SINGAPORE, Nov 10 (Reuters) – LSEG Chief Executive Officer David Schwimmer said the initial public offering (IPO) market in London and around the world was vulnerable to rising interest rates and geopolitical and economic instability. It said it should recover from the current lows caused by concerns.
Global listings have been subdued for the past year and a half due to investor concerns about rising interest rates and inflation.
“Once the environment stabilizes and improves, IPOs will come back,” he told Reuters in an interview in Singapore.
LSEG acquired Refinitiv for $27 billion in early 2021, turning the exchange into a leading market data company overnight and taking on rival Bloomberg.
Thomson Reuters (TRI.TO), the parent company of Reuters News, will hold a minority stake in LSEG following the Refinitiv acquisition.
Schwimmer told Reuters that a new foreign exchange trading platform with non-deliverable forward (NDF) functionality launching in Singapore this year will be “10 times faster”.
LSEG said earlier this year that NDFs are an effective way to hedge currency exposure to non-convertible currencies in illiquid markets.
Data and Analytics is LSEG’s largest division, accounting for approximately 70% of its revenue and includes its flagship Workspace product. It provides financial and real-time data and news, including exclusive access to Reuters News.
Reporting by Vidya Ranganathan in Singapore and Lawrence White in London.Editing: Sharon Singleton and Tomasz Janowski
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