent that the Group is able to control the timing of the reversal of the temporary differences and it is probable that the temporary differences will not reverse in the foreseeable future. Deferred tax assets are recognised for all deductible temporary differences, the carry forward of unused tax credits and any unused tax losses. Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against which these can be utilised, except: \u2014 When the deferred tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; and \u2014 In respect of deductible temporary differences associated with interests in subsidiaries and associates, deferred tax assets are recognised only to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the temporary differences can be utilised. The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised. Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered. Tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority on either the same taxable entity or on different taxable entities which intend to settle the current tax assets and liabilities on a net basis. 8. Taxation continued
8.1 Income tax
Tax recognised in the income statement
Continuing operations Note
2022
\u00a3m
2021
(Re-
presented)
\u00a3m
Current tax
UK corporation tax for the year
at 19% (2021: 19%) 67 49
Overseas tax for the year 125 79
Adjustments in respect of
previous years 81 2
Total current tax 273 130
Deferred tax
Deferred tax (benefit)/expense
for the year (29) 214
Adjustments in respect of
previous years (4) (9)
Deferred tax expense/(benefit) on
amortisation and impairment of
purchased intangible assets 22 (33)
Total deferred tax 8.2 (11) 172
Total tax 262 302
Factors affecting the tax charge for the year
The tax charge for the year differs from that derived from the standard
rate of corporation tax in the UK of 19% (2021: 19%) as explained below:
Continuing operations
2022
\u00a3m
2021
(Re-
presented)
\u00a3m
Profit before tax from continuing operations 1,241 894
Profit multiplied by standard rate of
corporation tax in the UK 236 170
Overseas earnings taxed at higher rate 4 8
Adjustment arising from changes in tax rates (3) 171
Income not taxable (53) (36)
Adjustments in respect of previous years 77 (7)
Deferred tax not recognised 1 (4)
Total tax 262 302
Tax on items recognised in other comprehensive income
Continuing operations
2022
\u00a3m
2021
\u00a3m
Deferred tax benefit/(expense) on:
\u2014 Actuarial (losses)//gains on retirement
benefit obligations 98 (25)
\u2014 Gains/losses of financial assets (at fair value
through other comprehensive income) (13) 1
Total tax recognised in other
comprehensive income 85 (24)
Tax on items recognised in equity
2022
\u00a3m
2021
\u00a3m
Current tax benefit on:
\u2014 Share-based payments in excess of
expense recognised 14 12
Total current tax recognised in equity 14 12
Deferred tax benefit/(expense) on:
\u2014 Share-based payments less than/in excess of
expense recognised (92) 18
\u2014 Investment in partnerships (recognised in
non-controlling interests) 100 25
Total deferred tax recognised in equity 8 43
Total tax recognised in equity 22 55
On 24 May 2021, the UK Finance Act 2021 was substantively enacted,
increasing the corporation tax rate to 25% with effect from 1 April 2023.
Global Minimum Tax
To address concerns about uneven profit distribution and the tax
contributions of large multinational corporations, various agreements
have been reached at the global level, including an agreement by
over 135 countries to introduce a global minimum tax rate of 15%.
In December 2021, the Organisation for Economic Co-operation and
Development (OECD) released a draft legislative framework, followed
by detailed guidance in March 2022. This is expected to be used by
individual jurisdictions that signed the agreement to amend their local
tax laws. Enactment is currently expected to occur with effect from
1 January 2024. Once changes to the tax law in any jurisdiction are
enacted or substantively enacted, the Group may be subject to the 15%
minimum tax rate. We are closely monitoring these developments.
8.2 Net deferred tax liabilities
2022
\u00a3m
2021
\u00a3m
Deferred tax assets 622 508
Deferred tax liabilities (2,200) (1,835)
Net deferred tax liabilities (1,578) (1,327)
8. Taxation continued
The movements in deferred tax assets and liabilities during the year are shown below:
Group
Goodwill
and
intangible
assets
1
\u00a3m
Tax losses
and other
carry-
forward
attributes
\u00a3m
Property,
plant and
equipment
\u00a3m
Share
schemes
\u00a3m
Retirement
benefit
obligations
\u00a3m
Investment
in partner-
ships
2
\u00a3m
Provisions
and other
temporary
differences
\u00a3m
Total
\u00a3m
1 January 2021 (398) 27 5 27 (28) \u2013 7 (360)
Deferred tax on acquisition of subsidiaries (1,738) 322 102 62 (49) 425 43 (833)
Deferred tax derecognised on disposal of business 79 \u2013 \u2013 \u2013 \u2013 \u2013 4 83
Tax recognised in the income statement (184) 94 20 15 (28) (99) (12) (194)
Tax recognised in other comprehensive income \u2013 \u2013 \u2013 \u2013 (25) \u2013 1 (24)
Tax recognised in equity \u2013 \u2013 \u2013 18 \u2013 25 \u2013 43
Foreign exchange translation and other (41) 1 2 1 \u2013 \u2013 (5) (42)
31 December 2021 (2,282) 444 129 123 (130) 351 38 (1,327)
Deferred tax on acquisition of subsidiaries
(note 12.2) (87) 24 \u2013 \u2013 \u2013 \u2013 \u2013 (63)
Tax recognised on discontinued operations (note 13) (77) (69) \u2013 \u2013 \u2013 \u2013 9 (137)
Tax recognised in the income statement (79) 153 (46) 12 (13) (43) 27 11
Tax recognised in other comprehensive income \u2013 \u2013 \u2013 \u2013 98 \u2013 (13) 85
Tax recognised in equity (3) \u2013 \u2013 (92) \u2013 102 1 8
Foreign exchange translation and other (288) 65 4 10 \u2013 44 10 (155)
31 December 2022 (2,816) 617 87 53 (45) 454 72 (1,578)
1 The intangible assets have mainly arisen from acquired subsidiaries, creating a deferred tax liability due to the difference between their accounting and tax treatment. On 31 December 2022
this liability was \u00a32,816 million (2021: \u00a32,282 million), primarily relating to the Refinitiv acquisition.
2 Tradeweb Markets LLC is a multiple member limited liability company taxed as a partnership and accordingly, any taxable income generated by Tradeweb Markets LLC is passed through
to its members. The investment in partnership deferred tax asset is the difference between the financial statement amount and the tax basis of the Tradeweb Markets Inc. investment in
Tradeweb Markets LLC.
Unrecognised deferred tax assets
On 31 December 2022, the gross amount of unrecognised temporary differences in respect of losses available for carry forward was \u00a3122 million
(2021: \u00a3115 million), all with unlimited expiration.
The assets will be recognised in the future only if suitable taxable profit arises within the Group.
8.3. Uncertain tax positions
1
Significant accounting judgements and estimates
Uncertain tax positions
The Group is subject to taxation in the many countries in which it operates. The tax legislation of these countries differs, is often complex and is
subject to interpretation by management and government authorities. These matters of judgement sometimes give rise to the need to create
provisions for tax payments that may arise in future years with respect to transactions already undertaken.
Provisions are made against individual exposures and take into account the specific circumstances of each case, including the strength of
technical arguments, recent case law decisions or rulings on similar issues and relevant external advice. In accordance with IFRIC 23 Uncertainty
over Income Tax Treatments, provisions are estimated based on one of two methods: the expected value method (the sum of the probability
weighted amounts in a range of possible outcomes) or the single most likely amount method. The method chosen depends on which is expected
to better predict the resolution of the uncertainty. Due to the uncertainty associated with tax audits it is possible that, at some future date,
liabilities resulting from such audits or related litigation could vary significantly from our provisions. This would require the Group to make an
adjustment in a subsequent period which could have a material impact on the Group\u2019s results.
1 Amounts presented exclude interest and penalties .
8. Taxation continued EU State Aid The Group continues to monitor developments in relation to EU State Aid investigations. On 25 April 2019, the EU Commission\u2019s final decision regarding its investigation into the UK\u2019s Controlled Foreign Company (CFC) regime was published. It concluded that the Finance Company Partial Exemption (FCPE) rules in the UK tax legislation partially represent illegal State Aid. The Group had financing arrangements that utilised the FCPE during this period. In December 2019 and the beginning of 2021, HMRC issued determinations to the Group totalling \u00a310.5 million which the Group paid. The Group, several other UK PLCs and the UK Government submitted appeals to the EU General Court to annul the EU Commission\u2019s findings. On 8 June 2022, the EU General Court rejected the appeals. The Group has appealed this decision to the Court of Justice of the European Union (CJEU). It will be some time before the issues are conclusively determined by the CJEU. Until then, the UK Government is required to continue recovering amounts determined to be State Aid. The Group\u2019s view is that no provision is required. Additionally, and in accordance with IFRIC 23 Uncertainty over Income Tax Treatments, the Group continues to recognise a receivable against the HMRC determinations paid to date of \u00a310.5 million. The maximum potential exposure remains between nil and \u00a365 million. IRS Audit The Group has been under audit in the USA by the Internal Revenue Service (IRS) in relation to the interest rate applied on certain cross border intercompany loans from the UK to the USA for the 2014-2021 period. During the year, the Group reached a settlement with the IRS on this matter for the 2014-2015 period. This resulted in additional tax of \u00a31 million ($1 million) for this period and a \u00a34 million ($5 million) increase in the uncertain tax liability resulting from the remeasurement of the open period. HMRC audit of intellectual property valuation HMRC is auditing the value of certain intellectual property purchased from Thomson Reuters as part of the formation of Refinitiv. Intellectual property valuation is complex and significantly affected by multiple inputs of assumptions. As the outcome is uncertain, especially given the inherent subjectivity of the topic, the Group has recorded an uncertain tax liability in accordance with the requirements of IFRS. Management believes that resolution of this matter will not have a material impact on the Group\u2019s financial position. Management and HMRC continue to actively discuss this topic. Diverted Profits Tax to Thomson Reuters HMRC continues to issue notices of assessment under the Diverted Profits Tax (DPT) regime to Thomson Reuters largely related to its Financial & Risk Business for years prior to the sale of the business to Refinitiv. As required by the notices and as directed by Thomson Reuters, the Group makes payments to HMRC which are immediately reimbursed by Thomson Reuters in accordance with an indemnity agreement. Thomson Reuters does not agree with the assessments and will continue to defend their position by contesting the assessments through all available administrative and judicial remedies. Russian tax audit The Group is under audit by the Russian Tax Authorities for the 2018-2020 period, which could result in additional taxes being paid locally. We do not agree with the Tax Authorities\u2019 view and will continue to defend our position through all available administrative and judicial remedies. We have recorded an uncertain tax liability in accordance with the requirements of IFRS. Management believes that resolution of this matter will not have a material impact on the Group\u2019s financial position 1 . 1 Amounts presented exclude interest and penalties",
"dimensions": {
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}
},
"fact-638": {
"value": "Income tax comprises current and deferred tax. Current and deferred tax charges and benefits are recognised in the income statement except to the extent that they relate to items recognised directly in equity or in other comprehensive income. Current income tax is calculated based on the tax laws enacted or substantively enacted at the balance sheet date in the countries where the Group operates and generates taxable income. Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to taxation authorities. When applicable tax regulation is subject to interpretation, management evaluates the positions taken in tax returns and considers whether it is probable that a taxation authority will accept an uncertain tax treatment. The Group measures such tax balances either based on the most likely amount or the expected value, depending on which method provides a better prediction of the resolution of the uncertainty. ",
"dimensions": {
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"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-637": {
"value": "Deferred tax is recognised using the liability method for temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for tax purposes. Deferred tax is determined using tax rates that are substantively enacted and expected to apply in the period when the asset is realised or the liability settled. \u2014 Taxable temporary differences arising on the initial recognition of goodwill; \u2014 Temporary differences on the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither the accounting profit nor taxable profit or loss; and \u2014 Temporary differences associated with interests in subsidiaries and associates to the extent that the Group is able to control the timing of the reversal of the temporary differences and it is probable that the temporary differences will not reverse in the foreseeable future. Deferred tax assets are recognised for all deductible temporary differences, the carry forward of unused tax credits and any unused tax losses. Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against which these can be utilised, except: \u2014 When the deferred tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; and \u2014 In respect of deductible temporary differences associated with interests in subsidiaries and associates, deferred tax assets are recognised only to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the temporary differences can be utilised. The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised. Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered. Tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority on either the same taxable entity or on different taxable entities which intend to settle the current tax assets and liabilities on a net basis. ",
"dimensions": {
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"language": "en",
"entity": "scheme:213800QAUUUP6I445N30",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
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},
"fact-711": {
"value": "8.2 Net deferred tax liabilities 2022 \u00a3m 2021 \u00a3m Deferred tax assets 622 508 Deferred tax liabilities (2,200) (1,835) Net deferred tax liabilities (1,578) (1,327) 8. Taxation continued The movements in deferred tax assets and liabilities during the year are shown below: Group Goodwill and intangible assets 1 \u00a3m Tax losses and other carry- forward attributes \u00a3m Property, plant and equipment \u00a3m Share schemes \u00a3m Retirement benefit obligations \u00a3m Investment in partner- ships 2 \u00a3m Provisions and other temporary differences \u00a3m Total \u00a3m 1 January 2021 (398) 27 5 27 (28) \u2013 7 (360) Deferred tax on acquisition of subsidiaries (1,738) 322 102 62 (49) 425 43 (833) Deferred tax derecognised on disposal of business 79 \u2013 \u2013 \u2013 \u2013 \u2013 4 83 Tax recognised in the income statement (184) 94 20 15 (28) (99) (12) (194) Tax recognised in other comprehensive income \u2013 \u2013 \u2013 \u2013 (25) \u2013 1 (24) Tax recognised in equity \u2013 \u2013 \u2013 18 \u2013 25 \u2013 43 Foreign exchange translation and other (41) 1 2 1 \u2013 \u2013 (5) (42) 31 December 2021 (2,282) 444 129 123 (130) 351 38 (1,327) Deferred tax on acquisition of subsidiaries (note 12.2) (87) 24 \u2013 \u2013 \u2013 \u2013 \u2013 (63) Tax recognised on discontinued operations (note 13) (77) (69) \u2013 \u2013 \u2013 \u2013 9 (137) Tax recognised in the income statement (79) 153 (46) 12 (13) (43) 27 11 Tax recognised in other comprehensive income \u2013 \u2013 \u2013 \u2013 98 \u2013 (13) 85 Tax recognised in equity (3) \u2013 \u2013 (92) \u2013 102 1 8 Foreign exchange translation and other (288) 65 4 10 \u2013 44 10 (155) 31 December 2022 (2,816) 617 87 53 (45) 454 72 (1,578) 1 The intangible assets have mainly arisen from acquired subsidiaries, creating a deferred tax liability due to the difference between their accounting and tax treatment. On 31 December 2022 this liability was \u00a32,816 million (2021: \u00a32,282 million), primarily relating to the Refinitiv acquisition. 2 Tradeweb Markets LLC is a multiple member limited liability company taxed as a partnership and accordingly, any taxable income generated by Tradeweb Markets LLC is passed through to its members. The investment in partnership deferred tax asset is the difference between the financial statement amount and the tax basis of the Tradeweb Markets Inc. investment in Tradeweb Markets LLC. Unrecognised deferred tax assets On 31 December 2022, the gross amount of unrecognised temporary differences in respect of losses available for carry forward was \u00a3122 million (2021: \u00a3115 million), all with unlimited expiration. The assets will be recognised in the future only if suitable taxable profit arises within the Group. ",
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}
},
"fact-672": {
"value": "8.3. Uncertain tax positions 1 Significant accounting judgements and estimates Uncertain tax positions The Group is subject to taxation in the many countries in which it operates. The tax legislation of these countries differs, is often complex and is subject to interpretation by management and government authorities. These matters of judgement sometimes give rise to the need to create provisions for tax payments that may arise in future years with respect to transactions already undertaken. Provisions are made against individual exposures and take into account the specific circumstances of each case, including the strength of technical arguments, recent case law decisions or rulings on similar issues and relevant external advice. In accordance with IFRIC 23 Uncertainty over Income Tax Treatments, provisions are estimated based on one of two methods: the expected value method (the sum of the probability weighted amounts in a range of possible outcomes) or the single most likely amount method. The method chosen depends on which is expected to better predict the resolution of the uncertainty. Due to the uncertainty associated with tax audits it is possible that, at some future date, liabilities resulting from such audits or related litigation could vary significantly from our provisions. This would require the Group to make an adjustment in a subsequent period which could have a material impact on the Group\u2019s results. 1 Amounts presented exclude interest and penalties EU State Aid The Group continues to monitor developments in relation to EU State Aid investigations. On 25 April 2019, the EU Commission\u2019s final decision regarding its investigation into the UK\u2019s Controlled Foreign Company (CFC) regime was published. It concluded that the Finance Company Partial Exemption (FCPE) rules in the UK tax legislation partially represent illegal State Aid. The Group had financing arrangements that utilised the FCPE during this period. In December 2019 and the beginning of 2021, HMRC issued determinations to the Group totalling \u00a310.5 million which the Group paid. The Group, several other UK PLCs and the UK Government submitted appeals to the EU General Court to annul the EU Commission\u2019s findings. On 8 June 2022, the EU General Court rejected the appeals. The Group has appealed this decision to the Court of Justice of the European Union (CJEU). It will be some time before the issues are conclusively determined by the CJEU. Until then, the UK Government is required to continue recovering amounts determined to be State Aid. The Group\u2019s view is that no provision is required. Additionally, and in accordance with IFRIC 23 Uncertainty over Income Tax Treatments, the Group continues to recognise a receivable against the HMRC determinations paid to date of \u00a310.5 million. The maximum potential exposure remains between nil and \u00a365 million. IRS Audit The Group has been under audit in the USA by the Internal Revenue Service (IRS) in relation to the interest rate applied on certain cross border intercompany loans from the UK to the USA for the 2014-2021 period. During the year, the Group reached a settlement with the IRS on this matter for the 2014-2015 period. This resulted in additional tax of \u00a31 million ($1 million) for this period and a \u00a34 million ($5 million) increase in the uncertain tax liability resulting from the remeasurement of the open period. HMRC audit of intellectual property valuation HMRC is auditing the value of certain intellectual property purchased from Thomson Reuters as part of the formation of Refinitiv. Intellectual property valuation is complex and significantly affected by multiple inputs of assumptions. As the outcome is uncertain, especially given the inherent subjectivity of the topic, the Group has recorded an uncertain tax liability in accordance with the requirements of IFRS. Management believes that resolution of this matter will not have a material impact on the Group\u2019s financial position. Management and HMRC continue to actively discuss this topic. Diverted Profits Tax to Thomson Reuters HMRC continues to issue notices of assessment under the Diverted Profits Tax (DPT) regime to Thomson Reuters largely related to its Financial & Risk Business for years prior to the sale of the business to Refinitiv. As required by the notices and as directed by Thomson Reuters, the Group makes payments to HMRC which are immediately reimbursed by Thomson Reuters in accordance with an indemnity agreement. Thomson Reuters does not agree with the assessments and will continue to defend their position by contesting the assessments through all available administrative and judicial remedies. Russian tax audit The Group is under audit by the Russian Tax Authorities for the 2018-2020 period, which could result in additional taxes being paid locally. We do not agree with the Tax Authorities\u2019 view and will continue to defend our position through all available administrative and judicial remedies. We have recorded an uncertain tax liability in accordance with the requirements of IFRS. Management believes that resolution of this matter will not have a material impact on the Group\u2019s financial position 1 . 1 Amounts presented exclude interest and penalties. Significant accounting estimates and assumptions Defined benefit pension or liabilities are determined based on the present value of future pension obligations using assumptions determined by the Group with advice from an independent qualified actuary. An actuarial valuation involves making various assumptions that may differ from what actually happens in the future. The assumptions that are the most significant to the amounts reported are the discount rate, inflation rate, salary growth and mortality levels. Assumptions about these variables are based on the environment in each country. Due to the complexities involved in a valuation, and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. In particular, changes to the discount rate and inflation rate, could result in material changes to the carrying amounts of the group\u2019s pension and other post-retirement benefit obligations within the next financial year. ",
"dimensions": {
"concept": "ifrs-full:ExplanationOfAssumptionAboutFutureWithSignificantRiskOfResultingInMaterialAdjustments",
"language": "en",
"entity": "scheme:213800QAUUUP6I445N30",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-685": {
"value": "FINANCIAL STATEMENTS 9. Earnings per share Earnings per share is presented on four bases: basic earnings per share, diluted earnings per share, adjusted basic earnings per share and adjusted diluted earnings per share. Earnings per share is calculated as the Group\u2019s profit for the financial year divided by the weighted average number of shares in issue during the year. Accounting policy Basic earnings per share is in respect of all activities. Diluted earnings per share takes into account the dilutive effect that would arise on conversion or vesting of all outstanding share options and share awards under the Group\u2019s share option and award schemes. Adjusted basic earnings per share and adjusted diluted earnings per share exclude non-underlying items from earnings. 2022 2021 Re-presented Continuing Discontinued Total Continuing Discontinued Total Basic earnings per share 141.8p 91.9p 233.8p 85.8p 495.9p 581.7p Diluted earnings per share 141.1p 91.4p 232.5p 85.2p 492.9p 578.1p Adjusted basic earnings per share 317.8p 10.6p 328.4p 272.4p 29.0p 301.4p Adjusted diluted earnings per share 316.1p 10.5p 326.6p 270.7p 28.8p 299.5p Profit and adjusted profit for the year attributable to the Company\u2019s equity holders Note 2022 2021 Re-presented Continuing \u00a3m Discontinued \u00a3m Total \u00a3m Continuing \u00a3m Discontinued \u00a3m Total \u00a3m Profit for the financial year attributable to the Company\u2019s equity holders 790 512 1,302 461 2,668 3,129 Adjustments: \u2014 Total non-underlying items net of tax 6 1,049 (453) 596 1,092 (2,511) (1,419) \u2014 Non-underlying items attributable to non-controlling interests (69) \u2013 (69) (88) (1) (89) Adjusted profit for the year attributable to the Company\u2019s equity holders 1,770 59 1,829 1,465 156 1,621 Weighted average number of shares 2022 millions 2021 millions Weighted average number of shares 1 557 538 Effect of dilutive share options and awards 3 3 Diluted weighted average number of shares 560 541 1 The weighted average number of shares excludes those held in the Employee Benefit Trust. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfEarningsPerShareExplanatory",
"language": "en",
"entity": "scheme:213800QAUUUP6I445N30",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-639": {
"value": "Basic earnings per share is in respect of all activities. Diluted earnings per share takes into account the dilutive effect that would arise on conversion or vesting of all outstanding share options and share awards under the Group\u2019s share option and award schemes. Adjusted basic earnings per share and adjusted diluted earnings per share exclude non-underlying items from earnings. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForEarningsPerShareExplanatory",
"language": "en",
"entity": "scheme:213800QAUUUP6I445N30",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-686": {
"value": "10. Dividends We seek to reward our shareholders through the payment of dividends. The interim dividend is generally paid in September and the final dividend in May. Under the Group\u2019s dividend policy, the interim dividend is calculated as one-third of the prior full year dividend. Accounting policy Dividend distributions to the Company\u2019s equity holders are recognised as a liability in the Group financial statements in the period in which the dividends are approved by the Company\u2019s shareholders. 2022 \u00a3m 2021 \u00a3m Final dividend for 31 December 2020 paid 26 May 2021: 51.7p per ordinary share \u2013 287 Interim dividend for 31 December 2021 paid 21 September 2021: 25.0p per ordinary share \u2013 139 Final dividend for 31 December 2021 paid 25 May 2022: 70.0p per ordinary share 390 \u2013 Interim dividend for 31 December 2022 paid 20 September 2022: 31.7p per ordinary share 177 \u2013 567 426 Dividends are only paid out of available distributable reserves of the Company. The Board has proposed a final dividend in respect of the year ended 31 December 2022 of 75.3p per share, which amounts to an expected payment of \u00a3417 million on 24 May 2023. This is not reflected in the financial statements. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfDividendsExplanatory",
"language": "en",
"entity": "scheme:213800QAUUUP6I445N30",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-640": {
"value": "Dividend distributions to the Company\u2019s equity holders are recognised as a liability in the Group financial statements in the period in which the dividends are approved by the Company\u2019s shareholders. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForDividendsExplanatory",
"language": "en",
"entity": "scheme:213800QAUUUP6I445N30",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-12": {
"value": "0.753",
"decimals": 3,
"dimensions": {
"concept": "ifrs-full:DividendsProposedOrDeclaredBeforeFinancialStatementsAuthorisedForIssueButNotRecognisedAsDistributionToOwnersPerShare",
"entity": "scheme:213800QAUUUP6I445N30",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:GBP/xbrli:shares"
}
},
"fact-11": {
"value": "417000000",
"decimals": -6,
"dimensions": {
"concept": "ifrs-full:DividendsProposedOrDeclaredBeforeFinancialStatementsAuthorisedForIssueButNotRecognisedAsDistributionToOwners",
"entity": "scheme:213800QAUUUP6I445N30",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00",
"unit": "iso4217:GBP"
}
},
"fact-687": {
"value": "11.1 Principal operating subsidiaries Name Principal activity Country of incorporation and principal operations Group ultimate economic interest % Banque Centrale De Compensation SA (LCH SA) CCP clearing services France 73.45 Financial & Risk Organisation Limited IP owner England & Wales 100.00 Frank Russell Company Market indices provider USA 100.00 FTSE International Limited Market indices provider England & Wales 100.00 LCH Limited CCP clearing services England & Wales 82.61 London Stock Exchange plc Recognised investment exchange England & Wales 100.00 Refinitiv Asia Pte. Ltd Market and financial data provider Singapore 100.00 Refinitiv France SAS Market and financial data provider France 100.00 Refinitiv Germany GmbH Market and financial data provider Germany 100.00 Refinitiv Hong Kong Limited Market and financial data provider Jersey 1 100.00 Refinitiv Japan K.K. Market and financial data provider Japan 100.00 Refinitiv Limited Market and financial data provider England & Wales 100.00 Refinitiv US LLC Market and financial data provider USA 100.00 Tradeweb Markets LLC Multilateral trading facility USA 51.24 1 Operates in Hong Kong 29.2 Group subsidiary companies A company is considered to be a subsidiary company of the Group when the Parent Company is able to direct and control the activity of that company and to benefit from its variable returns. Accounting policy Interests in subsidiaries, as well as loans and other contributions to subsidiaries, are recognised by the Parent Company at cost less accumulated impairment. Interests in subsidiaries are reviewed for impairment when events indicate the carrying amount may not be recoverable. When an indication of impairment is identified, the interest\u2019s recoverable amount is estimated based on value-in-use calculations. An impairment loss is recognised when the recoverable amount of an interest is less than its carrying amount. Investment in subsidiaries The Company recognises the following amounts as investment in subsidiaries: Company Shares \u00a3m Other 1 \u00a3m Total \u00a3m 1 January 2021 5,789 1,017 6,806 Acquisition of subsidiaries 18,549 \u2013 18,549 Impairment (563) \u2013 (563) 31 December 2021 23,775 1,017 24,792 Additional investments in subsidiaries 2 130 \u2013 130 31 December 2022 23,905 1,017 24,922 1 Other includes amounts invested in subsidiaries by way of capital contributions and awards granted under the Group\u2019s share schemes. 2 During the year, the Company invested \u00a315 million in London Stock Exchange Group Holdings (R) Limited to fund the acquisition of an additional 32.8% of the issued shares of Turquoise Global Holdings Limited (see note 11.2) and \u00a3115 million in London Stock Exchange Reg Holdings Limited to fund acquisitions and investments. A list of the Group\u2019s subsidiaries as at 31 December 2022 is given below including the percentage of each class of share held and the Group\u2019s
ownership percentages.
The share ownership percentage records the percentage of each subsidiary\u2019s share capital owned by its immediate parent company. Shares owned
directly by LSEG plc are listed as being a \u2018direct\u2019 shareholding; shares owned by other Group companies are listed as an \u2018indirect\u2019 shareholding.
Where more than one LSEG Group company owns shares in a subsidiary these interests have been combined.
The ultimate economic interest percentage is the Group\u2019s effective overall interest in a subsidiary, reflecting situations where subsidiaries are owned
indirectly by intermediate subsidiaries who may themselves have non-controlling interests.
Name of subsidiary
undertaking
Location of
incorporation Registered office address
Class of
share held
Direct or
indirect
holding
Share
ownership
%
LSEG plc
ultimate
economic
interest %
Alta Limited Cook Islands c/o Cook Islands Trust Corporation Limited, First Floor,
BCI House, PO Box 141, Avaura, Rarotonga, Cook Islands
Ordinary Indirect 100.00 100.00
Avox Limited England & Wales Five Canada Square, Canary Wharf, London,
United Kingdom, E14 5AQ
Ordinary Indirect 100.00 100.00
Banque Centrale de
Compensation SA
(LCH SA)
France 18 Rue du Quatre-Septembre, 75002 Paris, France Ordinary Indirect 88.91 73.45
Beyond Ratings France 18 Rue du Quatre-Septembre, 75002 Paris, France Ordinary Indirect 100.00 100.00
Blaxmill (Eleven) Limited England & Wales Five Canada Square, Canary Wharf, London, United
Kingdom, E14 5AQ
Ordinary Indirect 100.00 100.00
Blaxmill (Nine) Limited England & Wales Five Canada Square, Canary Wharf, London, United
Kingdom, E14 5AQ
Ordinary Indirect 100.00 100.00
Blaxmill (Six) England & Wales Five Canada Square, Canary Wharf, London, United
Kingdom, E14 5AQ
Ordinary Indirect 100.00 100.00
Blaxmill (Ten) Limited England & Wales Five Canada Square, Canary Wharf, London, United
Kingdom, E14 5AQ
Ordinary Indirect 100.00 100.00
Blaxmill (Thirteen) Limited England & Wales Five Canada Square, Canary Wharf, London, United
Kingdom, E14 5AQ
Ordinary Indirect 100.00 100.00
Blaxmill (Thirty-Three)
Limited
England & Wales Five Canada Square, Canary Wharf, London, United
Kingdom, E14 5AQ
Ordinary Indirect 100.00 100.00
Blaxmill (Twelve) Limited England & Wales Five Canada Square, Canary Wharf, London, United
Kingdom, E14 5AQ
Ordinary Indirect 100.00 100.00
Blaxmill (Twenty-Eight)
Limited
England & Wales Five Canada Square, Canary Wharf, London, United
Kingdom, E14 5AQ
Ordinary Indirect 100.00 100.00
BondClear Limited England & Wales 10 Paternoster Square, London, United Kingdom,
EC4M 7LS
Ordinary Indirect 100.00 82.61
BondDesk Group LLC USA c/o Corporation Service Company, 251 Little Falls Drive,
Wilmington, DE 19808, United States
Membership
Interest
Indirect 100.00 51.24
Caspian Holdings, Ltd. Cayman Islands One Nexus Way, Camana Bay, Grand Cayman, KY1-9005,
Cayman Islands
Ordinary Indirect 100.00 100.00
Caspian, Ltd. Cayman Islands One Nexus Way, Camana Bay, Grand Cayman, KY1-9005,
Cayman Islands
Ordinary Indirect 100.00 100.00
CommodityClear Limited England & Wales 10 Paternoster Square, London, United Kingdom,
EC4M 7LS
Ordinary Indirect 100.00 82.61
Criminal Law
Week Limited
England & Wales Five Canada Square, Canary Wharf, London, United
Kingdom, E14 5AQ
Ordinary Indirect 100.00 100.00
Data Development
Services Limited
Cook Islands c/o Cook Islands Trust Corporation Limited, First Floor,
BCI House, PO Box 141, Avaura, Rarotonga, Cook Islands
Ordinary Indirect 100.00 100.00
Dealerweb Inc. USA c/o Corporation Service Company, 80 State Street, Albany,
NY 12207, United States
Common A Indirect 100.00
51.24
Common B Indirect 100.00
DW SEF LLC USA c/o Corporation Service Company, 251 Little Falls Drive,
Wilmington, DE 19808, United States
Membership
Interest
Indirect 100.00 51.24
EPIC Acquisition Sub LLC USA c/o United Agent Group Inc, 3411 Silverside Road, Tatnall
Building #104, Wilmington, DE 19810, United States
Membership
Interest
Indirect 100.00 100.00
EnergybankLink Pty Ltd Australia c/o TMF Corporate Services (Aust) Pty Limited, Suite 1,
Level 11, 66 Goulburn Street, Sydney, NSW 2000, Australia
Ordinary Indirect 100.00 100.00
Name of subsidiary undertaking Location of incorporation Registered office address Class of share held Direct or indirect holding Share ownership % LSEG plc ultimate economic interest % Enterprise Risk Management Technology Limited England & Wales 5 Canada Square, Canary Wharf, London, United Kingdom, E14 5AQ Ordinary Indirect 100.00 100.00 EquityClear Limited England & Wales 10 Paternoster Square, London, United Kingdom, EC4M 7LS Ordinary Indirect 100.00 82.61 Financial & Risk Organisation Limited England & Wales Five Canada Square, Canary Wharf, London, United Kingdom, E14 5AQ Ordinary Indirect 100.00 100.00 Financial & Risk Transaction Services Ireland Limited Ireland 12/13 Exchange Place, IFSC, Dublin, Ireland, D01P8H1 Ordinary Indirect 100.00 100.00 ForexClear Limited England & Wales 10 Paternoster Square, London, United Kingdom, EC4M 7LS Ordinary Indirect 100.00 82.61 Frank Russell Company USA c/o United Agent Group Inc. 707 W. Main Avenue #B1, Spokane, WA 99201, United States Common Indirect 100.00 100.00 FTSE (Australia) Limited England & Wales 10 Paternoster Square, London, United Kingdom, EC4M 7LS Ordinary Indirect 100.00 100.00 FTSE (Beijing) Consulting Limited China Room 02D-H, 6/F Dongwai Diplomatic Building, 23 Dongzhimenwai Dajie, Beijing, China Ordinary Indirect 100.00 100.00 FTSE (Japan) Limited England & Wales 10 Paternoster Square, London, United Kingdom, EC4M 7LS Ordinary Indirect 100.00 100.00 FTSE Americas, Inc. USA c/o United Agent Group Inc. 600 Mamaroneck Avenue #400, Harrison, NY 10528, United States Ordinary Indirect 100.00 100.00 FTSE China Index Ltd. Hong Kong c/o Primasia Corporate Services Limited, Suite 1106-8, Tai Yau Building, 181 Johnston Road, Wanchai, Hong Kong Ordinary Indirect 100.00 100.00 FTSE Fixed Income LLC USA c/o United Agent Group Inc, 3411 Silverside Road, Tatnall Building #104, Wilmington, DE 19810, United States Membership Interest Indirect 100.00 100.00 FTSE Fixed Income Europe Limited England & Wales 10 Paternoster Square, London, United Kingdom, EC4M 7LS Ordinary Indirect 100.00 100.00 FTSE Global Debt Capital Markets Inc. Canada c/o Miller Thompson LLP, Suite 5800, 40 King Street West, Toronto, ON, Canada, M5H 3S1 Ordinary Indirect 100.00 100.00 FTSE Global Debt Capital Markets Limited England & Wales 10 Paternoster Square, London, United Kingdom, EC4M 7LS Ordinary Indirect 100.00 100.00 FTSE International (Hong Kong) Limited Hong Kong c/o Primasia Corporate Services Limited, Suite 1106-8, Tai Yau Building, 181 Johnston Road, Wanchai, Hong Kong Ordinary Indirect 100.00 100.00 FTSE International (MEA) Ltd United Arab Emirates Office 50, Level 15, The Gate, PO Box 121208, Dubai, United Arab Emirates Ordinary Indirect 100.00 100.00 FTSE International Brasil Representa\u00e7\u00f5es Limitada Brazil Edificio Argentina, Praia de Botafogo 228, 16 andar, Sala1617, Rio de Janeiro Ordinary Indirect 100.00 100.00 FTSE International LimitedEngland & Wales 10 Paternoster Square, London, United Kingdom, EC4M 7LS Ordinary Indirect 100.00 100.00 FTSE Mexico Sociedad de Responsabilidad Limitada de Capital Variable Mexico Torre 3, Privada Paseo de los Tamarindos 120, Bosques de las Lomas, Mexico City Ordinary Indirect 100.00 100.00 FTSE International Taiwan Limited Taiwan 26/F, No. 100, Song Ren Road, Xinyi District, Taipei City 11073, Taiwan Ordinary Indirect 100.00 100.00 FTSE Italy S.P.A. Italy Piazza Generale Armando Diaz 2, Milan, 20123 Ordinary Indirect 100.00 100.00 FX Alliance International, LLC USA c/o United Agent Group Inc, 3411 Silverside Road, Tatnall Building #104, Wilmington, DE 19810, United States Common Indirect 100.00 100.00 FX Alliance, LLC USA c/o United Agent Group Inc, 3411 Silverside Road, Tatnall Building #104, Wilmington, DE 19810, United States Common Indirect 100.00 100.00 Giact Systems, LLC USA c/o United Agent Group Inc, 3411 Silverside Road, Tatnall Building #104, Wilmington, DE 19810, United States Membership Interest Indirect 100.00 100.00 Global Data Consortium Australia Pty Limited Australia 7C, BDO Services Pty Limited, Level 11, 1 Margaret St, Sydney, NSW 2000, Australia Ordinary Indirect 100.00 100.00 Name of subsidiary undertaking Location of incorporation Registered office address Class of share held Direct or indirect holding Share ownership % LSEG plc ultimate economic interest % Global Data Consortium Netherlands B.V. Netherlands Barbara Strozzilan 201, Zuidas 2, 1083HN, Amsterdam, Netherlands Ordinary Indirect 100.00 100.00 Global Data Consortium Singapore Pte. Ltd. Singapore 11, Collyer Quay, 17-00 The Arcade, Singapore 04931 Ordinary Indirect 100.00 100.00 Global Data Consortium, Inc. USA c/o United Agent Group Inc,15720, Brixham Hill Avenue #300, Charlotte, NC 28277, United States Common Indirect 100.00 100.00 Global World-Check England & Wales Five Canada Square, Canary Wharf, London, United Kingdom, E14 5AQ Ordinary Indirect 100.00 100.00 Global World-Check Holdings (Nominee) Limited England & Wales Five Canada Square, Canary Wharf, London, United Kingdom, E14 5AQ Ordinary Indirect 100.00 100.00 Global World-Check Holdings Limited England & Wales Five Canada Square, Canary Wharf, London, United Kingdom, E14 5AQ Ordinary Indirect 100.00 100.00 globeSettle S.\u00e0 r.l. Luxembourg c/o Crestbridge Luxembourg, 1 Boulevard de la Foire, L-1528, Luxembourg Ordinary Indirect 100.00 100.00 Guangzhou Data Development Services Limited China Part 1-8 self compiled 21-016, 21 / F 15 Zhujiang West Road, Guangzhou, Guangzhou, TianHe District Contribution Unit Indirect 100.00 100.00 IAG US LLC USA c/o United Agent Group Inc, 3411 Silverside Road, Tatnall Building #104, Wilmington, DE 19810, United States Member Shares Indirect 100.00 100.00 Infosight Singapore Pte. Ltd. Singapore One Raffles Quay, #28-01, Singapore 048583 Ordinary Indirect 100.00 100.00 IntegraScreen (Malaysia) Sdn. Bhd. Malaysia 13.03 Menara Tan & Tan, 207 Jalan Tun Razak, Kuala Lumpur 50400, Malaysia Ordinary Indirect 100.00 100.00 IntegraScreen (Panama), Inc. Panama The Century Tower, Via Ricardo J. Alfaro y Calle 65, Oeste Piso 10, Local 1005, Panama Ordinary Indirect 100.00 100.00 IntegraScreen Limited Hong Kong c/o Primasia Corporate Services Limited, Suite 1106-8, Tai Yau Building, 181 Johnston Road, Wanchai, Hong Kong Ordinary Indirect 100.00 100.00 IntegraScreen Spolka Z o.o. Poland 40-084 Katowice, Ul. Opolska 22, Poland Ordinary Indirect 100.00 100.00 International Commodities Clearing House Limited England & Wales 10 Paternoster Square, London, United Kingdom, EC4M 7LS Ordinary Indirect 100.00 100.00 Intrinsic Research Systems, Inc. USA c/o United Agent Group Inc, 3411 Silverside Road, Tatnall Building #104, Wilmington, DE 19810, United States Common-A Indirect 100.00 100.00 Common-B Indirect 100.00 LCH Group Holdings Limited England & Wales 10 Paternoster Square, London, United Kingdom, EC4M 7LS Ordinary (Voting) Indirect 82.61 82.61 LCH Limited England & Wales 10 Paternoster Square, London, United Kingdom, EC4M 7LS Ordinary Indirect 100.00 82.61 LCH.Clearnet Group Limited England & Wales 10 Paternoster Square, London, United Kingdom, EC4M 7LS Ordinary Indirect 100.00 82.61 LCH.Clearnet LLC USA c/o United Agent Group Inc, 3411 Silverside Road, Tatnall Building #104, Wilmington, DE 19810, United States Ordinary Indirect 100.00 82.61 Lipper Asia Limited Cook Islands c/o Cook Islands Trust Corporation Limited, First Floor, BCI House, PO Box 141, Avaura, Rarotonga, Cook Islands Ordinary Indirect 100.00 100.00 Lipper Australia Pty Ltd Australia Level 10, 60 Margaret Street, Sydney, NSW, Australia 2000 Ordinary Indirect 100.00 100.00 Lipper Inc. USA c/o United Agent Group Inc, 155 E. Boardwalk #490, Fort Collins, CO 80525, United States Ordinary Indirect 100.00 100.00 Lipper Limited England & Wales Five Canada Square, Canary Wharf, London, United Kingdom, E14 5AQ Ordinary Indirect 100.00 100.00 London Produce Clearing House Limited (The) England & Wales 10 Paternoster Square, London, United Kingdom, EC4M 7LS Ordinary Indirect 100.00 82.61 London Stock Exchange (C) Limited England & Wales 10 Paternoster Square, London, United Kingdom, EC4M 7LS \u00a3 Ordinary Direct 100.00 100.00 \u20ac Ordinary Direct 100.00 London Stock Exchange Connectivity Solutions LP England & Wales 10 Paternoster Square, London, United Kingdom, EC4M 7LS Partnership interest Indirect 100.00 100.00 Name of subsidiary undertaking Location of incorporation Registered office address Class of share held Direct or indirect holding Share ownership % LSEG plc ultimate economic interest % London Stock Exchange Group (Services) Limited England & Wales 10 Paternoster Square, London, United Kingdom, EC4M 7LS Ordinary Direct 100.00 100.00 London Stock Exchange Group Holdings Limited England & Wales 10 Paternoster Square, London, United Kingdom, EC4M 7LS Ordinary Direct 100.00 100.00 London Stock Exchange Group Holdings (Italy) Limited England & Wales 10 Paternoster Square, London, United Kingdom, EC4M 7LS Ordinary Direct 100.00 100.00 London Stock Exchange Group Holdings (R) Limited England & Wales 10 Paternoster Square, London, United Kingdom, EC4M 7LS Ordinary Direct 100.00 100.00 London Stock Exchange LEI Limited England & Wales 10 Paternoster Square, London, United Kingdom, EC4M 7LS Ordinary Indirect 100.00 100.00 London Stock Exchange plc England & Wales 10 Paternoster Square, London, United Kingdom, EC4M 7LS Ordinary Direct 100.00 100.00 London Stock Exchange Reg Holdings Limited England & Wales 10 Paternoster Square, London, United Kingdom, EC4M 7LS Ordinary Direct 100.00 100.00 LSEG (ELT) Limited England & Wales 10 Paternoster Square, London, United Kingdom, EC4M 7LS Ordinary Indirect 100.00 100.00 LSEG (F) Limited England & Wales 10 Paternoster Square, London, United Kingdom, EC4M 7LS Ordinary Indirect 100.00 100.00 LSEG (G) Inc. USA c/o United Agent Group Inc, 3411 Silverside Road, Tatnall Building #104, Wilmington, DE 19810, United States Ordinary Indirect 100.00 100.00 LSEG (M) Financing Limited England & Wales 10 Paternoster Square, London, United Kingdom, EC4M 7LS Ordinary Indirect 100.00 100.00 LSEG Business Services Colombo (Private) Limited Sri Lanka Trace Expert City, Maradana, Colombo 10, Colombo, Sri Lanka Ordinary Indirect 100.00 100.00 LSEG Business Services Limited England & Wales 10 Paternoster Square, London, United Kingdom, EC4M 7LS Ordinary Indirect 100.00 100.00 LSEG Business Services RM S.R.L Romania Campus 6.1, Bulevardul Iuliu Maniu 6G, Bucuresti 061344, Romania Ordinary Indirect 100.00 100.00 LSEG Employment Services Limited England & Wales 10 Paternoster Square, London, United Kingdom, EC4M 7LS Ordinary Indirect 100.00 100.00 LSEG Foundation (formerly Refinitiv Charities) England & Wales 10 Paternoster Square, London, United Kingdom, EC4M 7LS Charitable incorporated organisation \u2013 \u2013 \u2013 LSEG F1 Limited England & Wales 10 Paternoster Square, London, United Kingdom, EC4M 7LS Ordinary Direct 0.53 100.00 Ordinary Indirect 99.47 LSEG F2 Limited England & Wales 10 Paternoster Square, London, United Kingdom, EC4M 7LS Ordinary Indirect 100.00 100.00 LSEG F3 Limited England & Wales 10 Paternoster Square, London, United Kingdom, EC4M 7LS Ordinary Indirect 100.00 100.00 LSEG HK Financing Limited Hong Kong c/o Primasia Corporate Services Limited, Suite 1106-8, Tai Yau Building, 181 Johnston Road, Wanchai, Hong Kong Ordinary Indirect 100.00 100.00 LSEG Information Services (US) Inc. USA c/o United Agent Group Inc, 3411 Silverside Road, Tatnall Building #104, Wilmington, DE 19810, United States Ordinary Indirect 100.00 100.00 LSEG Financing Corporation USA c/o United Agent Group Inc, 3411 Silverside Road, Tatnall Building #104, Wilmington, DE 19810, United States Ordinary Indirect 100.00 100.00 LSEG Financing LLC USA c/o United Agent Group Inc, 3411 Silverside Road, Tatnall Building #104, Wilmington, DE 19810, United States Membership Units Indirect 100.00 100.00 LSEG Ireland Limited Ireland 10 Earlsfort Terrace, Dublin, Ireland, DO2 T380 Ordinary Indirect 100.00 100.00 LSEG Ireland 2 Limited Ireland 1 Stokes Place, St Stephen\u2019s Green, Dublin, Ireland DO2 DE03 Ordinary Indirect 100.00 100.00 LSEG Ireland 3 Limited Ireland 1 Stokes Place, St Stephen\u2019s Green, Dublin, Ireland DO2 DE03 Ordinary Indirect 100.00 100.00 Name of subsidiary undertaking Location of incorporation Registered office address Class of share held Direct or indirect holding Share ownership % LSEG plc ultimate economic interest % LSEG LuxCo 1 S.\u00e0 r.l. Luxembourg c/o Crestbridge Luxembourg, 1 Boulevard de la Foire, L-1528, Luxembourg Ordinary Indirect 100.00 100.00 LSEG LuxCo 2 S.\u00e0 r.l. Luxembourg c/o Crestbridge Luxembourg, 1 Boulevard de la Foire, L-1528, Luxembourg Ordinary Indirect 100.00 100.00 LSEG Malaysia Sdn. Bhd. Malaysia 13.03 Menara Tan & Tan, 207 Jalan Tun Razak, Kuala Lumpur 50400, Malaysia Ordinary Indirect 100.00 100.00 LSEG Netherlands B.V. Netherlands Suite 108, Nieuwezijds Voorburgwal 162, Amsterdam, 1012 SJ, Netherlands Ordinary Direct 100.00 100.00 LSEG Pension Trustees Limited England & Wales 10 Paternoster Square, London, United Kingdom, EC4M 7LS Ordinary Indirect 100.00 100.00 LSEG Post Trade Services Limited England & Wales 10 Paternoster Square, London, United Kingdom, EC4M 7LS Ordinary Indirect 100.00 100.00 LSEG Technology Limited England & Wales 10 Paternoster Square, London, United Kingdom, EC4M 7LS Ordinary Indirect 100.00 100.00 LSEG US Fin Corp (formerly Refinitiv US Fin Corp) USA c/o United Agent Group Inc, 3411 Silverside Road, Tatnall Building #104, Wilmington, DE 19810, United States Ordinary Indirect 100.00 100.00 LSEG US Holdco, Inc. USA c/o United Agent Group Inc, 3411 Silverside Road, Tatnall Building #104, Wilmington, DE 19810, United States Common Direct 100.00 100.00 LSEGA Financing plc England & Wales 10 Paternoster Square, London, United Kingdom, EC4M 7LS Ordinary Direct 100.00 100.00 LSEGA Limited England & Wales 10 Paternoster Square, London, United Kingdom, EC4M 7LS Ordinary Direct 100.00 100.00 LSEGA, Inc. USA c/o United Agent Group Inc, 3411 Silverside Road, Tatnall Building #104, Wilmington, DE 19810, United States Common Stock Indirect 100.00 100.00 LSEGA Jersey Limited Jersey c/o Crestbridge Jersey, 47 Esplanade, St Helier, JE1 0BD, Jersey Ordinary Indirect 100.00 100.00 LSEGA2 Limited England & Wales 10 Paternoster Square, London, United Kingdom, EC4M 7LS Ordinary Direct 100.00 100.00 LSEGH (I) LLC USA c/o United Agent Group Inc, 3411 Silverside Road, Tatnall Building #104, Wilmington, DE 19810, United States Ordinary Indirect 100.00 100.00 LSEGH (Luxembourg) Limited England & Wales 10 Paternoster Square, London, United Kingdom, EC4M 7LS Ordinary Direct 100.00 100.00 LSEGH Inc. USA c/o United Agent Group Inc, 3411 Silverside Road, Tatnall Building #104, Wilmington, DE 19810, United States Common Indirect 100.00 100.00 LSEGH US PT, Inc. USA c/o United Agent Group Inc, 3411 Silverside Road, Tatnall Building #104, Wilmington, DE 19810, United States Common Stock Direct 100.00 100.00 LUH Financing Limited England & Wales 10 Paternoster Square, London, United Kingdom, EC4M 7LS Limited by Guarantee Indirect 100.00 100.00 Maystreet Inc. USA c/o United Agent Group Inc, 3411 Silverside Road, Tatnall Building #104, Wilmington, DE 19810, United States Common Stock Indirect 100.00 100.00 Mergent Japan K.K. Japan 1-2-1, Otemachi First Square East Tower 11F, Otemachi, Chiyoda0ku, Tokyo, 100-0004 Ordinary Indirect 100.00 100.00 Mergent, Inc. USA c/o United Agent Group Inc, 3411 Silverside Road, Tatnall Building #104, Wilmington, DE 19810, United States Ordinary Indirect 100.00 100.00 Millennium Information Technologies (India) Private Limited India One World Center, 12th Floor, Tower 1, 841 Senapati Bapat Marg, Mumbai, 400013 India Ordinary Indirect 100.00 100.00 Millennium IT (USA) Inc. USA c/o United Agent Group Inc, 3411 Silverside Road, Tatnall Building #104, Wilmington, DE 19810, United States Common Indirect 100.00 100.00 Millennium I.T. Services (Private) Limited Sri Lanka 65/2, Sir Chittampalam A Gardiner Mawatha, Colombo, 02 Ordinary Indirect 100.00 100.00 Millennium IT Software (Canada) Inc. Canada Suite 2400, 333 Bay Street, Toronto, Ontario, Canada, M5H 2T6 Common Indirect 100.00 100.00 Millennium IT Software (Private) Limited Sri Lanka 1 Millennium Drive, Malabe, Colombo 10115, Sri Lanka Ordinary Indirect 100.00 100.00 Name of subsidiary undertaking Location of incorporation Registered office address Class of share held Direct or indirect holding Share ownership % LSEG plc ultimate economic interest % Monitor Services Hong Kong Limited Cook Islands c/o Cook Islands Trust Corporation Limited, First Floor, BCI House, PO Box 141, Avaura, Rarotonga, Cook Islands Ordinary Indirect 100.00 100.00 Monitor Trading Limited England & Wales Five Canada Square, Canary Wharf, London, United Kingdom, E14 5AQ Ordinary Indirect 100.00 100.00 PT Refinitiv Services Indonesia Indonesia Menara Astra, #37-118, Jl. Jendral Sudirman Kav 5-6, Jakarta Pusat, Jakarta 10220, Indonesia Ordinary Indirect 100.00 100.00 PT LSEG Transaction Services Indonesia Indonesia Menara Astra, #37-118, Jl. Jendral Sudirman Kav 5-6, Jakarta Pusat, Jakarta 10220, Indonesia Class A Indirect 100.00 100.00 1 Class B \u2013 \u2013 Quantile B.V. Netherlands Stadhouderskade 5H, 1054 ES Amsterdam, Netherlands Ordinary Indirect 100.00 100.00 Preference Indirect 100.00 Quantile Group Limited England & Wales Cannon Green Building, 27 Bush Lane, London, United Kingdom, EC4R 0AN Ordinary Indirect 100.00 100.00 Quantile Inc. USA c/o Corporation Service Company, 251 Little Falls Drive, Wilmington, DE 19808, United States Common Indirect 100.00 100.00 Quantile Technologies Limited England & Wales Cannon Green Building, 27 Bush Lane, London, United Kingdom, EC4R 0AN Ordinary Indirect 100.00 100.00 Quorate Technology Limited Scotland 8th Floor, Appleton Tower, 11 Crichton Street, Edinburgh, Scotland, United Kingdom, EH8 9LE Ordinary Indirect 100.00 100.00 R.M.E. Bahrain Limited W.L.L. Bahrain Flat 1002, Building 1459, Road 4626, Block 346, Manama Ordinary Indirect 100.00 100.00 REDI Technologies Ltd England & Wales Five Canada Square, Canary Wharf, London, United Kingdom, E14 5AQ Ordinary Indirect 100.00 100.00 REDI Global Technologies LLC USA c/o United Agent Group Inc, 600 Mamaroneck Avenue, #400, Harrison, NY 10528, United States Member Interest Indirect 100.00 100.00 Refinitiv (Canvas) Holdings 1 Limited Bermuda c/o Conyers Corporate Service (Bermuda) Limited, Clarendon House, 2 Church Street, Hamilton, Bermuda, HM 11 Common Indirect 100.00 100.00 Refinitiv (Canvas) Holdings 2 Limited Bermuda c/o Conyers Corporate Service (Bermuda) Limited, Clarendon House, 2 Church Street, Hamilton, Bermuda, HM 11 Common Indirect 100.00 100.00 Refinitiv (Canvas) Holdings 3 Limited Bermuda c/o Conyers Corporate Service (Bermuda) Limited, Clarendon House, 2 Church Street, Hamilton, Bermuda, HM 11 Common Indirect 100.00 100.00 Refinitiv (Thailand) Limited Thailand 968 U Chu Liang Building, 34th Floor, Rama IV Road, Silom, Bangrak, Bangkok, Thailand, 10500 Ordinary Indirect 100.00 100.00 1 Preference Indirect 49.00 Refinitiv Asia Pte. Ltd. Singapore 1 Raffles Quay, #28-01, Singapore 048583 Ordinary Indirect 100.00 100.00 Refinitiv Australia Pty Limited Australia c/o TMF Corporate Services (Aust) Pty Limited, Suite 1, Level 11, 66 Goulburn Street, Sydney, NSW 2000, Australia Ordinary Indirect 100.00 100.00 Refinitiv Austria GmbH Austria The ICON Vienna, Wiedner G\u00fcrtel 13, A/12.OG/1123, 1100 Vienna, Austria Ordinary Indirect 100.00 100.00 Refinitiv Benchmark Services (UK) Limited England & Wales Five Canada Square, Canary Wharf, London, United Kingdom, E14 5AQ Ordinary Indirect 100.00 100.00 Refinitiv Brasil Servicos Economicos Limitada Brazil Avenida Doutour Cardoso de Melo, 1855 \u2013 4 e 12 andares, Conj 41 e 122, Vila Olimpia, Sao Paulo \u2013 SP, Brazil CEP 04548-005 Ordinary Indirect 100.00 100.00 Refinitiv Canada Holdings Limited Canada Suite 400, 333 Bay Street, Suite 400, Toronto, Canada, M5H 2R2 Common Indirect 100.00 100.00 Refinitiv Costa Rica Sociedad De Responsabilidad Limitada Costa Rica San Jose, Santa Ana radial a San Antionio de Belen, Doscientos metros norte de la Cruz Roja de Santa Ana, Edificio Murano, Piso Uno, Oficina 13, Costa Rica Ordinary Indirect 100.00 100.00 Refinitiv Cyprus Limited Cyprus Neas Egkomis 33, 1st floor, Flat/Office 208, Egkomi, Nicosia, Cyprus, 2409 Ordinary Indirect 100.00 100.00 Refinitiv Czech Republic s.r.o. Czechia Na Perstyne 342/1, Star\u00e9 Mesto, 110 00 Praha 1, Czechia Ordinary Indirect 100.00 100.00 Name of subsidiary undertaking Location of incorporation Registered office address Class of share held Direct or indirect holding Share ownership % LSEG plc ultimate economic interest % Refinitiv de Mexico, S.A. de C.V. Mexico Torre Esmeralda II. Blvd. Manuel Avila Camacho #36, Floor 19th, Lomas de Chapultepec, Mexico City, Mexico 11000 Common Indirect 100.00 100.00 Refinitiv Denmark A/S Denmark Vesterbrogade 1 E, 4, DK-1620, Copenhagen V, Denmark Ordinary Indirect 100.00 100.00 Refinitiv Enformasyon Limited Sirketi Turkey Is Kuleleri, Kule 2, Kat 1-2, 4. Levent, Istanbul, Turkey, 34330 Ordinary Indirect 100.00 100.00 Refinitiv Europe Middle East and Africa (Central Region) Limited Guernsey c/o Alternative Risk Management Limited, Level 5, Mill Court, La Charroterie, St Peter Port, Guernsey, GY1 1EJ Ordinary Indirect 100.00 100.00 Refinitiv Financial Technology Information Service (China) Group Co. Ltd. China Room 1811, The Towers Offices at Oriental Plaza, No.1 East Chang\u2019an Avenue, WangFuJing, Dongcheng Qu, Beijing 100006, China Contribution Unit Indirect 100.00 100.00 Refinitiv Finland OY AB Finland Spaces Postitalo, Mannerheiminaukio 1A, Helsinki, Finland 00100 Ordinary Indirect 100.00 100.00 Refinitiv France Holdings S.\u00e0 r.l. France 18 Rue du Quatre-Septembre, 75002 Paris, France Ordinary Indirect 100.00 100.00 Refinitiv France SAS France 18 Rue du Quatre-Septembre, 75002 Paris, France Ordinary Indirect 100.00 100.00 Refinitiv Germany GmbH Germany Friedrich-Ebert-Anlage 49, 60327 Frankfurt am Main, Germany Ordinary Indirect 100.00 100.00 Refinitiv Germany Holdings GmbH Germany Friedrich-Ebert-Anlage 49, 60327 Frankfurt am Main, Germany Ordinary Indirect 100.00 100.00 Refinitiv Global Markets Inc. USA c/o United Agent Group Inc, 3411 Silverside Road, Tatnall Building #104, Wilmington, DE 19810, United States Common Indirect 100.00 100.00 Refinitiv Global Private Limited India One World Center, 12th Floor, Tower 1, 841 Senapati Bapat Marg, Maharashtra, Mumbai, 400013 Ordinary Indirect 100.00 100.00 Refinitiv Group Nominees Limited England & Wales Five Canada Square, Canary Wharf, London, United Kingdom, E14 5AQ Limited by Guarantee Indirect 100.00 100.00 Refinitiv Hellas Single-member Societe Anonyme Greece 53 Solonos Street, Athens, Greece, 10672 Ordinary Indirect 100.00 100.00 Refinitiv Holdings (Thailand) Limited Thailand 30th floor, U Chu Liang Building, 968 Rama IV, Bangkok, Silom Bangrak, Thailand, 10500 Ordinary Indirect 100.00 100.00 1 Preference \u2013 \u2013 Refinitiv Hong Kong Limited Jersey c/o Crestbridge Jersey, 47 Esplanade, St Helier, JE1 0BD, Jersey Ordinary Indirect 100.00 100.00 Refinitiv Hungary Kft. Hungary Alkot\u00e1s utca 53, A torony, 6. emelet, Budapest, 1123 Hungary Ordinary Indirect 100.00 100.00 Refinitiv India Private Limited India One World Center, 12th Floor, Tower 1, 841 Senapati Bapat Marg, Maharashtra, Mumbai, 400013 Ordinary Indirect 100.00 100.00 Refinitiv India Shared Services Private Limited India One World Center, 12th Floor, Tower 1, 841 Senapati Bapat Marg, Maharashtra, Mumbai, 400013 Ordinary Indirect 100.00 100.00 Refinitiv India Transaction Services Private Limited India One World Center, 12th Floor, Tower 1, 841 Senapati Bapat Marg, Maharashtra, Mumbai, 400013 Ordinary Indirect 100.00 100.00 Refinitiv Information Services (China) Co Limited China Unit 3006, No 1223, Azia Centre, Lujiqzui Huang Road, Shanghai, China Contribution Unit Indirect 100.00 100.00 Refinitiv International Holdings SARL Switzerland 153 Route de Thonon, 1245 Collonge-Bellerive, Switzerland Ordinary Indirect 100.00 100.00 Refinitiv Ireland Limited Ireland 12/13 Exchange Place, IFSC, Dublin, Ireland, D01P8H1 Ordinary Indirect 100.00 100.00 Refinitiv Israel Ltd. Israel 121-123 Derech Menachem Begin, Azrieli Sarona Building \u2013 30 Fl, Tel Aviv, Israel, 6701203 Ordinary Indirect 100.00 100.00 Refinitiv Italy Holding S.P.A. Italy Piazza Armando Diaz, 2, Milano, Italy, 20123 Ordinary Indirect 100.00 100.00 Refinitiv Italy S.P.A Italy Piazza Armando Diaz, 2, Milano, Italy, 20123 Ordinary Indirect 100.00 100.00 Refinitiv Japan K.K. Japan 30/F Akasaka Biz Tower, 5-3-1 Akasaka, Minato-Ku, Tokyo 107-6330, Japan Ordinary Indirect 100.00 100.00 Name of subsidiary undertaking Location of incorporation Registered office address Class of share held Direct or indirect holding Share ownership % LSEG plc ultimate economic interest % Refinitiv Korea Limited Korea 9F S Tower, 82 Saemunanro, Jongnogu, Korea, 03185 Common \u2013 Voting Indirect 100.00 100.00 Refinitiv Latam Trading Limited England & Wales Five Canada Square, Canary Wharf, London, United Kingdom, E14 5AQ Ordinary Indirect 100.00 100.00 Refinitiv Limited England & Wales Five Canada Square, Canary Wharf, London, United Kingdom, E14 5AQ Ordinary Indirect 100.00 100.00 Refinitiv Malaysia Sdn. Bhd. Malaysia Suite 13.03, 13th floor, Menara Tan & Tan, 207 Jalan Tun Razak, Kuala Lumpur 50400, Malaysia Ordinary Indirect 100.00 100.00 Refinitiv Middle East FZ-LLC United Arab Emirates Premises 501, 5th Floor, Building 01, Dubai, United Arab Emirates Ordinary Indirect 100.00 100.00 Refinitiv Netherlands B.V. Netherlands Antonio Vivaldistraat 50, 1083 HP Amsterdam, Netherlands Ordinary Indirect 100.00 100.00 Refinitiv Netherlands Finance B.V. Netherlands Antonio Vivaldistraat 50, 1083 HP Amsterdam, Netherlands Ordinary Indirect 100.00 100.00 Refinitiv Netherlands Holdings B.V. Netherlands Antonio Vivaldistraat 50, 1083 HP Amsterdam, Netherlands Ordinary Indirect 100.00 100.00 Refinitiv Netherlands Overseas Holdings B.V. Netherlands Antonio Vivaldistraat 50, 1083 HP Amsterdam, Netherlands Ordinary Indirect 100.00 100.00 Refinitiv New Zealand Limited New Zealand c/o The Business Advisory Group Limited, Level 9, 55 Shortland Street, Auckland, New Zealand, 1010 Ordinary Indirect 100.00 100.00 Refinitiv Norge AS Norway Dronning Eufemias gate 16, Oslo, Norway, 0191 Ordinary Indirect 100.00 100.00 Refinitiv Parent Limited Cayman Islands c/o Intertrust Corporate Services (Cayman) Limited, 1 Nexus Way, Camana Bay, Grand Cayman, KY1-9005, Cayman Islands Ordinary Direct 67.51 100.00 Indirect 32.49 Refinitiv Peru Srl Peru 102, WeWork Real 2, Avenida Victor Andr\u00e9s Bela\u00fande 147, Via Principal 133, Lima, Peru, 15073 Ordinary Indirect 100.00 100.00 Refinitiv Poland Spolka Z o.o. Poland 126/134 Marszalkowska St, 00-008, Warsaw, Poland Ordinary Indirect 100.00 100.00 Refinitiv Portugal Unipessoal Limitada Portugal 10, Rua Mouzinho da Silveira, Lisboa, Portugal, 1250-167 Ordinary Indirect 100.00 100.00 Refinitiv Romania S.R.L. Romania 6L, Iuliu Maniu Boulevard, Campus 6.1, 4th Floor, District 6, Bucharest, Romania, 061344 Ordinary Indirect 100.00 100.00 Refinitiv RUS LLC Russian Federation 5 Petrovka Street, Berlin Haus, Business Centre, Moscow, Russian Federation, 107031 Ordinary Indirect 100.00 100.00 Refinitiv SA Switzerland 153 Route de Thonon, 1245 Collonge-Bellerive, Switzerland Ordinary Indirect 100.00 100.00 Refinitiv Saudi for Information and Communication Technology Saudi Arabia Al Thalatten Commercial Centre, 2nd Floor, Olaya Thalateen, Corner Dhabab Street, PO Box 62422, Riyadh, Saudi Arabia, 11585 Ordinary Indirect 75.00 100.00 2 Refinitiv Software (Thailand) Limited Thailand U Chu Liang Building, 968 Rama IV Road, Silom, Bangrak, Bangkok, Thailand, 10500 Ordinary Indirect 100.00 100.00 Refinitiv Sweden AB Sweden PO Box 1732, Stockholm, Sweden, SE 111 87 Ordinary Indirect 100.00 100.00 Refinitiv Technology (China) Co., Limited China A2 Tower, ZhongGuanCun #1, 81 BeiQing Road, Haidian District, Beijing, China, 100193 Contribution Unit Indirect 100.00 100.00 Refinitiv Tecnologia em Sistemas Brasil Limitada Brazil Av. Doutor Cardoso de Melo 1855, Andar 4, Conj. 42, Vila Olimpia, Sao Paulo, Brazil, 04548-005 Ordinary Indirect 100.00 100.00 Refinitiv Transaction Services Limited England & Wales Five Canada Square, Canary Wharf, London, United Kingdom, E14 5AQ Ordinary Indirect 100.00 100.00 Refinitiv Transaction Services Malaysia Sdn. Bhd. Malaysia Suite 13.03, 13th floor, Menara Tan & Tan, 207 Jalan Tun Razak, Kuala Lumpur 50400, Malaysia Ordinary Indirect 100.00 100.00 Refinitiv Transaction Services Pte. Ltd. Singapore One Raffles Quay, #28-01, Singapore 048583 Ordinary Indirect 100.00 100.00 Refinitiv TW Holdings Ltd. Cayman Islands c/o Intertrust Corporate Services (Cayman) Limited, 1 Nexus Way, Camana Bay, Grand Cayman, KY1-9005, Cayman Islands Ordinary Indirect 100.00 100.00 Name of subsidiary undertaking Location of incorporation Registered office address Class of share held Direct or indirect holding Share ownership % LSEG plc ultimate economic interest % Refinitiv UK (Rest Of World) Holdings Limited England & Wales Five Canada Square, Canary Wharf, London, United Kingdom, E14 5AQ Ordinary Indirect 100.00 100.00 Refinitiv UK Eastern Europe Limited England & Wales Five Canada Square, Canary Wharf, London, United Kingdom, E14 5AQ Ordinary Indirect 100.00 100.00 Refinitiv UK Financial Limited England & Wales Five Canada Square, Canary Wharf, London, United Kingdom, E14 5AQ Ordinary Indirect 100.00 100.00 Refinitiv UK Holding Company Limited Bermuda c/o Conyers Corporate Services (Bermuda) Limited, Clarendon House, 2 Church Street, Hamilton, Bermuda, HM 11 Ordinary indirect 100.00 100.00 Refinitiv UK Holdings Limited England & Wales Five Canada Square, Canary Wharf, London, United Kingdom, E14 5AQ Ordinary Indirect 100.00 100.00 Refinitiv UK Overseas Holdings Limited England & Wales Five Canada Square, Canary Wharf, London, United Kingdom, E14 5AQ Ordinary Indirect 100.00 100.00 Refinitiv UK Parent Limited England & Wales Five Canada Square, Canary Wharf, London, United Kingdom, E14 5AQ Ordinary Indirect 100.00 100.00 Refinitiv US IP Corp USA c/o United Agent Group Inc, 3411 Silverside Road, Tatnall Building #104, Wilmington, DE 19810, United States Ordinary Indirect 100.00 100.00 Refinitiv US LLC USA c/o United Agent Group Inc, 3411 Silverside Road, Tatnall Building #104, Wilmington, DE 19810, United States Member Interest Indirect 100.00 100.00 Refinitiv US Organization LLC USA c/o United Agent Group Inc, 3411 Silverside Road, Tatnall Building #104, Wilmington, DE 19810, United States Member Interest Indirect 100.00 100.00 Refinitiv US Personal Focus Inc. USA c/o United Agent Group Inc, 3411 Silverside Road, Tatnall Building #104, Wilmington, DE 19810, United States Ordinary Indirect 100.00 100.00 Refinitiv US PME LLC USA c/o United Agent Group Inc, 3411 Silverside Road, Tatnall Building #104, Wilmington, DE 19810, United States Class A Indirect 100.00 100.00 Class B Indirect 100.00 Refinitiv US SEF LLC USA c/o United Agent Group Inc, 3411 Silverside Road, Tatnall Building #104, Wilmington, DE 19810, United States Ordinary Indirect 100.00 100.00 Refinitiv US Services Corp USA c/o United Agent Group Inc, 3411 Silverside Road, Tatnall Building #104, Wilmington, DE 19810, United States Ordinary Indirect 100.00 100.00 Refinitiv US Tradeweb LLC USA c/o Corporation Service Company, 251 Little Falls Drive, Wilmington, DE 19808, United States Ordinary Indirect 100.00 46.673 Refinitiv, S.L. Spain Paseo de la Castellana 95, 7a, Edificio Torre Europa, Madrid, Spain, 28046 Ordinary Indirect 100.00 100.00 RepoClear Limited England & Wales 10 Paternoster Square, London, United Kingdom, EC4M 7LS Ordinary Indirect 100.00 82.61 Reuters Asia Pacific Limited Mauritius c/o Ocorian Corporate Administrators Limited, 6th Floor Tower A, Ebene, Cyber City, Mauritius, 72201 Ordinary Indirect 100.00 100.00 Reuters Pension Fund Limited England & Wales Five Canada Square, Canary Wharf, London, United Kingdom, E14 5AQ Limited by Guarantee Indirect 100.00 \u2013 Reuters SPS Trustee Limited England & Wales Five Canada Square, Canary Wharf, London, United Kingdom, E14 5AQ Limited by Guarantee Indirect 100.00 \u2013 RRP Pension Trustee Limited England & Wales Five Canada Square, Canary Wharf, London, United Kingdom, E14 5AQ Limited by Guarantee Indirect 100.00 \u2013 SSC Global Business Services Limited England & Wales 10 Paternoster Square, London, United Kingdom, EC4M 7LS Ordinary Indirect 100.00 100.00 SwapAgent Limited England & Wales 10 Paternoster Square, London, United Kingdom, EC4M 7LS Ordinary Indirect 100.00 82.61 SwapClear Limited England & Wales 10 Paternoster Square, London, United Kingdom, EC4M 7LS Ordinary Indirect 100.00 82.61 Stock Exchange (Holdings) Limited (The) England & Wales 10 Paternoster Square, London, United Kingdom, EC4M 7LS Ordinary Indirect 100.00 100.00 Tech Hackers LLC USA c/o Corporation Service Company, 251 Little Falls Drive, Wilmington, DE 19808, United States Membership Interest Indirect 100.00 51.24 Telfer Investments Australia Pty Limited Australia c/o TMF Corporate Services (Aust) Pty Limited, Suite 1, Level 11, 66 Goulburn Street, Sydney, NSW 2000, Australia Ordinary Indirect 100.00 100.00 Special Indirect 100.00 Name of subsidiary undertaking Location of incorporation Registered office address Class of share held Direct or indirect holding Share ownership % LSEG plc ultimate economic interest % Telfer Pty. Limited Australia c/o TMF Corporate Services (Aust) Pty Limited, Suite 1, Level 11, 66 Goulburn Street, Sydney, NSW 2000, Australia Ordinary Indirect 100.00 100.00 Special Indirect 100.00 The London Clearing House Limited England & Wales 10 Paternoster Square, London, United Kingdom, EC4M 7LS Ordinary Indirect 100.00 82.61 The Red Flag Group (Australia) Pty Limited Australia c/o Pilot Partners, Waterfront Place, Level 10, 1 Eagle Street, Brisbane, QLD 4000, Australia Ordinary Indirect 100.00 100.00 The Red Flag Group (BVI) Limited British Virgin Islands Jayla Place, 2nd Floor, Road Town, Tortola, British Virgin Islands Ordinary Indirect 100.00 100.00 The Red Flag Group (France) SAS France 20 Avenue Andre Malraux \u2013 92300, Levallois Perret, France Ordinary Indirect 100.00 100.00 The Red Flag Group (HK) Limited Hong Kong 18/F ICBC Tower, 3 Garden Road, Hong Kong Ordinary Indirect 100.00 100.00 The Red Flag Group (Malaysia) Sdn. Bhd. Malaysia 12th Floor, Menara Symphony, No. 5 Jalan Prof. Khoo Kay Kim, Seksyen 13, 46200 Petaling Jaya, Selangor, Malaysia Ordinary Indirect 100.00 100.00 The Red Flag Group (Netherlands) B.V. Netherlands Antonio Vivaldistraat 50, 1083 HP Amsterdam, Netherlands Ordinary Indirect 100.00 100.00 The Red Flag Group (Philippines) Inc. Philippines Unit 7-2, 7/F Net Square, 3rd Avenue Corner 28th Street E-Square, Crescent Park West Bonifacio Global City, Taguig Metro Manila, Philippines Ordinary Indirect 100.00 100.00 The Red Flag Group (Poland) Spolka Z o.o. Poland UI. Kotlarska 11, 31-539, Krakow, Poland Ordinary Indirect 100.00 100.00 The Red Flag Group (Shanghai) Limited China 3F. Agile International Plaza, No. 525 Middle Xizang Road, Huangpu District, Shanghai, China Ordinary Indirect 100.00 100.00 The Red Flag Group (Spain) SL Spain Paseo de la Castellana, No 161, 2 Planta, Madrid 28046, Spain Ordinary Indirect 100.00 100.00 The Red Flag Group (Switzerland) AG Switzerland Baarerstrasse 112, 6300 Zug, Switzerland Ordinary Indirect 100.00 100.00 The Red Flag Group (UK) Limited England & Wales Five Canada Square, Canary Wharf, London, United Kingdom, E14 5AQ Ordinary Indirect 100.00 100.00 The Red Flag Group FZ-LLC United Arab Emirates Office 104, Building 3, PO Box 500 630, Dubai Internet City, Dubai, United Arab Emirates Ordinary Indirect 100.00 100.00 The Red Flag Group Inc. USA c/o United Agent Group Inc, 3411 Silverside Road, Tatnall Building #104, Wilmington, DE 19810, United States Ordinary Indirect 100.00 100.00 The Red Flag Group International (Panama) SA Panama Obarrio, 55th East, \u201cSanta Rita O\u201d St., SFC Tower, 15th Floor, Office 15-ABC, Panama City Ordinary Indirect 100.00 100.00 The Red Flag Group Limited Hong Kong 18/F Champion Tower and ICBC Tower, 3 Garden Road, Hong Kong Ordinary Indirect 100.00 100.00 The Red Flag Group Products (HK) Limited Hong Kong 18/F Champion Tower and ICBC Tower, 3 Garden Road, Hong Kong Ordinary Indirect 100.00 100.00 The Red Flag Group Pte Limited Singapore 1 Raffles Quay, #28-01, Singapore 048583 Ordinary Indirect 100.00 100.00 The Yield Book, Inc. USA c/o United Agent Group Inc, 3411 Silverside Road, Tatnall Building #104, Wilmington, DE 19810, United States Common Indirect 100.00 100.00 TicketAid Limited England & Wales Five Canada Square, Canary Wharf, London, United Kingdom, E14 5AQ Ordinary Indirect 100.00 \u2013 TIPS LLC USA c/o Corporation Service Company, 1821 Logan Avenue, Cheyenne, WY 82001, United States Membership Interest Indirect 100.00 51.24 Tora Holdings, Inc. USA c/o United Agent Group Inc, 3411 Silverside Road, Tatnall Building #104, Wilmington, DE 19810, United States Common Indirect 100.00 100.00 Tora Trading Investments, LLC USA c/o CT Corporation, 1209 Orange Street, Wilmington, DE 19801, United States Common Indirect 100.00 100.00 Tora Trading Services (Asia) Limited Hong Kong 20th Floor, The Wellington, 198 Wellington St, Central, Hong Kong Ordinary Indirect 100.00 100.00 Tora Trading Services (Jersey) Limited Jersey De Carteret House, 7, Castle St, St. Helier, Jersey, JE2 3BT Ordinary Indirect 100.00 100.00 Name of subsidiary undertaking Location of incorporation Registered office address Class of share held Direct or indirect holding Share ownership % LSEG plc ultimate economic interest % Tora Trading Services K.K. Japan KDX Kojimachi Bldg, 2nd Floor, 3-3-4 Kojimachi, Chiyoda-ku, Tokyo, 102-0083, Japan Ordinary Indirect 100.00 100.00 Tora Trading Services, LLC USA c/o CT Corporation, 1209 Orange Street, Wilmington, DE 19801, United States Common Indirect 100.00 100.00 Tora Trading Services Limited Cayman Islands 1 Nexus Way, Camana Bay, Grand Cayman, KY1-9005, Cayman Islands Ordinary Indirect 100.00 100.00 Tora Trading Services Limited Hong Kong 20th Floor, The Wellington, 198 Wellington St, Central, Hong Kong Ordinary Indirect 100.00 100.00 Tora Trading Services Limited England & Wales 10 Paternoster Square, London, United Kingdom, EC4M 7LS Ordinary Indirect 100.00 100.00 Tora Trading Services Pte Ltd. Singapore Level 58, Republic Plaza, 9, Raffles Place, Singapore 048619 Ordinary Indirect 100.00 100.00 Tora Trading Services Pty Limited Australia Level 5, Deutsche Bank Place, 126 Phillip St, Sydney, NSW 2000, Australia Ordinary Indirect 100.00 100.00 Tora Trading Services S.R.L. Romania Strada Nicolae Iorga 1, Cluj-Napoca 400063, Romania Ordinary Indirect 100.00 100.00 TradeWeb Commercial Information Consulting (Shanghai) Company Limited China Floors 3 & 4, No. 1 Lane, 65 Huanlong Road, Shanghai Free Trade Zone Contribution Unit Indirect 100.00 51.24 Tradeweb Direct LLC USA c/o Corporation Service Company, 251 Little Falls Drive, Wilmington, DE 19808, United States Contribution Unit Indirect 100.00 51.24 Tradeweb EU B.V. Netherlands Antonio Vivaldistraat 50, Amsterdam, 1083 HP, Netherlands Membership Interest Indirect 100.00 51.24 Tradeweb Europe Limited England & Wales 1 Fore Street Avenue, London, United Kingdom, EC2Y 9DT Ordinary Indirect 100.00 51.24 Tradeweb Execution Services Limited England & Wales 1 Fore Street Avenue, London, United Kingdom, EC2Y 9DT Ordinary Indirect 100.00 51.24 Tradeweb Execution Services B.V. Netherlands Strawinskylaan 4117, Amsterdam, 10777ZX Ordinary Indirect 100.00 51.24 Tradeweb Global Holding LLC USA c/o Corporation Service Company, 2711 Centerville Road, Suite 400, DE 19808, United States Ordinary Indirect 100.00 51.24 Tradeweb Global LLC USA c/o Corporation Service Company, 251 Little Falls Drive, Wilmington, DE 19808, United States Ordinary Indirect 100.00 51.24 Tradeweb IDB Markets, Inc. USA c/o Corporation Service Company, 251 Little Falls Drive, Wilmington, DE 19808, United States Ordinary Indirect 100.00 51.24 Tradeweb Japan K.K. Japan 30/F Akasaka Biz Tower, 5-3-1 Akasaka, Minato-Ku, Tokyo 107-0052, Japan Ordinary Indirect 100.00 51.24 Tradeweb LLC USA c/o Corporation Service Company, 251 Little Falls Drive, Wilmington, DE 19808, United States Common Indirect 100.00 51.24 Tradeweb Markets Inc. USA c/o Corporation Service Company, 251 Little Falls Drive, Wilmington, DE 19808, United States Common A \u2013 \u2013 46.673 Common B Indirect 100.00 Common C \u2013 \u2013 Common D Indirect 99.50 Tradeweb Markets LLC USA c/o Corporation Service Company, 251 Little Falls Drive, Wilmington, DE 19808, United States Membership interest Indirect 100.00 51.24 Turquoise Global Holdings Europe B.V. Netherlands Suite 108, Nieuwezijds Voorburgwal 162, Amsterdam, 1012 SJ, Netherlands Ordinary Indirect 100.00 84.17 Turquoise Global Holdings Limited England & Wales 10 Paternoster Square, London, United Kingdom, EC4M 7LS Ordinary A Indirect 100.00 84.17 Ordinary B Indirect 67.46 Turquoise Global Holdings US, Inc. USA c/o United Agent Group Inc, 3411 Silverside Road, Tatnall Building #104, Wilmington, DE 19810, United States Common Indirect 100.00 84.17 TW SEF LLC USA c/o Corporation Service Company, 251 Little Falls Drive, Wilmington, DE 19808, United States Limited Liability Company Interest Indirect 100.00 51.24 Name of subsidiary undertaking Location of incorporation Registered office address Class of share held Direct or indirect holding Share ownership % LSEG plc ultimate economic interest % TWC Limited Cayman Islands 1 Nexus Way, Camana Bay, Grand Cayman, KY1-9005, Cayman Islands Ordinary Indirect 100.00 51.24 TWEL Holding LLC USA c/o Corporation Service Company, 251 Little Falls Drive, Wilmington, DE 19808, United States Limited Liability Company Interest Indirect 100.00 51.24 UK LSEG Financing 1 Limited England & Wales 10 Paternoster Square, London, United Kingdom, EC4M 7LS Ordinary Indirect 100.00 100.00 UK LSEG Financing Limited England & Wales 10 Paternoster Square, London, United Kingdom, EC4M 7LS Ordinary Indirect 100.00 100.00 Unavista Limited England & Wales 10 Paternoster Square, London, United Kingdom, EC4M 7LS Ordinary Indirect 100.00 100.00 UnaVista TRADEcho B.V. Netherlands Suite 108, Nieuwezijds Voorburgwal 162, Amsterdam, 1012 SJ, Netherlands Ordinary Indirect 100.00 100.00 World Bureau of Metal Statistics Limited England & Wales 5 Canada Square, Canary Wharf, London, United Kingdom, E14 5AQ Ordinary Indirect 100.00 100.00 Yield Book Tangible Property BRE LLC USA c/o United Agent Group Inc, 3411 Silverside Road, Tatnall Building #104, Wilmington, DE 19810, United States Member Interest Indirect 100.00 100.00 Yield Book Software BRE LLC USA c/o United Agent Group Inc, 3411 Silverside Road, Tatnall Building #104, Wilmington, DE 19810, United States Member Interest Indirect 100.00 100.00 Zawya Internet Content Provider LLC United Arab Emirates P.O. Box 41640, Green Tower, District-Deira, Dubai, PO Box 1426 Ordinary Indirect 49.00 100.00 1 Zawya Limited Cayman Islands 1 Nexus Way, Camana Bay, Grand Cayman, KY1-9005, Cayman Islands Common Indirect 100.00 100.00 Zhi Cheng Worldwide Management Consulting (Shenzhen) Co., Ltd. China Room 312-04, New Times Square, No 1 Taizi Road, Shuiwan Community, Zhao Shang Street, Nanshan District, Shenzhen, China Ordinary Indirect 100.00 100.00 1 The Group\u2019s equity interest is 49.00%, but the economic interest is 100.00%. 2 The Group\u2019s equity interest is 75.00%, but the economic interest is 100.00%. 3 The Group\u2019s voting interest is 91.2%. ",
"dimensions": {
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"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-712": {
"value": "11.2 Non-controlling interests Accounting policy Non-controlling interests The Group recognises non-controlling interests in a business either at fair value or at the non-controlling interest\u2019s proportionate share of the net assets. This treatment is determined on an acquisition-by-acquisition basis. After initial recognition, the carrying value of the non-controlling interest is adjusted for any changes in equity and the total comprehensive income attributable to the non-controlling interest holders, less dividends paid. Change in the ownership interest of a subsidiary company, without loss of control For acquisitions or disposals of non-controlling interests where control of the subsidiary remains with the Group, the difference between any consideration paid or received, and the relevant share of net assets acquired or sold, is recognised in equity. Financial information for subsidiary entities or groups that have material non-controlling interests is provided below: Proportion of economic interest held by non-controlling interests 2022 2021 Tradeweb group 48.8% 48.7% LCH group 17.4% 17.4% Turquoise Global Holdings Limited 1 15.8% 48.6% 1 During the year, the Group acquired an additional 32.8% of Turquoise Global Holdings Limited for \u00a315 million. The Group recognised a decrease in non-controlling interests of \u00a319 million and an increase in equity attributable to owners of the parent of \u00a34 million. Profit from continuing operations allocated to non-controlling interests 2022 \u00a3m 2021 \u00a3m Tradeweb group 116 63 LCH group 72 65 Other 1 3 189 131 Accumulated balance of non-controlling interests 2022 \u00a3m 2021 \u00a3m Tradeweb group 1,813 1,552 LCH group 333 302 Other 9 25 2,155 1,879 Summarised financial information for the Tradeweb and LCH groups is provided below. Tradeweb group The Group has a 46.7% economic interest in Tradeweb Markets Inc, a US company. Tradeweb Markets Inc is the parent company of Tradeweb Markets LLC in which the Group holds a further direct interest. This gives the Group an effective economic interest of 51.2% in Tradeweb Markets LLC. The Tradeweb group\u2019s summarised financial information below differs from that reported by Tradeweb. The numbers disclosed here include adjustments to bring their accounting policies in line with those used by the Group and to include the impact of acquisition accounting. Summarised financial information attributable to non-controlling interests 1 2022 \u00a3m 2021 \u00a3m Profit for the year attributable to non-controlling interests 116 63 Total comprehensive income for the year attributable to non-controlling interests 308 92 Dividends paid to non-controlling interests in the year 30 26 1 The summarised financial information includes any amortisation and impairment of goodwill and purchased intangible assets, and the related deferred tax benefit attributable to non-controlling interests. Summarised balance sheet 1 2022 \u00a3m 2021 \u00a3m Non-current assets 8,500 7,653 Current assets 1,245 876 Current liabilities (212) (174) Non-current liabilities (470) (529) Net assets 9,063 7,826 Attributable to: Equity holders of the company 7,250 6,274 Non-controlling interests 1,813 1,552 Total equity 9,063 7,826 1 The summarised balance sheet includes goodwill and purchased intangible assets together with associated amortisation, impairment and deferred tax. Summarised total comprehensive income 1 and cash flows 2022 \u00a3m 2021 \u00a3m Total income for the year 961 720 Total profit for the year 328 234 Total comprehensive income for the year 805 308 Net increase in cash and cash equivalents 331 142 1 The summarised total comprehensive income of the Tradeweb group excludes any amortisation and impairment of goodwill and purchased intangible assets (together with any associated deferred tax) attributable to non-controlling interests. LCH group The Group owns 82.6% of LCH Group Holdings Limited, which is the parent of LCH Limited, based in the UK, and LCH SA, based in France. There is a further direct non-controlling interest in LCH SA, giving the Group an effective 73.4% economic interest in LCH SA. Summarised financial information attributable to non-controlling interests 1 2022 \u00a3m 2021 \u00a3m Profit for the year attributable to non-controlling interests 72 65 Total comprehensive income for the year attributable to non-controlling interests 82 43 Dividends paid to non-controlling interests in the year 50 71 1 The summarised financial information includes any amortisation and impairment of goodwill and purchased intangible assets and the related deferred tax benefit attributable to non-controlling interests Summarised balance sheet 1 2022 \u00a3m 2021 \u00a3m Non-current assets 557 585 Current assets 794,130 749,964 Current liabilities (793,064) (749,041) Non-current liabilities (52) (91) Net assets 1,571 1,417 Attributable to: Equity holders of the company 1,238 1,115 Non-controlling interests 333 302 Total equity 1,571 1,417 1 The summarised balance sheet includes goodwill and purchased intangible assets together with associated amortisation, impairment and deferred tax. Summarised total comprehensive income 1 and cash flows for LCH Group Holdings Limited 2022 \u00a3m 2021 \u00a3m Total income for the year 952 856 Total profit for the year 368 317 Total comprehensive income for the year 411 214 Net increase/(decrease) in cash and cash equivalents 126 (211) 1 The summarised total comprehensive income of the LCH group excludes any amortisation and impairment of goodwill and purchased intangible assets (together with any associated deferred tax) attributable to non-controlling interests",
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"fact-641": {
"value": "Non-controlling interests The Group recognises non-controlling interests in a business either at fair value or at the non-controlling interest\u2019s proportionate share of the net assets. This treatment is determined on an acquisition-by-acquisition basis. After initial recognition, the carrying value of the non-controlling interest is adjusted for any changes in equity and the total comprehensive income attributable to the non-controlling interest holders, less dividends paid. Change in the ownership interest of a subsidiary company, without loss of control For acquisitions or disposals of non-controlling interests where control of the subsidiary remains with the Group, the difference between any consideration paid or received, and the relevant share of net assets acquired or sold, is recognised in equity. ",
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"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
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"fact-688": {
"value": "12. Business combinations During the year, the Group acquired the businesses listed below. The results of the businesses have been consolidated since the date of acquisition. \u2014 Global Data Consortium, Inc (GDC) \u2014 MayStreet Inc. (MayStreet) \u2014 Tora Holdings, Inc. (TORA) \u2014 Quantile Group Limited (Quantile) Accounting policy Business combinations are accounted for using the acquisition method: \u2014 Identifiable assets, liabilities and contingent liabilities acquired are measured at fair value at acquisition date. \u2014 The cost of an acquisition is measured as the aggregate of the consideration transferred and contingent consideration, which are measured at fair value, and the value of any non-controlling interests in the acquiree. \u2014 On an acquisition-by-acquisition basis, the Group elects whether to measure the non-controlling interests in the acquiree, if any, at fair value or at the proportionate share of the acquiree\u2019s identifiable net assets (see note 11.2). \u2014 Goodwill is initially measured at the amount by which the aggregate of the consideration transferred and the amount recognised for non-controlling interests (plus any previous interest held), exceeds the net identifiable assets acquired and liabilities assumed. The Group considers the nature of any compensation for the selling shareholders\u2019 continuing employment to determine if any contingent payments are for post-combination employee services. These are excluded from consideration and together with other acquisition- related costs are classified as a non-underlying transaction costs in the income statement (see note 6). Significant accounting estimates and assumptions Intangible assets acquired as part of a business combination The fair value of acquired intangible assets (and therefore the resulting goodwill recognised on acquisition) is significantly affected by a number of factors. These include management\u2019s best estimates of future performance (i.e. forecast revenue, expected revenue attrition, forecast operating margin), any contributory assets changes and estimates of the return required to determine an appropriate discount rate (in order to calculate the net present value of the assets). The purchase price allocations (PPAs) (shown in 12.2 below) have been prepared on a provisional basis in accordance with IFRS 3 Business Combinations. If new information obtained within one year of the acquisition date, about facts and circumstances that existed at the acquisition date, identifies adjustments to the amounts below or any additional provisions that existed at the date of acquisition, then the accounting for the acquisition will be revised. FINANCIAL STATEMENTS
12. Business combinations continued
12.1 Details of businesses acquired
Acquired
business Description of business Reason for acquisition Acquisition date
Voting equity
interest
acquired
Global Data
Consortium,
Inc. (GDC)
A global provider of high-quality identity
verification data to support clients with
Know Your Customer (KYC) requirements.
GDC\u2019s services are used within LSEG\u2019s Customer
& Third-Party Risk Solutions business within the
Data & Analytics division, to provide global digital
identity verification to customers. Adding GDC
to the Group\u2019s suite of digital identity solutions
will enable the Group to continue to expand
capabilities in this segment.
31 May 2022 89%
1
MayStreet Inc.
(MayStreet)
A market data solutions provider. MayStreet
provides global low latency technology and
market data to over 65 industry participants,
including banks, asset managers and hedge funds.
The acquisition enhances the Group\u2019s Enterprise
Data Solutions business, within the Data & Analytics
division, expanding our capabilities across the
latency spectrum through a global low latency
network of over 300 cross asset, exchange
and trading venue feeds. This broadens and
complements our real-time feeds and historical
market data value proposition.
31 May 2022 100%
Tora Holdings,
Inc. (TORA)
A cloud-based technology provider that supports
customers trading multiple asset classes across
global markets. TORA\u2019s solutions include an
order and execution management system (OEMS)
and portfolio management system (PMS) for
customers trading equities, fixed income,
FX, derivatives and digital assets.
The transaction will further enhance the global
footprint of the Group\u2019s Trading & Banking Solutions
business, within the Data & Analytics division, with
TORA\u2019s established presence in Asia and North
America and operations in Europe. Our customers
will benefit from a differentiated trading solution
that combines the multi-asset class capabilities of
TORA\u2019s software with the Group\u2019s rich data and
analytics services.
9 August 2022 100%
Quantile
Group
Limited
(Quantile
A leading provider of portfolio, margin and
capital optimisation and compression services
for the global financial services market.
Quantile is led by a team of industry experts
with significant experience in risk management,
quantitative analysis and trading technology.
Quantile\u2019s powerful optimisation engine provides
advanced trade compression and risk rebalancing
services to banks, hedge funds and other financial
institutions trading OTC derivatives. Quantile will
therefore complement our global OTC Derivatives
clearing services, which provide risk management
and capital efficiencies to customers. It will also
allow the Group to expand its range of Post
Trade risk management solutions through trade
compression as well as capital and margin
optimisation services.
30 November
2022
100%
1 Prior to the acquisition LSEG held an 11% interest in GDC and on 31 May 2022 recognised a \u00a323 million non-underlying remeasurement gain on this investment in associate (see note 6).
12. Business combinations continued
12.2 Consideration transferred, assets acquired and liabilities assumed, and resulting goodwill
Goodwill arising from the acquisitions has been recognised as follows:
Notes
GDC
\u00a3m
MayStreet
\u00a3m
TORA
\u00a3m
Quantile
\u00a3m
Total
\u00a3m
Purchase consideration
\u2014 Cash (including settlement of share options) 213 153 258 162 786
\u2014 Fair value of previous interest held 28 \u2013 \u2013 \u2013 28
\u2014 Deferred consideration \u2013 \u2013 \u2013 5 5
\u2014 Contingent consideration payable
1
20,23 \u2013 \u2013 \u2013 38 38
Total purchase consideration 241 153 258 205 857
Less: Fair value of identifiable net assets acquired
\u2014 Intangible assets: Customer and supplier relationships
2
14 (67) (28) (49) (44) (188)
\u2014 Intangible assets: Software
2
14 (28) (39) (47) (35) (149)
\u2014 Intangible assets: Licences
2
14 \u2013 \u2013 (3) \u2013 (3)
\u2014 Other non-current assets \u2013 (1) (3) \u2013 (4)
\u2014 Cash and cash equivalents (5) (2) (6) (5) (18)
\u2014 Other current assets (4) (3) (7) (9) (23)
\u2014 Total liabilities, excluding deferred tax liabilities 4 19 6 5 34
\u2014 Deferred tax liabilities
3
12 9 24 18 63
Fair value of identifiable net assets acquired (88) (45) (85) (70) (288)
Goodwill 14 153 108 173 135 569
Allocated to cash-generating unit
Data &
Analytics
Data &
Analytics
Data &
Analytics Post Trade
1 The contingent consideration payable is linked to performance targets of Quantile. The contingent consideration is calculated with reference to qualifying revenue and relevant valuation multiples
which determines the payment, discounted to a present value. The payable is classified as Level 3 (of the fair value hierarchy) due to inputs used in the valuation that are not based on observable
data. A 1% change in the discount rate applied would not have a material effect on the valuation of the payable.
2 The fair values of the net assets acquired were determined based on assumptions that reasonable market participants would use in the principal (or most advantageous) market and primarily
included significant unobservable inputs (Level 3 of the fair value hierarchy). The following valuation methodologies were used to determine fair value:
\u2013 Customer relationships: multi-period excess earnings method (MEEM) (income approach).
\u2013 Supplier relationships: replacement cost approach.
\u2013 Software: relief from royalty method (income approach).
\u2013 Licences: replacement cost approach.
3 The deferred tax liability mainly comprises the tax effect of the intangible assets.
The goodwill is attributable to:
\u2014 growth in the underlying business;
\u2014 future data and technology not yet developed; and
\u2014 expected synergies which will drive growth in the combined business.
None of the goodwill recognised is expected to be deductible for income tax purposes.
12.3 Revenue and profit contribution
From the respective acquisition dates, the acquired businesses contributed revenue and profit before tax as follows:
2022
GDC
Seven months
\u00a3m
MayStreet
Seven months
\u00a3m
TORA
Five months
\u00a3m
Quantile
One month
\u00a3m
Revenue 12 8 12 1
Adjusted EBITDA 4 2 \u2013 \u2013
Profit/(loss) before tax \u2013 (3) (8) \u2013
If the acquisitions had all occurred on 1 January 2022, the acquired businesses would have contributed additional revenue and adjusted EBITDA
as follows:
Continuing
2022
LSEG GDC MayStreet TORA Quantile
Pro-forma
Group
\u00a3m
Year ended
31 Dec
\u00a3m
Five months
ended 31 May
\u00a3m
Five months
ended 31 May
\u00a3m
Seven months
ended 31 Jul
\u00a3m
11 months
ended 30 Nov
\u00a3m
Revenue 7,454 8 6 20 11 7,499
Adjusted EBITDA 3,550 2 (11) (3) \u2013 3,538
FINANCIAL STATEMENTS
12. Business combinations continued
12.4 Acquisition-related costs, including employment-linked management incentive and earn-out arrangements
Acquisition-related costs are recognised as non-underlying transaction costs in the income statement (see note 6). The Group incurred
acquisition-related costs (on advisor and professional fees and management incentive and retention costs) as follows:
GDC
\u00a3m
MayStreet
\u00a3m
TORA
\u00a3m
Quantile
\u00a3m
Advisor and professional fees 3 5 3 8
Employment-linked management incentive and earn-out
arrangements
1
\u2013 22 3 \u2013
Acquisition-related costs 3 27 6 8
1 As part of the MayStreet and TORA purchase agreements, employment-linked management retention incentives and earn-out arrangements have been agreed with the former founders
and senior management. These arrangements are contingent on continuing employment, and will be:
\u2013 recognised as post-combination compensation over the arrangement period within salaries and other benefits in the income statement.
\u2013 classified as non-underlying transaction costs.
",
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"fact-663": {
"value": "Accounting policy Business combinations are accounted for using the acquisition method: \u2014 Identifiable assets, liabilities and contingent liabilities acquired are measured at fair value at acquisition date. \u2014 The cost of an acquisition is measured as the aggregate of the consideration transferred and contingent consideration, which are measured at fair value, and the value of any non-controlling interests in the acquiree. \u2014 On an acquisition-by-acquisition basis, the Group elects whether to measure the non-controlling interests in the acquiree, if any, at fair value or at the proportionate share of the acquiree\u2019s identifiable net assets (see note 11.2). \u2014 Goodwill is initially measured at the amount by which the aggregate of the consideration transferred and the amount recognised for non-controlling interests (plus any previous interest held), exceeds the net identifiable assets acquired and liabilities assumed. The Group considers the nature of any compensation for the selling shareholders\u2019 continuing employment to determine if any contingent payments are for post-combination employee services. These are excluded from consideration and together with other acquisition- related costs are classified as a non-underlying transaction costs in the income statement (see note 6). ",
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"language": "en",
"entity": "scheme:213800QAUUUP6I445N30",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
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},
"fact-642": {
"value": "Business combinations are accounted for using the acquisition method: \u2014 Identifiable assets, liabilities and contingent liabilities acquired are measured at fair value at acquisition date. \u2014 The cost of an acquisition is measured as the aggregate of the consideration transferred and contingent consideration, which are measured at fair value, and the value of any non-controlling interests in the acquiree. \u2014 On an acquisition-by-acquisition basis, the Group elects whether to measure the non-controlling interests in the acquiree, if any, at fair value or at the proportionate share of the acquiree\u2019s identifiable net assets (see note 11.2). \u2014 Goodwill is initially measured at the amount by which the aggregate of the consideration transferred and the amount recognised for non-controlling interests (plus any previous interest held), exceeds the net identifiable assets acquired and liabilities assumed. The Group considers the nature of any compensation for the selling shareholders\u2019 continuing employment to determine if any contingent payments are for post-combination employee services. These are excluded from consideration and together with other acquisition- related costs are classified as a non-underlying transaction costs in the income statement (see note 6). ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForBusinessCombinationsExplanatory",
"language": "en",
"entity": "scheme:213800QAUUUP6I445N30",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-689": {
"value": "13. Disposal of businesses and discontinued operations This year we made one material disposal, BETA. It has been treated as a discontinued operation which means that it has been excluded from the results of continuing operations for the year. Accounting policy The Group classifies disposal groups as held for sale if the carrying amounts will be recovered principally through a sale transaction rather than through continuing use. Disposal groups classified as held for sale are measured at the lower of the carrying amount or fair value less costs to sell. Costs to sell are the incremental costs directly attributable to the sale of a disposal group, excluding finance costs and income tax expense. The criteria for held for sale classification is regarded as met only when the sale is highly probable, and the disposal group is available for immediate sale in its present condition. Actions required to complete the sale should indicate that it is unlikely that significant changes to the disposal group will be made or that the decision to sell will be withdrawn. Management must be committed to the plan to sell the asset and the sale is expected to be completed within one year from the date of the classification. Assets and liabilities classified as held for sale are presented separately as current items on the balance sheet and measured at the lower of carrying amount and fair value less cost to sell. Property, plant and equipment and intangible assets are not depreciated or amortised once classified as held for sale. An operation is regarded as a discontinued operation if it is held for sale or has already been sold and comprised a major line of business or geographical area of operation. Discontinued operations are excluded from the results of continuing operations and are presented as a single amount of profit or loss after tax from discontinued operations in the income statement. The comparative results are re-presented accordingly to show the continuing operations. Disposal of BETA during the year ended 31 December 2022 On 21 March 2022, the disposal of BETA, Maxit and Digital Investor (collectively BETA) was assessed to be highly probable and it has been treated as a disposal group from that date. BETA provides back-office processing to the wealth management industry, including securities processing and tax reporting. BETA has also been treated as a discontinued operation as it represented a separate major line of business. Its results have been excluded from the continuing results of the Group for the year ended 31 December 2022. The results for the prior year have been re-presented to exclude the BETA results from the continuing operations of the Group. On 1 July 2022, BETA was sold for total cash consideration of US$1.1 billion (\u00a30.9 billion) to affiliates of Clearlake Capital Group, L.P. (Clearlake) and Motive Partners (Motive), realising a profit on disposal, after tax, of \u00a30.5 billion. We announced that we have entered into a new long-term strategic partnership for data, content and tools with BETA and portfolio companies owned by Clearlake and Motive. Disposal of the Borsa Italiana group during the year ended 31 December 2021 On 29 April 2021, the Group disposed of Borsa Italiana. It was presented as a discontinued operation and its results are excluded from the continuing operations of the Group for the year ended 31 December 2021. As part of the disposal agreement the Group continues to provide services to the Borsa Italiana group on an arm\u2019s length basis. 13. Disposal of businesses and discontinued operations continued 13.1 Profit and total comprehensive income from discontinued operations Until the respective disposal dates, the profit and total comprehensive income from discontinued operations are as follows: 2022 \u00a3m 2021 (Re- presented) \u00a3m Profit from discontinued operations BETA 512 68 Borsa Italiana group \u2013 2,603 Profit from discontinued operations 512 2,671 Other comprehensive income from discontinued operations Borsa Italiana group \u2013 (105) Other comprehensive income from discontinued operations \u2013 (105) Total comprehensive income from discontinued operations 512 2,566 Profit and total comprehensive income from BETA Note 2022 \u00a3m 2021 \u00a3m Total income 132 205 Underlying cost of sales and operating expenses (57) (103) Adjusted profit before tax 75 102 Non-underlying expenses (1) (9) Profit before tax 74 93 Underlying tax (16) (27) Non-underlying tax \u2013 2 Profit after tax of discontinued operation 58 68 Profit on disposal of discontinued operation, after tax (non-underlying) 13.2 454 \u2013 Profit (and total comprehensive income) from discontinued operation 512 68 Profit and total comprehensive income from Borsa Italiana group Note 2021 \u00a3m Total income 146 Underlying cost of sales and operating expenses (52) Adjusted profit before tax 94 Non-underlying expenses (4) Profit before tax 90 Underlying tax (9) Non-underlying tax 3 Profit after tax of discontinued operation 84 Profit on disposal of discontinued operation (non-underlying) 13.2 2,519 Profit from discontinued operation 2,603 Other comprehensive income Recycled from hedging reserve on disposal 17 Net losses from debt instruments held at FVOCI (10) Foreign exchange losses on translation in the period (53) Cumulative foreign exchange adjustments recycled on disposal (62) Tax on items in other comprehensive income 3 Other comprehensive loss from discontinued operations (105) Total comprehensive income from discontinued operations 2,498 13.2 Profit on disposal of discontinued operations, after tax 2022 BETA \u00a3m 2021 Borsa Italiana group \u00a3m Proceeds from disposal 903 3,876 Carrying value of cash disposed \u2013 (284) Proceeds from disposal, net of cash disposed 903 3,592 Carrying value of net assets disposed, excluding cash (241) (1,129) Non-controlling interests disposed \u2013 65 Transaction costs (44) (46) Other expenses \u2013 (8) Profit on disposal of discontinued operations, before tax and recycling of reserves 618 2,474 Recycling of cumulative foreign exchange translation reserve \u2013 62 Recycling of amounts held in hedging reserve \u2013 (17) Income tax on gain (164) \u2013 Profit on disposal of discontinued operations, after tax 454 2,519 FINANCIAL STATEMENTS 13. Disposal of businesses and discontinued operations continued 13.3 Cash flows from discontinued operations 2022 \u00a3m 2021 \u00a3m Operating activities BETA 37 87 Borsa Italiana group \u2013 23 Net cash flows from operating activities 37 110 Investing activities BETA (16) (30) Borsa Italiana group \u2013 (2) Net cash flows from investing activities (16) (32) Financing activities Borsa Italiana group \u2013 (6) Net cash flows from financing activities \u2013 (6) Foreign exchange translation (of cash and cash equivalents) \u2013 (10) Net increase in cash from discontinued operations 21 62 ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfDiscontinuedOperationsExplanatory",
"language": "en",
"entity": "scheme:213800QAUUUP6I445N30",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-713": {
"value": "13. Disposal of businesses and discontinued operations This year we made one material disposal, BETA. It has been treated as a discontinued operation which means that it has been excluded from the results of continuing operations for the year. Accounting policy The Group classifies disposal groups as held for sale if the carrying amounts will be recovered principally through a sale transaction rather than through continuing use. Disposal groups classified as held for sale are measured at the lower of the carrying amount or fair value less costs to sell. Costs to sell are the incremental costs directly attributable to the sale of a disposal group, excluding finance costs and income tax expense. The criteria for held for sale classification is regarded as met only when the sale is highly probable, and the disposal group is available for immediate sale in its present condition. Actions required to complete the sale should indicate that it is unlikely that significant changes to the disposal group will be made or that the decision to sell will be withdrawn. Management must be committed to the plan to sell the asset and the sale is expected to be completed within one year from the date of the classification. Assets and liabilities classified as held for sale are presented separately as current items on the balance sheet and measured at the lower of carrying amount and fair value less cost to sell. Property, plant and equipment and intangible assets are not depreciated or amortised once classified as held for sale. An operation is regarded as a discontinued operation if it is held for sale or has already been sold and comprised a major line of business or geographical area of operation. Discontinued operations are excluded from the results of continuing operations and are presented as a single amount of profit or loss after tax from discontinued operations in the income statement. The comparative results are re-presented accordingly to show the continuing operations. Disposal of BETA during the year ended 31 December 2022 On 21 March 2022, the disposal of BETA, Maxit and Digital Investor (collectively BETA) was assessed to be highly probable and it has been treated as a disposal group from that date. BETA provides back-office processing to the wealth management industry, including securities processing and tax reporting. BETA has also been treated as a discontinued operation as it represented a separate major line of business. Its results have been excluded from the continuing results of the Group for the year ended 31 December 2022. The results for the prior year have been re-presented to exclude the BETA results from the continuing operations of the Group. On 1 July 2022, BETA was sold for total cash consideration of US$1.1 billion (\u00a30.9 billion) to affiliates of Clearlake Capital Group, L.P. (Clearlake) and Motive Partners (Motive), realising a profit on disposal, after tax, of \u00a30.5 billion. We announced that we have entered into a new long-term strategic partnership for data, content and tools with BETA and portfolio companies owned by Clearlake and Motive. Disposal of the Borsa Italiana group during the year ended 31 December 2021 On 29 April 2021, the Group disposed of Borsa Italiana. It was presented as a discontinued operation and its results are excluded from the continuing operations of the Group for the year ended 31 December 2021. As part of the disposal agreement the Group continues to provide services to the Borsa Italiana group on an arm\u2019s length basis. 13. Disposal of businesses and discontinued operations continued 13.1 Profit and total comprehensive income from discontinued operations Until the respective disposal dates, the profit and total comprehensive income from discontinued operations are as follows: 2022 \u00a3m 2021 (Re- presented) \u00a3m Profit from discontinued operations BETA 512 68 Borsa Italiana group \u2013 2,603 Profit from discontinued operations 512 2,671 Other comprehensive income from discontinued operations Borsa Italiana group \u2013 (105) Other comprehensive income from discontinued operations \u2013 (105) Total comprehensive income from discontinued operations 512 2,566 Profit and total comprehensive income from BETA Note 2022 \u00a3m 2021 \u00a3m Total income 132 205 Underlying cost of sales and operating expenses (57) (103) Adjusted profit before tax 75 102 Non-underlying expenses (1) (9) Profit before tax 74 93 Underlying tax (16) (27) Non-underlying tax \u2013 2 Profit after tax of discontinued operation 58 68 Profit on disposal of discontinued operation, after tax (non-underlying) 13.2 454 \u2013 Profit (and total comprehensive income) from discontinued operation 512 68 Profit and total comprehensive income from Borsa Italiana group Note 2021 \u00a3m Total income 146 Underlying cost of sales and operating expenses (52) Adjusted profit before tax 94 Non-underlying expenses (4) Profit before tax 90 Underlying tax (9) Non-underlying tax 3 Profit after tax of discontinued operation 84 Profit on disposal of discontinued operation (non-underlying) 13.2 2,519 Profit from discontinued operation 2,603 Other comprehensive income Recycled from hedging reserve on disposal 17 Net losses from debt instruments held at FVOCI (10) Foreign exchange losses on translation in the period (53) Cumulative foreign exchange adjustments recycled on disposal (62) Tax on items in other comprehensive income 3 Other comprehensive loss from discontinued operations (105) Total comprehensive income from discontinued operations 2,498 13.2 Profit on disposal of discontinued operations, after tax 2022 BETA \u00a3m 2021 Borsa Italiana group \u00a3m Proceeds from disposal 903 3,876 Carrying value of cash disposed \u2013 (284) Proceeds from disposal, net of cash disposed 903 3,592 Carrying value of net assets disposed, excluding cash (241) (1,129) Non-controlling interests disposed \u2013 65 Transaction costs (44) (46) Other expenses \u2013 (8) Profit on disposal of discontinued operations, before tax and recycling of reserves 618 2,474 Recycling of cumulative foreign exchange translation reserve \u2013 62 Recycling of amounts held in hedging reserve \u2013 (17) Income tax on gain (164) \u2013 Profit on disposal of discontinued operations, after tax 454 2,519 FINANCIAL STATEMENTS 13. Disposal of businesses and discontinued operations continued 13.3 Cash flows from discontinued operations 2022 \u00a3m 2021 \u00a3m Operating activities BETA 37 87 Borsa Italiana group \u2013 23 Net cash flows from operating activities 37 110 Investing activities BETA (16) (30) Borsa Italiana group \u2013 (2) Net cash flows from investing activities (16) (32) Financing activities Borsa Italiana group \u2013 (6) Net cash flows from financing activities \u2013 (6) Foreign exchange translation (of cash and cash equivalents) \u2013 (10) Net increase in cash from discontinued operations 21 62 ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfNoncurrentAssetsHeldForSaleAndDiscontinuedOperationsExplanatory",
"language": "en",
"entity": "scheme:213800QAUUUP6I445N30",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-664": {
"value": "Accounting policy The Group classifies disposal groups as held for sale if the carrying amounts will be recovered principally through a sale transaction rather than through continuing use. Disposal groups classified as held for sale are measured at the lower of the carrying amount or fair value less costs to sell. Costs to sell are the incremental costs directly attributable to the sale of a disposal group, excluding finance costs and income tax expense. The criteria for held for sale classification is regarded as met only when the sale is highly probable, and the disposal group is available for immediate sale in its present condition. Actions required to complete the sale should indicate that it is unlikely that significant changes to the disposal group will be made or that the decision to sell will be withdrawn. Management must be committed to the plan to sell the asset and the sale is expected to be completed within one year from the date of the classification. Assets and liabilities classified as held for sale are presented separately as current items on the balance sheet and measured at the lower of carrying amount and fair value less cost to sell. Property, plant and equipment and intangible assets are not depreciated or amortised once classified as held for sale. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForNoncurrentAssetsOrDisposalGroupsClassifiedAsHeldForSaleAndDiscontinuedOperationsExplanatory",
"language": "en",
"entity": "scheme:213800QAUUUP6I445N30",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-673": {
"value": "The Group classifies disposal groups as held for sale if the carrying amounts will be recovered principally through a sale transaction rather than through continuing use. Disposal groups classified as held for sale are measured at the lower of the carrying amount or fair value less costs to sell. Costs to sell are the incremental costs directly attributable to the sale of a disposal group, excluding finance costs and income tax expense. The criteria for held for sale classification is regarded as met only when the sale is highly probable, and the disposal group is available for immediate sale in its present condition. Actions required to complete the sale should indicate that it is unlikely that significant changes to the disposal group will be made or that the decision to sell will be withdrawn. Management must be committed to the plan to sell the asset and the sale is expected to be completed within one year from the date of the classification. Assets and liabilities classified as held for sale are presented separately as current items on the balance sheet and measured at the lower of carrying amount and fair value less cost to sell. Property, plant and equipment and intangible assets are not depreciated or amortised once classified as held for sale. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForNoncurrentAssetsOrDisposalGroupsClassifiedAsHeldForSaleExplanatory",
"language": "en",
"entity": "scheme:213800QAUUUP6I445N30",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-643": {
"value": "An operation is regarded as a discontinued operation if it is held for sale or has already been sold and comprised a major line of business or geographical area of operation. Discontinued operations are excluded from the results of continuing operations and are presented as a single amount of profit or loss after tax from discontinued operations in the income statement. The comparative results are re-presented accordingly to show the continuing operations. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForDiscontinuedOperationsExplanatory",
"language": "en",
"entity": "scheme:213800QAUUUP6I445N30",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-690": {
"value": "14. Intangible assets
The balance sheet includes significant intangible assets, mainly in relation to goodwill and customer and supplier relationships. Goodwill arises
when we acquire a business and pay an amount higher than the fair value of its net assets primarily due to the synergies we expect to create.
Goodwill is not amortised but is subject to annual impairment reviews. Customer and supplier relationships are amortised over their useful
economic lives.
Accounting policy
Goodwill
Goodwill arising on the acquisition of a business is initially measured at cost, being the amount by which the aggregate of the consideration
transferred and the amount recognised for non-controlling interests (plus any previous interest held), exceeds the net identifiable assets acquired
and liabilities assumed.
After initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the purpose of impairment testing, on the
date of acquisition, goodwill acquired in a business combination is allocated to one or more of the Group\u2019s cash-generating units (CGUs) that are
expected to benefit from the combination.
Where goodwill has been allocated to a CGU and part of the operation within that unit is disposed of, the goodwill associated with the disposed
operation is included in the carrying amount when determining its gain or loss on disposal. Goodwill disposed in these circumstances is
measured based on the relative values of the disposed operation and the portion of the CGU retained.
Purchased intangible assets
Purchased intangible assets are initially recognised at cost. The cost of intangible assets acquired in a business combination is their fair value
at the date of acquisition which is determined using valuation methodologies such as multi-period excess earnings method (MEEM) or relief from
royalty. Following initial recognition, intangible assets are carried at cost less any accumulated amortisation and accumulated impairment losses.
These assets are amortised on a straight-line basis over their useful economic lives which are as follows:
\u2014 Customer and supplier relationships \u2013 2 to 25 years
\u2014 Brands \u2013 10 to 25 years
\u2014 Databases and content \u2013 5 to 12 years
\u2014 Software, licences and intellectual property \u2013 1 to 25 years (the majority of material assets are amortised over a life not exceeding 5 years)
14. Intangible assets continued
Software and other
Internally developed software
Expenditure on internal product development is capitalised if: the costs can be reliably measured; the product or process is technically and
commercially feasible; future economic benefits are probable; and the Group has sufficient resources to complete the development and to
use or sell the asset. The assets are initially recorded at cost, which includes labour, directly attributable costs and any third-party expenses.
They are then amortised over their useful economic lives of 3 to 12 years.
Internally generated intangibles, excluding capitalised development costs, are expensed as incurred.
Third-party software costs for the development and implementation of systems which enhance the services provided by the Group are
capitalised and amortised over their estimated useful economic lives of 3 to 5 years.
Contract costs
Incremental costs of obtaining a customer contract, such as sales commissions paid to employees, are recognised as an intangible asset if the
benefit of such costs is expected to be longer than one year. The asset is initially recognised at cost and is amortised over the period from which
a customer benefits from the associated software technology supporting the underlying product or service. The Group has determined this to be
between 3 and 5 years.
The Group recognises the incremental cost of obtaining a contract as an expense when incurred, if the amortisation period is less than one year.
Impairment of intangible assets, including goodwill
Goodwill is tested for impairment annually. Impairment is determined for goodwill by assessing the recoverable amount of each CGU. When the
recoverable amount of the CGU is less than its carrying amount, an impairment loss is recognised. Impairment losses relating to goodwill cannot
be reversed in future periods.
Intangible assets are assessed for any indicators of impairment at each balance sheet date. If any indication exists, or when annual impairment
testing for an asset is required, the Group estimates the asset\u2019s recoverable amount. Where it is not possible to estimate the recoverable amount
of an individual asset, the Group estimates the recoverable amount of the CGU to which the asset belongs.
An impairment loss is recognised when the recoverable amount of the asset, or CGU, is less than its carrying amount. Impairment losses
are recognised in the income statement within depreciation, amortisation and impairment. CGU impairment losses are allocated first to
reduce the carrying amount of any goodwill allocated to the CGU, and then to reduce the carrying amounts of the other assets in the CGU
on a pro-rata basis.
Significant accounting estimates and assumptions
Intangible assets and goodwill form a significant part of the balance sheet and are key assets for the Group\u2019s businesses. See note 12 for the
significant accounting estimates of intangible assets obtained through the purchase of subsidiaries.
Recoverable amounts of CGUs and intangible assets
The recoverable amounts of CGUs and intangible assets are based on value-in-use calculations. The value-in-use calculations use cash flow
projections based on business plans prepared by management for the three-year period ending 31 December 2025. These use management\u2019s
best estimate of future performance together with estimates of the return required by investors, which is used to determine an appropriate
discount rate to derive the present value.
Estimated useful economic lives
Intangible assets are amortised over their estimated useful economic lives, being management\u2019s best estimate of the period over which
value from the intangible assets is realised. In determining useful economic life, management considers a number of factors including:
customer attrition rates; product upgrade cycles for software and technology assets; market participant perspectives of brands; and pace
of change of regulation .
14. Intangible assets continued
Group Notes
Goodwill
1
\u00a3m
Purchased intangible assets
Software
and other
\u00a3m
Total
\u00a3m
Customer
and supplier
relationships
\u00a3m
Brands
\u00a3m
Databases
and content
\u00a3m
Software,
licences and
intellectual
property
\u00a3m
Cost
1 January 2021 2,402 1,847 953 \u2013 569 1,260 7,031
Intangible assets acquired on
acquisition of subsidiaries 16,520 7,455 983 2,398 199 1,608 29,163
Additions \u2013 \u2013 \u2013 \u2013 \u2013 642 642
Disposal of business (re-presented)
1
(1,371) (692) (1) \u2013 (66) (181) (2,311)
Disposals and write-off \u2013 \u2013 \u2013 \u2013 (1) (59) (60)
Foreign exchange translation (42) 111 21 36 1 (38) 89
31 December 2021 (re-presented)
1
17,509 8,721 1,956 2,434 702 3,232 34,554
Intangible assets acquired on
acquisition of subsidiaries 12.2 569 188 \u2013 3 149 \u2013 909
Additions
2
\u2013 \u2013 \u2013 \u2013 \u2013 868 868
Disposal of business 13 \u2013 \u2013 (51) \u2013 \u2013 (174) (225)
Disposals and write-off \u2013 \u2013 \u2013 \u2013 \u2013 (70) (70)
Foreign exchange translation 1,781 1,016 208 297 52 273 3,627
31 December 2022 19,859 9,925 2,113 2,734 903 4,129 39,663
Accumulated amortisation and impairment
1 January 2021 546 868 265 \u2013 345 683 2,707
Amortisation charge for the year \u2013 491 130 220 33 425 1,299
Impairment \u2013 \u2013 \u2013 \u2013 \u2013 13 13
Disposal of business (re-presented)
1
(498) (409) \u2013 \u2013 (58) (139) (1,104)
Disposals and write-off \u2013 \u2013 \u2013 \u2013 (1) (43) (44)
Foreign exchange translation (25) 6 3 4 (4) (25) (41)
31 December 2021 (re-presented)
1
23 956 398 224 315 914 2,830
Amortisation charge for the year
3
\u2013 590 150 232 41 587 1,600
Impairment \u2013 \u2013 \u2013 \u2013 \u2013 11 11
Disposal of business 13 \u2013 \u2013 (4) \u2013 \u2013 (31) (35)
Disposals and write-off \u2013 \u2013 \u2013 \u2013 \u2013 (70) (70)
Foreign exchange translation 7 104 40 34 11 65 261
31 December 2022 30 1,650 584 490 367 1,476 4,597
Net book values
4
31 December 2022 19,829 8,275 1,529 2,244 536 2,653 35,066
31 December 2021 17,486 7,765 1,558 2,210 387 2,318 31,724
1 The prior year comparatives for cost and accumulated impairment of goodwill have both been re-presented by a reduction of \u00a3444 million to reflect the correct gross disposal of goodwill cost
and accumulated impairment related to Borsa Italiana group. There is no impact on the net book value.
2 During the year, consideration for additions comprised \u00a3787 million (2021: \u00a3611 million) in cash, nil (2021: \u00a32 million) of leased assets and \u00a381 million (2021: \u00a329 million) in accruals. During the year,
the Group:
\u2013 recognised additions of nil (2021: \u00a32 million) as right-of-use assets, with a right-of-use assets amortisation charge of nil (2021: \u00a36 million).
\u2013 capitalised sales commissions paid to employees (contract costs) of \u00a340 million (2021: \u00a346 million).
3 Includes non-underlying amortisation of intangible assets of \u00a31,044 million (2021: \u00a3851 million). Includes amortisation of \u00a38 million related to discontinued operations (2021: \u00a325 million).
4 At 31 December 2022, software and other net book value includes contract costs of \u00a375 million (2021: \u00a371 million) .
14. Intangible assets continued
14.1 Goodwill
Carrying value of goodwill allocated to each of the Group\u2019s CGUs and annual impairment test
Goodwill is allocated to and monitored by management at the level of the Group\u2019s four CGUs as set out below:
Net book value of
goodwill
2022
\u00a3m
2021
\u00a3m
Data & Analytics
1
14,414 12,771
Capital Markets, excluding Tradeweb 2 2
Tradeweb
1
5,152 4,594
Post Trade
1
261 119
19,829 17,486
1 Goodwill allocated to the Data & Analytics, Tradeweb and Post Trade CGUs include foreign exchange translation during the year of \u00a31,209 million, \u00a3558 million and \u00a37 million, respectively.
The increase also reflects the acquisitions (see note 12).
Goodwill as at 31 December 2022 was tested for impairment. For each CGU, the estimated recoverable amount is higher than its carrying value
(being the net book value as at 31 December 2022) and therefore no impairment was identified or recognised.
Key assumptions used in the impairment assessments and sensitivity to changes
Every year, the Group tests whether goodwill has suffered any impairment. For 2022, the recoverable amount of each CGU was determined based
on value-in-use calculations.
Value-in-use calculations
The value-in-use calculations are based on, and most sensitive to, the following key assumptions:
Assumption Determination of assumption
Short- and medium-term
revenue and cost growth
The short- and medium-term revenue and cost growth assumptions are based on the business plans prepared by
management for the three-year period ending 31 December 2025 and extended by a further three years for expected
medium-term growth rates. Business plans are based on an assessment of current trends, anticipated market and
regulatory developments, discussions with customers and suppliers, and management\u2019s experience
Long-term economic
growth rates (used to
determine terminal values)
Cash flows beyond an initial six-year period are extrapolated using estimated long-term growth rates, which are
based on external estimates of GDP and inflation
Pre-tax discount rates Weighted average cost of capital was determined using market risk free rates based on the yields of government
bonds most relevant to the operations of the CGU, adjusted for country and operational risk and the cost of borrowing
for the Group
Value-in-use assumptions
Assumptions
Data & Analytics
Capital Markets,
excluding Tradeweb Tradeweb Post Trade
2022
%
2021
%
2022
%
2021
%
2022
%
2021
%
2022
%
2021
%
Long-term growth rates 4.2 3.9 3.5 3.5 3.9 4.0 3.4 3.2
Pre-tax discount rates 11.4 9.7 12.2 10.7 10.7 10.1 14.3 12.5
Sensitivity analysis
The estimated value-in-use of each CGU exceeds their carrying values. The table below shows the relative changes in the main assumptions, in
isolation, that could lead to the value-in-use amounts reducing to the carrying value. Changes beyond those amounts would therefore lead to an
impairment loss being recognised for the year ended 31 December 2022.
Assumptions
Change required for value-in-use
to equal carrying amount
Data &
Analytics
Capital
Markets,
excluding
Tradeweb Tradeweb Post Trade
Reduction in terminal cash flow (%) (29.9) N/A
1
(32.1) N/A
1
Reduction in long-term growth rates (percentage points) (2.0) N/A
1
(2.2) N/A
1
Increase in pre-tax discount rates (percentage points) 2.2 N/A
1
2.3 N/A
1
1 N/A indicates that the change required is outside of a reasonably expected change .
14. Intangible assets continued
14.2 Purchased intangible assets
Purchased intangible assets are recognised on acquisition of a business.
The material purchased intangible assets are set out below:
Carrying value of
material purchased
intangible assets
Remaining
amortisation period
2022
\u00a3m
2021
\u00a3m 2022 2021
Customer and supplier relationships
Refinitiv 6,428 6,135 14 years 15 years
Tradeweb 954 922 11-18 years 12-19 years
Brands
Refinitiv 660 717 3-13 years 4-14 years
Tradeweb 194 186 13 years 14 years
Frank Russell 498 470 17 years 18 years
Databases and content
Refinitiv 2,219 2,184 9-10 years 10-11 years
There are no other individual purchased intangible assets that are considered material to each class of intangible assets.
14.3 Internally developed software and other intangible assets
The Group creates technology solutions where software products are developed internally for use within the Group or to sell externally.
These assets have a useful economic life of up to 12 years.
The \u00a32,653 million (2021: \u00a32,318 million) net book value of software and other intangibles, includes \u00a3647 million (2021: \u00a3447 million) of assets not
yet brought into use. No amortisation has been charged on these assets and instead they are tested for impairment annually.
Impairment tests for internally developed software and other intangible assets
Following a review of software assets in the year the Group recognised an \u00a311 million impairment charge (2021: \u00a313 million) in relation to assets
with a recoverable amount less than the carrying value.
During the year the Group recognised disposals and write-offs of assets which are no longer in use of \u00a370 million with nil net book value
(2021: \u00a360 million with \u00a316 million net book value).
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfIntangibleAssetsAndGoodwillExplanatory",
"language": "en",
"entity": "scheme:213800QAUUUP6I445N30",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-714": {
"value": "14. Intangible assets The balance sheet includes significant intangible assets, mainly in relation to goodwill and customer and supplier relationships. Goodwill arises when we acquire a business and pay an amount higher than the fair value of its net assets primarily due to the synergies we expect to create. Goodwill is not amortised but is subject to annual impairment reviews. Customer and supplier relationships are amortised over their useful economic lives. Accounting policy Goodwill Goodwill arising on the acquisition of a business is initially measured at cost, being the amount by which the aggregate of the consideration transferred and the amount recognised for non-controlling interests (plus any previous interest held), exceeds the net identifiable assets acquired and liabilities assumed. After initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the purpose of impairment testing, on the date of acquisition, goodwill acquired in a business combination is allocated to one or more of the Group\u2019s cash-generating units (CGUs) that are expected to benefit from the combination. Where goodwill has been allocated to a CGU and part of the operation within that unit is disposed of, the goodwill associated with the disposed operation is included in the carrying amount when determining its gain or loss on disposal. Goodwill disposed in these circumstances is measured based on the relative values of the disposed operation and the portion of the CGU retained. Purchased intangible assets Purchased intangible assets are initially recognised at cost. The cost of intangible assets acquired in a business combination is their fair value at the date of acquisition which is determined using valuation methodologies such as multi-period excess earnings method (MEEM) or relief from royalty. Following initial recognition, intangible assets are carried at cost less any accumulated amortisation and accumulated impairment losses. These assets are amortised on a straight-line basis over their useful economic lives which are as follows: \u2014 Customer and supplier relationships \u2013 2 to 25 years \u2014 Brands \u2013 10 to 25 years \u2014 Databases and content \u2013 5 to 12 years \u2014 Software, licences and intellectual property \u2013 1 to 25 years (the majority of material assets are amortised over a life not exceeding 5 years) 14. Intangible assets continued Software and other Internally developed software Expenditure on internal product development is capitalised if: the costs can be reliably measured; the product or process is technically and commercially feasible; future economic benefits are probable; and the Group has sufficient resources to complete the development and to use or sell the asset. The assets are initially recorded at cost, which includes labour, directly attributable costs and any third-party expenses. They are then amortised over their useful economic lives of 3 to 12 years. Internally generated intangibles, excluding capitalised development costs, are expensed as incurred. Third-party software costs for the development and implementation of systems which enhance the services provided by the Group are capitalised and amortised over their estimated useful economic lives of 3 to 5 years. Contract costs Incremental costs of obtaining a customer contract, such as sales commissions paid to employees, are recognised as an intangible asset if the benefit of such costs is expected to be longer than one year. The asset is initially recognised at cost and is amortised over the period from which a customer benefits from the associated software technology supporting the underlying product or service. The Group has determined this to be between 3 and 5 years. The Group recognises the incremental cost of obtaining a contract as an expense when incurred, if the amortisation period is less than one year. Impairment of intangible assets, including goodwill Goodwill is tested for impairment annually. Impairment is determined for goodwill by assessing the recoverable amount of each CGU. When the recoverable amount of the CGU is less than its carrying amount, an impairment loss is recognised. Impairment losses relating to goodwill cannot be reversed in future periods. Intangible assets are assessed for any indicators of impairment at each balance sheet date. If any indication exists, or when annual impairment testing for an asset is required, the Group estimates the asset\u2019s recoverable amount. Where it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the CGU to which the asset belongs. An impairment loss is recognised when the recoverable amount of the asset, or CGU, is less than its carrying amount. Impairment losses are recognised in the income statement within depreciation, amortisation and impairment. CGU impairment losses are allocated first to reduce the carrying amount of any goodwill allocated to the CGU, and then to reduce the carrying amounts of the other assets in the CGU on a pro-rata basis. Significant accounting estimates and assumptions Intangible assets and goodwill form a significant part of the balance sheet and are key assets for the Group\u2019s businesses. See note 12 for the significant accounting estimates of intangible assets obtained through the purchase of subsidiaries. Recoverable amounts of CGUs and intangible assets The recoverable amounts of CGUs and intangible assets are based on value-in-use calculations. The value-in-use calculations use cash flow projections based on business plans prepared by management for the three-year period ending 31 December 2025. These use management\u2019s best estimate of future performance together with estimates of the return required by investors, which is used to determine an appropriate discount rate to derive the present value. Estimated useful economic lives Intangible assets are amortised over their estimated useful economic lives, being management\u2019s best estimate of the period over which value from the intangible assets is realised. In determining useful economic life, management considers a number of factors including: customer attrition rates; product upgrade cycles for software and technology assets; market participant perspectives of brands; and pace of change of regulation 14. Intangible assets continued Group Notes Goodwill 1 \u00a3m Purchased intangible assets Software and other \u00a3m Total \u00a3m Customer and supplier relationships \u00a3m Brands \u00a3m Databases and content \u00a3m Software, licences and intellectual property \u00a3m Cost 1 January 2021 2,402 1,847 953 \u2013 569 1,260 7,031 Intangible assets acquired on acquisition of subsidiaries 16,520 7,455 983 2,398 199 1,608 29,163 Additions \u2013 \u2013 \u2013 \u2013 \u2013 642 642 Disposal of business (re-presented) 1 (1,371) (692) (1) \u2013 (66) (181) (2,311) Disposals and write-off \u2013 \u2013 \u2013 \u2013 (1) (59) (60) Foreign exchange translation (42) 111 21 36 1 (38) 89 31 December 2021 (re-presented) 1 17,509 8,721 1,956 2,434 702 3,232 34,554 Intangible assets acquired on acquisition of subsidiaries 12.2 569 188 \u2013 3 149 \u2013 909 Additions 2 \u2013 \u2013 \u2013 \u2013 \u2013 868 868 Disposal of business 13 \u2013 \u2013 (51) \u2013 \u2013 (174) (225) Disposals and write-off \u2013 \u2013 \u2013 \u2013 \u2013 (70) (70) Foreign exchange translation 1,781 1,016 208 297 52 273 3,627 31 December 2022 19,859 9,925 2,113 2,734 903 4,129 39,663 Accumulated amortisation and impairment 1 January 2021 546 868 265 \u2013 345 683 2,707 Amortisation charge for the year \u2013 491 130 220 33 425 1,299 Impairment \u2013 \u2013 \u2013 \u2013 \u2013 13 13 Disposal of business (re-presented) 1 (498) (409) \u2013 \u2013 (58) (139) (1,104) Disposals and write-off \u2013 \u2013 \u2013 \u2013 (1) (43) (44) Foreign exchange translation (25) 6 3 4 (4) (25) (41) 31 December 2021 (re-presented) 1 23 956 398 224 315 914 2,830 Amortisation charge for the year 3 \u2013 590 150 232 41 587 1,600 Impairment \u2013 \u2013 \u2013 \u2013 \u2013 11 11 Disposal of business 13 \u2013 \u2013 (4) \u2013 \u2013 (31) (35) Disposals and write-off \u2013 \u2013 \u2013 \u2013 \u2013 (70) (70) Foreign exchange translation 7 104 40 34 11 65 261 31 December 2022 30 1,650 584 490 367 1,476 4,597 Net book values 4 31 December 2022 19,829 8,275 1,529 2,244 536 2,653 35,066 31 December 2021 17,486 7,765 1,558 2,210 387 2,318 31,724 1 The prior year comparatives for cost and accumulated impairment of goodwill have both been re-presented by a reduction of \u00a3444 million to reflect the correct gross disposal of goodwill cost and accumulated impairment related to Borsa Italiana group. There is no impact on the net book value. 2 During the year, consideration for additions comprised \u00a3787 million (2021: \u00a3611 million) in cash, nil (2021: \u00a32 million) of leased assets and \u00a381 million (2021: \u00a329 million) in accruals. During the year, the Group: \u2013 recognised additions of nil (2021: \u00a32 million) as right-of-use assets, with a right-of-use assets amortisation charge of nil (2021: \u00a36 million). \u2013 capitalised sales commissions paid to employees (contract costs) of \u00a340 million (2021: \u00a346 million). 3 Includes non-underlying amortisation of intangible assets of \u00a31,044 million (2021: \u00a3851 million). Includes amortisation of \u00a38 million related to discontinued operations (2021: \u00a325 million). 4 At 31 December 2022, software and other net book value includes contract costs of \u00a375 million (2021: \u00a371 million) 14. Intangible assets continued 14.1 Goodwill Carrying value of goodwill allocated to each of the Group\u2019s CGUs and annual impairment test Goodwill is allocated to and monitored by management at the level of the Group\u2019s four CGUs as set out below: Net book value of goodwill 2022 \u00a3m 2021 \u00a3m Data & Analytics 1 14,414 12,771 Capital Markets, excluding Tradeweb 2 2 Tradeweb 1 5,152 4,594 Post Trade 1 261 119 19,829 17,486 1 Goodwill allocated to the Data & Analytics, Tradeweb and Post Trade CGUs include foreign exchange translation during the year of \u00a31,209 million, \u00a3558 million and \u00a37 million, respectively. The increase also reflects the acquisitions (see note 12). Goodwill as at 31 December 2022 was tested for impairment. For each CGU, the estimated recoverable amount is higher than its carrying value (being the net book value as at 31 December 2022) and therefore no impairment was identified or recognised. Key assumptions used in the impairment assessments and sensitivity to changes Every year, the Group tests whether goodwill has suffered any impairment. For 2022, the recoverable amount of each CGU was determined based on value-in-use calculations. Value-in-use calculations The value-in-use calculations are based on, and most sensitive to, the following key assumptions: Assumption Determination of assumption Short- and medium-term revenue and cost growth The short- and medium-term revenue and cost growth assumptions are based on the business plans prepared by management for the three-year period ending 31 December 2025 and extended by a further three years for expected medium-term growth rates. Business plans are based on an assessment of current trends, anticipated market and regulatory developments, discussions with customers and suppliers, and management\u2019s experience Long-term economic growth rates (used to determine terminal values) Cash flows beyond an initial six-year period are extrapolated using estimated long-term growth rates, which are based on external estimates of GDP and inflation Pre-tax discount rates Weighted average cost of capital was determined using market risk free rates based on the yields of government bonds most relevant to the operations of the CGU, adjusted for country and operational risk and the cost of borrowing for the Group Value-in-use assumptions Assumptions Data & Analytics Capital Markets, excluding Tradeweb Tradeweb Post Trade 2022 % 2021 % 2022 % 2021 % 2022 % 2021 % 2022 % 2021 % Long-term growth rates 4.2 3.9 3.5 3.5 3.9 4.0 3.4 3.2 Pre-tax discount rates 11.4 9.7 12.2 10.7 10.7 10.1 14.3 12.5 Sensitivity analysis The estimated value-in-use of each CGU exceeds their carrying values. The table below shows the relative changes in the main assumptions, in isolation, that could lead to the value-in-use amounts reducing to the carrying value. Changes beyond those amounts would therefore lead to an impairment loss being recognised for the year ended 31 December 2022. Assumptions Change required for value-in-use to equal carrying amount Data & Analytics Capital Markets, excluding Tradeweb Tradeweb Post Trade Reduction in terminal cash flow (%) (29.9) N/A 1 (32.1) N/A 1 Reduction in long-term growth rates (percentage points) (2.0) N/A 1 (2.2) N/A 1 Increase in pre-tax discount rates (percentage points) 2.2 N/A 1 2.3 N/A 1 1 N/A indicates that the change required is outside of a reasonably expected change . 14. Intangible assets continued 14.2 Purchased intangible assets Purchased intangible assets are recognised on acquisition of a business. The material purchased intangible assets are set out below: Carrying value of material purchased intangible assets Remaining amortisation period 2022 \u00a3m 2021 \u00a3m 2022 2021 Customer and supplier relationships Refinitiv 6,428 6,135 14 years 15 years Tradeweb 954 922 11-18 years 12-19 years Brands Refinitiv 660 717 3-13 years 4-14 years Tradeweb 194 186 13 years 14 years Frank Russell 498 470 17 years 18 years Databases and content Refinitiv 2,219 2,184 9-10 years 10-11 years There are no other individual purchased intangible assets that are considered material to each class of intangible assets. 14.3 Internally developed software and other intangible assets The Group creates technology solutions where software products are developed internally for use within the Group or to sell externally. These assets have a useful economic life of up to 12 years. The \u00a32,653 million (2021: \u00a32,318 million) net book value of software and other intangibles, includes \u00a3647 million (2021: \u00a3447 million) of assets not yet brought into use. No amortisation has been charged on these assets and instead they are tested for impairment annually. Impairment tests for internally developed software and other intangible assets Following a review of software assets in the year the Group recognised an \u00a311 million impairment charge (2021: \u00a313 million) in relation to assets with a recoverable amount less than the carrying value. During the year the Group recognised disposals and write-offs of assets which are no longer in use of \u00a370 million with nil net book value (2021: \u00a360 million with \u00a316 million net book value). ",
"dimensions": {
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"language": "en",
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"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-665": {
"value": "Accounting policy Goodwill Goodwill arising on the acquisition of a business is initially measured at cost, being the amount by which the aggregate of the consideration transferred and the amount recognised for non-controlling interests (plus any previous interest held), exceeds the net identifiable assets acquired and liabilities assumed. After initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the purpose of impairment testing, on the date of acquisition, goodwill acquired in a business combination is allocated to one or more of the Group\u2019s cash-generating units (CGUs) that are expected to benefit from the combination. Where goodwill has been allocated to a CGU and part of the operation within that unit is disposed of, the goodwill associated with the disposed operation is included in the carrying amount when determining its gain or loss on disposal. Goodwill disposed in these circumstances is measured based on the relative values of the disposed operation and the portion of the CGU retained. Purchased intangible assets Purchased intangible assets are initially recognised at cost. The cost of intangible assets acquired in a business combination is their fair value at the date of acquisition which is determined using valuation methodologies such as multi-period excess earnings method (MEEM) or relief from royalty. Following initial recognition, intangible assets are carried at cost less any accumulated amortisation and accumulated impairment losses. These assets are amortised on a straight-line basis over their useful economic lives which are as follows: \u2014 Customer and supplier relationships \u2013 2 to 25 years \u2014 Brands \u2013 10 to 25 years \u2014 Databases and content \u2013 5 to 12 years \u2014 Software, licences and intellectual property \u2013 1 to 25 years (the majority of material assets are amortised over a life not exceeding 5 years) Software and other Internally developed software Expenditure on internal product development is capitalised if: the costs can be reliably measured; the product or process is technically and commercially feasible; future economic benefits are probable; and the Group has sufficient resources to complete the development and to use or sell the asset. The assets are initially recorded at cost, which includes labour, directly attributable costs and any third-party expenses. They are then amortised over their useful economic lives of 3 to 12 years. Internally generated intangibles, excluding capitalised development costs, are expensed as incurred. Third-party software costs for the development and implementation of systems which enhance the services provided by the Group are capitalised and amortised over their estimated useful economic lives of 3 to 5 years. Contract costs Incremental costs of obtaining a customer contract, such as sales commissions paid to employees, are recognised as an intangible asset if the benefit of such costs is expected to be longer than one year. The asset is initially recognised at cost and is amortised over the period from which a customer benefits from the associated software technology supporting the underlying product or service. The Group has determined this to be between 3 and 5 years. The Group recognises the incremental cost of obtaining a contract as an expense when incurred, if the amortisation period is less than one year. Impairment of intangible assets, including goodwill Goodwill is tested for impairment annually. Impairment is determined for goodwill by assessing the recoverable amount of each CGU. When the recoverable amount of the CGU is less than its carrying amount, an impairment loss is recognised. Impairment losses relating to goodwill cannot be reversed in future periods. Intangible assets are assessed for any indicators of impairment at each balance sheet date. If any indication exists, or when annual impairment testing for an asset is required, the Group estimates the asset\u2019s recoverable amount. Where it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the CGU to which the asset belongs. An impairment loss is recognised when the recoverable amount of the asset, or CGU, is less than its carrying amount. Impairment losses are recognised in the income statement within depreciation, amortisation and impairment. CGU impairment losses are allocated first to reduce the carrying amount of any goodwill allocated to the CGU, and then to reduce the carrying amounts of the other assets in the CGU on a pro-rata basis. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForIntangibleAssetsAndGoodwillExplanatory",
"language": "en",
"entity": "scheme:213800QAUUUP6I445N30",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-644": {
"value": "Goodwill Goodwill arising on the acquisition of a business is initially measured at cost, being the amount by which the aggregate of the consideration transferred and the amount recognised for non-controlling interests (plus any previous interest held), exceeds the net identifiable assets acquired and liabilities assumed. After initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the purpose of impairment testing, on the date of acquisition, goodwill acquired in a business combination is allocated to one or more of the Group\u2019s cash-generating units (CGUs) that are expected to benefit from the combination. Where goodwill has been allocated to a CGU and part of the operation within that unit is disposed of, the goodwill associated with the disposed operation is included in the carrying amount when determining its gain or loss on disposal. Goodwill disposed in these circumstances is measured based on the relative values of the disposed operation and the portion of the CGU retained",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForGoodwillExplanatory",
"language": "en",
"entity": "scheme:213800QAUUUP6I445N30",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-645": {
"value": "Purchased intangible assets Purchased intangible assets are initially recognised at cost. The cost of intangible assets acquired in a business combination is their fair value at the date of acquisition which is determined using valuation methodologies such as multi-period excess earnings method (MEEM) or relief from royalty. Following initial recognition, intangible assets are carried at cost less any accumulated amortisation and accumulated impairment losses. These assets are amortised on a straight-line basis over their useful economic lives which are as follows: \u2014 Customer and supplier relationships \u2013 2 to 25 years \u2014 Brands \u2013 10 to 25 years \u2014 Databases and content \u2013 5 to 12 years \u2014 Software, licences and intellectual property \u2013 1 to 25 years (the majority of material assets are amortised over a life not exceeding 5 years) Software and other Internally developed software Expenditure on internal product development is capitalised if: the costs can be reliably measured; the product or process is technically and commercially feasible; future economic benefits are probable; and the Group has sufficient resources to complete the development and to use or sell the asset. The assets are initially recorded at cost, which includes labour, directly attributable costs and any third-party expenses. They are then amortised over their useful economic lives of 3 to 12 years. Internally generated intangibles, excluding capitalised development costs, are expensed as incurred. Third-party software costs for the development and implementation of systems which enhance the services provided by the Group are capitalised and amortised over their estimated useful economic lives of 3 to 5 years. Contract costs Incremental costs of obtaining a customer contract, such as sales commissions paid to employees, are recognised as an intangible asset if the benefit of such costs is expected to be longer than one year. The asset is initially recognised at cost and is amortised over the period from which a customer benefits from the associated software technology supporting the underlying product or service. The Group has determined this to be between 3 and 5 years. The Group recognises the incremental cost of obtaining a contract as an expense when incurred, if the amortisation period is less than one year. Impairment of intangible assets, including goodwill Goodwill is tested for impairment annually. Impairment is determined for goodwill by assessing the recoverable amount of each CGU. When the recoverable amount of the CGU is less than its carrying amount, an impairment loss is recognised. Impairment losses relating to goodwill cannot be reversed in future periods. Intangible assets are assessed for any indicators of impairment at each balance sheet date. If any indication exists, or when annual impairment testing for an asset is required, the Group estimates the asset\u2019s recoverable amount. Where it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the CGU to which the asset belongs. An impairment loss is recognised when the recoverable amount of the asset, or CGU, is less than its carrying amount. Impairment losses are recognised in the income statement within depreciation, amortisation and impairment. CGU impairment losses are allocated first to reduce the carrying amount of any goodwill allocated to the CGU, and then to reduce the carrying amounts of the other assets in the CGU on a pro-rata basis. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForIntangibleAssetsOtherThanGoodwillExplanatory",
"language": "en",
"entity": "scheme:213800QAUUUP6I445N30",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-674": {
"value": "Impairment of intangible assets, including goodwill Goodwill is tested for impairment annually. Impairment is determined for goodwill by assessing the recoverable amount of each CGU. When the recoverable amount of the CGU is less than its carrying amount, an impairment loss is recognised. Impairment losses relating to goodwill cannot be reversed in future periods. Intangible assets are assessed for any indicators of impairment at each balance sheet date. If any indication exists, or when annual impairment testing for an asset is required, the Group estimates the asset\u2019s recoverable amount. Where it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the CGU to which the asset belongs. An impairment loss is recognised when the recoverable amount of the asset, or CGU, is less than its carrying amount. Impairment losses are recognised in the income statement within depreciation, amortisation and impairment. CGU impairment losses are allocated first to reduce the carrying amount of any goodwill allocated to the CGU, and then to reduce the carrying amounts of the other assets in the CGU on a pro-rata basis. At each reporting date, the Group assesses whether there is an indication that an asset may be impaired. If any indication exists, the Group estimates the asset\u2019s recoverable amount. The recoverable amount is the higher of an asset\u2019s fair value less costs of disposal and its value in use. Where it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the CGU to which the asset belongs. An impairment loss is recognised when the recoverable amount of the asset, or CGU, is less than its carrying amount. Impairment losses are recognised in the income statement within depreciation, amortisation and impairment. CGU impairment losses are allocated first to reduce the carrying amount of any goodwill allocated to the CGU, and then to reduce the carrying amounts of the other assets in the CGU on a pro-rata basis. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfNonfinancialAssetsExplanatory",
"language": "en",
"entity": "scheme:213800QAUUUP6I445N30",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-730": {
"value": "14.1 Goodwill Carrying value of goodwill allocated to each of the Group\u2019s CGUs and annual impairment test Goodwill is allocated to and monitored by management at the level of the Group\u2019s four CGUs as set out below: Net book value of goodwill 2022 \u00a3m 2021 \u00a3m Data & Analytics 1 14,414 12,771 Capital Markets, excluding Tradeweb 2 2 Tradeweb 1 5,152 4,594 Post Trade 1 261 119 19,829 17,486 1 Goodwill allocated to the Data & Analytics, Tradeweb and Post Trade CGUs include foreign exchange translation during the year of \u00a31,209 million, \u00a3558 million and \u00a37 million, respectively. The increase also reflects the acquisitions (see note 12). Goodwill as at 31 December 2022 was tested for impairment. For each CGU, the estimated recoverable amount is higher than its carrying value (being the net book value as at 31 December 2022) and therefore no impairment was identified or recognised. Key assumptions used in the impairment assessments and sensitivity to changes Every year, the Group tests whether goodwill has suffered any impairment. For 2022, the recoverable amount of each CGU was determined based on value-in-use calculations. Value-in-use calculations The value-in-use calculations are based on, and most sensitive to, the following key assumptions: Assumption Determination of assumption Short- and medium-term revenue and cost growth The short- and medium-term revenue and cost growth assumptions are based on the business plans prepared by management for the three-year period ending 31 December 2025 and extended by a further three years for expected medium-term growth rates. Business plans are based on an assessment of current trends, anticipated market and regulatory developments, discussions with customers and suppliers, and management\u2019s experience Long-term economic growth rates (used to determine terminal values) Cash flows beyond an initial six-year period are extrapolated using estimated long-term growth rates, which are based on external estimates of GDP and inflation Pre-tax discount rates Weighted average cost of capital was determined using market risk free rates based on the yields of government bonds most relevant to the operations of the CGU, adjusted for country and operational risk and the cost of borrowing for the Group Value-in-use assumptions Assumptions Data & Analytics Capital Markets, excluding Tradeweb Tradeweb Post Trade 2022 % 2021 % 2022 % 2021 % 2022 % 2021 % 2022 % 2021 % Long-term growth rates 4.2 3.9 3.5 3.5 3.9 4.0 3.4 3.2 Pre-tax discount rates 11.4 9.7 12.2 10.7 10.7 10.1 14.3 12.5 Sensitivity analysis The estimated value-in-use of each CGU exceeds their carrying values. The table below shows the relative changes in the main assumptions, in isolation, that could lead to the value-in-use amounts reducing to the carrying value. Changes beyond those amounts would therefore lead to an impairment loss being recognised for the year ended 31 December 2022. Assumptions Change required for value-in-use to equal carrying amount Data & Analytics Capital Markets, excluding Tradeweb Tradeweb Post Trade Reduction in terminal cash flow (%) (29.9) N/A 1 (32.1) N/A 1 Reduction in long-term growth rates (percentage points) (2.0) N/A 1 (2.2) N/A 1 Increase in pre-tax discount rates (percentage points) 2.2 N/A 1 2.3 N/A 1 1 N/A indicates that the change required is outside of a reasonably expected change ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfGoodwillExplanatory",
"language": "en",
"entity": "scheme:213800QAUUUP6I445N30",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-691": {
"value": "15. Property, plant and equipment
Most of our tangible assets relate to property (owned and leased) and equipment, furniture and fittings. These assets are depreciated over their
useful economic lives.
Accounting policy
Property, plant and equipment
Property, plant and equipment assets are recorded at cost less accumulated depreciation and accumulated impairment losses.
Land is not depreciated. Freehold buildings, plant and equipment are depreciated to a residual value on a straight-line basis over their estimated
useful economic lives as follows:
\u2014 Freehold buildings \u2013 30 to 50 years
\u2014 Plant and equipment \u2013 3 to 20 years
Leasehold improvements are recorded at cost and depreciated to a residual value over the shorter of the period of the lease and the useful
economic life of the asset.
At each reporting date, the Group assesses whether there is an indication that an asset may be impaired. If any indication exists, the Group
estimates the asset\u2019s recoverable amount. The recoverable amount is the higher of an asset\u2019s fair value less costs of disposal and its value in
use. Where it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the
CGU to which the asset belongs.
An impairment loss is recognised when the recoverable amount of the asset, or CGU, is less than its carrying amount. Impairment losses
are recognised in the income statement within depreciation, amortisation and impairment. CGU impairment losses are allocated first to
reduce the carrying amount of any goodwill allocated to the CGU, and then to reduce the carrying amounts of the other assets in the CGU
on a pro-rata basis.
Right-of-use assets (leases)
The Group recognises a right-of-use asset where it has control of an asset for a period of more than 12 months. Assets are recorded initially at
cost and depreciated on a straight-line basis over the shorter of the lease term and the estimated useful economic life. Cost is defined as the
net present value of the initial lease liability plus any initial costs and dilapidation provisions less any lease incentives received.
The lease term is the non-cancellable term plus any periods for which the Group is reasonably certain to exercise any extension options.
Where a property is no longer used by the business or there is surplus space, an impairment in the value of the right-of-use asset is recognised
and the asset is recognised at its estimated recoverable value.
Where a lease is terminated early, this is recognised as a disposal and any difference in value between the asset (being the carrying value of the
right-of-use asset) and the liability (being the net present value of future lease obligation) is recognised as a profit or loss on disposal. Any penalty
fees payable for early termination are recognised directly in the income statement as an operating expense.
15. Property, plant and equipment continued Group Notes Land & Buildings Plant and equipment Freehold property \u00a3m Right-of-use assets \u00a3m Leasehold improve- ments \u00a3m Right-of-use assets \u00a3m Owned \u00a3m Total \u00a3m Cost 1 January 2021 62 197 59 5 292 615 Property, plant and equipment acquired on acquisition of subsidiaries 9 379 36 32 222 678 Additions 3 25 24 27 101 180 Lease modifications \u2013 34 \u2013 (1) \u2013 33 Disposals and other (2) (1) (12) \u2013 (43) (58) Disposal of business \u2013 (28) (4) (3) (69) (104) Transfer to held for sale assets (17) \u2013 \u2013 \u2013 \u2013 (17) Foreign exchange translation \u2013 (1) \u2013 \u2013 (1) (2) 31 December 2021 55 605 103 60 502 1,325 Property, plant and equipment acquired on acquisition of subsidiaries 12 \u2013 1 \u2013 \u2013 2 3 Additions 14 44 12 41 130 241 Lease modifications \u2013 14 \u2013 \u2013 \u2013 14 Disposals and other (14) (12) 3 (1) (19) (43) Disposal of business 13 \u2013 (12) \u2013 (34) (15) (61) Foreign exchange translation (2) 32 7 4 24 65 31 December 2022 53 672 125 70 624 1,544 Accumulated depreciation and impairment 1 January 2021 29 50 45 2 192 318 Depreciation charge for the year 3 99 19 18 135 274 Impairment \u2013 22 \u2013 \u2013 \u2013 22 Disposals and other \u2013 (1) (12) \u2013 (39) (52 Disposal of business \u2013 (11) (3) (1) (50) (65) Transfer to held for sale assets (1) \u2013 \u2013 \u2013 \u2013 (1 Foreign exchange translation \u2013 (1) \u2013 \u2013 (2) (3 31 December 2021 31 158 49 19 236 493 Depreciation charge for the year 1 1 101 20 18 143 283 Impairment 1 \u2013 12 \u2013 \u2013 \u2013 12 Disposals and other (3) (10) (3) \u2013 (19) (35 Disposal of business 13 \u2013 (4) \u2013 (16) (5) (25) Foreign exchange translation \u2013 10 1 1 7 19 31 December 2022 29 267 67 22 362 747 Net book values 31 December 2022 24 405 58 48 262 797 31 December 2021 24 447 54 41 266 832 1 Includes non-underlying accelerated depreciation and impairment of \u00a327 million (2021: \u00a332 million) and depreciation from discontinued operations of \u00a35 million (2021: \u00a315 million). ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfPropertyPlantAndEquipmentExplanatory",
"language": "en",
"entity": "scheme:213800QAUUUP6I445N30",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-646": {
"value": "Accounting policy Property, plant and equipment Property, plant and equipment assets are recorded at cost less accumulated depreciation and accumulated impairment losses. Land is not depreciated. Freehold buildings, plant and equipment are depreciated to a residual value on a straight-line basis over their estimated useful economic lives as follows: \u2014 Freehold buildings \u2013 30 to 50 years \u2014 Plant and equipment \u2013 3 to 20 years Leasehold improvements are recorded at cost and depreciated to a residual value over the shorter of the period of the lease and the useful economic life of the asset. At each reporting date, the Group assesses whether there is an indication that an asset may be impaired. If any indication exists, the Group estimates the asset\u2019s recoverable amount. The recoverable amount is the higher of an asset\u2019s fair value less costs of disposal and its value in use. Where it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the CGU to which the asset belongs. An impairment loss is recognised when the recoverable amount of the asset, or CGU, is less than its carrying amount. Impairment losses are recognised in the income statement within depreciation, amortisation and impairment. CGU impairment losses are allocated first to reduce the carrying amount of any goodwill allocated to the CGU, and then to reduce the carrying amounts of the other assets in the CGU on a pro-rata basis. Right-of-use assets (leases) The Group recognises a right-of-use asset where it has control of an asset for a period of more than 12 months. Assets are recorded initially at cost and depreciated on a straight-line basis over the shorter of the lease term and the estimated useful economic life. Cost is defined as the net present value of the initial lease liability plus any initial costs and dilapidation provisions less any lease incentives received. The lease term is the non-cancellable term plus any periods for which the Group is reasonably certain to exercise any extension options. Where a property is no longer used by the business or there is surplus space, an impairment in the value of the right-of-use asset is recognised and the asset is recognised at its estimated recoverable value. Where a lease is terminated early, this is recognised as a disposal and any difference in value between the asset (being the carrying value of the right-of-use asset) and the liability (being the net present value of future lease obligation) is recognised as a profit or loss on disposal. Any penalty fees payable for early termination are recognised directly in the income statement as an operating expense. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForPropertyPlantAndEquipmentExplanatory",
"language": "en",
"entity": "scheme:213800QAUUUP6I445N30",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-715": {
"value": "Group Notes
Land & Buildings Plant and equipment
Freehold
property
\u00a3m
Right-of-use
assets
\u00a3m
Leasehold
improve-
ments
\u00a3m
Right-of-use
assets
\u00a3m
Owned
\u00a3m
Total
\u00a3m
Cost
1 January 2021 62 197 59 5 292 615
Property, plant and equipment acquired on
acquisition of subsidiaries 9 379 36 32 222 678
Additions 3 25 24 27 101 180
Lease modifications \u2013 34 \u2013 (1) \u2013 33
Disposals and other (2) (1) (12) \u2013 (43) (58)
Disposal of business \u2013 (28) (4) (3) (69) (104)
Transfer to held for sale assets (17) \u2013 \u2013 \u2013 \u2013 (17)
Foreign exchange translation \u2013 (1) \u2013 \u2013 (1) (2)
31 December 2021 55 605 103 60 502 1,325
Property, plant and equipment acquired on
acquisition of subsidiaries 12 \u2013 1 \u2013 \u2013 2 3
Additions 14 44 12 41 130 241
Lease modifications \u2013 14 \u2013 \u2013 \u2013 14
Disposals and other (14) (12) 3 (1) (19) (43)
Disposal of business 13 \u2013 (12) \u2013 (34) (15) (61)
Foreign exchange translation (2) 32 7 4 24 65
31 December 2022 53 672 125 70 624 1,544
Accumulated depreciation and impairment
1 January 2021 29 50 45 2 192 318
Depreciation charge for the year 3 99 19 18 135 274
Impairment \u2013 22 \u2013 \u2013 \u2013 22
Disposals and other \u2013 (1) (12) \u2013 (39) (52 )
Disposal of business \u2013 (11) (3) (1) (50) (65)
Transfer to held for sale assets (1) \u2013 \u2013 \u2013 \u2013 (1 )
Foreign exchange translation \u2013 (1) \u2013 \u2013 (2) (3 )
31 December 2021 31 158 49 19 236 493
Depreciation charge for the year
1
1 101 20 18 143 283
Impairment
1
\u2013 12 \u2013 \u2013 \u2013 12
Disposals and other (3) (10) (3) \u2013 (19) (35 )
Disposal of business 13 \u2013 (4) \u2013 (16) (5) (25)
Foreign exchange translation \u2013 10 1 1 7 19
31 December 2022 29 267 67 22 362 747
Net book values
31 December 2022 24 405 58 48 262 797
31 December 2021 24 447 54 41 266 832
1 Includes non-underlying accelerated depreciation and impairment of \u00a327 million (2021: \u00a332 million) and depreciation from discontinued operations of \u00a35 million (2021: \u00a315 million).
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfQuantitativeInformationAboutRightofuseAssetsExplanatory",
"language": "en",
"entity": "scheme:213800QAUUUP6I445N30",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-692": {
"value": "16. Investments in financial assets The Group holds equity investments in a number of companies which fall below the level that would result in recognition of an interest in a subsidiary or associate. The Group also holds some debt investments in Government bonds. Accounting policy These financial assets are all recognised at fair value through other comprehensive income (FVOCI). See note 23 for the relevant accounting policy, specifically in relation to: \u2014 equity instruments \u2014 debt instruments Investments in equity instruments and convertible instruments (excluding listed instruments) are classified as Level 3 (of the fair value hierarchy described in the accounting policy of note 23). Listed instruments are classified as Level 1 . Investment in financial assets are as follows: Group Notes 2022 \u00a3m 2021 \u00a3m Non-current Equity instruments 16.1, 23 394 351 Current Debt instruments 16.2, 23 226 \u2013 Total investments in financial assets 620 351 16.1 Equity instruments Movements in the fair value of the investments in equity instruments (which are almost entirely classified as Level 3) are as follows: Group 2022 \u00a3m 2021 \u00a3m 1 January 351 261 Investments in equity instruments acquired on acquisition of subsidiaries \u2013 22 Additions 1 28 Transfer to investments in associates (1) \u2013 Fair value gain recognised in other comprehensive income 21 59 Foreign exchange translation 22 (19) 31 December 394 351 Fair value of equity instruments In determining the fair value, recent market transactions are taken into account. If no such transactions can be identified, internal valuations are calculated using discounted cash flow forecasts using a terminal growth rate of 2% to 3% and a risk adjusted discount rate depending on the size and maturity of the investee. These valuations are also benchmarked against other available approaches such as the dividend discount model, regression analysis, and trading multiples. Valuation models generate a range of values by considering reasonable changes in the key unobservable inputs (including terminal growth rates and discount rates). The investments are recognised at the lowest value in the range. The fair values of the material investments are as follows: 2022 \u00a3m 2021 \u00a3m Euroclear 314 297 PrimaryBid Limited 31 10 Sumscope Inc. 17 15 Income from equity investments Income from equity investments of \u00a312 million represents dividends received from the Group\u2019s investment in Euroclear (2021: \u00a322 million). 16.2 Debt instruments Group 2022 \u00a3m 2021 \u00a3m 1 January \u2013 \u2013 Additions 1 217 \u2013 Foreign exchange translation 9 \u2013 31 December 226 \u2013 1 In the last quarter of 2022, we invested \u00a3217 million in French Government and European Central Bank bonds. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFinancialAssetsExplanatory",
"language": "en",
"entity": "scheme:213800QAUUUP6I445N30",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-647": {
"value": "Accounting policy These financial assets are all recognised at fair value through other comprehensive income (FVOCI). See note 23 for the relevant accounting policy, specifically in relation to: \u2014 equity instruments \u2014 debt instruments Investments in equity instruments and convertible instruments (excluding listed instruments) are classified as Level 3 (of the fair value hierarchy described in the accounting policy of note 23). Listed instruments are classified as Level 1 . ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialAssetsExplanatory",
"language": "en",
"entity": "scheme:213800QAUUUP6I445N30",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-693": {
"value": "17. Pension and other retirement benefit schemes Substantially all of the Group\u2019s employees participate in defined benefit or defined contribution future benefit schemes. Description Defined contribution schemes Defined contribution schemes are savings plans that provide for matching contributions from the Group. Most new employees are eligible to participate in these schemes. The main scheme within the Group is the London Stock Exchange Group Pension Plan. Defined benefit schemes Defined benefit schemes provide pension and other post-retirement benefits for covered employees. The most significant defined benefit schemes (collectively referred to as the \u2018Large UK\u2019 schemes) are: \u2014 the Reuters Pension Fund (RPF) \u2014 the Reuters Supplementary Pension Scheme (SPS) \u2014 the London Stock Exchange Group Pension Scheme (LSEGPS) \u2014 LSE Section of LSEGPS (previously the London Stock Exchange Retirement Plan) \u2014 LCH Section of LSEGPS (previously the LCH Pension Scheme in the UK) Benefits are payable generally based on salary and years of service, although each plan has a unique benefits formula. Employees of the Large UK schemes (and in some smaller schemes) may also make voluntary contributions to augment future benefits. The retirement age is typically in the range of 60 and 65 years and benefits are generally payable as an annuity or lump sum upon retirement. Most schemes include provisions for early retirement or death and include survivor and disability benefits. Under the Large UK schemes, vested benefits of former employees who are not yet of retirement age are held in deferment. Eligible benefits under the Large UK schemes are subject to increases based on inflation. Except when required by law, virtually all defined benefit schemes are closed to new employees. Outside of the UK, some countries operate pension schemes in accordance with the local regulations and practices. All schemes are governed by the local regulatory framework and employment laws in the country in which they operate. Accounting policy For defined contribution schemes, the operating charge represents the contributions payable in the year and is recognised in the income statement as incurred. For the defined benefit schemes the income statement expense is allocated between service cost and net finance expense. The service charge represents benefits accruing to employees and is included as an operating expense. Costs of future employee benefits are accrued over the period in which employees earn the benefits. Scheme obligations and costs are determined by an independent qualified actuary, on a regular basis, in line with IAS 19 Employee Benefits, using the projected unit credit method. The obligations are measured by discounting the best estimate of future cash flows to be paid out of the scheme and are reflected in the Group balance sheet. Where a scheme has a net defined benefit liability, interest cost is recognised in finance expense, calculated by applying a discount rate to the net defined benefit liability at the start of each annual reporting period. Where a scheme has a net defined asset, interest is recognised in finance income and calculated in the same way. The discount rate used is based on market interest rates of high-quality, fixed-rate debt securities adjusted to reflect the duration of expected future cash outflows for pension benefit payments. The net asset or liability recognised on the balance sheet comprises the difference between the present value of pension obligations and the fair value of scheme assets. Actuarial gains and losses are recognised at each reporting date, net of tax, in the statement of comprehensive income. These gains and losses arise from experience adjustments, changes in actuarial assumptions or differences between actual and expected returns on assets. Significant accounting judgements The Group judges that, on the winding up of the schemes, it can expect any remaining pension surplus to be refunded in full to the Group. In line with the current accounting standards, it therefore continues to recognise these retirement benefit assets on the balance sheet in full. 17. Pension and other retirement benefit schemes continued Significant accounting estimates and assumptions Defined benefit pension or liabilities are determined based on the present value of future pension obligations using assumptions determined by the Group with advice from an independent qualified actuary. An actuarial valuation involves making various assumptions that may differ from what actually happens in the future. The assumptions that are the most significant to the amounts reported are the discount rate, inflation rate, salary growth and mortality levels. Assumptions about these variables are based on the environment in each country. Due to the complexities involved in a valuation, and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. In particular, changes to the discount rate and inflation rate, could result in material changes to the carrying amounts of the group\u2019s pension and other post-retirement benefit obligations within the next financial year. 17.1 Pension costs Pensions costs arising from all group retirement benefit arrangements recognised in the income statement are as follows: Continuing Notes 2022 \u00a3m 2021 (Re- presented) \u00a3m Defined contribution schemes 74 65 Defined benefit scheme \u2013 current/past service cost, curtailment, and expenses 7 16 Pension costs recognised in staff costs 5 81 81 Net finance income 7 (11) (6) 70 75 17.2 Actuarial gains and losses on retirement benefit assets and obligations Experience adjustments and the effects of changes in actuarial assumptions during the year are recognised in the statement of comprehensive income. 2022 \u00a3m 2021 \u00a3m 1 January 116 15 Net actuarial (losses)/gains recognised in the year (329) 101 31 December (213) 116 17.3 Retirement benefit assets and obligations The amounts recognised in the balance sheet include the assets and liabilities of the Large UK schemes, as well as various smaller schemes. All pension scheme assets are held separately from those of the Group. Retirement benefit assets and obligations recognised on the balance sheet are as follows: 2022 \u00a3m 2021 \u00a3m Retirement benefit assets 231 568 Retirement benefit obligations (64) (85) Net retirement benefit asset 167 483 The net defined benefit assets/(liabilities) in respect of defined benefit schemes are as follows: 2022 \u00a3m 2021 \u00a3m RPF 1 145 433 SPS 1 11 4 LSE Section of LSEGPS 1 21 33 LCH Section of LSEGPS 1 39 75 Other plans (49) (62) Net retirement benefit asset 167 483 1 As at 31 December 2022, the Group recognised net defined benefit assets on the basis that the Group would have access to the surplus in the event of a winding-up of the scheme. No asset ceiling has therefore been applied to the net surplus recognised. Furthermore, none of these schemes have minimum funding commitments. Changes in the net retirement benefit asset during the year are as follows: 2022 \u00a3m 2021 \u00a3m 1 January 483 63 Net defined benefit assets acquired and obligations assumed on acquisition of subsidiaries \u2013 282 Disposal of business \u2013 8 Pension income/(expense), including interest 5 (10) Actuarial (losses)/gains (329) 101 Employer contributions and benefits paid 17 33 Other (11) 6 Foreign exchange translation 2 \u2013 31 December 167 483 17. Pension and other retirement benefit schemes continued
17.4 Large UK schemes
The detail that follows relates to the Large UK schemes. In this section
we show the movement of the scheme assets and defined benefit
obligations in the year, alongside the asset classes and expected
benefit payments. We also explain the schemes\u2019 investment policy,
key assumptions and risk management.
Scheme assets
The movements in the fair value of scheme assets during the year are
as follows:
2022
\u00a3m
2021
\u00a3m
1 January 3,811 774
Scheme assets acquired on acquisition
of subsidiaries \u2013 3,043
Interest income 79 49
Movement on plan assets, excluding
interest income, recognised in other
comprehensive income
1
(1,426) 27
Employer contributions
2
21 26
Plan participants\u2019 contributions 1 1
Benefits paid (117) (109)
31 December 2,369 3,811
1 The decrease in plan assets in 2022 is mainly driven by poor asset performance in all
countries with funded plans, in particular the UK non-insured plans.
2 The group contributed \u00a321 million (2021: \u00a326 million) to its Large UK schemes. The Group
expects to contribute approximately \u00a315 million to its Large UK schemes in 2023. For the
Large UK schemes, the Trustees have the right to call for special valuations, which could
subsequently result in the Group having to make an unexpected contribution. Market-related
factors may also affect the timing and amount of contributions.
The fair values of each major class of scheme assets are as follows:
Fair value of assets
2022
\u00a3m
2021
\u00a3m
Equities
\u2014 Quoted 29 190
\u2014 Not quoted 20 25
Bonds
\u2014 Quoted 250 475
\u2014 Not quoted 773 1,713
Buy-in policy 723 1,016
Cash and cash equivalents 366 56
Multi-assets and other 208 336
Total fair value of assets 2,369 3,811
Investment policy
The Group bears the cost of the Large UK schemes (less employee
contributions). However, the responsibility for managing and governing
the Large UK schemes lies with an independent trustee board for
each scheme (the \u201cTrustees\u201d). Scheme Trustees set investment policies
and strategies for each plan and oversee investment allocation. This
includes selecting investment managers, commissioning periodic
asset-liability studies, and setting long-term targets. The scheme
Trustees may consult with the Group in setting investment policy,
but the Trustees are ultimately accountable for it.
The principal investment objectives are to:
\u2014 ensure funds are available to pay pension benefits as they become
due under a broad range of future economic scenarios
\u2014 maximise long-term investment return with an acceptable level of risk
\u2014 diversify across capital markets to insulate asset values against risk in
any one market
Investment allocation
Investment allocation takes into account a number of factors, including:
the funded status of the scheme; setting the right balance between
risk and return; the scheme\u2019s liquidity needs; current and expected
economic and market conditions; specific asset class risk; as well
as the risk profile and maturity pattern of the scheme.
Target investment allocation ranges provide guidelines, not limitations.
Plans may have diversified portfolios with investments in equities, fixed
income, real estate, insurance contracts, derivatives, and other asset
classes through direct ownership or through other instruments such
as mutual funds, commingled funds, and hedge funds. Derivatives
may be used to achieve investment objectives or as a component
of risk management (such as for interest rate and currency
management strategies).
The assets held by the Large UK schemes mainly consist of cash
and cash equivalents, government and corporate bonds, and various
investment vehicles. Plan assets are invested to adequately secure
benefits and to minimise the need for long-term contributions to
the schemes. However, specific investment allocation will vary
across schemes.
The Trustees invest the schemes\u2019 assets in a portfolio of physical assets
and liability-matching assets:
\u2014 The physical assets have the objective of outperforming the liabilities
by investing in a suitably diversified range of assets, consisting of risk
premia strategies, corporate bonds (and other credit alternatives) and
property which together are expected to reduce investment volatility.
\u2014 The liability-matching assets seek to hedge against the interest rate
and inflation risks associated with liabilities. The assets are
predominantly gilts, both nominal and index-linked. The RPF, SPS
and LSE Section of LSEGPS also include bulk annuity transactions
(buy-ins) insuring the benefit for a part of the schemes\u2019 liabilities.
This combination of physical assets and liability-matching assets is
expected to provide an appropriate risk and return profile, with suitable
interest rate and inflation hedging characteristics, consistent with lower
volatility and improved funding levels.
Funding valuations and arrangements
The Trustees are responsible for carrying out triennial valuations
(unless circumstances require an earlier review) and securing funding
for benefit payments. In order to develop funding valuations and
investment policies, the Trustees consult with the scheme\u2019s actuary
(who is independent of the Group\u2019s actuary), the scheme\u2019s investment
advisors (also independent of the Group\u2019s investment advisors) and
the Group.
Of the Large UK schemes, only the LSEGPS requires the Group to
make deficit contributions. For the LSE Section of LSEGPS, the Group
contributed \u00a314 million in 2022, with a contingent contribution of
\u00a312 million in 2023 and nothing in 2024. No contributions are required
for the LCH Section of LSEGPS over these three years.
The Group has provided guarantees to the Trustees of the RPF and
to the Trustees of the SPS in conjunction with triennial valuation and
funding obligations. As at 31 December 2022, the aggregate maximum
liability under the guarantees was \u00a3700 million for the RPF and
\u00a3120 million for the SPS. These amounts are unchanged from last year .
17. Pension and other retirement benefit schemes continued Defined benefit obligations The changes in the present value of the defined benefit obligations during the year are as follows: 2022 \u00a3m 2021 \u00a3m 1 January 3,267 693 Defined benefit obligations assumed on acquisition of subsidiaries \u2013 2,684 Pension expense/(income) recognised in the income statement \u2014 Past/current service cost and administrative fees 7 10 \u2014 Interest cost 66 42 \u2014 Curtailment (7) (1) Remeasurements recognised in other comprehensive income \u2014 Actuarial gains \u2013 financial assumptions 1 (1,213) (112) \u2014 Actuarial (gains)/losses \u2013 demographic assumptions (23) 1 \u2014 Actuarial losses \u2013 experience 164 60 Benefits paid (117) (109) Plan participants\u2019 contributions 1 1 Other 7 (2) 31 December 2,152 3,267 1 The gain is mainly driven by the increase in discount rates in 2022. Duration of the defined benefit obligations The weighted average duration of the defined benefit obligations at the end of the reporting period are estimated to be: 2022 years 2021 years RPF \u2014 Non-insured 16 17 \u2014 Insured 10 12 SPS 10 12 LSE Section of LSEGPS \u2014 Non-insured 16 20 \u2014 Insured 9 11 LCH Section of LSEGPS 18 23 The following table provides expected benefit payments under the Group\u2019s Large UK schemes: 2022 \u00a3m 2021 \u00a3m Less than 1 year 98 114 Between 1 and 2 years 97 93 Between 2 and 5 years 324 318 Over 5 years 576 607 Total expected benefit payments 1,095 1,132 The Group used the following weighted-average assumptions in determining the defined benefit obligation: 2022 2021 Discount rate \u2014 Non-insured 4.80% 1.89% \u2014 Insured 4.80% 1.89% Price inflation 3.33% 3.38% Rate of increase in salaries 3.30% 3.83% Mortality assumptions used for the Large UK Schemes are based on SAPS S3 Tables published by the Institute and Faculty of Actuaries. They are adjusted to take account of projected future improvements in life expectancy based on the Continuous Mortality Investigation (CMI) 2021 Mortality Projections Model, which was published in 2022 by the Institute and Faculty of Actuaries\u2019 CMI body. A 1.25% p.a. long-term mortality improvement trend has been applied within the CMI model for men and women to increase life expectancy (2021: 1.25% p.a.). Risks for the defined benefit schemes and risk mitigation Some key financial risks for the defined benefit schemes are: \u2014 if there is a reduction in corporate bond yields, this increases the schemes\u2019 liabilities which may not be accompanied by a corresponding increase in the schemes\u2019 assets \u2014 if investment returns are lower than assumed. The schemes invest a proportion of their assets in growth assets so a fall in the value of these assets will worsen the schemes\u2019 funding positions \u2014 if inflation is higher than expected, or average inflation expectations increase, this will increase the liabilities through higher indexing of pension payments \u2014 if members live longer than expected, the length of time for which pensions have to be paid increases An increase in pension liabilities could lead to an increase in the pension deficit or a reduction in any surplus. Defined benefit schemes are normally revalued by actuaries every three years. Where any material funding gap is identified by this process, the Trustees will agree a schedule of contributions with the sponsor company. Such contributions would have a financial impact on the Group. In addition, for the RPF, the SPS and the LSE Section of LSEGPS, the Group is exposed to the creditworthiness of the buy-in insurance provider. A failure of the buy-in insurance provider would reduce the pension assets and could lead to a pension deficit materialising, or an increase in the pension deficit and the need for contributions from the Group. The Large UK schemes hold a range of liquid assets that can be sold for use as collateral for the liability-matching assets if required, and the Trustees consider the liquidity needs of the schemes when setting investment strategy. The schemes\u2019 investment strategies have performed as expected during the market volatility that followed the UK government\u2019s mini budget on 23 September 2022. The RPF and LSEGPS Trustees make use of liability-driven investments, but there was no interruption to the interest rate and inflation hedges in place. The SPS does not hold any liability-driven investments. The RPF, SPS and LSE Section of LSEGPS also hold bulk annuity policies, which insure the benefit for a part of the schemes\u2019 liabilities and hedge both the market and life expectancy risks associated with these liabilities17. Pension and other retirement benefit
schemes continued
Risk management
On 1 September 2022, the RPF was closed to future accrual. All 121
remaining active members accepted the new terms and conditions, and
their status changed to deferred. They were automatically enrolled into
the London Stock Exchange Group Pension Plan, a defined contribution
pension plan, unless they opted out. This constitutes an \u201cexit\u201d and
triggered curtailment. A curtailment gain of \u00a37 million was recognised.
On 30 September 2021, the Trustees of SPS entered into a bulk
annuity policy with Legal & General (L&G) covering all of the scheme\u2019s
deferred and retiree obligations. The purpose of the arrangement
is to reduce pension volatility by transferring longevity risk to L&G and
further improve inflation risk and the matching of assets and liabilities.
As at 31 December 2022, the SPS buy-in amounted to \u00a3182 million
(2021: \u00a3254 million).
The RPF and the LSE Section of LSEGPS have partial buy-in
arrangements in place amounting to \u00a3404 million (2021: \u00a3576 million)
and \u00a3137 million (2021: \u00a3186 million), respectively.
Sensitivity analysis
The sensitivities regarding the principal assumptions used to measure
the Large UK schemes obligations are:
Assumption
Change in
assumption
(Decrease)/increase in
scheme obligations
2022
\u00a3m
2021
\u00a3m
Discount rate +0.5% (138) (268)
Price inflation +0.5% 81 146
Increase in salaries +0.5% \u2013 5
Mortality rate +1 year 64 110
The sensitivity analysis above shows how a reasonably possible
increase in a particular assumption would, in isolation, result in an
increase or decrease in the present value of the defined benefit
obligation at the end of the reporting period. The analysis is done in a
similar way to calculating the defined benefit obligation recognised in
the balance sheet in that it uses the projected unit credit method at the
end of the year.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfEmployeeBenefitsExplanatory",
"language": "en",
"entity": "scheme:213800QAUUUP6I445N30",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-648": {
"value": "Accounting policy For defined contribution schemes, the operating charge represents the contributions payable in the year and is recognised in the income statement as incurred. For the defined benefit schemes the income statement expense is allocated between service cost and net finance expense. The service charge represents benefits accruing to employees and is included as an operating expense. Costs of future employee benefits are accrued over the period in which employees earn the benefits. Scheme obligations and costs are determined by an independent qualified actuary, on a regular basis, in line with IAS 19 Employee Benefits, using the projected unit credit method. The obligations are measured by discounting the best estimate of future cash flows to be paid out of the scheme and are reflected in the Group balance sheet. Where a scheme has a net defined benefit liability, interest cost is recognised in finance expense, calculated by applying a discount rate to the net defined benefit liability at the start of each annual reporting period. Where a scheme has a net defined asset, interest is recognised in finance income and calculated in the same way. The discount rate used is based on market interest rates of high-quality, fixed-rate debt securities adjusted to reflect the duration of expected future cash outflows for pension benefit payments. The net asset or liability recognised on the balance sheet comprises the difference between the present value of pension obligations and the fair value of scheme assets. Actuarial gains and losses are recognised at each reporting date, net of tax, in the statement of comprehensive income. These gains and losses arise from experience adjustments, changes in actuarial assumptions or differences between actual and expected returns on assets. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForEmployeeBenefitsExplanatory",
"language": "en",
"entity": "scheme:213800QAUUUP6I445N30",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-716": {
"value": "17.3 Retirement benefit assets and obligations
The amounts recognised in the balance sheet include the assets and
liabilities of the Large UK schemes, as well as various smaller schemes.
All pension scheme assets are held separately from those of the Group.
Retirement benefit assets and obligations recognised on the balance
sheet are as follows:
2022
\u00a3m
2021
\u00a3m
Retirement benefit assets 231 568
Retirement benefit obligations (64) (85)
Net retirement benefit asset 167 483
The net defined benefit assets/(liabilities) in respect of defined benefit
schemes are as follows:
2022
\u00a3m
2021
\u00a3m
RPF
1
145 433
SPS
1
11 4
LSE Section of LSEGPS
1
21 33
LCH Section of LSEGPS
1
39 75
Other plans (49) (62)
Net retirement benefit asset 167 483
1 As at 31 December 2022, the Group recognised net defined benefit assets on the basis
that the Group would have access to the surplus in the event of a winding-up of the
scheme. No asset ceiling has therefore been applied to the net surplus recognised.
Furthermore, none of these schemes have minimum funding commitments.
Changes in the net retirement benefit asset during the year are
as follows:
2022
\u00a3m
2021
\u00a3m
1 January 483 63
Net defined benefit assets acquired and
obligations assumed on acquisition of subsidiaries \u2013 282
Disposal of business \u2013 8
Pension income/(expense), including interest 5 (10)
Actuarial (losses)/gains (329) 101
Employer contributions and benefits paid 17 33
Other (11) 6
Foreign exchange translation 2 \u2013
31 December 167 483
17.4 Large UK schemes The detail that follows relates to the Large UK schemes. In this section we show the movement of the scheme assets and defined benefit obligations in the year, alongside the asset classes and expected benefit payments. We also explain the schemes\u2019 investment policy, key assumptions and risk management. Scheme assets The movements in the fair value of scheme assets during the year are as follows: 2022 \u00a3m 2021 \u00a3m 1 January 3,811 774 Scheme assets acquired on acquisition of subsidiaries \u2013 3,043 Interest income 79 49 Movement on plan assets, excluding interest income, recognised in other comprehensive income 1 (1,426) 27 Employer contributions 2 21 26 Plan participants\u2019 contributions 1 1 Benefits paid (117) (109) 31 December 2,369 3,811 1 The decrease in plan assets in 2022 is mainly driven by poor asset performance in all countries with funded plans, in particular the UK non-insured plans. 2 The group contributed \u00a321 million (2021: \u00a326 million) to its Large UK schemes. The Group expects to contribute approximately \u00a315 million to its Large UK schemes in 2023. For the Large UK schemes, the Trustees have the right to call for special valuations, which could subsequently result in the Group having to make an unexpected contribution. Market-related factors may also affect the timing and amount of contributions. The fair values of each major class of scheme assets are as follows: Fair value of assets 2022 \u00a3m 2021 \u00a3m Equities \u2014 Quoted 29 190 \u2014 Not quoted 20 25 Bonds \u2014 Quoted 250 475 \u2014 Not quoted 773 1,713 Buy-in policy 723 1,016 Cash and cash equivalents 366 56 Multi-assets and other 208 336 Total fair value of assets 2,369 3,811 Investment policy The Group bears the cost of the Large UK schemes (less employee contributions). However, the responsibility for managing and governing the Large UK schemes lies with an independent trustee board for each scheme (the \u201cTrustees\u201d). Scheme Trustees set investment policies and strategies for each plan and oversee investment allocation. This includes selecting investment managers, commissioning periodic asset-liability studies, and setting long-term targets. The scheme Trustees may consult with the Group in setting investment policy, but the Trustees are ultimately accountable for it. The principal investment objectives are to: \u2014 ensure funds are available to pay pension benefits as they become due under a broad range of future economic scenarios \u2014 maximise long-term investment return with an acceptable level of risk \u2014 diversify across capital markets to insulate asset values against risk in any one market Investment allocation Investment allocation takes into account a number of factors, including: the funded status of the scheme; setting the right balance between risk and return; the scheme\u2019s liquidity needs; current and expected economic and market conditions; specific asset class risk; as well as the risk profile and maturity pattern of the scheme. Target investment allocation ranges provide guidelines, not limitations. Plans may have diversified portfolios with investments in equities, fixed income, real estate, insurance contracts, derivatives, and other asset classes through direct ownership or through other instruments such as mutual funds, commingled funds, and hedge funds. Derivatives may be used to achieve investment objectives or as a component of risk management (such as for interest rate and currency management strategies). The assets held by the Large UK schemes mainly consist of cash and cash equivalents, government and corporate bonds, and various investment vehicles. Plan assets are invested to adequately secure benefits and to minimise the need for long-term contributions to the schemes. However, specific investment allocation will vary across schemes. The Trustees invest the schemes\u2019 assets in a portfolio of physical assets and liability-matching assets: \u2014 The physical assets have the objective of outperforming the liabilities by investing in a suitably diversified range of assets, consisting of risk premia strategies, corporate bonds (and other credit alternatives) and property which together are expected to reduce investment volatility. \u2014 The liability-matching assets seek to hedge against the interest rate and inflation risks associated with liabilities. The assets are predominantly gilts, both nominal and index-linked. The RPF, SPS and LSE Section of LSEGPS also include bulk annuity transactions (buy-ins) insuring the benefit for a part of the schemes\u2019 liabilities. This combination of physical assets and liability-matching assets is expected to provide an appropriate risk and return profile, with suitable interest rate and inflation hedging characteristics, consistent with lower volatility and improved funding levels. Funding valuations and arrangements The Trustees are responsible for carrying out triennial valuations (unless circumstances require an earlier review) and securing funding for benefit payments. In order to develop funding valuations and investment policies, the Trustees consult with the scheme\u2019s actuary (who is independent of the Group\u2019s actuary), the scheme\u2019s investment advisors (also independent of the Group\u2019s investment advisors) and the Group. Of the Large UK schemes, only the LSEGPS requires the Group to make deficit contributions. For the LSE Section of LSEGPS, the Group contributed \u00a314 million in 2022, with a contingent contribution of \u00a312 million in 2023 and nothing in 2024. No contributions are required for the LCH Section of LSEGPS over these three years. The Group has provided guarantees to the Trustees of the RPF and to the Trustees of the SPS in conjunction with triennial valuation and funding obligations. As at 31 December 2022, the aggregate maximum liability under the guarantees was \u00a3700 million for the RPF and \u00a3120 million for the SPS. These amounts are unchanged from last year Defined benefit obligations
The changes in the present value of the defined benefit obligations
during the year are as follows:
2022
\u00a3m
2021
\u00a3m
1 January 3,267 693
Defined benefit obligations assumed on
acquisition of subsidiaries \u2013 2,684
Pension expense/(income) recognised in the
income statement
\u2014 Past/current service cost and administrative fees 7 10
\u2014 Interest cost 66 42
\u2014 Curtailment (7) (1)
Remeasurements recognised in other
comprehensive income
\u2014 Actuarial gains \u2013 financial assumptions
1
(1,213) (112)
\u2014 Actuarial (gains)/losses \u2013
demographic assumptions (23) 1
\u2014 Actuarial losses \u2013 experience 164 60
Benefits paid (117) (109)
Plan participants\u2019 contributions 1 1
Other 7 (2)
31 December 2,152 3,267
1 The gain is mainly driven by the increase in discount rates in 2022.
Duration of the defined benefit obligations
The weighted average duration of the defined benefit obligations at the
end of the reporting period are estimated to be:
2022
years
2021
years
RPF
\u2014 Non-insured 16 17
\u2014 Insured 10 12
SPS 10 12
LSE Section of LSEGPS
\u2014 Non-insured 16 20
\u2014 Insured 9 11
LCH Section of LSEGPS 18 23
The following table provides expected benefit payments under the
Group\u2019s Large UK schemes:
2022
\u00a3m
2021
\u00a3m
Less than 1 year 98 114
Between 1 and 2 years 97 93
Between 2 and 5 years 324 318
Over 5 years 576 607
Total expected benefit payments 1,095 1,132
The Group used the following weighted-average assumptions in
determining the defined benefit obligation:
2022 2021
Discount rate
\u2014 Non-insured 4.80% 1.89%
\u2014 Insured 4.80% 1.89%
Price inflation 3.33% 3.38%
Rate of increase in salaries 3.30% 3.83%
Mortality assumptions used for the Large UK Schemes are based on
SAPS S3 Tables published by the Institute and Faculty of Actuaries.
They are adjusted to take account of projected future improvements
in life expectancy based on the Continuous Mortality Investigation (CMI)
2021 Mortality Projections Model, which was published in 2022 by the
Institute and Faculty of Actuaries\u2019 CMI body. A 1.25% p.a. long-term
mortality improvement trend has been applied within the CMI model
for men and women to increase life expectancy (2021: 1.25% p.a.).
Risks for the defined benefit schemes and risk mitigation
Some key financial risks for the defined benefit schemes are:
\u2014 if there is a reduction in corporate bond yields, this increases
the schemes\u2019 liabilities which may not be accompanied by a
corresponding increase in the schemes\u2019 assets
\u2014 if investment returns are lower than assumed. The schemes invest
a proportion of their assets in growth assets so a fall in the value
of these assets will worsen the schemes\u2019 funding positions
\u2014 if inflation is higher than expected, or average inflation expectations
increase, this will increase the liabilities through higher indexing of
pension payments
\u2014 if members live longer than expected, the length of time for which
pensions have to be paid increases
An increase in pension liabilities could lead to an increase in the
pension deficit or a reduction in any surplus. Defined benefit schemes
are normally revalued by actuaries every three years. Where any
material funding gap is identified by this process, the Trustees will
agree a schedule of contributions with the sponsor company.
Such contributions would have a financial impact on the Group.
In addition, for the RPF, the SPS and the LSE Section of LSEGPS,
the Group is exposed to the creditworthiness of the buy-in insurance
provider. A failure of the buy-in insurance provider would reduce the
pension assets and could lead to a pension deficit materialising,
or an increase in the pension deficit and the need for contributions
from the Group.
The Large UK schemes hold a range of liquid assets that can be sold
for use as collateral for the liability-matching assets if required, and the
Trustees consider the liquidity needs of the schemes when setting
investment strategy. The schemes\u2019 investment strategies have
performed as expected during the market volatility that followed the
UK government\u2019s mini budget on 23 September 2022. The RPF and
LSEGPS Trustees make use of liability-driven investments, but there was
no interruption to the interest rate and inflation hedges in place. The
SPS does not hold any liability-driven investments. The RPF, SPS and
LSE Section of LSEGPS also hold bulk annuity policies, which insure the
benefit for a part of the schemes\u2019 liabilities and hedge both the market
and life expectancy risks associated with these liabilities.
Risk management On 1 September 2022, the RPF was closed to future accrual. All 121 remaining active members accepted the new terms and conditions, and their status changed to deferred. They were automatically enrolled into the London Stock Exchange Group Pension Plan, a defined contribution pension plan, unless they opted out. This constitutes an \u201cexit\u201d and triggered curtailment. A curtailment gain of \u00a37 million was recognised. On 30 September 2021, the Trustees of SPS entered into a bulk annuity policy with Legal & General (L&G) covering all of the scheme\u2019s deferred and retiree obligations. The purpose of the arrangement is to reduce pension volatility by transferring longevity risk to L&G and further improve inflation risk and the matching of assets and liabilities. As at 31 December 2022, the SPS buy-in amounted to \u00a3182 million (2021: \u00a3254 million). The RPF and the LSE Section of LSEGPS have partial buy-in arrangements in place amounting to \u00a3404 million (2021: \u00a3576 million) and \u00a3137 million (2021: \u00a3186 million), respectively. Sensitivity analysis The sensitivities regarding the principal assumptions used to measure the Large UK schemes obligations are: Assumption Change in assumption (Decrease)/increase in scheme obligations 2022 \u00a3m 2021 \u00a3m Discount rate +0.5% (138) (268) Price inflation +0.5% 81 146 Increase in salaries +0.5% \u2013 5 Mortality rate +1 year 64 110 The sensitivity analysis above shows how a reasonably possible increase in a particular assumption would, in isolation, result in an increase or decrease in the present value of the defined benefit obligation at the end of the reporting period. The analysis is done in a similar way to calculating the defined benefit obligation recognised in the balance sheet in that it uses the projected unit credit method at the end of the year. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfDefinedBenefitPlansExplanatory",
"language": "en",
"entity": "scheme:213800QAUUUP6I445N30",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-694": {
"value": "18. Trade and other receivables
Trade and other receivables mainly consist of amounts owed to us
by customers and amounts that we pay to our suppliers in advance.
This note includes finance lease receivables recognised where the
Group acts as a lessor. See note 21 for more information on the Group\u2019s
leasing activities.
Accounting policy
Trade receivables are initially recognised at the amount of the
consideration that is unconditionally due to the Group. They are
subsequently measured at amortised cost, less any expected
credit loss (ECL). Our approach to calculating ECL provisions is
described in note 23. The creation and release of such provisions
are recognised in operating expenses in the income statement.
Fees receivable are recognised when the Group has an
unconditional right to consideration in exchange for goods
or services transferred, but no fee invoice has been issued.
Amounts are transferred to trade receivables when an invoice
has been issued.
Other receivables are initially recognised at fair value and
subsequently at amortised cost, less any loss allowance as
described in note 23.
When a receivable is no longer expected to be recovered, the full
amount is written off. We will continue to seek recovery and any
subsequent amounts recovered against amounts previously written
off are recognised in the income statement.
See note 21 for the net investment in leases accounting policy,
when the Group sub-lets property right-of-use assets.
The Group has a tax indemnity receivable from Thomson Reuters
for any tax liabilities incurred before Refinitiv (previously the Thomson
Reuters Financial & Risk Business) separated from Thomson Reuters
on 1 October 2018. The tax indemnity receivable is measured on
the same basis as the corresponding indemnified tax liabilities.
When there is a change in the indemnified tax liabilities, which is
recognised within tax in the income statement, there is an offsetting
change in the tax indemnity receivable. This change is recognised
within operating expenses in the income statement.
Contract assets are recognised when the Group has a conditional
right to consideration from a customer in exchange for goods
or services transferred. Contract assets are transferred to trade
receivables when the entitlement to payment becomes unconditional
and only the passage of time is required before payment is due.
18. Trade and other receivables continued
Notes
Group Company
2022
\u00a3m
2021
\u00a3m
2022
\u00a3m
2021
\u00a3m
Non-current
Net investments in leases 71 80 \u2013 \u2013
Tax indemnity receivable 79 73 56 52
Convertible loan notes 12 6 \u2013 \u2013
Other receivables 47 42 \u2013 \u2013
Amounts due from Group companies 28.1 \u2013 \u2013 20 40
Fees receivable \u2013 1 \u2013 \u2013
Total non-current receivables classified as financial assets 23.1 209 202 76 92
Current
Trade receivables 766 497 \u2013 2
Fees receivable 263 230 \u2013 \u2013
Expected credit loss on trade receivables (9) (7) \u2013 \u2013
Net trade receivables 1,020 720 \u2013 2
Amounts due from Group companies 28.1 \u2013 \u2013 1,199 1,333
Group relief receivable \u2013 \u2013 85 105
Net investments in leases 12 11 \u2013 \u2013
Deposits receivable within one year 20 18 \u2013 \u2013
Other receivables 95 75 \u2013 46
Current trade and other receivables classified as financial assets 23.1 1,147 824 1,284 1,486
Prepayments 214 141 12 10
Contract assets 3 2 \u2013 \u2013
Total current trade and other receivables 1,364 967 1,296 1,496
Total receivables 1,573 1,169 1,372 1,588
The carrying amounts of the Group\u2019s current trade and other receivables are denominated in the following currencies:
2022
\u00a3m
2021
\u00a3m
Sterling 442 310
Euro 100 66
US dollar 703 503
Other currencies 119 88
1,364 967
Provision for expected credit losses
Movements in the Group\u2019s provision for expected credit losses on trade receivables are as follows:
2022
\u00a3m
2021
\u00a3m
1 January 7 11
New provisions for expected credit losses 6 1
Amounts written off as uncollectible (3) (3)
Disposal of business \u2013 (2)
Foreign exchange translation (1) \u2013
31 December 9 7
Net investments in leases: Group as lessor
The Group sub-lets a number of its properties where there is surplus space or the office is no longer used by the business. The Group has both
finance and operating sub-leases. Net investments in leases are shown within trade and other receivables above.
18. Trade and other receivables continued
The future minimum rentals receivable as at 31 December are as follows:
2022
\u00a3m
2021
\u00a3m
Less than 1 year 12 11
Between 1 and 2 years 10 11
Between 2 and 5 years 17 21
Over 5 years 52 57
Total 91 100
The future minimum rentals receivable above reflect the gross rental receivable and are not discounted. The net investment in leases disclosed
within trade and other receivables are discounted to reflect the net present value to the Group at the period end.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfTradeAndOtherReceivablesExplanatory",
"language": "en",
"entity": "scheme:213800QAUUUP6I445N30",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-649": {
"value": "Accounting policy Trade receivables are initially recognised at the amount of the consideration that is unconditionally due to the Group. They are subsequently measured at amortised cost, less any expected credit loss (ECL). Our approach to calculating ECL provisions is described in note 23. The creation and release of such provisions are recognised in operating expenses in the income statement. Fees receivable are recognised when the Group has an unconditional right to consideration in exchange for goods or services transferred, but no fee invoice has been issued. Amounts are transferred to trade receivables when an invoice has been issued. Other receivables are initially recognised at fair value and subsequently at amortised cost, less any loss allowance as described in note 23. When a receivable is no longer expected to be recovered, the full amount is written off. We will continue to seek recovery and any subsequent amounts recovered against amounts previously written off are recognised in the income statement. See note 21 for the net investment in leases accounting policy, when the Group sub-lets property right-of-use assets. The Group has a tax indemnity receivable from Thomson Reuters for any tax liabilities incurred before Refinitiv (previously the Thomson Reuters Financial & Risk Business) separated from Thomson Reuters on 1 October 2018. The tax indemnity receivable is measured on the same basis as the corresponding indemnified tax liabilities. When there is a change in the indemnified tax liabilities, which is recognised within tax in the income statement, there is an offsetting change in the tax indemnity receivable. This change is recognised within operating expenses in the income statement. Contract assets are recognised when the Group has a conditional right to consideration from a customer in exchange for goods or services transferred. Contract assets are transferred to trade receivables when the entitlement to payment becomes unconditional and only the passage of time is required before payment is due. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForTradeAndOtherReceivablesExplanatory",
"language": "en",
"entity": "scheme:213800QAUUUP6I445N30",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-717": {
"value": "Provision for expected credit losses Movements in the Group\u2019s provision for expected credit losses on trade receivables are as follows: 2022 \u00a3m 2021 \u00a3m 1 January 7 11 New provisions for expected credit losses 6 1 Amounts written off as uncollectible (3) (3) Disposal of business \u2013 (2) Foreign exchange translation (1) \u2013 31 December 9 7 ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfAllowanceForCreditLossesExplanatory",
"language": "en",
"entity": "scheme:213800QAUUUP6I445N30",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-695": {
"value": "19. Cash and cash equivalents Cash and cash equivalents comprise cash at bank, short-term deposits, money market funds and other instruments and structures that are readily convertible to known amounts of cash and are subject to insignificant risk of changes in value. Note Group Company 2022 \u00a3m 2021 \u00a3m 2022 \u00a3m 2021 \u00a3m Cash at bank 922 758 18 3 Cash equivalents 2,287 1,907 59 139 Total cash and cash equivalents 23 3,209 2,665 77 142 At 31 December 2022, cash and cash equivalents include \u00a31,219 million (2021: \u00a31,261 million) of amounts held by regulated entities for regulatory and operational purposes. Cash held by subsidiaries which operate in countries where exchange controls or other legal restrictions apply, which is therefore not available for general use by the Group, has been fully provided against. Cash and cash equivalents do not include amounts held by the CCPs on behalf of their clearing members. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfCashAndCashEquivalentsExplanatory",
"language": "en",
"entity": "scheme:213800QAUUUP6I445N30",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-696": {
"value": "20. Trade and other payables Trade and other payables mainly consist of amounts owed to suppliers that have been invoiced or are accrued. They also include social security and other amounts due in relation to the Group\u2019s role as an employer. Accounting policy Trade payables are initially recognised at fair value, which is usually the amount invoiced. They are subsequently measured at amortised cost. Accrued expenses are recognised for goods and services received before the end of the year for which no invoice has been received. They are measured at amortised cost. Contingent consideration, resulting from business combinations, sometimes arises when additional consideration to the sellers will need to be paid if certain performance targets for the business are achieved. Contingent consideration is valued at fair value at the acquisition date as part of the business combination (see note 12). When the contingent consideration meets the definition of a financial liability, it is subsequently remeasured to fair value through profit or loss at each reporting date. The fair value gain or loss is classified as non-underlying transaction costs in the income statement (see note 6). The determination of the fair value is based on discounted cash flows. The key assumptions take into consideration the probability of meeting each performance target and the discount factor. Trade and other payables include the Tradeweb tax receivable agreement liability. In connection with Tradeweb\u2019s initial public offering (IPO), Tradeweb entered into a tax receivable agreement with the owners of Tradeweb Markets LLC (the LLC Owners) immediately prior to Tradeweb\u2019s IPO. Under the agreement, Tradeweb is required to make cash payments to the LLC Owners equal to 50% of the amount of any tax savings that Tradeweb realises as a result of certain future tax benefits which Tradeweb is entitled to. The Tradeweb tax receivable agreement liability is measured at amortised cost. The Group has a tax indemnity payable to Thomson Reuters with a matching tax receivable. The tax indemnity payable is measured on the same basis as the indemnified tax receivable. When there is a change in the indemnified tax receivable, which is recognised within tax in the income statement, there is an offsetting change in the tax indemnity payable. This change is recognised within operating expenses in the income statement. 20. Trade and other payables continued Notes Group Company 2022 \u00a3m 2021 \u00a3m 2022 \u00a3m 2021 \u00a3m Non-current Contingent consideration payable 12.2 38 \u2013 \u2013 \u2013 Lease liabilities 21 533 547 \u2013 \u2013 Tradeweb tax receivable agreement liability 323 276 \u2013 \u2013 Tax indemnity payable 264 215 188 202 Other payables 24 21 \u2013 \u2013 Total non-current payables classified as financial liabilities 23.2 1,182 1,059 188 202 Current Trade payables 413 259 6 4 Other payables 266 271 16 15 Lease liabilities 21 139 168 \u2013 \u2013 Share buyback obligation 1 200 \u2013 200 \u2013 Accrued expenses 1,049 969 23 28 Amounts due to group companies 28.1 \u2013 \u2013 1,249 597 Amounts owed to associates 28.2 \u2013 1 \u2013 \u2013 Current payables classified as financial liabilities 23.2 2,067 1,668 1,494 644 Social security and other taxes 76 114 \u2013 \u2013 Total current trade and other payables 2,143 1,782 1,494 644 Total payables 3,325 2,841 1,682 846 1 In August 2022, the Company launched a \u00a3750 million share buyback programme (see note 24). As part of tranche two of the programme, the Company entered into an irrevocable commitment with its corporate brokers to repurchase shares, which in part covers the close period from 1 January 2023 up to the announcement of the Group\u2019s full year 2022 results. At 31 December 2022, the remaining obligation was \u00a3200 million . ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfTradeAndOtherPayablesExplanatory",
"language": "en",
"entity": "scheme:213800QAUUUP6I445N30",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-718": {
"value": "20. Trade and other payables Trade and other payables mainly consist of amounts owed to suppliers that have been invoiced or are accrued. They also include social security and other amounts due in relation to the Group\u2019s role as an employer. Accounting policy Trade payables are initially recognised at fair value, which is usually the amount invoiced. They are subsequently measured at amortised cost. Accrued expenses are recognised for goods and services received before the end of the year for which no invoice has been received. They are measured at amortised cost. Contingent consideration, resulting from business combinations, sometimes arises when additional consideration to the sellers will need to be paid if certain performance targets for the business are achieved. Contingent consideration is valued at fair value at the acquisition date as part of the business combination (see note 12). When the contingent consideration meets the definition of a financial liability, it is subsequently remeasured to fair value through profit or loss at each reporting date. The fair value gain or loss is classified as non-underlying transaction costs in the income statement (see note 6). The determination of the fair value is based on discounted cash flows. The key assumptions take into consideration the probability of meeting each performance target and the discount factor. Trade and other payables include the Tradeweb tax receivable agreement liability. In connection with Tradeweb\u2019s initial public offering (IPO), Tradeweb entered into a tax receivable agreement with the owners of Tradeweb Markets LLC (the LLC Owners) immediately prior to Tradeweb\u2019s IPO. Under the agreement, Tradeweb is required to make cash payments to the LLC Owners equal to 50% of the amount of any tax savings that Tradeweb realises as a result of certain future tax benefits which Tradeweb is entitled to. The Tradeweb tax receivable agreement liability is measured at amortised cost. The Group has a tax indemnity payable to Thomson Reuters with a matching tax receivable. The tax indemnity payable is measured on the same basis as the indemnified tax receivable. When there is a change in the indemnified tax receivable, which is recognised within tax in the income statement, there is an offsetting change in the tax indemnity payable. This change is recognised within operating expenses in the income statement. 20. Trade and other payables continued Notes Group Company 2022 \u00a3m 2021 \u00a3m 2022 \u00a3m 2021 \u00a3m Non-current Contingent consideration payable 12.2 38 \u2013 \u2013 \u2013 Lease liabilities 21 533 547 \u2013 \u2013 Tradeweb tax receivable agreement liability 323 276 \u2013 \u2013 Tax indemnity payable 264 215 188 202 Other payables 24 21 \u2013 \u2013 Total non-current payables classified as financial liabilities 23.2 1,182 1,059 188 202 Current Trade payables 413 259 6 4 Other payables 266 271 16 15 Lease liabilities 21 139 168 \u2013 \u2013 Share buyback obligation 1 200 \u2013 200 \u2013 Accrued expenses 1,049 969 23 28 Amounts due to group companies 28.1 \u2013 \u2013 1,249 597 Amounts owed to associates 28.2 \u2013 1 \u2013 \u2013 Current payables classified as financial liabilities 23.2 2,067 1,668 1,494 644 Social security and other taxes 76 114 \u2013 \u2013 Total current trade and other payables 2,143 1,782 1,494 644 Total payables 3,325 2,841 1,682 846 1 In August 2022, the Company launched a \u00a3750 million share buyback programme (see note 24). As part of tranche two of the programme, the Company entered into an irrevocable commitment with its corporate brokers to repurchase shares, which in part covers the close period from 1 January 2023 up to the announcement of the Group\u2019s full year 2022 results. At 31 December 2022, the remaining obligation was \u00a3200 million ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfAccruedExpensesAndOtherLiabilitiesExplanatory",
"language": "en",
"entity": "scheme:213800QAUUUP6I445N30",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-650": {
"value": "Accounting policy Trade payables are initially recognised at fair value, which is usually the amount invoiced. They are subsequently measured at amortised cost. Accrued expenses are recognised for goods and services received before the end of the year for which no invoice has been received. They are measured at amortised cost. Contingent consideration, resulting from business combinations, sometimes arises when additional consideration to the sellers will need to be paid if certain performance targets for the business are achieved. Contingent consideration is valued at fair value at the acquisition date as part of the business combination (see note 12). When the contingent consideration meets the definition of a financial liability, it is subsequently remeasured to fair value through profit or loss at each reporting date. The fair value gain or loss is classified as non-underlying transaction costs in the income statement (see note 6). The determination of the fair value is based on discounted cash flows. The key assumptions take into consideration the probability of meeting each performance target and the discount factor. Trade and other payables include the Tradeweb tax receivable agreement liability. In connection with Tradeweb\u2019s initial public offering (IPO), Tradeweb entered into a tax receivable agreement with the owners of Tradeweb Markets LLC (the LLC Owners) immediately prior to Tradeweb\u2019s IPO. Under the agreement, Tradeweb is required to make cash payments to the LLC Owners equal to 50% of the amount of any tax savings that Tradeweb realises as a result of certain future tax benefits which Tradeweb is entitled to. The Tradeweb tax receivable agreement liability is measured at amortised cost. The Group has a tax indemnity payable to Thomson Reuters with a matching tax receivable. The tax indemnity payable is measured on the same basis as the indemnified tax receivable. When there is a change in the indemnified tax receivable, which is recognised within tax in the income statement, there is an offsetting change in the tax indemnity payable. This change is recognised within operating expenses in the income statement. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForTradeAndOtherPayablesExplanatory",
"language": "en",
"entity": "scheme:213800QAUUUP6I445N30",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-697": {
"value": "21. Lease liabilities and net investments in leases The Group leases assets from other parties (the Group is a lessee) and also leases assets to other parties (the Group is a lessor). This note describes how the Group accounts for leases and provides details about its lease arrangements. Accounting policy Group as lessee Lease liabilities Lease liabilities are recognised at the net present value of the remaining future payments to be made over the lease term. The net present value is determined using a discount rate equivalent to the incremental borrowing rate of the leasing entity unless there is a rate implicit within the lease agreement. Subsequently, the value of the discount is recognised over the life of the lease on a reducing balance basis as lease interest in finance expenses. The Group leases many properties around the world and lease terms vary from monthly up to 15 years. Many of these leases contain option clauses to extend the lease or break clauses to terminate the lease. The lease term recognised is the non-cancellable period of the lease plus any periods for which the Group is reasonably certain of exercising any extension options. The Group values its right-of-use assets and lease liabilities based on its intentions at the balance sheet date. Any change in these intentions is accounted for as a lease modification and the assets and liabilities are amended accordingly. Any effect on the net assets of the Group is not significant. Variable lease payments based on an index are estimated at the commencement date and revalued on an annual basis. Lease payments due within 12 months are classified as current liabilities. Payments due after 12 months are classified as non-current liabilities. Short-term leases and leases of low value assets Rental costs for leased assets that are for less than 12 months or are for assets with an individual value of less than \u00a35,000 are recognised directly in the income statement on a straight-line basis over the life of the lease 21. Lease liabilities and net investments in leases continued Group as lessor Finance leases Where the Group sub-lets a property right-of-use asset for substantially all the useful life of that asset, this is recognised as a finance lease. On commencement of a finance sub-lease, the property right-of-use asset is treated as disposed of and a net investment in lease, equivalent to the net present value of the future rent receipts is recognised (see note 18). The value of the discount is recognised over the life of the sub-lease on a reducing balance basis as interest income in finance income. Where the value of the receipts from the sub-lease is lower than the amount payable on the head-lease, we recognise a loss on disposal of the right-of-use asset in the income statement. Operating leases A right-of-use asset that is sub-let for less than its expected useful life is recognised as an operating lease and rental income is recognised as received in other income. We continue to recognise the property right-of-use asset on the balance sheet. Movements in lease liabilities were as follows: Notes 2022 \u00a3m 2021 \u00a3m 1 January 715 189 Lease liabilities assumed on acquisition of subsidiaries 12 1 588 Lease liabilities derecognised on disposal of business 13 (22) (31) Leases terminated early (2) (2) New lease contracts 80 54 Lease modifications 16 33 Lease interest expense 7.2 15 12 Lease payments \u2013 principal (150) (118) Lease payments \u2013 interest (15) (12) Foreign exchange translation 34 2 31 December 672 715 Current 20 139 168 Non-current 20 533 547 Total lease liabilities 672 715 The maturity of the Group\u2019s lease commitments is disclosed within the risk management note (see note 23.5). The weighted average discount rate used by the Group for lease liabilities was 2.3% (2021: 1.8%). A limited number of the Group\u2019s leases are subject to variable lease payments linked to publicly available indexes. Adjustments to the value of the lease liabilities and associated assets are made annually, but do not have a material impact on the Group\u2019s net assets. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfLeasesExplanatory",
"language": "en",
"entity": "scheme:213800QAUUUP6I445N30",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
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},
"fact-651": {
"value": "Accounting policy Group as lessee Lease liabilities Lease liabilities are recognised at the net present value of the remaining future payments to be made over the lease term. The net present value is determined using a discount rate equivalent to the incremental borrowing rate of the leasing entity unless there is a rate implicit within the lease agreement. Subsequently, the value of the discount is recognised over the life of the lease on a reducing balance basis as lease interest in finance expenses. The Group leases many properties around the world and lease terms vary from monthly up to 15 years. Many of these leases contain option clauses to extend the lease or break clauses to terminate the lease. The lease term recognised is the non-cancellable period of the lease plus any periods for which the Group is reasonably certain of exercising any extension options. The Group values its right-of-use assets and lease liabilities based on its intentions at the balance sheet date. Any change in these intentions is accounted for as a lease modification and the assets and liabilities are amended accordingly. Any effect on the net assets of the Group is not significant. Variable lease payments based on an index are estimated at the commencement date and revalued on an annual basis. Lease payments due within 12 months are classified as current liabilities. Payments due after 12 months are classified as non-current liabilities. Short-term leases and leases of low value assets Rental costs for leased assets that are for less than 12 months or are for assets with an individual value of less than \u00a35,000 are recognised directly in the income statement on a straight-line basis over the life of the lease . Group as lessor Finance leases Where the Group sub-lets a property right-of-use asset for substantially all the useful life of that asset, this is recognised as a finance lease. On commencement of a finance sub-lease, the property right-of-use asset is treated as disposed of and a net investment in lease, equivalent to the net present value of the future rent receipts is recognised (see note 18). The value of the discount is recognised over the life of the sub-lease on a reducing balance basis as interest income in finance income. Where the value of the receipts from the sub-lease is lower than the amount payable on the head-lease, we recognise a loss on disposal of the right-of-use asset in the income statement. Operating leases A right-of-use asset that is sub-let for less than its expected useful life is recognised as an operating lease and rental income is recognised as received in other income. We continue to recognise the property right-of-use asset on the balance sheet. ",
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"concept": "ifrs-full:DescriptionOfAccountingPolicyForLeasesExplanatory",
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"entity": "scheme:213800QAUUUP6I445N30",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
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},
"fact-731": {
"value": "22. Borrowings and net debt The Group\u2019s sources of borrowing for funding and liquidity purposes come from a range of committed bank facilities and through short-term and long-term bond issuances in the capital markets. Net debt comprises cash and cash equivalents less lease liabilities and interest-bearing loans and borrowings, adjusted for derivative financial instruments. 22.1 Borrowings Accounting policy Borrowings are initially recorded at the fair value of amounts received, net of capitalised direct issue costs and arrangement fees (including upfront facility fees). Subsequently, these liabilities are carried at amortised cost. Interest payable on the borrowings is recognised in the income statement over the period of the borrowings using the effective interest rate method. Similarly, direct issue costs and arrangement fees (including upfront facility fees) are recognised in the income statement over the period of the borrowings using the effective interest rate method. Where borrowings are identified as a hedged item in a designated fair value hedge relationship, fair value adjustments are recognised in accordance with our policy (see note 23). 22. Borrowings and net debt continued Group Company 2022 \u00a3m 2021 \u00a3m 2022 \u00a3m 2021 \u00a3m Non-current Bank borrowings \u2013 committed bank facilities and term loans 1 (5) 1,347 (5) (6) Bonds 6,860 6,306 1,820 1,746 Trade finance loans 1 1 \u2013 \u2013 Total non-current borrowings 6,856 7,654 1,815 1,740 Current Bank borrowings \u2013 term loan 1,295 \u2013 \u2013 \u2013 Total current borrowings 1,295 \u2013 \u2013 \u2013 Total borrowings 8,151 7,654 1,815 1,740 1 Balances are shown net of capitalised arrangement fees. Where there are no amounts borrowed on a particular facility, this gives rise to a negative balance. The Group has the following committed bank facilities, loans and unsecured bonds: Maturity date Facility/ bond \u00a3m Carrying value Interest rate % 2022 \u00a3m 2021 \u00a3m Committed bank facilities Multi-currency revolving credit facility Dec 2024 1,425 (2) (3) see note 2 Multi-currency revolving credit facility Dec 2027 1,075 (3) (3) see note 2 Total committed bank facilities 1 2,500 (5) (6) Committed term loans \u20ac500 million term loan Dec 2023 \u2013 126 EURIBOR + 0.725 $2,000 million term loan Dec 2023 1,295 1,227 see note 2 Total committed term loans 1,295 1,353 Bonds $500 million bond, issued April 2021 Apr 2024 416 415 369 0.650 \u20ac500 million bond, issued September 2017 Sep 2024 444 443 419 0.875 \u20ac500 million bond, issued April 2021 Apr 2025 444 443 419 \u2013 $1,000 million bond, issued April 2021 Apr 2026 831 828 738 1.375 \u20ac500 million bond, issued December 2018 Dec 2027 444 441 417 1.750 \u20ac500 million bond, issued April 2021 Apr 2028 444 441 417 0.250 $1,000 million bond, issued April 2021 Apr 2028 831 828 737 2.000 \u20ac500 million bond, issued September 2017 Sep 2029 444 441 417 1.750 \u00a3500 million bond, issued April 2021 Apr 2030 500 494 493 1.625 $1,250 million bond, issued April 2021 Apr 2031 1,039 1,033 919 2.500 \u20ac500 million bond, issued April 2021 Apr 2033 444 438 413 0.750 $750 million bond, issued April 2021 Apr 2041 623 615 548 3.200 Total bonds 6,904 6,860 6,306 Trade finance loans Nov 2025 1 1 7.274 Total committed facilities, loans and unsecured bonds 8,151 7,654 1 Negative balances represent the value of unamortised arrangement fees. 2 As part of the IBOR Reform, a Credit Adjustment Spread (CAS) has been applied where US dollar and sterling LIBOR rates were replaced with SOFR and SONIA rates respectively in the bank facilities. The CAS is variable and depends on the tenor and currency of the borrowings. Committed bank facilities: Multi-currency revolving credit facilities In December 2020, the Group arranged a \u00a31,075 million syndicated committed facility maturing in December 2025, which replaced a former \u00a3600 million facility. In December 2022, the second of two 1-year extension options was taken up (first option exercised in December 2021), extending the maturity to December 2027. The Group continues to have access to a \u00a31,425 million Revolving Credit Facility, which became effective in January 2021 and matures in December 2024. The revolving credit facilities were drawn down during the year and fully repaid as at 31 December 2022. 22. Borrowings and net debt continued Committed term loans The term loans were fully drawn in January 2021. During the year the Euro term loan was fully repaid and the US Dollar term loan was partly repaid by US$100 million (2021: repayments of \u20ac350 million and US$340 million, respectively). The increase in the carrying value amount of the US Dollar term loan compared with last year reflects the impact of foreign exchange movements. Commercial paper During the year the Group maintained its Euro Commercial Paper Programme limit of \u00a31 billion and entered into a US Commercial Paper Programme with a limit of $1 billion. There were no outstanding issuances at 31 December 2022 and 31 December 2021. Other Group facilities In accordance with the Committee on Payments and Market Infrastructures, the International Organisation of Securities Commissions and Principles for Financial Market Infrastructures, many central banks allow CCPs to apply for access to certain central bank facilities. LCH SA has a French banking licence and is able to access financing at the French Central Bank and at the European Central Bank to support its liquidity position. LCH Ltd is deemed to have sufficient fungible liquid assets to maintain an appropriate liquidity position and has direct access to central bank facilities to support its liquidity risk management in accordance with the requirements under European Market Infrastructure Regulation. In addition, a number of Group entities have access to uncommitted operational, money market and overdraft facilities which support post trade activities and day-to-day liquidity requirements. These facilities were drawn down during the year and fully repaid as at 31 December 2022. Fair values All the Group\u2019s borrowings are recognised at amortised cost on the balance sheet. In some cases this may differ from their fair value. Bonds are classified as Level 1 of the fair value hierarchy for determining and disclosing the fair value of financial instruments (as described in the accounting policy of note 23). Bond fair values are as quoted in the relevant fixed income markets. Bank borrowings and commercial paper are classified as Level 2 (see definition in note 23). The fair values of these instruments are based on cash flows which are discounted using a rate based on borrowing cost. The fair values of the Group\u2019s borrowings are as follows: Group 2022 2021 Carrying value \u00a3m Fair value \u00a3m Carrying value \u00a3m Fair value \u00a3m Non-current 6,856 5,903 7,654 7,765 Current 1,295 1,301 \u2013 \u2013 Total borrowings 8,151 7,204 7,654 7,765 The fair values of the Company\u2019s borrowings are as follows: Company 2022 2021 Carrying value \u00a3m Fair value \u00a3m Carrying value \u00a3m Fair value \u00a3m Non-current 1,815 1,624 1,740 1,826 Total borrowings 1,815 1,624 1,740 1,826 The carrying amounts of the Group\u2019s borrowings are denominated in the following currencies: Currency 2022 2021 Drawn \u00a3m Swapped \u00a3m Effective \u00a3m Drawn \u00a3m Swapped \u00a3m Effective \u00a3m Sterling 485 \u2013 485 484 \u2013 484 Euro 2,652 (695) 1,957 2,630 (619) 2,011 US dollar 5,014 695 5,709 4,540 619 5,159 Total 8,151 \u2013 8,151 7,654 \u2013 7,654 22. Borrowings and net debt continued The carrying amounts of the Company\u2019s borrowings are denominated in the following currencies: Currency 2022 2021 Drawn \u00a3m Swapped \u00a3m Effective \u00a3m Drawn \u00a3m Swapped \u00a3m Effective \u00a3m Sterling 484 \u2013 484 483 \u2013 483 Euro 1,331 (695) 636 1,257 (619) 638 US dollar \u2013 695 695 \u2013 619 619 Total 1,815 \u2013 1,815 1,740 \u2013 1,740 22.2 Net debt Net debt comprises cash and cash equivalents less lease liabilities and interest-bearing loans and borrowings, adjusted for derivative financial instruments. Notes Group Company 2022 \u00a3m 2021 \u00a3m 2022 \u00a3m 2021 \u00a3m Current Cash and cash equivalents 19 3,209 2,665 77 142 Bank borrowings 22.1 (1,295) \u2013 \u2013 \u2013 Lease liabilities 21 (139) (168) \u2013 \u2013 Derivative financial assets 36 25 11 10 Derivative financial liabilities (9) (7) \u2013 (5) Net amounts owed (to)/from subsidiary companies 18, 20 \u2013 \u2013 (50) 736 Total due within one year 1,802 2,515 38 883 Non-current Bank borrowings 22.1 5 (1,347) 5 6 Bonds 22.1 (6,860) (6,306) (1,820) (1,746) Trade finance loans 22.1 (1) (1) \u2013 \u2013 Lease liabilities 21 (533) (547) \u2013 \u2013 Derivative financial assets 12 2 \u2013 \u2013 Derivative financial liabilities (87) (45) (84) (43) Net amounts owed from subsidiary companies 20 \u2013 \u2013 20 40 Total due after one year (7,464) (8,244) (1,879) (1,743) Net debt (5,662) (5,729) (1,841) (860) Reconciliation of net cash flow to movement in net debt Group Company 2022 \u00a3m 2021 \u00a3m 2022 \u00a3m 2021 \u00a3m Increase/(decrease) in cash and cash equivalents 360 940 (70) 155 Bond issue proceeds \u2013 (5,061) \u2013 (500) Bond repayment \u2013 300 \u2013 300 Net repayments on commercial paper \u2013 170 \u2013 170 Net repayments on short-term bank borrowings \u2013 122 \u2013 116 Additional drawdowns from bank credit facilities \u2013 (1,883) \u2013 \u2013 Repayments made towards bank credit facilities 209 548 \u2013 \u2013 Arrangement fees paid \u2013 52 \u2013 11 Principal lease payments 150 118 \u2013 \u2013 Change in net debt resulting from cash flows 719 (4,694) (70) 252 Foreign exchange (547) 8 (67) 108 Movement on derivative financial assets and liabilities (23) (8) (35) (21) Movement in bank credit facility arrangement fees (9) (19) (3) (15) Net movements in amounts owed (to)/from subsidiary companies \u2013 \u2013 (806) 926 Movement on lease liabilities (73) (644) \u2013 \u2013 Net debt at 1 January (5,729) (372) (860) (2,110) Net debt at 31 December (5,662) (5,729) (1,841) (860) 22. Borrowings and net debt continued 22.3 Liabilities from financing activities Movement in the Group\u2019s financial liabilities arising from financing activities: 31 December 2021 \u00a3m Cash flows from financing activities \u00a3m Arrangement fees paid \u00a3m Foreign exchange \u00a3m Other movements 2 \u00a3m 31 December 2022 \u00a3m Bank borrowings 1,347 (209) \u2013 148 4 1,290 Bonds 6,306 \u2013 \u2013 549 5 6,860 Trade finance loans 1 \u2013 \u2013 \u2013 \u2013 1 Lease liabilities 715 (150) \u2013 34 73 672 8,369 (359) \u2013 731 82 8,823 31 December 2020 \u00a3m Cash flows from financing activities \u00a3m Arrangement fees paid 1 \u00a3m Foreign exchange \u00a3m Other movements 2 \u00a3m 31 December 2021 \u00a3m Bank borrowings 133 1,214 (10) (4) 14 1,347 Bonds 1,647 4,761 (42) (65) 5 6,306 Trade finance loans 1 \u2013 \u2013 \u2013 \u2013 1 Commercial paper 170 (170) \u2013 \u2013 \u2013 \u2013 Lease liabilities 189 (118) \u2013 2 642 715 2,140 5,687 (52) (67) 661 8,369 1 Arrangement fees paid on funding arrangements are included in other financing activities within the Group\u2019s cash flows from financing activities. 2 Other movements comprise non-cash movements relating to amortisation of arrangement fees of \u00a39 million (2021: \u00a319 million) and movements in lease liabilities (refer to note 21). Movement in the Company\u2019s financial liabilities arising from financing activities: 31 December 2021 \u00a3m Cash flows from financing activities \u00a3m Arrangement fees paid \u00a3m Foreign exchange \u00a3m Other movements 2 \u00a3m 31 December 2022 \u00a3m Bank borrowings (6) \u2013 \u2013 (1) 2 (5) Bonds 1,746 \u2013 \u2013 73 1 1,820 1,740 \u2013 \u2013 72 3 1,815 31 December 2020 \u00a3m Cash flows from financing activities \u00a3m Arrangement fees paid 1 \u00a3m Foreign exchange \u00a3m Other movements 2 \u00a3m 31 December 2021 \u00a3m Bank borrowings 127 (116) (4) (26) 13 (6) Bonds 1,647 200 (7) (96) 2 1,746 Commercial paper 170 (170) \u2013 \u2013 \u2013 \u2013 1,944 (86) (11) (122) 15 1,740 1 Arrangement fees paid on funding arrangements are included in other financing activities within the Company\u2019s cash flows from financing activities. 2 Other movements relate to amortisation of arrangement fees. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfDebtSecuritiesExplanatory",
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"entity": "scheme:213800QAUUUP6I445N30",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
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"fact-698": {
"value": "22. Borrowings and net debt The Group\u2019s sources of borrowing for funding and liquidity purposes come from a range of committed bank facilities and through short-term and long-term bond issuances in the capital markets. Net debt comprises cash and cash equivalents less lease liabilities and interest-bearing loans and borrowings, adjusted for derivative financial instruments. 22.1 Borrowings Accounting policy Borrowings are initially recorded at the fair value of amounts received, net of capitalised direct issue costs and arrangement fees (including upfront facility fees). Subsequently, these liabilities are carried at amortised cost. Interest payable on the borrowings is recognised in the income statement over the period of the borrowings using the effective interest rate method. Similarly, direct issue costs and arrangement fees (including upfront facility fees) are recognised in the income statement over the period of the borrowings using the effective interest rate method. Where borrowings are identified as a hedged item in a designated fair value hedge relationship, fair value adjustments are recognised in accordance with our policy (see note 23). 22. Borrowings and net debt continued Group Company 2022 \u00a3m 2021 \u00a3m 2022 \u00a3m 2021 \u00a3m Non-current Bank borrowings \u2013 committed bank facilities and term loans 1 (5) 1,347 (5) (6) Bonds 6,860 6,306 1,820 1,746 Trade finance loans 1 1 \u2013 \u2013 Total non-current borrowings 6,856 7,654 1,815 1,740 Current Bank borrowings \u2013 term loan 1,295 \u2013 \u2013 \u2013 Total current borrowings 1,295 \u2013 \u2013 \u2013 Total borrowings 8,151 7,654 1,815 1,740 1 Balances are shown net of capitalised arrangement fees. Where there are no amounts borrowed on a particular facility, this gives rise to a negative balance. The Group has the following committed bank facilities, loans and unsecured bonds: Maturity date Facility/ bond \u00a3m Carrying value Interest rate % 2022 \u00a3m 2021 \u00a3m Committed bank facilities Multi-currency revolving credit facility Dec 2024 1,425 (2) (3) see note 2 Multi-currency revolving credit facility Dec 2027 1,075 (3) (3) see note 2 Total committed bank facilities 1 2,500 (5) (6) Committed term loans \u20ac500 million term loan Dec 2023 \u2013 126 EURIBOR + 0.725 $2,000 million term loan Dec 2023 1,295 1,227 see note 2 Total committed term loans 1,295 1,353 Bonds $500 million bond, issued April 2021 Apr 2024 416 415 369 0.650 \u20ac500 million bond, issued September 2017 Sep 2024 444 443 419 0.875 \u20ac500 million bond, issued April 2021 Apr 2025 444 443 419 \u2013 $1,000 million bond, issued April 2021 Apr 2026 831 828 738 1.375 \u20ac500 million bond, issued December 2018 Dec 2027 444 441 417 1.750 \u20ac500 million bond, issued April 2021 Apr 2028 444 441 417 0.250 $1,000 million bond, issued April 2021 Apr 2028 831 828 737 2.000 \u20ac500 million bond, issued September 2017 Sep 2029 444 441 417 1.750 \u00a3500 million bond, issued April 2021 Apr 2030 500 494 493 1.625 $1,250 million bond, issued April 2021 Apr 2031 1,039 1,033 919 2.500 \u20ac500 million bond, issued April 2021 Apr 2033 444 438 413 0.750 $750 million bond, issued April 2021 Apr 2041 623 615 548 3.200 Total bonds 6,904 6,860 6,306 Trade finance loans Nov 2025 1 1 7.274 Total committed facilities, loans and unsecured bonds 8,151 7,654 1 Negative balances represent the value of unamortised arrangement fees. 2 As part of the IBOR Reform, a Credit Adjustment Spread (CAS) has been applied where US dollar and sterling LIBOR rates were replaced with SOFR and SONIA rates respectively in the bank facilities. The CAS is variable and depends on the tenor and currency of the borrowings. Committed bank facilities: Multi-currency revolving credit facilities In December 2020, the Group arranged a \u00a31,075 million syndicated committed facility maturing in December 2025, which replaced a former \u00a3600 million facility. In December 2022, the second of two 1-year extension options was taken up (first option exercised in December 2021), extending the maturity to December 2027. The Group continues to have access to a \u00a31,425 million Revolving Credit Facility, which became effective in January 2021 and matures in December 2024. The revolving credit facilities were drawn down during the year and fully repaid as at 31 December 202222. Borrowings and net debt continued Committed term loans The term loans were fully drawn in January 2021. During the year the Euro term loan was fully repaid and the US Dollar term loan was partly repaid by US$100 million (2021: repayments of \u20ac350 million and US$340 million, respectively). The increase in the carrying value amount of the US Dollar term loan compared with last year reflects the impact of foreign exchange movements. Commercial paper During the year the Group maintained its Euro Commercial Paper Programme limit of \u00a31 billion and entered into a US Commercial Paper Programme with a limit of $1 billion. There were no outstanding issuances at 31 December 2022 and 31 December 2021. Other Group facilities In accordance with the Committee on Payments and Market Infrastructures, the International Organisation of Securities Commissions and Principles for Financial Market Infrastructures, many central banks allow CCPs to apply for access to certain central bank facilities. LCH SA has a French banking licence and is able to access financing at the French Central Bank and at the European Central Bank to support its liquidity position. LCH Ltd is deemed to have sufficient fungible liquid assets to maintain an appropriate liquidity position and has direct access to central bank facilities to support its liquidity risk management in accordance with the requirements under European Market Infrastructure Regulation. In addition, a number of Group entities have access to uncommitted operational, money market and overdraft facilities which support post trade activities and day-to-day liquidity requirements. These facilities were drawn down during the year and fully repaid as at 31 December 2022. Fair values All the Group\u2019s borrowings are recognised at amortised cost on the balance sheet. In some cases this may differ from their fair value. Bonds are classified as Level 1 of the fair value hierarchy for determining and disclosing the fair value of financial instruments (as described in the accounting policy of note 23). Bond fair values are as quoted in the relevant fixed income markets. Bank borrowings and commercial paper are classified as Level 2 (see definition in note 23). The fair values of these instruments are based on cash flows which are discounted using a rate based on borrowing cost. The fair values of the Group\u2019s borrowings are as follows: Group 2022 2021 Carrying value \u00a3m Fair value \u00a3m Carrying value \u00a3m Fair value \u00a3m Non-current 6,856 5,903 7,654 7,765 Current 1,295 1,301 \u2013 \u2013 Total borrowings 8,151 7,204 7,654 7,765 The fair values of the Company\u2019s borrowings are as follows: Company 2022 2021 Carrying value \u00a3m Fair value \u00a3m Carrying value \u00a3m Fair value \u00a3m Non-current 1,815 1,624 1,740 1,826 Total borrowings 1,815 1,624 1,740 1,826 The carrying amounts of the Group\u2019s borrowings are denominated in the following currencies: Currency 2022 2021 Drawn \u00a3m Swapped \u00a3m Effective \u00a3m Drawn \u00a3m Swapped \u00a3m Effective \u00a3m Sterling 485 \u2013 485 484 \u2013 484 Euro 2,652 (695) 1,957 2,630 (619) 2,011 US dollar 5,014 695 5,709 4,540 619 5,159 Total 8,151 \u2013 8,151 7,654 \u2013 7,654 22. Borrowings and net debt continued The carrying amounts of the Company\u2019s borrowings are denominated in the following currencies: Currency 2022 2021 Drawn \u00a3m Swapped \u00a3m Effective \u00a3m Drawn \u00a3m Swapped \u00a3m Effective \u00a3m Sterling 484 \u2013 484 483 \u2013 483 Euro 1,331 (695) 636 1,257 (619) 638 US dollar \u2013 695 695 \u2013 619 619 Total 1,815 \u2013 1,815 1,740 \u2013 1,740 22.2 Net debt Net debt comprises cash and cash equivalents less lease liabilities and interest-bearing loans and borrowings, adjusted for derivative financial instruments. Notes Group Company 2022 \u00a3m 2021 \u00a3m 2022 \u00a3m 2021 \u00a3m Current Cash and cash equivalents 19 3,209 2,665 77 142 Bank borrowings 22.1 (1,295) \u2013 \u2013 \u2013 Lease liabilities 21 (139) (168) \u2013 \u2013 Derivative financial assets 36 25 11 10 Derivative financial liabilities (9) (7) \u2013 (5) Net amounts owed (to)/from subsidiary companies 18, 20 \u2013 \u2013 (50) 736 Total due within one year 1,802 2,515 38 883 Non-current Bank borrowings 22.1 5 (1,347) 5 6 Bonds 22.1 (6,860) (6,306) (1,820) (1,746) Trade finance loans 22.1 (1) (1) \u2013 \u2013 Lease liabilities 21 (533) (547) \u2013 \u2013 Derivative financial assets 12 2 \u2013 \u2013 Derivative financial liabilities (87) (45) (84) (43) Net amounts owed from subsidiary companies 20 \u2013 \u2013 20 40 Total due after one year (7,464) (8,244) (1,879) (1,743) Net debt (5,662) (5,729) (1,841) (860) Reconciliation of net cash flow to movement in net debt Group Company 2022 \u00a3m 2021 \u00a3m 2022 \u00a3m 2021 \u00a3m Increase/(decrease) in cash and cash equivalents 360 940 (70) 155 Bond issue proceeds \u2013 (5,061) \u2013 (500) Bond repayment \u2013 300 \u2013 300 Net repayments on commercial paper \u2013 170 \u2013 170 Net repayments on short-term bank borrowings \u2013 122 \u2013 116 Additional drawdowns from bank credit facilities \u2013 (1,883) \u2013 \u2013 Repayments made towards bank credit facilities 209 548 \u2013 \u2013 Arrangement fees paid \u2013 52 \u2013 11 Principal lease payments 150 118 \u2013 \u2013 Change in net debt resulting from cash flows 719 (4,694) (70) 252 Foreign exchange (547) 8 (67) 108 Movement on derivative financial assets and liabilities (23) (8) (35) (21) Movement in bank credit facility arrangement fees (9) (19) (3) (15) Net movements in amounts owed (to)/from subsidiary companies \u2013 \u2013 (806) 926 Movement on lease liabilities (73) (644) \u2013 \u2013 Net debt at 1 January (5,729) (372) (860) (2,110) Net debt at 31 December (5,662) (5,729) (1,841) (860) 22. Borrowings and net debt continued 22.3 Liabilities from financing activities Movement in the Group\u2019s financial liabilities arising from financing activities: 31 December 2021 \u00a3m Cash flows from financing activities \u00a3m Arrangement fees paid \u00a3m Foreign exchange \u00a3m Other movements 2 \u00a3m 31 December 2022 \u00a3m Bank borrowings 1,347 (209) \u2013 148 4 1,290 Bonds 6,306 \u2013 \u2013 549 5 6,860 Trade finance loans 1 \u2013 \u2013 \u2013 \u2013 1 Lease liabilities 715 (150) \u2013 34 73 672 8,369 (359) \u2013 731 82 8,823 31 December 2020 \u00a3m Cash flows from financing activities \u00a3m Arrangement fees paid 1 \u00a3m Foreign exchange \u00a3m Other movements 2 \u00a3m 31 December 2021 \u00a3m Bank borrowings 133 1,214 (10) (4) 14 1,347 Bonds 1,647 4,761 (42) (65) 5 6,306 Trade finance loans 1 \u2013 \u2013 \u2013 \u2013 1 Commercial paper 170 (170) \u2013 \u2013 \u2013 \u2013 Lease liabilities 189 (118) \u2013 2 642 715 2,140 5,687 (52) (67) 661 8,369 1 Arrangement fees paid on funding arrangements are included in other financing activities within the Group\u2019s cash flows from financing activities. 2 Other movements comprise non-cash movements relating to amortisation of arrangement fees of \u00a39 million (2021: \u00a319 million) and movements in lease liabilities (refer to note 21). Movement in the Company\u2019s financial liabilities arising from financing activities: 31 December 2021 \u00a3m Cash flows from financing activities \u00a3m Arrangement fees paid \u00a3m Foreign exchange \u00a3m Other movements 2 \u00a3m 31 December 2022 \u00a3m Bank borrowings (6) \u2013 \u2013 (1) 2 (5) Bonds 1,746 \u2013 \u2013 73 1 1,820 1,740 \u2013 \u2013 72 3 1,815 31 December 2020 \u00a3m Cash flows from financing activities \u00a3m Arrangement fees paid 1 \u00a3m Foreign exchange \u00a3m Other movements 2 \u00a3m 31 December 2021 \u00a3m Bank borrowings 127 (116) (4) (26) 13 (6) Bonds 1,647 200 (7) (96) 2 1,746 Commercial paper 170 (170) \u2013 \u2013 \u2013 \u2013 1,944 (86) (11) (122) 15 1,740 1 Arrangement fees paid on funding arrangements are included in other financing activities within the Company\u2019s cash flows from financing activities. 2 Other movements relate to amortisation of arrangement fees. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfBorrowingsExplanatory",
"language": "en",
"entity": "scheme:213800QAUUUP6I445N30",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-652": {
"value": "Accounting policy Borrowings are initially recorded at the fair value of amounts received, net of capitalised direct issue costs and arrangement fees (including upfront facility fees). Subsequently, these liabilities are carried at amortised cost. Interest payable on the borrowings is recognised in the income statement over the period of the borrowings using the effective interest rate method. Similarly, direct issue costs and arrangement fees (including upfront facility fees) are recognised in the income statement over the period of the borrowings using the effective interest rate method. Where borrowings are identified as a hedged item in a designated fair value hedge relationship, fair value adjustments are recognised in accordance with our policy (see note 23). ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForBorrowingsExplanatory",
"language": "en",
"entity": "scheme:213800QAUUUP6I445N30",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-699": {
"value": "23. Financial assets and financial liabilities
The Group has a number of financial assets and financial liabilities. Financial assets mainly consist of clearing member assets, trade and other
receivables, cash and cash equivalents, and investments in financial instruments. Financial liabilities are mainly clearing member balances,
trade and other payables and borrowings.
This note also details our financial risk management such as how we manage our exposure to country, foreign exchange and interest rate risk.
Accounting policy
Recognition and measurement
Financial assets and financial liabilities are initially recognised at fair value. The Group classifies its financial instruments at: amortised cost;
fair value through other comprehensive income (FVOCI); or fair value through profit or loss (FVPL). The classification depends on the Group\u2019s
business model for managing its financial instruments and whether or not the cash flows generated are \u2018solely payments of principal and interest\u2019.
Financial assets
\u2014 Financial assets at amortised cost are financial assets that are held in order to collect the contractual cash flows and the contractual terms
give rise to cash flows that are solely payments of principal and interest. These include: cash and cash equivalents; trade and other
receivables; clearing member trading balances relating to certain collateralised transactions; and other receivables from clearing members
of the CCP businesses.
After initial recognition these assets are measured using the effective interest rate method. Interest income from these financial assets is
included in finance income. Any gain or loss arising on derecognition is recognised directly in the income statement and presented in other
income or operating expenses together with any foreign exchange gains and losses.
\u2014 Financial assets at FVOCI \u2013 debt instruments are assets where the objective is achieved by both collecting the contractual cash flows and
selling the asset. The contractual cash flows received are solely payments of principal and interest. They include quoted debt instruments
(predominantly government bonds) held by the CCP businesses, which are used under the business model to both collect the contractual
cash flows and, on occasion, to profit from their sale.
Interest received from these assets is recognised in the income statement as finance income. Where negative interest rates apply, the interest
is recognised in finance expense. Any accumulated profit or loss previously recognised in other comprehensive income is recycled to the
income statement on derecognition of the asset.
\u2014 Financial assets at FVOCI \u2013 equity instruments are strategic equity investments which are held for the long-term but do not give the
Group control or significant influence. The Group has irrevocably elected to classify these investments as FVOCI.
Dividends received from these investments are recognised in the income statement within other income when the right of receipt has
been established. Accumulated gains or losses on equity instruments remain in equity on derecognition and are not recycled through the
income statement.
\u2014 Financial assets at FVPL include all other financial assets not classified as amortised cost or FVOCI. They include CCP businesses\u2019 clearing
member trading balances comprising derivatives, as well as equity and debt instruments that are marked to market on a daily basis .
Financial liabilities
\u2014 Financial liabilities at FVPL include the CCP businesses\u2019 clearing member trading balances, comprising derivatives, as well as equity and
debt instruments that are marked to market on a daily basis.
\u2014 Financial liabilities at amortised cost are all financial liabilities that are not classified as financial liabilities at FVPL. They include trade and
other payables, borrowings and other payables to clearing members.
Impairment
The Group adopts a forward-looking approach to estimating impairment losses on financial assets. An expected credit loss (ECL) arises if the
expected cash flows are lower than the contractual cash flows due. The difference is discounted at the asset\u2019s original effective interest rate
and recognised as an impairment of the original value of the asset.
\u2014 Financial assets at amortised cost \u2013 the ECL for trade receivables (including fees receivable), contract assets, and lease receivables is
derived using the simplified approach in IFRS 9 Financial Instruments to calculate a lifetime ECL. The allowance is based on historical
experience of collection rates, adjusted for forward looking factors specific to each counterparty and the economic environment at large,
to create an expected loss matrix.
The ECL on other financial assets held at amortised cost and those at fair value that are held to collect and sell is measured using the general
approach. An allowance is calculated based on the 12-month ECL at each reporting date unless there is a significant increase in the financial
instrument\u2019s credit risk, in which case a loss allowance based on the lifetime ECL is calculated.
\u2014 Financial assets at FVOCI \u2013 debt instruments held at FVOCI comprise high-quality government bonds that have a low credit risk. The Group\u2019s
policy is to calculate a 12-month ECL on these assets. If there is a significant increase in credit risk, then a lifetime ECL will be recognised.
A significant increase in credit risk is considered to have occurred when contractual payments are more than 30 days past due.
\u2014 Financial assets at FVOCI \u2013 equity instruments are revalued to fair value on a regular basis and no further impairment analysis is required.
\u2014 Financial assets at FVPL \u2013 no ECL is calculated for assets held at FVPL as any expected loss is already recognised in the recorded fair value
of the asset.
23. Financial assets and financial liabilities Offsetting Financial assets and financial liabilities are offset and the net amount reported in the balance sheet when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis, or to realise the asset and settle the liability simultaneously. Fair value hierarchy The Group uses the following valuation hierarchy for determining and disclosing the fair value of financial instruments: \u2014 Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities \u2014 Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly \u2014 Level 3: techniques which use inputs, which have a significant effect on the recorded fair value, that are not based on observable market data For Level 1, the fair value is based on market price quotations at the reporting date. For assets and liabilities classified as Level 2, the fair value is calculated using one or more valuation techniques (e.g. the market approach or the income approach) with market observable inputs. The selection of the appropriate valuation techniques may be affected by the availability and reliability of the relevant inputs. The inputs may include currency rates, interest rates, forward rate curves, and net asset values. When observable market data is not available, the Group uses one or more valuation techniques for which sufficient and reliable data is available. The inputs used in estimating the fair value of Level 3 financial instruments typically include expected timing and amount of future cash flows, timing of settlement, discount rates and the net asset values of certain investments. The Group determines whether a transfer between levels has occurred by reviewing the categorisation of assets and liabilities at the end of each reporting period, based on the lowest level input that is significant to the valuation. Derivative financial instruments and hedging activities Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently remeasured to their fair value at regular intervals. The method of recognising any resulting measurement gain or loss depends on whether or not the derivative is designated as a hedging instrument and the nature of the item being hedged. The Group has embedded foreign currency derivatives, primarily in revenue contracts where the currency of the contract is different from the functional or local currencies of the parties involved. The Group records these derivative instruments at fair value in the balance sheet as either assets or liabilities. Changes in fair value are recognised in the income statement. The Group hedges a proportion of its net investment in foreign subsidiaries by designating some euro and US dollar borrowings and derivative instruments as net investment hedges. Any gain or loss on the hedging instrument relating to the effective portion of the hedge is recognised in other comprehensive income and remains in the hedging reserve until the underlying asset or liability is derecognised. In order to qualify for hedge accounting, a transaction must meet strict criteria regarding documentation, effectiveness, probability of occurrence, and reliability of measurement. We document the relationship between hedging instruments and hedged items at the inception of the transaction, as well as documenting the risk management objectives and strategy for undertaking various hedging transactions. The effectiveness of the hedge is tested at each reporting date and at the commencement and conclusion of any hedge in order to verify that it continues to satisfy all the criteria for hedge accounting. Any ineffective portion is recognised in the income statement as finance income or expense. Amounts that have accumulated through other comprehensive income in the hedging reserve are recognised in the income statement in the period when the hedged item affects profit or loss (for example, when the forecast transaction that is hedged takes place). When a hedging instrument expires or is sold, or when a hedge no longer meets the criteria for hedge accounting, any cumulative gain or loss remains in the hedging reserve: it is only recognised in the income statement when the forecast transaction itself is ultimately recognised in the income statement. When a forecast transaction is no longer expected to occur, the cumulative gain or loss that was reported through other comprehensive income is immediately recognised in the income statement. The profit or loss on a derivative which is not designated as a hedging instrument is recognised directly in the income statement 23. Financial assets and financial liabilities continued 23.1 Financial assets 31 December 2022 Group Company Amortised cost \u00a3m FVOCI \u00a3m FVPL \u00a3m Total \u00a3m Amortised cost \u00a3m FVPL \u00a3m Total \u00a3m Clearing business financial assets 1 \u2014 Clearing member trading assets 1,997 \u2013 661,370 663,367 \u2013 \u2013 \u2013 \u2014 Other receivables from clearing members 5,945 \u2013 \u2013 5,945 \u2013 \u2013 \u2013 \u2014 Other financial assets 2 \u2013 18,415 \u2013 18,415 \u2013 \u2013 \u2013 \u2014 Clearing member cash and cash equivalents 2 104,707 \u2013 \u2013 104,707 \u2013 \u2013 \u2013 Total clearing member assets 112,649 18,415 661,370 792,434 \u2013 \u2013 \u2013 Trade and other receivables 1,344 \u2013 12 1,356 1,360 \u2013 1,360 Cash and cash equivalents 3,209 \u2013 \u2013 3,209 77 \u2013 77 Investments in financial assets \u2013 debt instruments \u2013 226 \u2013 226 \u2013 \u2013 \u2013 Investments in financial assets \u2013 equity instruments \u2013 394 \u2013 394 \u2013 \u2013 \u2013 Derivative financial instruments \u2013 \u2013 48 48 \u2013 11 11 Total financial assets 117,202 19,035 661,430 797,667 1,437 11 1,448 1 At 31 December 2022, there are no provisions for expected credit losses in relation to any of the CCP businesses\u2019 financial assets held at amortised cost or FVOCI (2021: nil). The Group closely monitors its CCP investment portfolio and invests only in government debt and other collateralised instruments where the risk of loss is minimal. There was no increase in credit risk in the year and none of the assets are past due (2021: nil). 2 Clearing member cash and cash equivalents represents amounts received from the clearing members to cover initial and variation margins, and default fund contributions that are not invested in bonds. These amounts are deposited with banks, including central banks, or invested securely in short-term reverse repurchase contracts (reverse repos). Other financial assets represent the CCP investment in government bonds. 31 December 2021 Group Company Amortised cost \u00a3m FVOCI \u00a3m FVPL \u00a3m Total \u00a3m Amortised cost \u00a3m FVPL \u00a3m Total \u00a3m Clearing business financial assets \u2014 Clearing member trading assets 1,476 \u2013 645,587 647,063 \u2013 \u2013 \u2013 \u2014 Other receivables from clearing members 4,184 \u2013 \u2013 4,184 \u2013 \u2013 \u2013 \u2014 Other financial assets \u2013 13,784 \u2013 13,784 \u2013 \u2013 \u2013 \u2014 Clearing member cash and cash equivalents 83,795 \u2013 \u2013 83,795 \u2013 \u2013 \u2013 Total clearing member assets 89,455 13,784 645,587 748,826 \u2013 \u2013 \u2013 Trade and other receivables 1,020 \u2013 6 1,026 1,578 \u2013 1,578 Cash and cash equivalents 2,665 \u2013 \u2013 2,665 142 \u2013 142 Investments in financial assets \u2013 equity instruments \u2013 351 \u2013 351 \u2013 \u2013 \u2013 Derivative financial instruments \u2013 \u2013 27 27 \u2013 10 10 Total financial assets 93,140 14,135 645,620 752,895 1,720 10 1,730 23. Financial assets and financial liabilities continued 23.2 Financial liabilities 31 December 2022 Group Company Amortised cost \u00a3m FVPL \u00a3m Total \u00a3m Amortised cost \u00a3m FVPL \u00a3m Total \u00a3m Clearing business financial liabilities \u2014 Clearing member trading liabilities 1,997 661,370 663,367 \u2013 \u2013 \u2013 \u2014 Other payables to clearing members 129,227 \u2013 129,227 \u2013 \u2013 \u2013 Total clearing member financial liabilities 131,224 661,370 792,594 \u2013 \u2013 \u2013 Trade and other payables 3,211 38 3,249 1,682 \u2013 1,682 Borrowings 8,151 \u2013 8,151 1,815 \u2013 1,815 Derivative financial instruments \u2013 96 96 \u2013 84 84 Total financial liabilities 142,586 661,504 804,090 3,497 84 3,581 31 December 2021 Group Company Amortised cost \u00a3m FVPL \u00a3m Total \u00a3m Amortised cost \u00a3m FVPL \u00a3m Total \u00a3m Clearing business financial liabilities \u2014 Clearing member trading liabilities 1,476 645,587 647,063 \u2013 \u2013 \u2013 \u2014 Other payables to clearing members 101,581 \u2013 101,581 \u2013 \u2013 \u2013 Total clearing member financial liabilities 103,057 645,587 748,644 \u2013 \u2013 \u2013 Trade and other payables 2,727 \u2013 2,727 846 \u2013 846 Borrowings 7,654 \u2013 7,654 1,740 \u2013 1,740 Derivative financial instruments \u2013 52 52 \u2013 48 48 Total financial liabilities 113,438 645,639 759,077 2,586 48 2,634 23. Financial assets and financial liabilities continued 23.3 Fair values Other than borrowings, we have assessed that the fair values of financial assets and financial liabilities categorised as being at amortised cost approximate to their carrying values. The fair values of the Group\u2019s borrowings are disclosed in note 22. Fair value measurement hierarchy The Group\u2019s financial assets and financial liabilities held at fair value consist largely of securities which are restricted in use for the operations of the Group\u2019s CCPs as managers of their respective clearing and guarantee systems. The following tables provide the fair value measurement hierarchy of the Group\u2019s financial assets and financial liabilities measured at fair value. Financial assets 31 December 2022 Group Quoted prices in active markets (Level 1) \u00a3m Significant observable inputs (Level 2) \u00a3m Significant unobservable inputs (Level 3) \u00a3m Total \u00a3m Clearing business financial assets \u2014 Derivative instruments 98 7,418 \u2013 7,516 \u2014 Non-derivative instruments \u2013 653,854 \u2013 653,854 \u2014 Other financial assets 18,415 \u2013 \u2013 18,415 18,513 661,272 \u2013 679,785 Investments in financial assets \u2013 debt 226 \u2013 \u2013 226 Investment in financial assets \u2013 equity \u2013 \u2013 394 394 Derivatives not designated as hedges: \u2014 Foreign exchange forward contracts \u2013 48 \u2013 48 \u2014 Trade and other receivables \u2013 convertible loan notes \u2013 \u2013 12 12 Total financial assets measured at fair value 1 18,739 661,320 406 680,465 1 There were no transfers between levels during the year. Company: At 31 December 2022, the Company\u2019s derivative assets of \u00a311 million were all classified as Level 2. 31 December 2021 Group Quoted prices in active markets (Level 1) \u00a3m Significant observable inputs (Level 2) \u00a3m Significant unobservable inputs (Level 3) \u00a3m Total \u00a3m Clearing business financial assets \u2014 Derivative instruments 47 2,631 \u2013 2,678 \u2014 Non-derivative instruments \u2013 642,909 \u2013 642,909 \u2014 Other financial assets 13,784 \u2013 \u2013 13,784 13,831 645,540 \u2013 659,371 Investment in financial assets \u2013 equity 1 \u2013 350 351 Derivatives not designated as hedges: \u2014 Foreign exchange forward contracts \u2013 27 \u2013 27 \u2014 Trade and other receivables \u2013 convertible loan notes \u2013 \u2013 6 6 Total financial assets measured at fair value 1 13,832 645,567 356 659,755 1 There were no transfers between levels during 2021. Company: At 31 December 2021, the Company\u2019s derivative assets of \u00a310 million were all classified as Level 2 23. Financial assets and financial liabilities continued Financial liabilities 31 December 2022 Group Quoted prices in active markets (Level 1) \u00a3m Significant observable inputs (Level 2) \u00a3m Significant unobservable inputs (Level 3) \u00a3m Total \u00a3m Clearing business financial liabilities \u2014 Derivative instruments 98 7,418 \u2013 7,516 \u2014 Non-derivative instruments \u2013 653,854 \u2013 653,854 98 661,272 \u2013 661,370 Contingent consideration payable \u2013 \u2013 38 38 Derivatives not designated as hedges: \u2014 Foreign exchange forward contracts \u2013 12 \u2013 12 Derivatives designated as hedges: \u2014 Cross-currency interest rate swaps \u2013 84 \u2013 84 Total financial liabilities measured at fair value 1 98 661,368 38 661,504 1 There were no transfers between levels during the year. Company: At 31 December 2022, the Company\u2019s derivative liabilities of \u00a384 million were all classified as Level 2. 31 December 2021 Group Quoted prices in active markets (Level 1) \u00a3m Significant observable inputs (Level 2) \u00a3m Significant unobservable inputs (Level 3) \u00a3m Total \u00a3m Clearing business financial liabilities \u2014 Derivative instruments 47 2,631 \u2013 2,678 \u2014 Non-derivative instruments \u2013 642,909 \u2013 642,909 47 645,540 \u2013 645,587 Derivatives not designated as hedges: \u2014 Foreign exchange forward contracts \u2013 8 \u2013 8 Derivatives designated as hedges: \u2014 Cross-currency interest rate swaps \u2013 44 \u2013 44 Total financial liabilities measured at fair value 1 47 645,592 \u2013 645,639 1 There were no transfers between levels during 2021. Company: At 31 December 2021, the Company\u2019s derivative liabilities of \u00a348 million were all classified as Level 2. 23.4 Hedging activities and derivatives The Group hedges its exposure to foreign exchange and interest rate movements using derivative instruments. This includes net investment hedges, foreign currency forwards and interest rate swaps, where the Group hedges its currency risk from its investment in foreign operations, cash flows and movements in interest rates, respectively. Net investment hedges The Group has designated some of its euro borrowings as net investment hedges. In addition, a proportion of the euro borrowings have been swapped into US dollar debt via cross-currency interest rate swaps that are also designated as a net investment hedge. There is an economic relationship between the hedged items and the hedging instruments (the borrowings) as the euro and US dollar borrowings are matched by the Group\u2019s investments in euro and US dollar assets. The Group has established a ratio of 1:1 for the hedging relationships as the underlying foreign exchange risk of the borrowings is identical to the investments. To ensure the hedge is effective, the Group makes sure that the borrowings are always less than the value of the investments. Hedge ineffectiveness only arises if the value of the hedging instrument exceeds the value of the underlying net investment. The hedging instruments are detailed below. 23. Financial assets and financial liabilities continued Cross-currency interest rate swaps In 2017, the Group entered into cross-currency interest rate swaps in order to more closely match the Group\u2019s currency of borrowing to the currency of its net assets and earnings. As disclosed in note 22, two \u20ac500 million bonds (maturing in 2024 and 2029) were issued in 2017. \u20ac700 million of these bonds were swapped into US$836 million through a series of cross-currency interest rate swaps which mature on the same dates as the bonds. These instruments effectively exchange some of the obligations and coupons of the bonds from euros into US dollars. These swaps have been designated as a hedge of the Group\u2019s net investments in its US dollar reporting subsidiaries and qualify for hedge accounting. \u20ac700 million cross-currency interest rate swap 2022 2021 Fair value of derivative liability on the balance sheet (\u00a384m) (\u00a344m) Nominal value of hedging instrument $836m $836m Hedge ratio 1:1 1:1 Hedge effectiveness 100% 100% Change in fair value of derivative (\u00a340m) (\u00a333m) Change in value of net investment \u00a340m \u00a333m Cumulative amount held in hedging reserve (\u00a384m) (\u00a344m) Non-derivative hedges Non-derivative hedges relate to euro borrowings which are matched against the Group\u2019s investments in euro denominated subsidiaries. The remaining \u20ac300 million of the two \u20ac500 million bonds issued in 2017 which were not swapped into US dollars, together with the \u20ac500 million bond issued in 2018 (see note 22), qualify as hedging instruments against euro denominated subsidiaries and qualify for hedge accounting. The \u20ac700 million that has been swapped is included below and is netted against the fair value movement of the US dollar derivative in the hedging reserve. Euro denominated bonds 2022 2021 Carrying value of debt on the balance sheet (\u00a31,326m) (\u00a31,253m) Nominal value of hedging instrument \u20ac1,500m \u20ac1,500m Hedge ratio 1:1 1:1 Hedge effectiveness 100% 100% Change in carrying value of hedging instrument (\u00a373m) \u00a394m Change in value of net investment \u00a373m (\u00a394m) Cumulative amount held in hedging reserve (\u00a32m) \u00a371m During the year the Group drew down on its committed bank facilities in euros and US dollars, but these drawings were not designated as net investment hedges. In 2021, the Group had also drawn down on these facilities, which were designated as hedges of the Group\u2019s net investments. At 31 December 2022 and 31 December 2021, there were no amounts drawn down on these facilities. There were no issuances of commercial paper in the year. In 2021, the Group issued euro denominated commercial paper and designated this as a hedge of the Group\u2019s net investments. The commercial paper was repaid by 31 December 2021. Revolving credit facility, bridge facility and commercial paper 2022 2021 Change in carrying value of hedging instruments \u2013 \u00a326m Change in value of net investments \u2013 (\u00a326m) Cumulative amount held in hedging reserve \u00a38m \u00a38m Cash flow hedges Interest rate swaps In February 2021, the Group entered into a series of US dollar interest rate swaps with tenures of 3, 5 and 10 years, with aggregate principal amounts of US$500 million, US$1,000 million and US$1,250 million respectively. The interest rate swaps were designated as cash flow hedges with the hedged item being planned bond issuances that were deemed highly probable at the time and related to the Refinitiv acquisition. The interest rate swaps were settled in March and April 2021 when the new bonds were issued (refer to note 22 for details). At the date of settlement, a gain of US$31 million (\u00a322 million) was recognised in the hedging reserve, representing the effective portion of the gain on the hedging instrument. This will be recycled to the income statement over the term of the debt. During the year \u00a33 million (2021: \u00a32 million) was recycled to the income statement within continuing operations. Hedging reserve Note 2022 \u00a3m 2021 \u00a3m 1 January 14 (110) Net gains on cash flow hedges taken out in the year \u2013 22 Amounts recycled to the income statement \u2013 continuing operations 24 (3) (2) Amounts recycled to the income statement \u2013 discontinued operations \u2013 17 Net (losses)/gains on net investment hedges 24 (113) 87 31 December (102) 14 As at 31 December 2022, \u00a340 million of losses (2021: \u00a340 million of losses) remain in reserves that have not been recycled to the income statement, as the Group continues to hold the underlying investments. 23. Financial assets and financial liabilities continued Foreign currency forwards The Group uses foreign exchange contracts to manage foreign exchange risk. It has a series of exchange contracts to purchase or sell certain currencies against sterling and US dollars in the future at fixed amounts. The cumulative sterling notional amounts of contracts outstanding as at 31 December 2022 and 2021 were as follows: Sell/(buy) Traded against sterling Traded against US dollars 2022 \u00a3m 2021 \u00a3m 2022 \u00a3m 2021 \u00a3m US dollar (40) 408 \u2013 \u2013 Euro (784) (237) 48 (1) Sterling \u2013 \u2013 (309) (109) Japanese Yen \u2013 \u2013 (36) (28) Singapore Dollar \u2013 \u2013 (32) (19) Australian Dollar \u2013 \u2013 (22) (17) Canadian Dollar \u2013 \u2013 (14) (12) Swiss Franc \u2013 \u2013 (8) \u2013 The fair value of these derivatives as at 31 December 2022 was an asset of \u00a314 million (2021: \u00a314 million) and a liability of \u00a36 million (2021: \u00a35 million). Embedded derivatives The fair value of embedded derivatives as at 31 December 2022 was an asset of \u00a334 million (2021: \u00a313 million) and a liability of \u00a36 million (2021: \u00a33 million). The fair value gain has been recognised in the income statement. Hedge accounting is not applied to outstanding foreign currency forwards or embedded derivatives. 23. Financial assets and financial liabilities continued 23.5 Financial risk management The Group seeks to protect its financial performance and the value of its business from various risks including exposure to capital, credit, concentration, country, liquidity, settlement, custodial and market (including foreign exchange, cash flow and fair value interest rate) risks. Details of these risks, which should be read in conjunction with the Principal Risks and Uncertainties on pages 24-84, are provided below. Capital risk Risk description Risk management approach Capital risk relates to the Group\u2019s ability to meet regulatory capital requirements and minimum internal investment returns. There is a risk that the Group\u2019s entities may not maintain, or have continued access to, sufficient high-quality capital to meet their regulatory, or other obligations. This could result in a loss of regulatory approvals and/or the imposition of financial sanctions. Either separately, or in combination, the main capital risks faced by the Group are: \u2014 An increased regulatory capital requirement of its regulated companies \u2014 Realised, negative yields on its investments \u2014 An inability to raise debt or equity financing as a result of its own poor financial performance, or poor financing conditions The Group, which consists of both regulated and unregulated entities, is profitable and strongly cash generative. It can manage its capital structure (which consists of equity and debt capital) and react to changes in economic conditions by varying returns to shareholders, issuing new shares or increasing or reducing borrowings. The Board reviews dividend policy and funding capacity on a regular basis and the Group maintains comfortable levels of debt facility headroom. A high-level summary of the Group\u2019s capital structure is presented below: Book vale of capital 2022 \u00a3m 2021 \u00a3m Total shareholders\u2019 funds 25,996 23,640 Group borrowings 8,151 7,654 The Group maintains a Capital Management Policy, the execution of which is overseen by the Group\u2019s Financial, Investment and Capital Committee. The Group seeks to optimally allocate capital in order to maintain a strong balance sheet, meet regulatory requirements, drive growth and offer suitable returns to shareholders. Regulated entities within the Group monitor compliance with policy and the capital requirements set by their respective regulatory authorities. Regulatory and operational capital represents: \u2014 Amounts held as cash and cash equivalents and investments in financial assets by regulated entities to satisfy their local regulatory capital requirements \u2014 Letters of credit issued by the Group to customers and suppliers The Group\u2019s total regulatory and operational capital is shown below: Regulatory and operational capital 2022 \u00a3m 2021 \u00a3m Total regulatory and operational capital 1 1,427 1,294 Amount included in cash and cash equivalents 1,219 1,261 1 Includes investments in financial assets of \u00a3191 million (2021: nil) and letters of credit totalling \u00a317 million (2021: \u00a333 million). To ensure ongoing financial strength, access to new capital at a reasonable cost, and to sustain an investment grade credit rating, the Group monitors its leverage ratio against a target range of 1-2 times. Leverage is calculated as operating net debt (i.e. net debt after excluding amounts set aside for regulatory and operational purposes) to adjusted EBITDA before foreign exchange gains or losses. At 31 December 2022, leverage was 1.8 times (2021: 1.9 times). While the Group\u2019s bank borrowing facilities no longer include leverage and interest cover ratio covenants, the Group takes into account the potential impact to the key metrics monitored by credit rating agencies when considering whether to increase the size of its borrowings and net debt. The Group seeks to maintain a strong investment grade credit rating and will always seek to return leverage to its target range if it rises temporarily. 23. Financial assets and financial liabilities continued
Credit and concentration risk
Risk description Risk management approach
Credit risk relates to the potential for a
Group counterparty (including CCP members,
and any counterparty where there is exposure
through payment, clearing or settlement
processes) to be unable to meet its financial
obligations to the Group when due.
Credit concentration risk may arise through
Group entities having large individual
or connected exposures to groups of
counterparties whose likelihood of default
is driven by common underlying factors.
Group
Credit risk is governed by policies developed at Group level by the Group Risk function. Limits and
thresholds for credit and concentration risk are reviewed regularly.
Group companies make judgements on the credit quality of their clients. This is based on the client\u2019s
financial position, the recurring nature of billing and collection arrangements and historical evidence relating
to the client\u2019s ability to meet its financial liabilities as they fall due. The Group is exposed to a large number
of clients and so management deems concentration risk on the Group\u2019s receivables to be low.
The Group\u2019s main credit risk exposure arises on the financial assets shown earlier in note 23.1. There have
been no significant increases in credit risk for these assets and no estimated credit losses have been
recognised on other financial instruments.
Non-CCP entities
The principal source of non-CCP credit risk is the creditworthiness of the investment counterparties with
which the Group deposits cash. The Group manages its credit risk by outlining the maximum financial
exposure that may be taken against any one counterparty, based on an assessment of the counterparty\u2019s
credit quality.
Cash and cash equivalents are held with authorised counterparties of a high credit standing. Cash is held in
unsecured interest bearing current and call accounts. Cash equivalents comprise short-term deposits and
AAA-rated money market funds.
Derivative transactions (and other treasury receivable structures) must be in line with the Group\u2019s policy
framework and may only be undertaken with highly rated counterparties.
CCPs
The principal source of CCP credit risk lies in the potential for one or more clearing members to default.
Group CCPs manage this risk through robust financial risk management. Clearing members are selected
based on an assessment of their supervisory capital as well as their technical and organisational strength.
Each member must pay margins to the relevant Group CCP. This must include a minimum level of cash and
can also include highly liquid securities. Clearing members also contribute to default funds managed by the
Group CCPs. These aim to protect the integrity of the markets in the event of multiple defaults in extreme
market circumstances. Group CCPs use stress tests to determine the appropriate margin and default fund
requirements. These are reviewed by CCP risk committees who can take action as appropriate.
CCPs are required by regulation to hold a minimum amount of capital (regulatory capital). Each of the Group\u2019s
CCPs maintains this regulatory capital requirement, together with an additional holding of its own capital. This
additional capital is to help manage credit risk during a significant market stress event or member default.
The total clearing member contributions of margin and default funds across the Group CCPs is shown below:
Total collateral held
2022
\u00a3bn
2021
\u00a3bn
Collateral security Cash received 127 96
Non-cash pledged 147 135
Guarantees pledged 2 2
Total collateral as at 31 December 276 233
Maximum collateral held during the year 310 246
Group CCPs manage the credit risk associated with margin and default fund contributions by investing the
cash element in instruments or structures deemed \u2018secure\u2019 by the relevant regulatory bodies. This includes
direct investments in highly rated, \u2018regulatory qualifying\u2019 sovereign bonds and supra-national debt,
investments in tri-party and bilateral reverse repos (receiving high-quality government securities as collateral)
and, in certain jurisdictions, deposits with the central bank. The small proportion of cash that is invested
unsecured is placed for short durations with highly rated counterparties where limits are applied with
respect to credit quality, concentration and tenor.
2022
\u00a3bn
2021
\u00a3bn
Total investment portfolio 123 98
Maximum portfolio size during the year 157 108
Additional portfolio information:
Amount invested securely 99.99% 99.94%
Weighted average maturity (days) 53 33
Risk description Risk management approach Associated liquidity risks are considered in the investment mix and discussed further below in the Liquidity, Settlement and Custodial risk section. To address concentration risk, the Group maintains a diversified portfolio of high-quality, liquid investments and uses a broad range of custodians, payment and settlement banks and agents. The largest concentration of treasury exposures as at 31 December 2022 was with the French Government with an aggregate exposure of 40% of the total investment portfolio (2021: 41% with the French Government). Trade receivables (including fees receivable) An impairment analysis of trade and fees receivable is performed monthly using a provision matrix to measure expected credit losses based on factors such as the counterparty\u2019s historic payment practices, expected future payments and the economic environment at large. The calculation reflects current conditions together with forecasts of future economic conditions. None of the Group\u2019s trade receivables are material by individual counterparty. 31 December 2022 Trade receivables Fees receivable \u00a3m <180 days \u00a3m >180 days \u00a3m Total \u00a3m Expected credit loss rate <1% <1% 11.2% Total receivables 263 706 60 1,029 Expected credit loss \u2013 (2) (7) (9) Net trade and fees receivables 263 704 53 1,020 31 December 2021 Trade receivables Fees receivable \u00a3m <180 days \u00a3m >180 days \u00a3m Total \u00a3m Expected credit loss rate <1% <1% 15.2% Total receivables 230 463 34 727 Expected credit loss \u2013 (2) (5) (7) Net trade and fees receivables 230 461 29 720 Country risk Risk description Risk management approach Country risk relates to those risks that are inherent when doing business with, or operating in, a country. Some governments may be unable or find it difficult to service their debts. This could have adverse effects, particularly on the Group\u2019s CCPs, potentially impacting cleared products, margin collateral, investments, the clearing membership and the financial industry as a whole. In addition, geopolitical events could impact our ability to operate in a country or impact the value of our assets in that country. We may even need to relocate activities or change our operating model in response. The Group has a country risk framework which facilitates assessment and monitoring of the risk associated with doing business with, or operating in, a country. Group CCPs have specific risk management frameworks that address country risk for both clearing and margin operations. Contained in these frameworks are a suite of stress scenarios that consider deterioration of sovereign credit quality as well as other risk factors. These scenarios support CCPs in developing and maintaining the appropriate country risk measurement, monitoring and mitigation tools. Risk Committees oversee these risks and the associated policy frameworks to protect the Group against a potentially adverse impact arising from volatility in the sovereign debt markets. The Group CCPs\u2019 sovereign exposures at the end of the financial reporting periods were: Country/organisation 2022 \u00a3bn 2021 \u00a3bn France 30 28 European Union (supranational) 20 17 USA 15 11 UK 7 12 Other 2 \u2013 Germany \u2013 1 23. Financial assets and financial liabilities continued 23. Financial assets and financial liabilities continued
Liquidity, settlement and custodial risk
Risk description Risk management approach
The Group\u2019s liquidity risk relates to its
ability to meet its short- and long-term
payment obligations as they fall due.
Additionally, the Group\u2019s CCPs, and certain
other Group entities, must maintain a level
of liquidity (consistent with regulatory
requirements) to ensure the smooth operation
of their respective services and to be able
to continue to operate in the event of a
significant stress event.
The Group\u2019s settlement and custodial
risks relate to the potential for a partner
firm to default on its obligations in respect
of custody, settlement, payment or other
administration activities, or that no action
is taken by the Group to mitigate these
risks. This also includes the risk that client
assets are immobilised as a result of
a third-party bankruptcy.
Group
The Group maintains sufficient liquid resources to meet its financial obligations as they fall due, and to invest
in capital expenditure, pay dividends, meet its pension commitments and appropriately support or fund
acquisitions or repay borrowings. Subject to regulatory constraints impacting certain entities, funds can
(generally) be lent across the Group and cash earnings remitted through regular dividend payments by
subsidiary companies. This is an important component of the Group Treasury cash management policy
and approach.
The Group is profitable, has strong free cash flow and generates annuity-like revenue which is not
significantly impacted by seasonal variations. Management monitors forecasts of the Group\u2019s cash flow
and overlays sensitivities to these forecasts to reflect assumptions about more challenging market conditions
or stress events. The Group will take the appropriate actions to satisfy working capital requirements when
committing to large scale acquisitions, including making sure there is comfortable liquidity headroom
projected over a reasonable time frame.
Non-CCP entities
The Group Treasury Policy requires the Group to maintain adequate credit facilities provided by a diversified
lending group to cover its expected funding requirements and ensure a minimum level of headroom for
at least the next 24 months. The financial strength of the Group\u2019s lenders is monitored regularly.
For full details of the Group\u2019s borrowings and facilities, refer to note 22.
CCPs
In order to meet the cash requirements of the clearing and settlement cycle, the Group\u2019s CCPs maintain
sufficient cash and cash equivalents and, in certain jurisdictions, have access to central bank refinancing or
commercial bank credit lines. Regulations require CCPs to ensure that appropriate levels of back-up liquidity
are in place to underpin the dynamics of a largely secured cash investment requirement, ensuring that the
maximum potential outflow under extreme market conditions is covered (see credit and concentration risk
section above).
In the event of a member default, Group CCPs can liquidate the defaulting member\u2019s portfolio to cover both
losses associated with the default and settlement of any other financial obligations of the defaulting member.
In addition, certain Group companies, including the CCPs, maintain commercial bank facilities which support
management of intraday and overnight liquidity.
Custodians are subject to minimum eligibility requirements, ongoing credit assessments and robust
contractual arrangements. They are also required to have appropriate contingency arrangements in place.
Financial liability maturity
The table below analyses the Group\u2019s financial liabilities into relevant maturity groupings based on the
remaining period from the balance sheet date to the contractual maturity date. The amounts disclosed in
the table reflect the contractual undiscounted cash flows. The borrowings and lease liabilities include future
interest that has not been accrued at the balance sheet date.
30 December 2022
Less than
1 year
\u00a3m
Between 1
and 2 years
\u00a3m
Between 2
and 5 years
\u00a3m
Over
5 years
\u00a3m
Total
\u00a3m
Borrowings 1,440 967 2,008 4,754 9,169
Trade and other payables (excluding lease liabilities) 2,004 \u2013 \u2013 \u2013 2,004
Lease liabilities 158 110 216 283 767
Clearing member liabilities 792,594 \u2013 \u2013 \u2013 792,594
Derivative financial instruments 9 57 \u2013 30 96
Other non-current payables (excluding lease liabilities) \u2013 64 338 247 649
31 December 2021
Less than
1 year
\u00a3m
Between 1
and 2 years
\u00a3m
Between 2
and 5 years
\u00a3m
Over
5 years
\u00a3m
Total
\u00a3m
Borrowings 78 1,467 2,229 4,870 8,644
Trade and other payables (excluding lease liabilities) 1,614 \u2013 \u2013 \u2013 1,614
Lease liabilities 149 124 204 275 752
Clearing member liabilities 748,644 \u2013 \u2013 \u2013 748,644
Derivative financial instruments 6 1 30 14 51
Other non-current payables (excluding lease liabilities) \u2013 14 3 495 512
23. Financial assets and financial liabilities continued
Market risk \u2013 foreign exchange risk
Risk description Risk management approach
The Group operates globally with primary
centres in the UK, Europe and North America.
It also has growing and strategically important
businesses in Asia. The Group\u2019s principal
currencies of operation are sterling,
US dollars, and the euro.
The Group is exposed to transactional
foreign exchange risk and translational risk.
Transactional risk arises when we buy or sell
goods or services in a currency other than
our entities\u2019 functional currencies. We may
be exposed to movements in that currency.
Translational risk arises due to the requirement
to translate non-reporting currency earnings
into an entity\u2019s reporting currency for the
purpose of statutory reporting.
Transactional foreign exchange risk may
present itself in payment of intragroup
dividends or when interest obligations,
which are in a different currency, are due.
However, both of these operations play their
part in controlling the level of translational
foreign exchange exposure the Group faces.
Transactional foreign exchange risk may
also arise when investing in, or divesting
from, operations denominated in currencies
other than sterling.
In addition, the Group has some contracts/
cashflow profiles with a foreign exchange
component that could trigger embedded
derivative recognition and, as such,
fair value accounting treatment.
Translational risk
The Group manages its translational risk, where possible, by matching the currency of its debt to the
currency of its earnings, to make sure certain key financial ratios (leverage and interest coverage) are
protected from material foreign exchange rate volatility. The Group also seeks to balance the currency of its
assets with its liabilities. In order to mitigate the impact of unfavourable currency exchange rate movements
on earnings and net assets, non-sterling cash earnings are centralised and applied to debt and interest
payments in the same currency. Where required, currency of debt is re-balanced using cross-currency
swaps to better match the currency of debt to the overall currency of earnings.
A material proportion of the Group\u2019s debt is held in or swapped into euros and US dollars as noted below:
Currency of debt
2022
\u00a3m
2021
\u00a3m
Euro denominated drawn debt 2,652 2,630
Euro denominated cross-currency interest rate swaps (695) (619)
US dollar denominated drawn debt 5,014 4,540
US dollar denominated cross-currency interest rate swaps 695 619
The cross-currency interest rate swaps are directly linked to euro fixed debt. The euro and US dollar
denominated debt, including the cross-currency swaps, provide a hedge against the Group\u2019s net investment
in euro and US dollar denominated entities.
At 31 December 2022, the Group\u2019s designated hedges of its net investments were effective.
Transactional risk
While transactional foreign exchange exposure is limited, the Group mitigates this by either hedging material
transactions with appropriate derivative instruments or by settling currency payables or receivables within a
short timeframe. The Group Treasury Policy requires cash flows of single transactions or a series of linked
transactions of more than \u00a310 million or equivalent per annum to be hedged. The risk is also minimised by
the periodic exchange of cash into each Group entity\u2019s functional currency. Where appropriate, hedge
accounting for derivatives is considered in order to mitigate material levels of income statement volatility.
Governance and sensitivity
The Group\u2019s Risk Committee reviewed the approach to foreign exchange risk management during the
quarter ended 31 December 2022.
In addition to projecting and analysing its earnings and debt profile by currency, the Group reviews
sensitivities to movements in exchange rates. The Group has considered movements in the euro and the
US dollar over 2022 and 2021 and, based on actual market observations between its principal currency
pairs, has concluded that a 10% movement in rates is a reasonable level to illustrate the risk to the Group.
The impact on profit after tax and equity is set out in the table below:
2022 2021
Profit
after tax
\u00a3m
Equity
\u00a3m
Profit
after tax
\u00a3m
Equity
\u00a3m
Euro Sterling weakens 6 (71) (13) (67)
Sterling strengthens (5) 64 12 61
US dollar Sterling weakens 18 (68) 9 (62)
Sterling strengthens (16) 61 (8) 56
The sensitivity of profit after tax reflects foreign exchange gains or losses on translation of financial assets
and financial liabilities, including cash and borrowings.
The sensitivity of equity reflects the foreign exchange gains or losses on translation of euro and US dollar
borrowings that have been designated as hedges of a net investment in foreign operations.
23. Financial assets and financial liabilities continued
Market risk \u2013 interest rate risk
Risk description Risk management approach
The Group\u2019s interest rate risk arises from the
impact of changes in interest rates on cash
held and investments in financial assets,
and on borrowings held at floating rates.
The Group may also face future interest rate
exposure connected to M&A transactions
where significant debt financing is involved.
The Group\u2019s CCPs have member liabilities,
and separately achieve returns which support
the payment of these liabilities. A CCP\u2019s
interest rate risk can increase if the reference
rates used to calculate liabilities increase
while the reference rates that underpin
investment returns decrease (or do not
increase by the same amount).
Group companies that offer guaranteed
settlement of traded securities can also
be exposed to latent interest rate risk
(and market risk more generally) in the
event of a counterparty default.
The Group\u2019s interest rate management policy focuses on protecting the Group\u2019s credit rating and limiting the
impact of interest rate increases on Group earnings. To support this objective, the Group targets a minimum
coverage of interest expense by adjusted EBITDA of 7 times, and a maximum debt floating rate component
of 50%. This approach reflects:
\u2014 a focus on the Group\u2019s cost of gross debt rather than its net debt given the material cash and cash
equivalents set aside for regulatory purposes;
\u2014 the short duration allowed for investments of cash and cash equivalents held for regulatory purposes
which, by their nature, generate low investment yields; and
\u2014 the broad natural hedge of floating rate borrowings provided by the significant balances of cash and
cash equivalents held effectively at floating rates of interest
At 31 December 2022, consolidated net interest expense cover by adjusted EBITDA was 19.0 times
(2021: 17.9 times) and the floating rate component of total debt was 16% (2021: 18%).
Where the Group has committed to M&A transactions and is exposed to prospective interest rate risk on
borrowings, the Group Treasury function will assess the exposure and consider hedging solutions that
conform with policy and seek to limit future interest costs.
In the Group\u2019s CCPs, interest bearing assets are generally invested in secured instruments or structures and
for a longer term than interest bearing liabilities, whose interest rate is reset daily. This makes investment
returns vulnerable to volatility in overnight rates and shifts in spreads between overnight and term rates.
Interest rate exposures (and the risk to CCP capital) are managed within defined risk appetite parameters
against which sensitivities are monitored daily.
In its review of the sensitivities to potential movements in interest rates, the Group has considered interest
rate volatility over the last year and prospects for rates over the next 12 months. It has concluded that a
1 percentage point upward movement (with a limited prospect of material downward movement) reflects a
reasonable level of risk to current rates. If interest rates on cash and cash equivalents and borrowings had
been 1 percentage point higher, with all other variables held constant, profit after tax for 2022 would have
been \u00a38 million higher (2021: \u00a310 million higher) mainly as a result of higher interest income on floating
rate cash and cash equivalents, partially offset by higher interest expense on floating rate borrowings.
At the CCP level (in aggregate), if interest rates on the common interest bearing member liability
benchmarks of EONIA, Fed Funds and SONIA, (for euro, US dollar and sterling liabilities respectively),
had been 1 percentage point higher, with all other variables held constant, the Group\u2019s profit after tax
would have been \u00a31 million lower (2021: \u00a31 million lower).
23. Financial assets and financial liabilities continued
23.6 Offsetting financial assets and financial liabilities
Accounting policy
The Group reports financial assets and financial liabilities on a net basis on the balance sheet where there is a legally enforceable right to offset
the recognised amounts and there is an intention to settle on a net basis, or to realise the asset and settle the liabilities simultaneously.
The Group applies the rules of legal right of set off and intent to net settle within clearing member balances. The carrying values of the balances
are offset at an appropriate level to arrive at the net balances reported in the balance sheet. The approach adopted is reviewed on a regular
basis to ensure it remains the most appropriate. Any change in approach would not materially affect the net assets of the Group .
The following tables show the impact of netting arrangements on all financial assets and financial liabilities that are reported net on the balance sheet:
31 December 2022
Gross amount
\u00a3m
Amount offset
\u00a3m
Net amount as reported
\u00a3m
Other financial assets 2,404,794 (2,397,255) 7,539
Repurchase agreements 798,844 (145,013) 653,831
Total assets 3,203,638 (2,542,268) 661,370
Other financial liabilities (2,413,095) 2,405,556 (7,539)
Reverse repurchase agreements (798,844) 145,013 (653,831)
Total liabilities (3,211,939) 2,550,569 (661,370)
31 December 2021
Gross amount
\u00a3m
Amount offset
\u00a3m
Net amount as reported
\u00a3m
Other financial assets 1,286,359 (1,283,682) 2,677
Repurchase agreements 794,543 (150,157) 644,386
Total assets 2,080,902 (1,433,839) 647,063
Other financial liabilities (1,302,809) 1,300,132 (2,677)
Reverse repurchase agreements (794,543) 150,157 (644,386)
Total liabilities (2,097,352) 1,450,289 (647,063)
All offset amounts are clearing member trading assets and trading liabilities within the Group\u2019s CCP businesses\u2019 financial instruments.
The Group\u2019s CCP companies sit in the middle of members\u2019 transactions and hold default funds and margin amounts as a contingency against the
default of a member. As such, further amounts are available to offset in the event of a default reducing the asset and liability of \u00a3661,370 million
(2021: \u00a3647,063 million) to nil.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFinancialInstrumentsExplanatory",
"language": "en",
"entity": "scheme:213800QAUUUP6I445N30",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-653": {
"value": "Accounting policy Recognition and measurement Financial assets and financial liabilities are initially recognised at fair value. The Group classifies its financial instruments at: amortised cost; fair value through other comprehensive income (FVOCI); or fair value through profit or loss (FVPL). The classification depends on the Group\u2019s business model for managing its financial instruments and whether or not the cash flows generated are \u2018solely payments of principal and interest\u2019. Financial assets \u2014 Financial assets at amortised cost are financial assets that are held in order to collect the contractual cash flows and the contractual terms give rise to cash flows that are solely payments of principal and interest. These include: cash and cash equivalents; trade and other receivables; clearing member trading balances relating to certain collateralised transactions; and other receivables from clearing members of the CCP businesses. After initial recognition these assets are measured using the effective interest rate method. Interest income from these financial assets is included in finance income. Any gain or loss arising on derecognition is recognised directly in the income statement and presented in other income or operating expenses together with any foreign exchange gains and losses. \u2014 Financial assets at FVOCI \u2013 debt instruments are assets where the objective is achieved by both collecting the contractual cash flows and selling the asset. The contractual cash flows received are solely payments of principal and interest. They include quoted debt instruments (predominantly government bonds) held by the CCP businesses, which are used under the business model to both collect the contractual cash flows and, on occasion, to profit from their sale. Interest received from these assets is recognised in the income statement as finance income. Where negative interest rates apply, the interest is recognised in finance expense. Any accumulated profit or loss previously recognised in other comprehensive income is recycled to the income statement on derecognition of the asset. \u2014 Financial assets at FVOCI \u2013 equity instruments are strategic equity investments which are held for the long-term but do not give the Group control or significant influence. The Group has irrevocably elected to classify these investments as FVOCI. Dividends received from these investments are recognised in the income statement within other income when the right of receipt has been established. Accumulated gains or losses on equity instruments remain in equity on derecognition and are not recycled through the income statement. \u2014 Financial assets at FVPL include all other financial assets not classified as amortised cost or FVOCI. They include CCP businesses\u2019 clearing member trading balances comprising derivatives, as well as equity and debt instruments that are marked to market on a daily basis . Financial liabilities \u2014 Financial liabilities at FVPL include the CCP businesses\u2019 clearing member trading balances, comprising derivatives, as well as equity and debt instruments that are marked to market on a daily basis. \u2014 Financial liabilities at amortised cost are all financial liabilities that are not classified as financial liabilities at FVPL. They include trade and other payables, borrowings and other payables to clearing members. Impairment The Group adopts a forward-looking approach to estimating impairment losses on financial assets. An expected credit loss (ECL) arises if the expected cash flows are lower than the contractual cash flows due. The difference is discounted at the asset\u2019s original effective interest rate and recognised as an impairment of the original value of the asset. \u2014 Financial assets at amortised cost \u2013 the ECL for trade receivables (including fees receivable), contract assets, and lease receivables is derived using the simplified approach in IFRS 9 Financial Instruments to calculate a lifetime ECL. The allowance is based on historical experience of collection rates, adjusted for forward looking factors specific to each counterparty and the economic environment at large, to create an expected loss matrix. The ECL on other financial assets held at amortised cost and those at fair value that are held to collect and sell is measured using the general approach. An allowance is calculated based on the 12-month ECL at each reporting date unless there is a significant increase in the financial instrument\u2019s credit risk, in which case a loss allowance based on the lifetime ECL is calculated. \u2014 Financial assets at FVOCI \u2013 debt instruments held at FVOCI comprise high-quality government bonds that have a low credit risk. The Group\u2019s policy is to calculate a 12-month ECL on these assets. If there is a significant increase in credit risk, then a lifetime ECL will be recognised. A significant increase in credit risk is considered to have occurred when contractual payments are more than 30 days past due. \u2014 Financial assets at FVOCI \u2013 equity instruments are revalued to fair value on a regular basis and no further impairment analysis is required. \u2014 Financial assets at FVPL \u2013 no ECL is calculated for assets held at FVPL as any expected loss is already recognised in the recorded fair value of the asset. Offsetting Financial assets and financial liabilities are offset and the net amount reported in the balance sheet when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis, or to realise the asset and settle the liability simultaneously. Fair value hierarchy The Group uses the following valuation hierarchy for determining and disclosing the fair value of financial instruments: \u2014 Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities \u2014 Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly \u2014 Level 3: techniques which use inputs, which have a significant effect on the recorded fair value, that are not based on observable market data For Level 1, the fair value is based on market price quotations at the reporting date. For assets and liabilities classified as Level 2, the fair value is calculated using one or more valuation techniques (e.g. the market approach or the income approach) with market observable inputs. The selection of the appropriate valuation techniques may be affected by the availability and reliability of the relevant inputs. The inputs may include currency rates, interest rates, forward rate curves, and net asset values. When observable market data is not available, the Group uses one or more valuation techniques for which sufficient and reliable data is available. The inputs used in estimating the fair value of Level 3 financial instruments typically include expected timing and amount of future cash flows, timing of settlement, discount rates and the net asset values of certain investments. The Group determines whether a transfer between levels has occurred by reviewing the categorisation of assets and liabilities at the end of each reporting period, based on the lowest level input that is significant to the valuation. Derivative financial instruments and hedging activities Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently remeasured to their fair value at regular intervals. The method of recognising any resulting measurement gain or loss depends on whether or not the derivative is designated as a hedging instrument and the nature of the item being hedged. The Group has embedded foreign currency derivatives, primarily in revenue contracts where the currency of the contract is different from the functional or local currencies of the parties involved. The Group records these derivative instruments at fair value in the balance sheet as either assets or liabilities. Changes in fair value are recognised in the income statement. The Group hedges a proportion of its net investment in foreign subsidiaries by designating some euro and US dollar borrowings and derivative instruments as net investment hedges. Any gain or loss on the hedging instrument relating to the effective portion of the hedge is recognised in other comprehensive income and remains in the hedging reserve until the underlying asset or liability is derecognised. In order to qualify for hedge accounting, a transaction must meet strict criteria regarding documentation, effectiveness, probability of occurrence, and reliability of measurement. We document the relationship between hedging instruments and hedged items at the inception of the transaction, as well as documenting the risk management objectives and strategy for undertaking various hedging transactions. The effectiveness of the hedge is tested at each reporting date and at the commencement and conclusion of any hedge in order to verify that it continues to satisfy all the criteria for hedge accounting. Any ineffective portion is recognised in the income statement as finance income or expense. Amounts that have accumulated through other comprehensive income in the hedging reserve are recognised in the income statement in the period when the hedged item affects profit or loss (for example, when the forecast transaction that is hedged takes place). When a hedging instrument expires or is sold, or when a hedge no longer meets the criteria for hedge accounting, any cumulative gain or loss remains in the hedging reserve: it is only recognised in the income statement when the forecast transaction itself is ultimately recognised in the income statement. When a forecast transaction is no longer expected to occur, the cumulative gain or loss that was reported through other comprehensive income is immediately recognised in the income statement. The profit or loss on a derivative which is not designated as a hedging instrument is recognised directly in the income statement . Accounting policy The Group reports financial assets and financial liabilities on a net basis on the balance sheet where there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis, or to realise the asset and settle the liabilities simultaneously. The Group applies the rules of legal right of set off and intent to net settle within clearing member balances. The carrying values of the balances are offset at an appropriate level to arrive at the net balances reported in the balance sheet. The approach adopted is reviewed on a regular basis to ensure it remains the most appropriate. Any change in approach would not materially affect the net assets of the Group ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialInstrumentsExplanatory",
"language": "en",
"entity": "scheme:213800QAUUUP6I445N30",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-667": {
"value": "Recognition and measurement Financial assets and financial liabilities are initially recognised at fair value. The Group classifies its financial instruments at: amortised cost; fair value through other comprehensive income (FVOCI); or fair value through profit or loss (FVPL). The classification depends on the Group\u2019s business model for managing its financial instruments and whether or not the cash flows generated are \u2018solely payments of principal and interest\u2019. Financial assets at FVPL include all other financial assets not classified as amortised cost or FVOCI. They include CCP businesses\u2019 clearing member trading balances comprising derivatives, as well as equity and debt instruments that are marked to market on a daily basis Financial liabilities at FVPL include the CCP businesses\u2019 clearing member trading balances, comprising derivatives, as well as equity and debt instruments that are marked to market on a daily basis.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialInstrumentsAtFairValueThroughProfitOrLossExplanatory",
"language": "en",
"entity": "scheme:213800QAUUUP6I445N30",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-675": {
"value": "Financial liabilities \u2014 Financial liabilities at FVPL include the CCP businesses\u2019 clearing member trading balances, comprising derivatives, as well as equity and debt instruments that are marked to market on a daily basis. \u2014 Financial liabilities at amortised cost are all financial liabilities that are not classified as financial liabilities at FVPL. They include trade and other payables, borrowings and other payables to clearing members. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialLiabilitiesExplanatory",
"language": "en",
"entity": "scheme:213800QAUUUP6I445N30",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-666": {
"value": "Impairment The Group adopts a forward-looking approach to estimating impairment losses on financial assets. An expected credit loss (ECL) arises if the expected cash flows are lower than the contractual cash flows due. The difference is discounted at the asset\u2019s original effective interest rate and recognised as an impairment of the original value of the asset. \u2014 Financial assets at amortised cost \u2013 the ECL for trade receivables (including fees receivable), contract assets, and lease receivables is derived using the simplified approach in IFRS 9 Financial Instruments to calculate a lifetime ECL. The allowance is based on historical experience of collection rates, adjusted for forward looking factors specific to each counterparty and the economic environment at large, to create an expected loss matrix. The ECL on other financial assets held at amortised cost and those at fair value that are held to collect and sell is measured using the general approach. An allowance is calculated based on the 12-month ECL at each reporting date unless there is a significant increase in the financial instrument\u2019s credit risk, in which case a loss allowance based on the lifetime ECL is calculated. \u2014 Financial assets at FVOCI \u2013 debt instruments held at FVOCI comprise high-quality government bonds that have a low credit risk. The Group\u2019s policy is to calculate a 12-month ECL on these assets. If there is a significant increase in credit risk, then a lifetime ECL will be recognised. A significant increase in credit risk is considered to have occurred when contractual payments are more than 30 days past due. \u2014 Financial assets at FVOCI \u2013 equity instruments are revalued to fair value on a regular basis and no further impairment analysis is required. \u2014 Financial assets at FVPL \u2013 no ECL is calculated for assets held at FVPL as any expected loss is already recognised in the recorded fair value of the asset. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfFinancialAssetsExplanatory",
"language": "en",
"entity": "scheme:213800QAUUUP6I445N30",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-668": {
"value": "Offsetting Financial assets and financial liabilities are offset and the net amount reported in the balance sheet when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis, or to realise the asset and settle the liability simultaneously. Accounting policy The Group reports financial assets and financial liabilities on a net basis on the balance sheet where there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis, or to realise the asset and settle the liabilities simultaneously. The Group applies the rules of legal right of set off and intent to net settle within clearing member balances. The carrying values of the balances are offset at an appropriate level to arrive at the net balances reported in the balance sheet. The approach adopted is reviewed on a regular basis to ensure it remains the most appropriate. Any change in approach would not materially affect the net assets of the Group . ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForOffsettingOfFinancialInstrumentsExplanatory",
"language": "en",
"entity": "scheme:213800QAUUUP6I445N30",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-670": {
"value": "Fair value hierarchy The Group uses the following valuation hierarchy for determining and disclosing the fair value of financial instruments: \u2014 Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities \u2014 Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly \u2014 Level 3: techniques which use inputs, which have a significant effect on the recorded fair value, that are not based on observable market data For Level 1, the fair value is based on market price quotations at the reporting date. For assets and liabilities classified as Level 2, the fair value is calculated using one or more valuation techniques (e.g. the market approach or the income approach) with market observable inputs. The selection of the appropriate valuation techniques may be affected by the availability and reliability of the relevant inputs. The inputs may include currency rates, interest rates, forward rate curves, and net asset values. When observable market data is not available, the Group uses one or more valuation techniques for which sufficient and reliable data is available. The inputs used in estimating the fair value of Level 3 financial instruments typically include expected timing and amount of future cash flows, timing of settlement, discount rates and the net asset values of certain investments. The Group determines whether a transfer between levels has occurred by reviewing the categorisation of assets and liabilities at the end of each reporting period, based on the lowest level input that is significant to the valuation. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForFairValueMeasurementExplanatory",
"language": "en",
"entity": "scheme:213800QAUUUP6I445N30",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-669": {
"value": "Derivative financial instruments and hedging activities Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently remeasured to their fair value at regular intervals. The method of recognising any resulting measurement gain or loss depends on whether or not the derivative is designated as a hedging instrument and the nature of the item being hedged. The Group has embedded foreign currency derivatives, primarily in revenue contracts where the currency of the contract is different from the functional or local currencies of the parties involved. The Group records these derivative instruments at fair value in the balance sheet as either assets or liabilities. Changes in fair value are recognised in the income statement. The Group hedges a proportion of its net investment in foreign subsidiaries by designating some euro and US dollar borrowings and derivative instruments as net investment hedges. Any gain or loss on the hedging instrument relating to the effective portion of the hedge is recognised in other comprehensive income and remains in the hedging reserve until the underlying asset or liability is derecognised. In order to qualify for hedge accounting, a transaction must meet strict criteria regarding documentation, effectiveness, probability of occurrence, and reliability of measurement. We document the relationship between hedging instruments and hedged items at the inception of the transaction, as well as documenting the risk management objectives and strategy for undertaking various hedging transactions. The effectiveness of the hedge is tested at each reporting date and at the commencement and conclusion of any hedge in order to verify that it continues to satisfy all the criteria for hedge accounting. Any ineffective portion is recognised in the income statement as finance income or expense. Amounts that have accumulated through other comprehensive income in the hedging reserve are recognised in the income statement in the period when the hedged item affects profit or loss (for example, when the forecast transaction that is hedged takes place). When a hedging instrument expires or is sold, or when a hedge no longer meets the criteria for hedge accounting, any cumulative gain or loss remains in the hedging reserve: it is only recognised in the income statement when the forecast transaction itself is ultimately recognised in the income statement. When a forecast transaction is no longer expected to occur, the cumulative gain or loss that was reported through other comprehensive income is immediately recognised in the income statement. The profit or loss on a derivative which is not designated as a hedging instrument is recognised directly in the income statement . ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForDerivativeFinancialInstrumentsExplanatory",
"language": "en",
"entity": "scheme:213800QAUUUP6I445N30",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-676": {
"value": "Derivative financial instruments and hedging activities Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently remeasured to their fair value at regular intervals. The method of recognising any resulting measurement gain or loss depends on whether or not the derivative is designated as a hedging instrument and the nature of the item being hedged. The Group has embedded foreign currency derivatives, primarily in revenue contracts where the currency of the contract is different from the functional or local currencies of the parties involved. The Group records these derivative instruments at fair value in the balance sheet as either assets or liabilities. Changes in fair value are recognised in the income statement. The Group hedges a proportion of its net investment in foreign subsidiaries by designating some euro and US dollar borrowings and derivative instruments as net investment hedges. Any gain or loss on the hedging instrument relating to the effective portion of the hedge is recognised in other comprehensive income and remains in the hedging reserve until the underlying asset or liability is derecognised. In order to qualify for hedge accounting, a transaction must meet strict criteria regarding documentation, effectiveness, probability of occurrence, and reliability of measurement. We document the relationship between hedging instruments and hedged items at the inception of the transaction, as well as documenting the risk management objectives and strategy for undertaking various hedging transactions. The effectiveness of the hedge is tested at each reporting date and at the commencement and conclusion of any hedge in order to verify that it continues to satisfy all the criteria for hedge accounting. Any ineffective portion is recognised in the income statement as finance income or expense. Amounts that have accumulated through other comprehensive income in the hedging reserve are recognised in the income statement in the period when the hedged item affects profit or loss (for example, when the forecast transaction that is hedged takes place). When a hedging instrument expires or is sold, or when a hedge no longer meets the criteria for hedge accounting, any cumulative gain or loss remains in the hedging reserve: it is only recognised in the income statement when the forecast transaction itself is ultimately recognised in the income statement. When a forecast transaction is no longer expected to occur, the cumulative gain or loss that was reported through other comprehensive income is immediately recognised in the income statement. The profit or loss on a derivative which is not designated as a hedging instrument is recognised directly in the income statement . ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForDerivativeFinancialInstrumentsAndHedgingExplanatory",
"language": "en",
"entity": "scheme:213800QAUUUP6I445N30",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-719": {
"value": "23.1 Financial assets 31 December 2022 Group Company Amortised cost \u00a3m FVOCI \u00a3m FVPL \u00a3m Total \u00a3m Amortised cost \u00a3m FVPL \u00a3m Total \u00a3m Clearing business financial assets 1 \u2014 Clearing member trading assets 1,997 \u2013 661,370 663,367 \u2013 \u2013 \u2013 \u2014 Other receivables from clearing members 5,945 \u2013 \u2013 5,945 \u2013 \u2013 \u2013 \u2014 Other financial assets 2 \u2013 18,415 \u2013 18,415 \u2013 \u2013 \u2013 \u2014 Clearing member cash and cash equivalents 2 104,707 \u2013 \u2013 104,707 \u2013 \u2013 \u2013 Total clearing member assets 112,649 18,415 661,370 792,434 \u2013 \u2013 \u2013 Trade and other receivables 1,344 \u2013 12 1,356 1,360 \u2013 1,360 Cash and cash equivalents 3,209 \u2013 \u2013 3,209 77 \u2013 77 Investments in financial assets \u2013 debt instruments \u2013 226 \u2013 226 \u2013 \u2013 \u2013 Investments in financial assets \u2013 equity instruments \u2013 394 \u2013 394 \u2013 \u2013 \u2013 Derivative financial instruments \u2013 \u2013 48 48 \u2013 11 11 Total financial assets 117,202 19,035 661,430 797,667 1,437 11 1,448 1 At 31 December 2022, there are no provisions for expected credit losses in relation to any of the CCP businesses\u2019 financial assets held at amortised cost or FVOCI (2021: nil). The Group closely monitors its CCP investment portfolio and invests only in government debt and other collateralised instruments where the risk of loss is minimal. There was no increase in credit risk in the year and none of the assets are past due (2021: nil). 2 Clearing member cash and cash equivalents represents amounts received from the clearing members to cover initial and variation margins, and default fund contributions that are not invested in bonds. These amounts are deposited with banks, including central banks, or invested securely in short-term reverse repurchase contracts (reverse repos). Other financial assets represent the CCP investment in government bonds. 31 December 2021 Group Company Amortised cost \u00a3m FVOCI \u00a3m FVPL \u00a3m Total \u00a3m Amortised cost \u00a3m FVPL \u00a3m Total \u00a3m Clearing business financial assets \u2014 Clearing member trading assets 1,476 \u2013 645,587 647,063 \u2013 \u2013 \u2013 \u2014 Other receivables from clearing members 4,184 \u2013 \u2013 4,184 \u2013 \u2013 \u2013 \u2014 Other financial assets \u2013 13,784 \u2013 13,784 \u2013 \u2013 \u2013 \u2014 Clearing member cash and cash equivalents 83,795 \u2013 \u2013 83,795 \u2013 \u2013 \u2013 Total clearing member assets 89,455 13,784 645,587 748,826 \u2013 \u2013 \u2013 Trade and other receivables 1,020 \u2013 6 1,026 1,578 \u2013 1,578 Cash and cash equivalents 2,665 \u2013 \u2013 2,665 142 \u2013 142 Investments in financial assets \u2013 equity instruments \u2013 351 \u2013 351 \u2013 \u2013 \u2013 Derivative financial instruments \u2013 \u2013 27 27 \u2013 10 10 Total financial assets 93,140 14,135 645,620 752,895 1,720 10 1,730 23.2 Financial liabilities 31 December 2022 Group Company Amortised cost \u00a3m FVPL \u00a3m Total \u00a3m Amortised cost \u00a3m FVPL \u00a3m Total \u00a3m Clearing business financial liabilities \u2014 Clearing member trading liabilities 1,997 661,370 663,367 \u2013 \u2013 \u2013 \u2014 Other payables to clearing members 129,227 \u2013 129,227 \u2013 \u2013 \u2013 Total clearing member financial liabilities 131,224 661,370 792,594 \u2013 \u2013 \u2013 Trade and other payables 3,211 38 3,249 1,682 \u2013 1,682 Borrowings 8,151 \u2013 8,151 1,815 \u2013 1,815 Derivative financial instruments \u2013 96 96 \u2013 84 84 Total financial liabilities 142,586 661,504 804,090 3,497 84 3,581 31 December 2021 Group Company Amortised cost \u00a3m FVPL \u00a3m Total \u00a3m Amortised cost \u00a3m FVPL \u00a3m Total \u00a3m Clearing business financial liabilities \u2014 Clearing member trading liabilities 1,476 645,587 647,063 \u2013 \u2013 \u2013 \u2014 Other payables to clearing members 101,581 \u2013 101,581 \u2013 \u2013 \u2013 Total clearing member financial liabilities 103,057 645,587 748,644 \u2013 \u2013 \u2013 Trade and other payables 2,727 \u2013 2,727 846 \u2013 846 Borrowings 7,654 \u2013 7,654 1,740 \u2013 1,740 Derivative financial instruments \u2013 52 52 \u2013 48 48 Total financial liabilities 113,438 645,639 759,077 2,586 48 2,634 23.3 Fair values Other than borrowings, we have assessed that the fair values of financial assets and financial liabilities categorised as being at amortised cost approximate to their carrying values. The fair values of the Group\u2019s borrowings are disclosed in note 22. Fair value measurement hierarchy The Group\u2019s financial assets and financial liabilities held at fair value consist largely of securities which are restricted in use for the operations of the Group\u2019s CCPs as managers of their respective clearing and guarantee systems. The following tables provide the fair value measurement hierarchy of the Group\u2019s financial assets and financial liabilities measured at fair value. Financial assets 31 December 2022 Group Quoted prices in active markets (Level 1) \u00a3m Significant observable inputs (Level 2) \u00a3m Significant unobservable inputs (Level 3) \u00a3m Total \u00a3m Clearing business financial assets \u2014 Derivative instruments 98 7,418 \u2013 7,516 \u2014 Non-derivative instruments \u2013 653,854 \u2013 653,854 \u2014 Other financial assets 18,415 \u2013 \u2013 18,415 18,513 661,272 \u2013 679,785 Investments in financial assets \u2013 debt 226 \u2013 \u2013 226 Investment in financial assets \u2013 equity \u2013 \u2013 394 394 Derivatives not designated as hedges: \u2014 Foreign exchange forward contracts \u2013 48 \u2013 48 \u2014 Trade and other receivables \u2013 convertible loan notes \u2013 \u2013 12 12 Total financial assets measured at fair value 1 18,739 661,320 406 680,465 1 There were no transfers between levels during the year. Company: At 31 December 2022, the Company\u2019s derivative assets of \u00a311 million were all classified as Level 2. 31 December 2021 Group Quoted prices in active markets (Level 1) \u00a3m Significant observable inputs (Level 2) \u00a3m Significant unobservable inputs (Level 3) \u00a3m Total \u00a3m Clearing business financial assets \u2014 Derivative instruments 47 2,631 \u2013 2,678 \u2014 Non-derivative instruments \u2013 642,909 \u2013 642,909 \u2014 Other financial assets 13,784 \u2013 \u2013 13,784 13,831 645,540 \u2013 659,371 Investment in financial assets \u2013 equity 1 \u2013 350 351 Derivatives not designated as hedges: \u2014 Foreign exchange forward contracts \u2013 27 \u2013 27 \u2014 Trade and other receivables \u2013 convertible loan notes \u2013 \u2013 6 6 Total financial assets measured at fair value 1 13,832 645,567 356 659,755 1 There were no transfers between levels during 2021. Company: At 31 December 2021, the Company\u2019s derivative assets of \u00a310 million were all classified as Level 2 . Financial liabilities 31 December 2022 Group Quoted prices in active markets (Level 1) \u00a3m Significant observable inputs (Level 2) \u00a3m Significant unobservable inputs (Level 3) \u00a3m Total \u00a3m Clearing business financial liabilities \u2014 Derivative instruments 98 7,418 \u2013 7,516 \u2014 Non-derivative instruments \u2013 653,854 \u2013 653,854 98 661,272 \u2013 661,370 Contingent consideration payable \u2013 \u2013 38 38 Derivatives not designated as hedges: \u2014 Foreign exchange forward contracts \u2013 12 \u2013 12 Derivatives designated as hedges: \u2014 Cross-currency interest rate swaps \u2013 84 \u2013 84 Total financial liabilities measured at fair value 1 98 661,368 38 661,504 1 There were no transfers between levels during the year. Company: At 31 December 2022, the Company\u2019s derivative liabilities of \u00a384 million were all classified as Level 2. 31 December 2021 Group Quoted prices in active markets (Level 1) \u00a3m Significant observable inputs (Level 2) \u00a3m Significant unobservable inputs (Level 3) \u00a3m Total \u00a3m Clearing business financial liabilities \u2014 Derivative instruments 47 2,631 \u2013 2,678 \u2014 Non-derivative instruments \u2013 642,909 \u2013 642,909 47 645,540 \u2013 645,587 Derivatives not designated as hedges: \u2014 Foreign exchange forward contracts \u2013 8 \u2013 8 Derivatives designated as hedges: \u2014 Cross-currency interest rate swaps \u2013 44 \u2013 44 Total financial liabilities measured at fair value 1 47 645,592 \u2013 645,639 1 There were no transfers between levels during 2021. Company: At 31 December 2021, the Company\u2019s derivative liabilities of \u00a348 million were all classified as Level 2. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFinancialInstrumentsAtFairValueThroughProfitOrLossExplanatory",
"language": "en",
"entity": "scheme:213800QAUUUP6I445N30",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-720": {
"value": "23.4 Hedging activities and derivatives The Group hedges its exposure to foreign exchange and interest rate movements using derivative instruments. This includes net investment hedges, foreign currency forwards and interest rate swaps, where the Group hedges its currency risk from its investment in foreign operations, cash flows and movements in interest rates, respectively. Net investment hedges The Group has designated some of its euro borrowings as net investment hedges. In addition, a proportion of the euro borrowings have been swapped into US dollar debt via cross-currency interest rate swaps that are also designated as a net investment hedge. There is an economic relationship between the hedged items and the hedging instruments (the borrowings) as the euro and US dollar borrowings are matched by the Group\u2019s investments in euro and US dollar assets. The Group has established a ratio of 1:1 for the hedging relationships as the underlying foreign exchange risk of the borrowings is identical to the investments. To ensure the hedge is effective, the Group makes sure that the borrowings are always less than the value of the investments. Hedge ineffectiveness only arises if the value of the hedging instrument exceeds the value of the underlying net investment. The hedging instruments are detailed below. Cross-currency interest rate swaps In 2017, the Group entered into cross-currency interest rate swaps in order to more closely match the Group\u2019s currency of borrowing to the currency of its net assets and earnings. As disclosed in note 22, two \u20ac500 million bonds (maturing in 2024 and 2029) were issued in 2017. \u20ac700 million of these bonds were swapped into US$836 million through a series of cross-currency interest rate swaps which mature on the same dates as the bonds. These instruments effectively exchange some of the obligations and coupons of the bonds from euros into US dollars. These swaps have been designated as a hedge of the Group\u2019s net investments in its US dollar reporting subsidiaries and qualify for hedge accounting. \u20ac700 million cross-currency interest rate swap 2022 2021 Fair value of derivative liability on the balance sheet (\u00a384m) (\u00a344m) Nominal value of hedging instrument $836m $836m Hedge ratio 1:1 1:1 Hedge effectiveness 100% 100% Change in fair value of derivative (\u00a340m) (\u00a333m) Change in value of net investment \u00a340m \u00a333m Cumulative amount held in hedging reserve (\u00a384m) (\u00a344m) Non-derivative hedges Non-derivative hedges relate to euro borrowings which are matched against the Group\u2019s investments in euro denominated subsidiaries. The remaining \u20ac300 million of the two \u20ac500 million bonds issued in 2017 which were not swapped into US dollars, together with the \u20ac500 million bond issued in 2018 (see note 22), qualify as hedging instruments against euro denominated subsidiaries and qualify for hedge accounting. The \u20ac700 million that has been swapped is included below and is netted against the fair value movement of the US dollar derivative in the hedging reserve. Euro denominated bonds 2022 2021 Carrying value of debt on the balance sheet (\u00a31,326m) (\u00a31,253m) Nominal value of hedging instrument \u20ac1,500m \u20ac1,500m Hedge ratio 1:1 1:1 Hedge effectiveness 100% 100% Change in carrying value of hedging instrument (\u00a373m) \u00a394m Change in value of net investment \u00a373m (\u00a394m) Cumulative amount held in hedging reserve (\u00a32m) \u00a371m During the year the Group drew down on its committed bank facilities in euros and US dollars, but these drawings were not designated as net investment hedges. In 2021, the Group had also drawn down on these facilities, which were designated as hedges of the Group\u2019s net investments. At 31 December 2022 and 31 December 2021, there were no amounts drawn down on these facilities. There were no issuances of commercial paper in the year. In 2021, the Group issued euro denominated commercial paper and designated this as a hedge of the Group\u2019s net investments. The commercial paper was repaid by 31 December 2021. Revolving credit facility, bridge facility and commercial paper 2022 2021 Change in carrying value of hedging instruments \u2013 \u00a326m Change in value of net investments \u2013 (\u00a326m) Cumulative amount held in hedging reserve \u00a38m \u00a38m Cash flow hedges Interest rate swaps In February 2021, the Group entered into a series of US dollar interest rate swaps with tenures of 3, 5 and 10 years, with aggregate principal amounts of US$500 million, US$1,000 million and US$1,250 million respectively. The interest rate swaps were designated as cash flow hedges with the hedged item being planned bond issuances that were deemed highly probable at the time and related to the Refinitiv acquisition. The interest rate swaps were settled in March and April 2021 when the new bonds were issued (refer to note 22 for details). At the date of settlement, a gain of US$31 million (\u00a322 million) was recognised in the hedging reserve, representing the effective portion of the gain on the hedging instrument. This will be recycled to the income statement over the term of the debt. During the year \u00a33 million (2021: \u00a32 million) was recycled to the income statement within continuing operations. Hedging reserve Note 2022 \u00a3m 2021 \u00a3m 1 January 14 (110) Net gains on cash flow hedges taken out in the year \u2013 22 Amounts recycled to the income statement \u2013 continuing operations 24 (3) (2) Amounts recycled to the income statement \u2013 discontinued operations \u2013 17 Net (losses)/gains on net investment hedges 24 (113) 87 31 December (102) 14 As at 31 December 2022, \u00a340 million of losses (2021: \u00a340 million of losses) remain in reserves that have not been recycled to the income statement, as the Group continues to hold the underlying investments. Foreign currency forwards The Group uses foreign exchange contracts to manage foreign exchange risk. It has a series of exchange contracts to purchase or sell certain currencies against sterling and US dollars in the future at fixed amounts. The cumulative sterling notional amounts of contracts outstanding as at 31 December 2022 and 2021 were as follows: Sell/(buy) Traded against sterling Traded against US dollars 2022 \u00a3m 2021 \u00a3m 2022 \u00a3m 2021 \u00a3m US dollar (40) 408 \u2013 \u2013 Euro (784) (237) 48 (1) Sterling \u2013 \u2013 (309) (109) Japanese Yen \u2013 \u2013 (36) (28) Singapore Dollar \u2013 \u2013 (32) (19) Australian Dollar \u2013 \u2013 (22) (17) Canadian Dollar \u2013 \u2013 (14) (12) Swiss Franc \u2013 \u2013 (8) \u2013 The fair value of these derivatives as at 31 December 2022 was an asset of \u00a314 million (2021: \u00a314 million) and a liability of \u00a36 million (2021: \u00a35 million). Embedded derivatives The fair value of embedded derivatives as at 31 December 2022 was an asset of \u00a334 million (2021: \u00a313 million) and a liability of \u00a36 million (2021: \u00a33 million). The fair value gain has been recognised in the income statement. Hedge accounting is not applied to outstanding foreign currency forwards or embedded derivatives. ",
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"fact-721": {
"value": "23.5 Financial risk management The Group seeks to protect its financial performance and the value of its business from various risks including exposure to capital, credit, concentration, country, liquidity, settlement, custodial and market (including foreign exchange, cash flow and fair value interest rate) risks. Details of these risks, which should be read in conjunction with the Principal Risks and Uncertainties on pages 24-84, are provided below. Capital risk Risk description Risk management approach Capital risk relates to the Group\u2019s ability to meet regulatory capital requirements and minimum internal investment returns. There is a risk that the Group\u2019s entities may not maintain, or have continued access to, sufficient high-quality capital to meet their regulatory, or other obligations. This could result in a loss of regulatory approvals and/or the imposition of financial sanctions. Either separately, or in combination, the main capital risks faced by the Group are: \u2014 An increased regulatory capital requirement of its regulated companies \u2014 Realised, negative yields on its investments \u2014 An inability to raise debt or equity financing as a result of its own poor financial performance, or poor financing conditions The Group, which consists of both regulated and unregulated entities, is profitable and strongly cash generative. It can manage its capital structure (which consists of equity and debt capital) and react to changes in economic conditions by varying returns to shareholders, issuing new shares or increasing or reducing borrowings. The Board reviews dividend policy and funding capacity on a regular basis and the Group maintains comfortable levels of debt facility headroom. A high-level summary of the Group\u2019s capital structure is presented below: Book vale of capital 2022 \u00a3m 2021 \u00a3m Total shareholders\u2019 funds 25,996 23,640 Group borrowings 8,151 7,654 The Group maintains a Capital Management Policy, the execution of which is overseen by the Group\u2019s Financial, Investment and Capital Committee. The Group seeks to optimally allocate capital in order to maintain a strong balance sheet, meet regulatory requirements, drive growth and offer suitable returns to shareholders. Regulated entities within the Group monitor compliance with policy and the capital requirements set by their respective regulatory authorities. Regulatory and operational capital represents: \u2014 Amounts held as cash and cash equivalents and investments in financial assets by regulated entities to satisfy their local regulatory capital requirements \u2014 Letters of credit issued by the Group to customers and suppliers The Group\u2019s total regulatory and operational capital is shown below: Regulatory and operational capital 2022 \u00a3m 2021 \u00a3m Total regulatory and operational capital 1 1,427 1,294 Amount included in cash and cash equivalents 1,219 1,261 1 Includes investments in financial assets of \u00a3191 million (2021: nil) and letters of credit totalling \u00a317 million (2021: \u00a333 million). To ensure ongoing financial strength, access to new capital at a reasonable cost, and to sustain an investment grade credit rating, the Group monitors its leverage ratio against a target range of 1-2 times. Leverage is calculated as operating net debt (i.e. net debt after excluding amounts set aside for regulatory and operational purposes) to adjusted EBITDA before foreign exchange gains or losses. At 31 December 2022, leverage was 1.8 times (2021: 1.9 times). While the Group\u2019s bank borrowing facilities no longer include leverage and interest cover ratio covenants, the Group takes into account the potential impact to the key metrics monitored by credit rating agencies when considering whether to increase the size of its borrowings and net debt. The Group seeks to maintain a strong investment grade credit rating and will always seek to return leverage to its target range if it rises temporarily. Credit and concentration risk Risk description Risk management approach Credit risk relates to the potential for a Group counterparty (including CCP members, and any counterparty where there is exposure through payment, clearing or settlement processes) to be unable to meet its financial obligations to the Group when due. Credit concentration risk may arise through Group entities having large individual or connected exposures to groups of counterparties whose likelihood of default is driven by common underlying factors. Group Credit risk is governed by policies developed at Group level by the Group Risk function. Limits and thresholds for credit and concentration risk are reviewed regularly. Group companies make judgements on the credit quality of their clients. This is based on the client\u2019s financial position, the recurring nature of billing and collection arrangements and historical evidence relating to the client\u2019s ability to meet its financial liabilities as they fall due. The Group is exposed to a large number of clients and so management deems concentration risk on the Group\u2019s receivables to be low. The Group\u2019s main credit risk exposure arises on the financial assets shown earlier in note 23.1. There have been no significant increases in credit risk for these assets and no estimated credit losses have been recognised on other financial instruments. Non-CCP entities The principal source of non-CCP credit risk is the creditworthiness of the investment counterparties with which the Group deposits cash. The Group manages its credit risk by outlining the maximum financial exposure that may be taken against any one counterparty, based on an assessment of the counterparty\u2019s credit quality. Cash and cash equivalents are held with authorised counterparties of a high credit standing. Cash is held in unsecured interest bearing current and call accounts. Cash equivalents comprise short-term deposits and AAA-rated money market funds. Derivative transactions (and other treasury receivable structures) must be in line with the Group\u2019s policy framework and may only be undertaken with highly rated counterparties. CCPs The principal source of CCP credit risk lies in the potential for one or more clearing members to default. Group CCPs manage this risk through robust financial risk management. Clearing members are selected based on an assessment of their supervisory capital as well as their technical and organisational strength. Each member must pay margins to the relevant Group CCP. This must include a minimum level of cash and can also include highly liquid securities. Clearing members also contribute to default funds managed by the Group CCPs. These aim to protect the integrity of the markets in the event of multiple defaults in extreme market circumstances. Group CCPs use stress tests to determine the appropriate margin and default fund requirements. These are reviewed by CCP risk committees who can take action as appropriate. CCPs are required by regulation to hold a minimum amount of capital (regulatory capital). Each of the Group\u2019s CCPs maintains this regulatory capital requirement, together with an additional holding of its own capital. This additional capital is to help manage credit risk during a significant market stress event or member default. The total clearing member contributions of margin and default funds across the Group CCPs is shown below: Total collateral held 2022 \u00a3bn 2021 \u00a3bn Collateral security Cash received 127 96 Non-cash pledged 147 135 Guarantees pledged 2 2 Total collateral as at 31 December 276 233 Maximum collateral held during the year 310 246 Group CCPs manage the credit risk associated with margin and default fund contributions by investing the cash element in instruments or structures deemed \u2018secure\u2019 by the relevant regulatory bodies. This includes direct investments in highly rated, \u2018regulatory qualifying\u2019 sovereign bonds and supra-national debt, investments in tri-party and bilateral reverse repos (receiving high-quality government securities as collateral) and, in certain jurisdictions, deposits with the central bank. The small proportion of cash that is invested unsecured is placed for short durations with highly rated counterparties where limits are applied with respect to credit quality, concentration and tenor. 2022 \u00a3bn 2021 \u00a3bn Total investment portfolio 123 98 Maximum portfolio size during the year 157 108 Additional portfolio information: Amount invested securely 99.99% 99.94% Weighted average maturity (days) 53 33 Risk description Risk management approach Associated liquidity risks are considered in the investment mix and discussed further below in the Liquidity, Settlement and Custodial risk section. To address concentration risk, the Group maintains a diversified portfolio of high-quality, liquid investments and uses a broad range of custodians, payment and settlement banks and agents. The largest concentration of treasury exposures as at 31 December 2022 was with the French Government with an aggregate exposure of 40% of the total investment portfolio (2021: 41% with the French Government). Trade receivables (including fees receivable) An impairment analysis of trade and fees receivable is performed monthly using a provision matrix to measure expected credit losses based on factors such as the counterparty\u2019s historic payment practices, expected future payments and the economic environment at large. The calculation reflects current conditions together with forecasts of future economic conditions. None of the Group\u2019s trade receivables are material by individual counterparty. 31 December 2022 Trade receivables Fees receivable \u00a3m <180 days \u00a3m >180 days \u00a3m Total \u00a3m Expected credit loss rate <1% <1% 11.2% Total receivables 263 706 60 1,029 Expected credit loss \u2013 (2) (7) (9) Net trade and fees receivables 263 704 53 1,020 31 December 2021 Trade receivables Fees receivable \u00a3m <180 days \u00a3m >180 days \u00a3m Total \u00a3m Expected credit loss rate <1% <1% 15.2% Total receivables 230 463 34 727 Expected credit loss \u2013 (2) (5) (7) Net trade and fees receivables 230 461 29 720 Country risk Risk description Risk management approach Country risk relates to those risks that are inherent when doing business with, or operating in, a country. Some governments may be unable or find it difficult to service their debts. This could have adverse effects, particularly on the Group\u2019s CCPs, potentially impacting cleared products, margin collateral, investments, the clearing membership and the financial industry as a whole. In addition, geopolitical events could impact our ability to operate in a country or impact the value of our assets in that country. We may even need to relocate activities or change our operating model in response. The Group has a country risk framework which facilitates assessment and monitoring of the risk associated with doing business with, or operating in, a country. Group CCPs have specific risk management frameworks that address country risk for both clearing and margin operations. Contained in these frameworks are a suite of stress scenarios that consider deterioration of sovereign credit quality as well as other risk factors. These scenarios support CCPs in developing and maintaining the appropriate country risk measurement, monitoring and mitigation tools. Risk Committees oversee these risks and the associated policy frameworks to protect the Group against a potentially adverse impact arising from volatility in the sovereign debt markets. The Group CCPs\u2019 sovereign exposures at the end of the financial reporting periods were: Country/organisation 2022 \u00a3bn 2021 \u00a3bn France 30 28 European Union (supranational) 20 17 USA 15 11 UK 7 12 Other 2 \u2013 Germany \u2013 1 Liquidity, settlement and custodial risk Risk description Risk management approach The Group\u2019s liquidity risk relates to its ability to meet its short- and long-term payment obligations as they fall due. Additionally, the Group\u2019s CCPs, and certain other Group entities, must maintain a level of liquidity (consistent with regulatory requirements) to ensure the smooth operation of their respective services and to be able to continue to operate in the event of a significant stress event. The Group\u2019s settlement and custodial risks relate to the potential for a partner firm to default on its obligations in respect of custody, settlement, payment or other administration activities, or that no action is taken by the Group to mitigate these risks. This also includes the risk that client assets are immobilised as a result of a third-party bankruptcy. Group The Group maintains sufficient liquid resources to meet its financial obligations as they fall due, and to invest in capital expenditure, pay dividends, meet its pension commitments and appropriately support or fund acquisitions or repay borrowings. Subject to regulatory constraints impacting certain entities, funds can (generally) be lent across the Group and cash earnings remitted through regular dividend payments by subsidiary companies. This is an important component of the Group Treasury cash management policy and approach. The Group is profitable, has strong free cash flow and generates annuity-like revenue which is not significantly impacted by seasonal variations. Management monitors forecasts of the Group\u2019s cash flow and overlays sensitivities to these forecasts to reflect assumptions about more challenging market conditions or stress events. The Group will take the appropriate actions to satisfy working capital requirements when committing to large scale acquisitions, including making sure there is comfortable liquidity headroom projected over a reasonable time frame. Non-CCP entities The Group Treasury Policy requires the Group to maintain adequate credit facilities provided by a diversified lending group to cover its expected funding requirements and ensure a minimum level of headroom for at least the next 24 months. The financial strength of the Group\u2019s lenders is monitored regularly. For full details of the Group\u2019s borrowings and facilities, refer to note 22. CCPs In order to meet the cash requirements of the clearing and settlement cycle, the Group\u2019s CCPs maintain sufficient cash and cash equivalents and, in certain jurisdictions, have access to central bank refinancing or commercial bank credit lines. Regulations require CCPs to ensure that appropriate levels of back-up liquidity are in place to underpin the dynamics of a largely secured cash investment requirement, ensuring that the maximum potential outflow under extreme market conditions is covered (see credit and concentration risk section above). In the event of a member default, Group CCPs can liquidate the defaulting member\u2019s portfolio to cover both losses associated with the default and settlement of any other financial obligations of the defaulting member. In addition, certain Group companies, including the CCPs, maintain commercial bank facilities which support management of intraday and overnight liquidity. Custodians are subject to minimum eligibility requirements, ongoing credit assessments and robust contractual arrangements. They are also required to have appropriate contingency arrangements in place. Financial liability maturity The table below analyses the Group\u2019s financial liabilities into relevant maturity groupings based on the remaining period from the balance sheet date to the contractual maturity date. The amounts disclosed in the table reflect the contractual undiscounted cash flows. The borrowings and lease liabilities include future interest that has not been accrued at the balance sheet date. 30 December 2022 Less than 1 year \u00a3m Between 1 and 2 years \u00a3m Between 2 and 5 years \u00a3m Over 5 years \u00a3m Total \u00a3m Borrowings 1,440 967 2,008 4,754 9,169 Trade and other payables (excluding lease liabilities) 2,004 \u2013 \u2013 \u2013 2,004 Lease liabilities 158 110 216 283 767 Clearing member liabilities 792,594 \u2013 \u2013 \u2013 792,594 Derivative financial instruments 9 57 \u2013 30 96 Other non-current payables (excluding lease liabilities) \u2013 64 338 247 649 31 December 2021 Less than 1 year \u00a3m Between 1 and 2 years \u00a3m Between 2 and 5 years \u00a3m Over 5 years \u00a3m Total \u00a3m Borrowings 78 1,467 2,229 4,870 8,644 Trade and other payables (excluding lease liabilities) 1,614 \u2013 \u2013 \u2013 1,614 Lease liabilities 149 124 204 275 752 Clearing member liabilities 748,644 \u2013 \u2013 \u2013 748,644 Derivative financial instruments 6 1 30 14 51 Other non-current payables (excluding lease liabilities) \u2013 14 3 495 512 Market risk \u2013 foreign exchange risk Risk description Risk management approach The Group operates globally with primary centres in the UK, Europe and North America. It also has growing and strategically important businesses in Asia. The Group\u2019s principal currencies of operation are sterling, US dollars, and the euro. The Group is exposed to transactional foreign exchange risk and translational risk. Transactional risk arises when we buy or sell goods or services in a currency other than our entities\u2019 functional currencies. We may be exposed to movements in that currency. Translational risk arises due to the requirement to translate non-reporting currency earnings into an entity\u2019s reporting currency for the purpose of statutory reporting. Transactional foreign exchange risk may present itself in payment of intragroup dividends or when interest obligations, which are in a different currency, are due. However, both of these operations play their part in controlling the level of translational foreign exchange exposure the Group faces. Transactional foreign exchange risk may also arise when investing in, or divesting from, operations denominated in currencies other than sterling. In addition, the Group has some contracts/ cashflow profiles with a foreign exchange component that could trigger embedded derivative recognition and, as such, fair value accounting treatment. Translational risk The Group manages its translational risk, where possible, by matching the currency of its debt to the currency of its earnings, to make sure certain key financial ratios (leverage and interest coverage) are protected from material foreign exchange rate volatility. The Group also seeks to balance the currency of its assets with its liabilities. In order to mitigate the impact of unfavourable currency exchange rate movements on earnings and net assets, non-sterling cash earnings are centralised and applied to debt and interest payments in the same currency. Where required, currency of debt is re-balanced using cross-currency swaps to better match the currency of debt to the overall currency of earnings. A material proportion of the Group\u2019s debt is held in or swapped into euros and US dollars as noted below: Currency of debt 2022 \u00a3m 2021 \u00a3m Euro denominated drawn debt 2,652 2,630 Euro denominated cross-currency interest rate swaps (695) (619) US dollar denominated drawn debt 5,014 4,540 US dollar denominated cross-currency interest rate swaps 695 619 The cross-currency interest rate swaps are directly linked to euro fixed debt. The euro and US dollar denominated debt, including the cross-currency swaps, provide a hedge against the Group\u2019s net investment in euro and US dollar denominated entities. At 31 December 2022, the Group\u2019s designated hedges of its net investments were effective. Transactional risk While transactional foreign exchange exposure is limited, the Group mitigates this by either hedging material transactions with appropriate derivative instruments or by settling currency payables or receivables within a short timeframe. The Group Treasury Policy requires cash flows of single transactions or a series of linked transactions of more than \u00a310 million or equivalent per annum to be hedged. The risk is also minimised by the periodic exchange of cash into each Group entity\u2019s functional currency. Where appropriate, hedge accounting for derivatives is considered in order to mitigate material levels of income statement volatility. Governance and sensitivity The Group\u2019s Risk Committee reviewed the approach to foreign exchange risk management during the quarter ended 31 December 2022. In addition to projecting and analysing its earnings and debt profile by currency, the Group reviews sensitivities to movements in exchange rates. The Group has considered movements in the euro and the US dollar over 2022 and 2021 and, based on actual market observations between its principal currency pairs, has concluded that a 10% movement in rates is a reasonable level to illustrate the risk to the Group. The impact on profit after tax and equity is set out in the table below: 2022 2021 Profit after tax \u00a3m Equity \u00a3m Profit after tax \u00a3m Equity \u00a3m Euro Sterling weakens 6 (71) (13) (67) Sterling strengthens (5) 64 12 61 US dollar Sterling weakens 18 (68) 9 (62) Sterling strengthens (16) 61 (8) 56 The sensitivity of profit after tax reflects foreign exchange gains or losses on translation of financial assets and financial liabilities, including cash and borrowings. The sensitivity of equity reflects the foreign exchange gains or losses on translation of euro and US dollar borrowings that have been designated as hedges of a net investment in foreign operations. Market risk \u2013 interest rate risk Risk description Risk management approach The Group\u2019s interest rate risk arises from the impact of changes in interest rates on cash held and investments in financial assets, and on borrowings held at floating rates. The Group may also face future interest rate exposure connected to M&A transactions where significant debt financing is involved. The Group\u2019s CCPs have member liabilities, and separately achieve returns which support the payment of these liabilities. A CCP\u2019s interest rate risk can increase if the reference rates used to calculate liabilities increase while the reference rates that underpin investment returns decrease (or do not increase by the same amount). Group companies that offer guaranteed settlement of traded securities can also be exposed to latent interest rate risk (and market risk more generally) in the event of a counterparty default. The Group\u2019s interest rate management policy focuses on protecting the Group\u2019s credit rating and limiting the impact of interest rate increases on Group earnings. To support this objective, the Group targets a minimum coverage of interest expense by adjusted EBITDA of 7 times, and a maximum debt floating rate component of 50%. This approach reflects: \u2014 a focus on the Group\u2019s cost of gross debt rather than its net debt given the material cash and cash equivalents set aside for regulatory purposes; \u2014 the short duration allowed for investments of cash and cash equivalents held for regulatory purposes which, by their nature, generate low investment yields; and \u2014 the broad natural hedge of floating rate borrowings provided by the significant balances of cash and cash equivalents held effectively at floating rates of interest At 31 December 2022, consolidated net interest expense cover by adjusted EBITDA was 19.0 times (2021: 17.9 times) and the floating rate component of total debt was 16% (2021: 18%). Where the Group has committed to M&A transactions and is exposed to prospective interest rate risk on borrowings, the Group Treasury function will assess the exposure and consider hedging solutions that conform with policy and seek to limit future interest costs. In the Group\u2019s CCPs, interest bearing assets are generally invested in secured instruments or structures and for a longer term than interest bearing liabilities, whose interest rate is reset daily. This makes investment returns vulnerable to volatility in overnight rates and shifts in spreads between overnight and term rates. Interest rate exposures (and the risk to CCP capital) are managed within defined risk appetite parameters against which sensitivities are monitored daily. In its review of the sensitivities to potential movements in interest rates, the Group has considered interest rate volatility over the last year and prospects for rates over the next 12 months. It has concluded that a 1 percentage point upward movement (with a limited prospect of material downward movement) reflects a reasonable level of risk to current rates. If interest rates on cash and cash equivalents and borrowings had been 1 percentage point higher, with all other variables held constant, profit after tax for 2022 would have been \u00a38 million higher (2021: \u00a310 million higher) mainly as a result of higher interest income on floating rate cash and cash equivalents, partially offset by higher interest expense on floating rate borrowings. At the CCP level (in aggregate), if interest rates on the common interest bearing member liability benchmarks of EONIA, Fed Funds and SONIA, (for euro, US dollar and sterling liabilities respectively), had been 1 percentage point higher, with all other variables held constant, the Group\u2019s profit after tax would have been \u00a31 million lower (2021: \u00a31 million lower). ",
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"fact-732": {
"value": "Capital risk Risk description Risk management approach Capital risk relates to the Group\u2019s ability to meet regulatory capital requirements and minimum internal investment returns. There is a risk that the Group\u2019s entities may not maintain, or have continued access to, sufficient high-quality capital to meet their regulatory, or other obligations. This could result in a loss of regulatory approvals and/or the imposition of financial sanctions. Either separately, or in combination, the main capital risks faced by the Group are: \u2014 An increased regulatory capital requirement of its regulated companies \u2014 Realised, negative yields on its investments \u2014 An inability to raise debt or equity financing as a result of its own poor financial performance, or poor financing conditions The Group, which consists of both regulated and unregulated entities, is profitable and strongly cash generative. It can manage its capital structure (which consists of equity and debt capital) and react to changes in economic conditions by varying returns to shareholders, issuing new shares or increasing or reducing borrowings. The Board reviews dividend policy and funding capacity on a regular basis and the Group maintains comfortable levels of debt facility headroom. A high-level summary of the Group\u2019s capital structure is presented below: Book vale of capital 2022 \u00a3m 2021 \u00a3m Total shareholders\u2019 funds 25,996 23,640 Group borrowings 8,151 7,654 The Group maintains a Capital Management Policy, the execution of which is overseen by the Group\u2019s Financial, Investment and Capital Committee. The Group seeks to optimally allocate capital in order to maintain a strong balance sheet, meet regulatory requirements, drive growth and offer suitable returns to shareholders. Regulated entities within the Group monitor compliance with policy and the capital requirements set by their respective regulatory authorities. Regulatory and operational capital represents: \u2014 Amounts held as cash and cash equivalents and investments in financial assets by regulated entities to satisfy their local regulatory capital requirements \u2014 Letters of credit issued by the Group to customers and suppliers The Group\u2019s total regulatory and operational capital is shown below: Regulatory and operational capital 2022 \u00a3m 2021 \u00a3m Total regulatory and operational capital 1 1,427 1,294 Amount included in cash and cash equivalents 1,219 1,261 1 Includes investments in financial assets of \u00a3191 million (2021: nil) and letters of credit totalling \u00a317 million (2021: \u00a333 million). To ensure ongoing financial strength, access to new capital at a reasonable cost, and to sustain an investment grade credit rating, the Group monitors its leverage ratio against a target range of 1-2 times. Leverage is calculated as operating net debt (i.e. net debt after excluding amounts set aside for regulatory and operational purposes) to adjusted EBITDA before foreign exchange gains or losses. At 31 December 2022, leverage was 1.8 times (2021: 1.9 times). While the Group\u2019s bank borrowing facilities no longer include leverage and interest cover ratio covenants, the Group takes into account the potential impact to the key metrics monitored by credit rating agencies when considering whether to increase the size of its borrowings and net debt. The Group seeks to maintain a strong investment grade credit rating and will always seek to return leverage to its target range if it rises temporarily. ",
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},
"fact-733": {
"value": "Credit and concentration risk Risk description Risk management approach Credit risk relates to the potential for a Group counterparty (including CCP members, and any counterparty where there is exposure through payment, clearing or settlement processes) to be unable to meet its financial obligations to the Group when due. Credit concentration risk may arise through Group entities having large individual or connected exposures to groups of counterparties whose likelihood of default is driven by common underlying factors. Group Credit risk is governed by policies developed at Group level by the Group Risk function. Limits and thresholds for credit and concentration risk are reviewed regularly. Group companies make judgements on the credit quality of their clients. This is based on the client\u2019s financial position, the recurring nature of billing and collection arrangements and historical evidence relating to the client\u2019s ability to meet its financial liabilities as they fall due. The Group is exposed to a large number of clients and so management deems concentration risk on the Group\u2019s receivables to be low. The Group\u2019s main credit risk exposure arises on the financial assets shown earlier in note 23.1. There have been no significant increases in credit risk for these assets and no estimated credit losses have been recognised on other financial instruments. Non-CCP entities The principal source of non-CCP credit risk is the creditworthiness of the investment counterparties with which the Group deposits cash. The Group manages its credit risk by outlining the maximum financial exposure that may be taken against any one counterparty, based on an assessment of the counterparty\u2019s credit quality. Cash and cash equivalents are held with authorised counterparties of a high credit standing. Cash is held in unsecured interest bearing current and call accounts. Cash equivalents comprise short-term deposits and AAA-rated money market funds. Derivative transactions (and other treasury receivable structures) must be in line with the Group\u2019s policy framework and may only be undertaken with highly rated counterparties. CCPs The principal source of CCP credit risk lies in the potential for one or more clearing members to default. Group CCPs manage this risk through robust financial risk management. Clearing members are selected based on an assessment of their supervisory capital as well as their technical and organisational strength. Each member must pay margins to the relevant Group CCP. This must include a minimum level of cash and can also include highly liquid securities. Clearing members also contribute to default funds managed by the Group CCPs. These aim to protect the integrity of the markets in the event of multiple defaults in extreme market circumstances. Group CCPs use stress tests to determine the appropriate margin and default fund requirements. These are reviewed by CCP risk committees who can take action as appropriate. CCPs are required by regulation to hold a minimum amount of capital (regulatory capital). Each of the Group\u2019s CCPs maintains this regulatory capital requirement, together with an additional holding of its own capital. This additional capital is to help manage credit risk during a significant market stress event or member default. The total clearing member contributions of margin and default funds across the Group CCPs is shown below: Total collateral held 2022 \u00a3bn 2021 \u00a3bn Collateral security Cash received 127 96 Non-cash pledged 147 135 Guarantees pledged 2 2 Total collateral as at 31 December 276 233 Maximum collateral held during the year 310 246 Group CCPs manage the credit risk associated with margin and default fund contributions by investing the cash element in instruments or structures deemed \u2018secure\u2019 by the relevant regulatory bodies. This includes direct investments in highly rated, \u2018regulatory qualifying\u2019 sovereign bonds and supra-national debt, investments in tri-party and bilateral reverse repos (receiving high-quality government securities as collateral) and, in certain jurisdictions, deposits with the central bank. The small proportion of cash that is invested unsecured is placed for short durations with highly rated counterparties where limits are applied with respect to credit quality, concentration and tenor. 2022 \u00a3bn 2021 \u00a3bn Total investment portfolio 123 98 Maximum portfolio size during the year 157 108 Additional portfolio information: Amount invested securely 99.99% 99.94% Weighted average maturity (days) 53 33 Risk description Risk management approach
Associated liquidity risks are considered in the investment mix and discussed further below in the Liquidity,
Settlement and Custodial risk section.
To address concentration risk, the Group maintains a diversified portfolio of high-quality, liquid investments
and uses a broad range of custodians, payment and settlement banks and agents. The largest concentration
of treasury exposures as at 31 December 2022 was with the French Government with an aggregate
exposure of 40% of the total investment portfolio (2021: 41% with the French Government).
Trade receivables (including fees receivable)
An impairment analysis of trade and fees receivable is performed monthly using a provision matrix to
measure expected credit losses based on factors such as the counterparty\u2019s historic payment practices,
expected future payments and the economic environment at large. The calculation reflects current
conditions together with forecasts of future economic conditions. None of the Group\u2019s trade receivables
are material by individual counterparty.
31 December 2022
Trade receivables
Fees
receivable
\u00a3m
<180 days
\u00a3m
>180 days
\u00a3m
Total
\u00a3m
Expected credit loss rate <1% <1% 11.2%
Total receivables 263 706 60 1,029
Expected credit loss \u2013 (2) (7) (9)
Net trade and fees receivables 263 704 53 1,020
31 December 2021
Trade receivables
Fees
receivable
\u00a3m
<180 days
\u00a3m
>180 days
\u00a3m
Total
\u00a3m
Expected credit loss rate <1% <1% 15.2%
Total receivables 230 463 34 727
Expected credit loss \u2013 (2) (5) (7)
Net trade and fees receivables 230 461 29 720
",
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"language": "en",
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"fact-734": {
"value": "Liquidity, settlement and custodial risk Risk description Risk management approach The Group\u2019s liquidity risk relates to its ability to meet its short- and long-term payment obligations as they fall due. Additionally, the Group\u2019s CCPs, and certain other Group entities, must maintain a level of liquidity (consistent with regulatory requirements) to ensure the smooth operation of their respective services and to be able to continue to operate in the event of a significant stress event. The Group\u2019s settlement and custodial risks relate to the potential for a partner firm to default on its obligations in respect of custody, settlement, payment or other administration activities, or that no action is taken by the Group to mitigate these risks. This also includes the risk that client assets are immobilised as a result of a third-party bankruptcy. Group The Group maintains sufficient liquid resources to meet its financial obligations as they fall due, and to invest in capital expenditure, pay dividends, meet its pension commitments and appropriately support or fund acquisitions or repay borrowings. Subject to regulatory constraints impacting certain entities, funds can (generally) be lent across the Group and cash earnings remitted through regular dividend payments by subsidiary companies. This is an important component of the Group Treasury cash management policy and approach. The Group is profitable, has strong free cash flow and generates annuity-like revenue which is not significantly impacted by seasonal variations. Management monitors forecasts of the Group\u2019s cash flow and overlays sensitivities to these forecasts to reflect assumptions about more challenging market conditions or stress events. The Group will take the appropriate actions to satisfy working capital requirements when committing to large scale acquisitions, including making sure there is comfortable liquidity headroom projected over a reasonable time frame. Non-CCP entities The Group Treasury Policy requires the Group to maintain adequate credit facilities provided by a diversified lending group to cover its expected funding requirements and ensure a minimum level of headroom for at least the next 24 months. The financial strength of the Group\u2019s lenders is monitored regularly. For full details of the Group\u2019s borrowings and facilities, refer to note 22. CCPs In order to meet the cash requirements of the clearing and settlement cycle, the Group\u2019s CCPs maintain sufficient cash and cash equivalents and, in certain jurisdictions, have access to central bank refinancing or commercial bank credit lines. Regulations require CCPs to ensure that appropriate levels of back-up liquidity are in place to underpin the dynamics of a largely secured cash investment requirement, ensuring that the maximum potential outflow under extreme market conditions is covered (see credit and concentration risk section above). In the event of a member default, Group CCPs can liquidate the defaulting member\u2019s portfolio to cover both losses associated with the default and settlement of any other financial obligations of the defaulting member. In addition, certain Group companies, including the CCPs, maintain commercial bank facilities which support management of intraday and overnight liquidity. Custodians are subject to minimum eligibility requirements, ongoing credit assessments and robust contractual arrangements. They are also required to have appropriate contingency arrangements in place. Financial liability maturity The table below analyses the Group\u2019s financial liabilities into relevant maturity groupings based on the remaining period from the balance sheet date to the contractual maturity date. The amounts disclosed in the table reflect the contractual undiscounted cash flows. The borrowings and lease liabilities include future interest that has not been accrued at the balance sheet date. 30 December 2022 Less than 1 year \u00a3m Between 1 and 2 years \u00a3m Between 2 and 5 years \u00a3m Over 5 years \u00a3m Total \u00a3m Borrowings 1,440 967 2,008 4,754 9,169 Trade and other payables (excluding lease liabilities) 2,004 \u2013 \u2013 \u2013 2,004 Lease liabilities 158 110 216 283 767 Clearing member liabilities 792,594 \u2013 \u2013 \u2013 792,594 Derivative financial instruments 9 57 \u2013 30 96 Other non-current payables (excluding lease liabilities) \u2013 64 338 247 649 31 December 2021 Less than 1 year \u00a3m Between 1 and 2 years \u00a3m Between 2 and 5 years \u00a3m Over 5 years \u00a3m Total \u00a3m Borrowings 78 1,467 2,229 4,870 8,644 Trade and other payables (excluding lease liabilities) 1,614 \u2013 \u2013 \u2013 1,614 Lease liabilities 149 124 204 275 752 Clearing member liabilities 748,644 \u2013 \u2013 \u2013 748,644 Derivative financial instruments 6 1 30 14 51 Other non-current payables (excluding lease liabilities) \u2013 14 3 495 512 ",
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}
},
"fact-735": {
"value": "Market risk \u2013 foreign exchange risk Risk description Risk management approach The Group operates globally with primary centres in the UK, Europe and North America. It also has growing and strategically important businesses in Asia. The Group\u2019s principal currencies of operation are sterling, US dollars, and the euro. The Group is exposed to transactional foreign exchange risk and translational risk. Transactional risk arises when we buy or sell goods or services in a currency other than our entities\u2019 functional currencies. We may be exposed to movements in that currency. Translational risk arises due to the requirement to translate non-reporting currency earnings into an entity\u2019s reporting currency for the purpose of statutory reporting. Transactional foreign exchange risk may present itself in payment of intragroup dividends or when interest obligations, which are in a different currency, are due. However, both of these operations play their part in controlling the level of translational foreign exchange exposure the Group faces. Transactional foreign exchange risk may also arise when investing in, or divesting from, operations denominated in currencies other than sterling. In addition, the Group has some contracts/ cashflow profiles with a foreign exchange component that could trigger embedded derivative recognition and, as such, fair value accounting treatment. Translational risk The Group manages its translational risk, where possible, by matching the currency of its debt to the currency of its earnings, to make sure certain key financial ratios (leverage and interest coverage) are protected from material foreign exchange rate volatility. The Group also seeks to balance the currency of its assets with its liabilities. In order to mitigate the impact of unfavourable currency exchange rate movements on earnings and net assets, non-sterling cash earnings are centralised and applied to debt and interest payments in the same currency. Where required, currency of debt is re-balanced using cross-currency swaps to better match the currency of debt to the overall currency of earnings. A material proportion of the Group\u2019s debt is held in or swapped into euros and US dollars as noted below: Currency of debt 2022 \u00a3m 2021 \u00a3m Euro denominated drawn debt 2,652 2,630 Euro denominated cross-currency interest rate swaps (695) (619) US dollar denominated drawn debt 5,014 4,540 US dollar denominated cross-currency interest rate swaps 695 619 The cross-currency interest rate swaps are directly linked to euro fixed debt. The euro and US dollar denominated debt, including the cross-currency swaps, provide a hedge against the Group\u2019s net investment in euro and US dollar denominated entities. At 31 December 2022, the Group\u2019s designated hedges of its net investments were effective. Transactional risk While transactional foreign exchange exposure is limited, the Group mitigates this by either hedging material transactions with appropriate derivative instruments or by settling currency payables or receivables within a short timeframe. The Group Treasury Policy requires cash flows of single transactions or a series of linked transactions of more than \u00a310 million or equivalent per annum to be hedged. The risk is also minimised by the periodic exchange of cash into each Group entity\u2019s functional currency. Where appropriate, hedge accounting for derivatives is considered in order to mitigate material levels of income statement volatility. Governance and sensitivity The Group\u2019s Risk Committee reviewed the approach to foreign exchange risk management during the quarter ended 31 December 2022. In addition to projecting and analysing its earnings and debt profile by currency, the Group reviews sensitivities to movements in exchange rates. The Group has considered movements in the euro and the US dollar over 2022 and 2021 and, based on actual market observations between its principal currency pairs, has concluded that a 10% movement in rates is a reasonable level to illustrate the risk to the Group. The impact on profit after tax and equity is set out in the table below: 2022 2021 Profit after tax \u00a3m Equity \u00a3m Profit after tax \u00a3m Equity \u00a3m Euro Sterling weakens 6 (71) (13) (67) Sterling strengthens (5) 64 12 61 US dollar Sterling weakens 18 (68) 9 (62) Sterling strengthens (16) 61 (8) 56 The sensitivity of profit after tax reflects foreign exchange gains or losses on translation of financial assets and financial liabilities, including cash and borrowings. The sensitivity of equity reflects the foreign exchange gains or losses on translation of euro and US dollar borrowings that have been designated as hedges of a net investment in foreign operations. Market risk \u2013 interest rate risk Risk description Risk management approach The Group\u2019s interest rate risk arises from the impact of changes in interest rates on cash held and investments in financial assets, and on borrowings held at floating rates. The Group may also face future interest rate exposure connected to M&A transactions where significant debt financing is involved. The Group\u2019s CCPs have member liabilities, and separately achieve returns which support the payment of these liabilities. A CCP\u2019s interest rate risk can increase if the reference rates used to calculate liabilities increase while the reference rates that underpin investment returns decrease (or do not increase by the same amount). Group companies that offer guaranteed settlement of traded securities can also be exposed to latent interest rate risk (and market risk more generally) in the event of a counterparty default. The Group\u2019s interest rate management policy focuses on protecting the Group\u2019s credit rating and limiting the impact of interest rate increases on Group earnings. To support this objective, the Group targets a minimum coverage of interest expense by adjusted EBITDA of 7 times, and a maximum debt floating rate component of 50%. This approach reflects: \u2014 a focus on the Group\u2019s cost of gross debt rather than its net debt given the material cash and cash equivalents set aside for regulatory purposes; \u2014 the short duration allowed for investments of cash and cash equivalents held for regulatory purposes which, by their nature, generate low investment yields; and \u2014 the broad natural hedge of floating rate borrowings provided by the significant balances of cash and cash equivalents held effectively at floating rates of interest At 31 December 2022, consolidated net interest expense cover by adjusted EBITDA was 19.0 times (2021: 17.9 times) and the floating rate component of total debt was 16% (2021: 18%). Where the Group has committed to M&A transactions and is exposed to prospective interest rate risk on borrowings, the Group Treasury function will assess the exposure and consider hedging solutions that conform with policy and seek to limit future interest costs. In the Group\u2019s CCPs, interest bearing assets are generally invested in secured instruments or structures and for a longer term than interest bearing liabilities, whose interest rate is reset daily. This makes investment returns vulnerable to volatility in overnight rates and shifts in spreads between overnight and term rates. Interest rate exposures (and the risk to CCP capital) are managed within defined risk appetite parameters against which sensitivities are monitored daily. In its review of the sensitivities to potential movements in interest rates, the Group has considered interest rate volatility over the last year and prospects for rates over the next 12 months. It has concluded that a 1 percentage point upward movement (with a limited prospect of material downward movement) reflects a reasonable level of risk to current rates. If interest rates on cash and cash equivalents and borrowings had been 1 percentage point higher, with all other variables held constant, profit after tax for 2022 would have been \u00a38 million higher (2021: \u00a310 million higher) mainly as a result of higher interest income on floating rate cash and cash equivalents, partially offset by higher interest expense on floating rate borrowings. At the CCP level (in aggregate), if interest rates on the common interest bearing member liability benchmarks of EONIA, Fed Funds and SONIA, (for euro, US dollar and sterling liabilities respectively), had been 1 percentage point higher, with all other variables held constant, the Group\u2019s profit after tax would have been \u00a31 million lower (2021: \u00a31 million lower). ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfMarketRiskExplanatory",
"language": "en",
"entity": "scheme:213800QAUUUP6I445N30",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-736": {
"value": "23.6 Offsetting financial assets and financial liabilities Accounting policy The Group reports financial assets and financial liabilities on a net basis on the balance sheet where there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis, or to realise the asset and settle the liabilities simultaneously. The Group applies the rules of legal right of set off and intent to net settle within clearing member balances. The carrying values of the balances are offset at an appropriate level to arrive at the net balances reported in the balance sheet. The approach adopted is reviewed on a regular basis to ensure it remains the most appropriate. Any change in approach would not materially affect the net assets of the Group . The following tables show the impact of netting arrangements on all financial assets and financial liabilities that are reported net on the balance sheet: 31 December 2022 Gross amount \u00a3m Amount offset \u00a3m Net amount as reported \u00a3m Other financial assets 2,404,794 (2,397,255) 7,539 Repurchase agreements 798,844 (145,013) 653,831 Total assets 3,203,638 (2,542,268) 661,370 Other financial liabilities (2,413,095) 2,405,556 (7,539) Reverse repurchase agreements (798,844) 145,013 (653,831) Total liabilities (3,211,939) 2,550,569 (661,370) 31 December 2021 Gross amount \u00a3m Amount offset \u00a3m Net amount as reported \u00a3m Other financial assets 1,286,359 (1,283,682) 2,677 Repurchase agreements 794,543 (150,157) 644,386 Total assets 2,080,902 (1,433,839) 647,063 Other financial liabilities (1,302,809) 1,300,132 (2,677) Reverse repurchase agreements (794,543) 150,157 (644,386) Total liabilities (2,097,352) 1,450,289 (647,063) All offset amounts are clearing member trading assets and trading liabilities within the Group\u2019s CCP businesses\u2019 financial instruments. The Group\u2019s CCP companies sit in the middle of members\u2019 transactions and hold default funds and margin amounts as a contingency against the default of a member. As such, further amounts are available to offset in the event of a default reducing the asset and liability of \u00a3661,370 million (2021: \u00a3647,063 million) to nil. ",
"dimensions": {
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"language": "en",
"entity": "scheme:213800QAUUUP6I445N30",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-722": {
"value": "23.6 Offsetting financial assets and financial liabilities Accounting policy The Group reports financial assets and financial liabilities on a net basis on the balance sheet where there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis, or to realise the asset and settle the liabilities simultaneously. The Group applies the rules of legal right of set off and intent to net settle within clearing member balances. The carrying values of the balances are offset at an appropriate level to arrive at the net balances reported in the balance sheet. The approach adopted is reviewed on a regular basis to ensure it remains the most appropriate. Any change in approach would not materially affect the net assets of the Group . The following tables show the impact of netting arrangements on all financial assets and financial liabilities that are reported net on the balance sheet: 31 December 2022 Gross amount \u00a3m Amount offset \u00a3m Net amount as reported \u00a3m Other financial assets 2,404,794 (2,397,255) 7,539 Repurchase agreements 798,844 (145,013) 653,831 Total assets 3,203,638 (2,542,268) 661,370 Other financial liabilities (2,413,095) 2,405,556 (7,539) Reverse repurchase agreements (798,844) 145,013 (653,831) Total liabilities (3,211,939) 2,550,569 (661,370) 31 December 2021 Gross amount \u00a3m Amount offset \u00a3m Net amount as reported \u00a3m Other financial assets 1,286,359 (1,283,682) 2,677 Repurchase agreements 794,543 (150,157) 644,386 Total assets 2,080,902 (1,433,839) 647,063 Other financial liabilities (1,302,809) 1,300,132 (2,677) Reverse repurchase agreements (794,543) 150,157 (644,386) Total liabilities (2,097,352) 1,450,289 (647,063) All offset amounts are clearing member trading assets and trading liabilities within the Group\u2019s CCP businesses\u2019 financial instruments. The Group\u2019s CCP companies sit in the middle of members\u2019 transactions and hold default funds and margin amounts as a contingency against the default of a member. As such, further amounts are available to offset in the event of a default reducing the asset and liability of \u00a3661,370 million (2021: \u00a3647,063 million) to nil. ",
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"entity": "scheme:213800QAUUUP6I445N30",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
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},
"fact-700": {
"value": "24. Share capital, share premium and other reserves This note details our share capital, share premium and other capital reserves. During the year, a number of shares were repurchased under the share buyback programme launched in August 2022. Accounting policy The share capital of the Company is the number of shares in issue at their par value and includes balances relating to the Company\u2019s ordinary equity shares, own shares held by the Employee Benefit Trust (EBT) and any treasury shares held by the Company. Shares acquired by the Company from the open market as part of share buyback programmes are referred to as treasury shares and are held by the Company. The consideration payable is deducted from retained earnings. The par value of purchased treasury shares is recorded as a transfer from the Company\u2019s ordinary equity shares to treasury shares within share capital. No gain or loss is recognised by the Company in the income statement on the purchase, sale, issue or cancellation of the Company\u2019s treasury shares or of own shares held by the EBT. When the Company issues new shares to the EBT at par, the share capital of the Company is increased by the par value of these own shares, and a corresponding deduction or debit is recorded in the share-based payment reserve. The Company may also issue new shares to the EBT to satisfy vesting of specific employee share schemes. These shares may be issued at a subscription price above par value, reflecting the option cost payable by the participant in the employee share scheme. In such instances, the share capital of the Company is increased by the par value of these own shares and the difference between the subscription price and the par value is recorded in share premium. A corresponding deduction or debit is recognised in the share-based payment reserve. 24. Share capital, share premium and other reserves continued Ordinary share capital issued and fully paid Number of shares millions Ordinary share capital 1 \u00a3m Share premium 2 \u00a3m Total \u00a3m 1 January 2021 351 24 971 995 Acquisition of subsidiaries 204 15 \u2013 15 Issue of shares to the Employee Benefit Trust 3 2 \u2013 7 7 31 December 2021 557 39 978 1,017 Issue of shares to the Employee Benefit Trust 3 1 \u2013 \u2013 \u2013 Share buyback 4 (4) \u2013 \u2013 \u2013 31 December 2022 554 39 978 1,017 1 Ordinary share capital consists of ordinary shares of 6 79/86 pence. 2 Share premium is the amount subscribed for share capital in excess of par value. 3 The Board approved the allotment and issue of 883,174 ordinary shares at par to the EBT (2021: 1,368,896 ordinary shares at par and 177,894 at a weighted average price of \u00a335.74) to settle employee share plans. A share premium of \u00a3nil (2021: \u00a37 million) has been recognised in the year in respect of these. 4 At 31 December 2022, the Group held 3,797,344 (2021: nil) treasury shares which were acquired as part of its share buyback programme. Share buyback programme In August 2022, the Company launched a \u00a3750 million share buyback programme which will be phased over multiple tranches over a 12 month period. During the year, the Company repurchased 3.8 million of its own shares from the market for \u00a3300 million, which are being held as treasury shares. Total costs directly attributable to the share buyback programme was \u00a33 million. The consideration paid and costs incurred have been deducted from retained earnings. The Company entered into an irrevocable commitment with its corporate brokers to repurchase shares as part of tranche two of the programme, which in part covers the close period from 1 January 2023 up to the announcement of the Group\u2019s full year results. At 31 December 2022, the remaining obligation in relation to the share purchase was \u00a3200 million and is presented within trade and other payables. See note 27 for shares repurchased after the reporting date. Other reserves Note Merger relief reserve 1 \u00a3m Capital redemption reserve 2 \u00a3m Reverse acquisition reserve 3 \u00a3m Hedging reserve 4 \u00a3m Foreign exchange translation reserve 5 \u00a3m Total \u00a3m 1 January 2021 1,305 514 (512) (110) 608 1,805 Acquisition of subsidiaries 16,981 \u2013 \u2013 \u2013 \u2013 16,981 Amounts recycled on disposal \u2013 \u2013 \u2013 17 (62) (45) Foreign exchange differences on translation of foreign operations \u2013 \u2013 \u2013 \u2013 (41) (41 Amount recycled to income statement \u2013 \u2013 \u2013 (2) \u2013 (2) Changes in fair value recognised \u2013 \u2013 \u2013 109 \u2013 109 31 December 2021 18,286 514 (512) 14 505 18,807 Foreign exchange differences on translation of foreign operations \u2013 \u2013 \u2013 \u2013 2,448 2,448 Amount recycled to income statement 23.4 \u2013 \u2013 \u2013 (3) \u2013 (3) Changes in fair value recognised 23.4 \u2013 \u2013 \u2013 (113) \u2013 (113 31 December 2022 18,286 514 (512) (102) 2,953 21,139 1 The merger relief reserve is a potentially distributable reserve arising as a result of shares issued to acquire subsidiaries. The Group applied merger relief, as required by section 612 of the Companies Act 2006, to the issue of shares by the Company to acquire Refinitiv. The Group acquired a 100% equity holding in Refinitiv and recognised the excess of the fair value above the nominal share capital issued in the merger relief reserve and retained earnings. 2 The capital redemption reserve was set up as a result of a court approved capital reduction scheme and is non-distributable. 3 The reverse acquisition reserve arose as a result of the acquisition of London Stock Exchange plc in 2007. It is recognised on consolidation as a result of a capital reduction scheme and is non-distributable. 4 The hedging reserve represents the cumulative fair value adjustments recognised in respect of net investment and cash flow hedges entered into in accordance with hedge accounting principles. It is distributable under certain circumstances. Net gains and losses are recognised in other comprehensive income and balances remain in equity until both the hedging instrument and the underlying instrument are derecognised. Gains realised on cash flow hedges during the year are amortised through the income statement over the life of the underlying instrument. During the year \u00a33 million (2021: \u00a32 million) was recycled back through the income statement. 5 The foreign exchange translation reserve records the cumulative impact of foreign exchange rate movements on the translation of non-sterling subsidiary companies into sterling. It is distributable under certain circumstances. Net gains and losses on translation are recognised in other comprehensive income and amounts remain in equity until the subsidiary is derecognised. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfShareCapitalReservesAndOtherEquityInterestExplanatory",
"language": "en",
"entity": "scheme:213800QAUUUP6I445N30",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-654": {
"value": "The share capital of the Company is the number of shares in issue at their par value and includes balances relating to the Company\u2019s ordinary equity shares, own shares held by the Employee Benefit Trust (EBT) and any treasury shares held by the Company. When the Company issues new shares to the EBT at par, the share capital of the Company is increased by the par value of these own shares, and a corresponding deduction or debit is recorded in the share-based payment reserve. ",
"dimensions": {
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"language": "en",
"entity": "scheme:213800QAUUUP6I445N30",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-655": {
"value": "Shares acquired by the Company from the open market as part of share buyback programmes are referred to as treasury shares and are held by the Company. The consideration payable is deducted from retained earnings. The par value of purchased treasury shares is recorded as a transfer from the Company\u2019s ordinary equity shares to treasury shares within share capital. No gain or loss is recognised by the Company in the income statement on the purchase, sale, issue or cancellation of the Company\u2019s treasury shares or of own shares held by the EBT. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForTreasurySharesExplanatory",
"language": "en",
"entity": "scheme:213800QAUUUP6I445N30",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-723": {
"value": "Ordinary share capital issued and fully paid Number of shares millions Ordinary share capital 1 \u00a3m Share premium 2 \u00a3m Total \u00a3m 1 January 2021 351 24 971 995 Acquisition of subsidiaries 204 15 \u2013 15 Issue of shares to the Employee Benefit Trust 3 2 \u2013 7 7 31 December 2021 557 39 978 1,017 Issue of shares to the Employee Benefit Trust 3 1 \u2013 \u2013 \u2013 Share buyback 4 (4) \u2013 \u2013 \u2013 31 December 2022 554 39 978 1,017 1 Ordinary share capital consists of ordinary shares of 6 79/86 pence. 2 Share premium is the amount subscribed for share capital in excess of par value. 3 The Board approved the allotment and issue of 883,174 ordinary shares at par to the EBT (2021: 1,368,896 ordinary shares at par and 177,894 at a weighted average price of \u00a335.74) to settle employee share plans. A share premium of \u00a3nil (2021: \u00a37 million) has been recognised in the year in respect of these. 4 At 31 December 2022, the Group held 3,797,344 (2021: nil) treasury shares which were acquired as part of its share buyback programme. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfIssuedCapitalExplanatory",
"language": "en",
"entity": "scheme:213800QAUUUP6I445N30",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-725": {
"value": " During the year, the Company repurchased 3.8 million of its own shares from the market for \u00a3300 million, which are being held as treasury shares.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfTreasurySharesExplanatory",
"language": "en",
"entity": "scheme:213800QAUUUP6I445N30",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-724": {
"value": "Other reserves Note Merger relief reserve 1 \u00a3m Capital redemption reserve 2 \u00a3m Reverse acquisition reserve 3 \u00a3m Hedging reserve 4 \u00a3m Foreign exchange translation reserve 5 \u00a3m Total \u00a3m 1 January 2021 1,305 514 (512) (110) 608 1,805 Acquisition of subsidiaries 16,981 \u2013 \u2013 \u2013 \u2013 16,981 Amounts recycled on disposal \u2013 \u2013 \u2013 17 (62) (45) Foreign exchange differences on translation of foreign operations \u2013 \u2013 \u2013 \u2013 (41) (41 ) Amount recycled to income statement \u2013 \u2013 \u2013 (2) \u2013 (2) Changes in fair value recognised \u2013 \u2013 \u2013 109 \u2013 109 31 December 2021 18,286 514 (512) 14 505 18,807 Foreign exchange differences on translation of foreign operations \u2013 \u2013 \u2013 \u2013 2,448 2,448 Amount recycled to income statement 23.4 \u2013 \u2013 \u2013 (3) \u2013 (3) Changes in fair value recognised 23.4 \u2013 \u2013 \u2013 (113) \u2013 (113 ) 31 December 2022 18,286 514 (512) (102) 2,953 21,139 1 The merger relief reserve is a potentially distributable reserve arising as a result of shares issued to acquire subsidiaries. The Group applied merger relief, as required by section 612 of the Companies Act 2006, to the issue of shares by the Company to acquire Refinitiv. The Group acquired a 100% equity holding in Refinitiv and recognised the excess of the fair value above the nominal share capital issued in the merger relief reserve and retained earnings. 2 The capital redemption reserve was set up as a result of a court approved capital reduction scheme and is non-distributable. 3 The reverse acquisition reserve arose as a result of the acquisition of London Stock Exchange plc in 2007. It is recognised on consolidation as a result of a capital reduction scheme and is non-distributable. 4 The hedging reserve represents the cumulative fair value adjustments recognised in respect of net investment and cash flow hedges entered into in accordance with hedge accounting principles. It is distributable under certain circumstances. Net gains and losses are recognised in other comprehensive income and balances remain in equity until both the hedging instrument and the underlying instrument are derecognised. Gains realised on cash flow hedges during the year are amortised through the income statement over the life of the underlying instrument. During the year \u00a33 million (2021: \u00a32 million) was recycled back through the income statement. 5 The foreign exchange translation reserve records the cumulative impact of foreign exchange rate movements on the translation of non-sterling subsidiary companies into sterling. It is distributable under certain circumstances. Net gains and losses on translation are recognised in other comprehensive income and amounts remain in equity until the subsidiary is derecognised. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfReservesAndOtherEquityInterestExplanatory",
"language": "en",
"entity": "scheme:213800QAUUUP6I445N30",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-701": {
"value": "25. Share-based payments We operate various employee share-based compensation plans which allow employees to receive or acquire shares in the Company in different ways. This note describes our main share plans. Accounting policy The Group issues equity settled share-based awards to certain employees. The share-based payment expense recognised in the income statement is determined by the fair value (using a stochastic valuation model) of the options granted or shares awarded at the date of grant. The calculated expenses are recognised over the relevant vesting periods. The fair value of the awards granted: \u2014 includes any market performance conditions (for example, Total Shareholder Return (TSR)); and \u2014 excludes the impact of any service and non-market performance vesting conditions (for example, the need to remain an employee for a specified period of time). In very few countries where the Group cannot issue equity-settled awards due to restrictions, cash settled share-based awards are issued instead. The charges arising from equity-settled share-based payment plans are as follows: Continuing operations Note 2022 \u00a3m 2021 \u00a3m Group share plans 1 25.1 79 64 Shares issued to the MIP participants 25.2 16 10 95 74 Tradeweb share schemes (recognised in non-controlling interests) 25.3 63 67 Total share-based payment expense 5.1 158 141 1 Charges of \u00a31 million (2021: nil) relate to plans that are cash-settled as a result of local regulations. The following amounts were recognised in equity: Group Company 2022 \u00a3m 2021 \u00a3m 2022 \u00a3m 2021 \u00a3m Share-based payments 94 74 78 64 Fair value movement on loans to the Employee Benefit Trust \u2013 \u2013 (20) (4) Issue of shares to the Employee Benefit Trust \u2013 (6) \u2013 (6) Cash receipts from employees on vesting 5 8 4 6 99 76 62 60 25.1 Group share plans The Group has the following share plans: \u2014 Save As You Earn and International Sharesave Plan 2018 (SAYE) The SAYE schemes provide for grants of options over the Company\u2019s shares to employees who enter into a savings contract. The options are granted at 20% below the market price on the date of grant and vest after three years, subject to continuing employment. \u2014 Long-Term Incentive Plan 2014 (LTIP) Awards are granted at nil cost to employees. Vesting of LTIP awards is dependent on both market and non-market performance conditions. The performance conditions include achievement of relative TSR (40%) and adjusted EPS (60%) targets. \u2014 Restricted Share Award Plan 2018 (RSAP) The Group operates a restricted share plan, the RSAP. It consists of an award of restricted stock units and matching shares. Matching shares are linked to an investment by the employee in the Company\u2019s shares. Awards are granted at nil cost to employees and generally vest in tranches after one, two and three years, subject to continuing employment. \u2014 Deferred Bonus Plan (DBP) DBP awards are granted at nil cost to employees. Awards usually vest after two or three years, subject to continuing employment and malus and clawback provisions. \u2014 International Share Incentive Plan (ISIP) The ISIP is a scheme in which employees can buy shares in the Company monthly via salary deduction. For every four shares purchased by the employee, the Group awards them one additional share which vests after completion of a three-year plan cycle. 25. Share-based payments continued Further details on the Group\u2019s share plans are provided in the Directors\u2019 Remuneration Report on pages 113-141. The Company has an EBT to administer the share plans and to acquire Company shares to meet the commitments to Group employees. At 31 December 2022, 259,129 Company shares were held by the trust (2021: 566,034). The EBT is fully funded by the Company via loans, cash gifts and the issue and transfer of shares. The cost of the Group\u2019s shares held by the EBT are recognised directly in equity. Movements in the number of share options and awards outstanding and their weighted average exercise prices are as follows: SAYE LTIP/RSAP 1,2 ISIP 2 Number Weighted average exercise price \u00a3 Number Number 1 January 2021 568,246 42.42 3,053,099 470 Granted 307,961 64.94 1,371,625 638 Exercised (227,265) 35.15 (1,222,619) \u2013 Lapsed/forfeited (66,768) 47.65 (355,671) (90) 31 December 2021 582,174 56.57 2,846,434 1,018 Granted 150,359 63.71 1,527,435 14,662 Exercised (127,662) 38.83 (1,038,073) \u2013 Lapsed/forfeited (70,601) 58.47 (250,125) (828) 31 December 2022 534,270 62.57 3,085,671 14,852 Exercisable at 31 December 2022 3,183 63.39 \u2013 \u2013 31 December 2021 10,822 52.45 \u2013 \u2013 1 At 31 December 2022, RSAP awards of 1,078,328 shares were outstanding (2021: 812,746). 2 The LTIP/RSAP and ISIP awards have a nil exercise price. 106,637 matching shares were granted under the RSAP in the year (2021: nil). The weighted average share price of London Stock Exchange Group plc shares during the year was \u00a376.11 (2021: \u00a377.76). The range of exercise prices and weighted average remaining contractual life of awards and options outstanding are as follows: 2022 2021 Number outstanding Weighted average remaining contractual life Years Number outstanding Weighted average remaining contractual life Years SAYE \u2014 Between \u00a330 and \u00a350 \u2013 \u2013 135,130 0.4 \u2014 More than \u00a350 534,270 1.8 447,044 2.3 LTIP/RSAP 3,085,671 1.3 2,846,434 1.1 ISIP 14,852 2.1 1,018 1.8 Total 3,634,793 3,429,626 A Monte Carlo simulation was used to calculate the fair value of the 40% of the LTIP awards granted during the year that are subject to a relative TSR condition. The model simulates the TSR and compares it against the constituents of the UK FTSE 100. For the remaining 60% of LTIP awards that are subject to adjusted EPS, and all other share awards including the SAYE, the Black-Scholes model was used to determine the related fair value. The inputs into both models include the share price at grant date, expected volatility, dividend yields and the annual risk-free interest rate. The volatility assumption is based on the historical 3-year volatility of the LSEG plc share price as at the date of grant. The risk-free interest rate represents the yield available on a UK zero-coupon government bond on the date of grant for a term commensurate with the vesting period of the award. The expected life refers to the time from the date of grant to the date the awards vest. Holders of share awards and share options are not entitled to receive dividends declared during the vesting period. 25. Share-based payments continued The key assumptions used in the valuations were as follows: Date of grant LTIP Performance Shares RSAP 6-Apr 13-Sep 6-Apr 28-Jun 13-Sep 15-Dec Grant date share price (\u00a3) 83.60 80.98 83.60 76.64 80.98 76.14 Expected life (years) from to 3.0 3.0 0.40 0.72 1.00 0.25 \u2013 \u2013 4.00 2.93 3.01 2.96 Exercise price (\u00a3) nil nil nil nil nil nil Dividend yield (%) from to 0.94 0.96 0.94 0.94 0.96 1.01 \u2013 \u2013 1.05 1.16 1.16 1.32 Risk-free interest rate (%) from to 1.59 2.90 1.28 2.10 2.75 3.37 \u2013 \u2013 1.59 2.19 2.99 3.58 Volatility (%) from to 32.15 31.58 27.56 28.99 28.43 25.05 \u2013 \u2013 32.86 32.55 31.57 31.18 Fair value (\u00a3) from to \u2013 \u2013 80.34 74.56 78.67 73.92 \u2013 \u2013 83.22 76.00 80.05 75.89 Fair value TSR (\u00a3) 63.50 62.43 \u2013 \u2013 \u2013 \u2013 Fair value EPS (\u00a3) 81.29 78.68 \u2013 \u2013 \u2013 \u2013 Date of grant from to SAYE DBP ISIP 29-Sep \u2013 6-Apr \u2013 1-Jan 31-Dec Grant date share price (\u00a3) from to 76.96 83.60 65.72 \u2013 \u2013 85.39 Expected life (years) from to 3.30 1.00 3.00 \u2013 3.00 \u2013 Exercise price (\u00a3) 63.71 nil nil Dividend yield (%) from to 1.11 \u2013 0.92 \u2013 \u2013 0.99 Risk-free interest rate (%) from to 4.28 1.28 1.01 \u2013 1.59 3.06 Volatility (%) from to 32.10 28.25 28.56 \u2013 32.20 34.68 Fair value (\u00a3) 26.07 83.60 74.58 25.2 Management Incentive Plan (MIP) Members of Refinitiv\u2019s senior management team participated in the MIP set up by Refinitiv Holding Limited (now York Parent Limited). At the time of the Refinitiv acquisition, 6,041,336 shares relating to MIP participants were transferred to York Parent Limited as a part of the purchase consideration. To improve the retention of the participants, amendments were made to the MIP to include additional service vesting conditions. The Group recognises the MIP as a share-based payment settled by an external shareholder under IFRS 2 and recognises post combination compensation until the end of the vesting period. The MIP share-based payment expense is classified as a non-underlying transaction cost (see note 6). 25.3 Tradeweb share schemes Tradeweb grants awards, including performance-based restricted share units (PRSUs), stock options, restricted stock units (RSUs) and dividend equivalent rights. The awards may have performance-based and time-based vesting conditions. Stock options have a maximum contractual term of 10 years. \u2014 PRSUs (Equity-Settled) PRSUs are promises to issue actual shares at the end of a three-year vesting period. The fair value of the equity-settled PRSUs is calculated as at the grant date using the share price. \u2014 Options Tradeweb awards options with a four-year graded vesting schedule, one half vesting based solely on the passage of time and one half vesting only if Tradeweb achieves certain performance targets. Costs related to options are recognised as an expense in the income statement over the service period. The fair value of options is calculated as at the grant date using the Black-Scholes model. \u2014 RSUs RSUs are promises to issue shares at the end of a vesting period. RSUs granted to employees vest over a three-year period. RSUs granted to non-employee directors vest after one year. The fair value of the RSUs is calculated as at the grant date using the share price. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfSharebasedPaymentArrangementsExplanatory",
"language": "en",
"entity": "scheme:213800QAUUUP6I445N30",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-656": {
"value": "Accounting policy The Group issues equity settled share-based awards to certain employees. The share-based payment expense recognised in the income statement is determined by the fair value (using a stochastic valuation model) of the options granted or shares awarded at the date of grant. The calculated expenses are recognised over the relevant vesting periods. The fair value of the awards granted: \u2014 includes any market performance conditions (for example, Total Shareholder Return (TSR)); and \u2014 excludes the impact of any service and non-market performance vesting conditions (for example, the need to remain an employee for a specified period of time). In very few countries where the Group cannot issue equity-settled awards due to restrictions, cash settled share-based awards are issued instead. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForSharebasedPaymentTransactionsExplanatory",
"language": "en",
"entity": "scheme:213800QAUUUP6I445N30",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-702": {
"value": "26. Commitments and contingencies A commitment is a contractual obligation to make a payment in the future. These amounts are not recorded in the balance sheet as we have not yet received the related goods or services. The amounts below are the minimum amounts that we are committed to pay. The Group has the following contracts in place for future expenditure which are not provided for in the consolidated financial statements: Contract Description Minimum commitment Agreement with Reuters News, entered into in 2018, for a 30-year term To receive news and editorial content Minimum CPI adjusted payment, which was US$360 million for 2022 10-year strategic partnership with Microsoft To architect LSEG\u2019s data infrastructure using the Microsoft Cloud, and to jointly develop new products and services for data and analytics Minimum cloud-related spend of US$2.8 billion over the term of the partnership In the normal course of business, the Group can receive legal claims including, for example, in relation to commercial matters, service and product quality or liability, employee matters and tax audits. The Group is also involved in legal proceedings and actions, engagement with regulatory authorities and in dispute resolution processes. These are reviewed on a regular basis and, where possible, an estimate is made of the potential financial impact on the Group. In some cases a provision is recognised based on advice, best estimates and management judgement. Where it is too early to determine the likely outcome of these matters, no provision is made. Whilst the Group cannot predict the outcome of any such current or future matters with any certainty, it currently believes the likelihood of any material liabilities to be low, and that these will not have a material adverse effect on its consolidated income, financial position or cash flows. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfCommitmentsAndContingentLiabilitiesExplanatory",
"language": "en",
"entity": "scheme:213800QAUUUP6I445N30",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-726": {
"value": "26. Commitments and contingencies A commitment is a contractual obligation to make a payment in the future. These amounts are not recorded in the balance sheet as we have not yet received the related goods or services. The amounts below are the minimum amounts that we are committed to pay. The Group has the following contracts in place for future expenditure which are not provided for in the consolidated financial statements: Contract Description Minimum commitment Agreement with Reuters News, entered into in 2018, for a 30-year term To receive news and editorial content Minimum CPI adjusted payment, which was US$360 million for 2022 10-year strategic partnership with Microsoft To architect LSEG\u2019s data infrastructure using the Microsoft Cloud, and to jointly develop new products and services for data and analytics Minimum cloud-related spend of US$2.8 billion over the term of the partnership ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfCommitmentsExplanatory",
"language": "en",
"entity": "scheme:213800QAUUUP6I445N30",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-703": {
"value": "27. Events after the reporting period Acadia acquisition On 19 December 2022, LSEG announced it has agreed to acquire Acadia Soft, Inc. (Acadia) a leading provider of automated uncleared margin processing and integrated risk and optimisation services for the global derivatives community. Acadia provides risk management, margining and collateral services to global financial institutions for the uncleared derivatives markets. Acadia\u2019s risk and margining products span all OTC derivative asset classes and provide direct connectivity to over 2,000 market participants. LSEG has held a minority stake in Acadia since 2018. Following completion, Acadia will be part of LSEG\u2019s Post Trade division. The purchase price consideration is $700 million (subject to customary adjustments) and the acquisition is expected to close in H1 2023, subject to regulatory approvals. Share buyback programme Since the reporting date, the Company repurchased 2.7 million of its own shares from the market for \u00a3196 million which are being held as treasury shares. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfEventsAfterReportingPeriodExplanatory",
"language": "en",
"entity": "scheme:213800QAUUUP6I445N30",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-704": {
"value": "28. Transactions with related parties
The Group has a number of related parties including associates,
Directors and Executive Committee members. In addition, the Company
transacts with some of its subsidiaries. A full list of subsidiaries is
included in note 29.2. All significant transactions with related parties
are carried out on an arm\u2019s length basis.
28.1 Transactions with subsidiaries
For the year, the Company recognised the following recharges and
charges, dividend receipts and balances with its subsidiaries:
Note
2022
\u00a3m
2021
\u00a3m
Other income (recharges) \u2013
services provided to subsidiaries 8 27
Operating expenses (charges) \u2013
services provided by subsidiaries (166) (119)
Charges for share-based payment
expense charged to subsidiaries 25 79 67
Dividends received from subsidiaries 250 3,303
Amounts due from group companies,
split as:
\u2014 Loans receivable 1,101 1,235
\u2014 Other receivables 118 138
18 1,219 1,373
Amounts due to group companies,
split as:
\u2014 Loans payable (1,071) (423)
\u2014 Other payables (178) (174)
20 (1,249) (597)
28.2 Transactions with associates
During the year, the Group recognised the following transactions with
its associates:
2022
\u00a3m
2021
\u00a3m
Sales to associates 1 1
Amounts due from associates 1 \u2013
Amounts owed to associates \u2013 1
28.3 Transactions with other related parties
Stephen O\u2019Connor, a director of London Stock Exchange plc, is a
director and former shareholder of Quantile, a company registered
in England & Wales. The Group acquired Quantile during the year
(see note 12).
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfTransactionsBetweenRelatedPartiesExplanatory",
"language": "en",
"entity": "scheme:213800QAUUUP6I445N30",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-737": {
"value": "28. Transactions with related parties The Group has a number of related parties including associates, Directors and Executive Committee members. In addition, the Company transacts with some of its subsidiaries. A full list of subsidiaries is included in note 29.2. All significant transactions with related parties are carried out on an arm\u2019s length basis. 28.1 Transactions with subsidiaries For the year, the Company recognised the following recharges and charges, dividend receipts and balances with its subsidiaries: Note 2022 \u00a3m 2021 \u00a3m Other income (recharges) \u2013 services provided to subsidiaries 8 27 Operating expenses (charges) \u2013 services provided by subsidiaries (166) (119) Charges for share-based payment expense charged to subsidiaries 25 79 67 Dividends received from subsidiaries 250 3,303 Amounts due from group companies, split as: \u2014 Loans receivable 1,101 1,235 \u2014 Other receivables 118 138 18 1,219 1,373 Amounts due to group companies, split as: \u2014 Loans payable (1,071) (423) \u2014 Other payables (178) (174) 20 (1,249) (597) 28.2 Transactions with associates During the year, the Group recognised the following transactions with its associates: 2022 \u00a3m 2021 \u00a3m Sales to associates 1 1 Amounts due from associates 1 \u2013 Amounts owed to associates \u2013 1 28.3 Transactions with other related parties Stephen O\u2019Connor, a director of London Stock Exchange plc, is a director and former shareholder of Quantile, a company registered in England & Wales. The Group acquired Quantile during the year (see note 12). ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfRelatedPartyExplanatory",
"language": "en",
"entity": "scheme:213800QAUUUP6I445N30",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-705": {
"value": "29.1 Audit, audit-related and other non-audit services The following fees were paid or are payable to the company\u2019s auditors, Ernst and Young LLP and its associates: 2022 \u00a3m 202 \u00a3m Audit of parent and consolidated financial statements 6 7 Audit of subsidiary companies 7 6 Non-audit services 1 1 1 Total auditors\u2019 remuneration 14 14 1 Ernst and Young LLP provided non-audit services of \u00a30.9 million; 7% of total fees (2021: \u00a31.2 million; 8% of total fees). This comprised audit related assurance services of \u00a30.7 million (2021: \u00a30.8 million) and other non-audit services of \u00a30.2 million (2021: \u00a30.4 million Further details of the services provided by Ernst and Young LLP are given in the Report of the Audit Committee on pages 105-110. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfAuditorsRemunerationExplanatory",
"language": "en",
"entity": "scheme:213800QAUUUP6I445N30",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-657": {
"value": "Accounting policy Interests in subsidiaries, as well as loans and other contributions to subsidiaries, are recognised by the Parent Company at cost less accumulated impairment. Interests in subsidiaries are reviewed for impairment when events indicate the carrying amount may not be recoverable. When an indication of impairment is identified, the interest\u2019s recoverable amount is estimated based on value-in-use calculations. An impairment loss is recognised when the recoverable amount of an interest is less than its carrying amount. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForSubsidiariesExplanatory",
"language": "en",
"entity": "scheme:213800QAUUUP6I445N30",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-706": {
"value": "29.3 Associates An associate is where the Group is able to significantly influence the activity of an entity, but not control it. The Group\u2019s associate undertakings are: Associate name Location of incorporation Registered office address Identity of each class of share held in the associate undertaking Direct or indirect holding Share ownership % held by the investing company Group ultimate economic interest % AcadiaSoft, Inc. United States c/o The Corporation Trust Company, 1209 Orange Street, Wilmington, New Castle, 19801 United States Convertible Preferred Indirect 15.67 15.67 1 ASX Refinitiv Charity Foundation Ltd Australia Level 10,60 Margaret Street, Sydney , NSW2000, Australia Charitable incorporated organisation Indirect 50.00 \u2013 Citywire Holdings Limited England and Wales 3 Spring Mews, London, England, SE11 5AN Ordinary Indirect 16.40 16.40 2 Curve Global Limited 3 England and Wales 156 Great Charles Street, Queensway, Birmingham, England, B3 3HN Ordinary A Direct 43.99 40.90 Ordinary B Direct 46.01 Ordinary C \u2013 \u2013 Fomtech Limited England and Wales 107 Cheapside, London, England, EC2V 6DN Ordinary Indirect 19.50 19.50 2 LabCi Holding Inc. British Virgin Island OMC Chambers, Wickhams Cay1, Road Town, Tortola Ordinary Direct 47.62 47.62 Nivaura Ltd England and Wales 107 Cheapside, London, England, EC2V 6DN Ordinary Indirect 23.70 23.70 Seabridge Holdings Pte. Limited Singapore 80 Raffles Place, 32-01 UOB Plaza 1, Singapore, 048624 Ordinary Indirect 10.00 10.00 2 1 The Group has significant influence over AcadiaSoft, Inc. due to its right to appoint three of the company\u2019s directors. 2 The Group has significant influence over Citywire Holdings Limited, Fomtech Limited and Seabridge Holdings Pte. Limited due to its right to appoint one of the company\u2019s directors. 3 Curve Global Limited is in liquidation. All associates have the same year end as the Group, except Fomtech Limited which has a 31 August year end. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfInvestmentsAccountedForUsingEquityMethodExplanatory",
"language": "en",
"entity": "scheme:213800QAUUUP6I445N30",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"fact-727": {
"value": "29.3 Associates An associate is where the Group is able to significantly influence the activity of an entity, but not control it. The Group\u2019s associate undertakings are: Associate name Location of incorporation Registered office address Identity of each class of share held in the associate undertaking Direct or indirect holding Share ownership % held by the investing company Group ultimate economic interest % AcadiaSoft, Inc. United States c/o The Corporation Trust Company, 1209 Orange Street, Wilmington, New Castle, 19801 United States Convertible Preferred Indirect 15.67 15.67 1 ASX Refinitiv Charity Foundation Ltd Australia Level 10,60 Margaret Street, Sydney , NSW2000, Australia Charitable incorporated organisation Indirect 50.00 \u2013 Citywire Holdings Limited England and Wales 3 Spring Mews, London, England, SE11 5AN Ordinary Indirect 16.40 16.40 2 Curve Global Limited 3 England and Wales 156 Great Charles Street, Queensway, Birmingham, England, B3 3HN Ordinary A Direct 43.99 40.90 Ordinary B Direct 46.01 Ordinary C \u2013 \u2013 Fomtech Limited England and Wales 107 Cheapside, London, England, EC2V 6DN Ordinary Indirect 19.50 19.50 2 LabCi Holding Inc. British Virgin Island OMC Chambers, Wickhams Cay1, Road Town, Tortola Ordinary Direct 47.62 47.62 Nivaura Ltd England and Wales 107 Cheapside, London, England, EC2V 6DN Ordinary Indirect 23.70 23.70 Seabridge Holdings Pte. Limited Singapore 80 Raffles Place, 32-01 UOB Plaza 1, Singapore, 048624 Ordinary Indirect 10.00 10.00 2 1 The Group has significant influence over AcadiaSoft, Inc. due to its right to appoint three of the company\u2019s directors. 2 The Group has significant influence over Citywire Holdings Limited, Fomtech Limited and Seabridge Holdings Pte. Limited due to its right to appoint one of the company\u2019s directors. 3 Curve Global Limited is in liquidation. All associates have the same year end as the Group, except Fomtech Limited which has a 31 August year end. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfSignificantInvestmentsInAssociatesExplanatory",
"language": "en",
"entity": "scheme:213800QAUUUP6I445N30",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
}
}
}