London Stock Exchange Launches Global Equity Segment

  • Global Equity Segment (GES) offers trading in international companies such as Alibaba, Apple and General Motors on London Stock Exchange during London trading hours
  • GES has attracted strong global interest from brokers and investors
  • Huatai among first brokers to execute a trade on the new segment
  • Sitting in a time zone at the centre of the global business day, GES reduces time zone risk in major international stocks for all investors

London Stock Exchange Group (LSEG) today announced the launch of the Global Equity Segment (GES) on London Stock Exchange plc, following the completion of its first trade.

The Global Equity Segment will offer trading in 95 international securities including US blue chips and Chinese ADRs on the MTF (MIC code XLOM) operated by London Stock Exchange and available during regular London trading hours. The new segment will provide investors the opportunity to reduce time zone risk whilst accessing exposure to global securities.

Traded in USD, GES utilises a well-established CREST Depository Interest (CDI) workflow allowing quick and efficient cross-border settlement between the UK and US within a T+2 settlement cycle. BNP Paribas Securities Services provides custody services to global clients trading GES securities, including moving positions between the UK and US.

Brian Schwieger, Global Head of Equities, London Stock Exchange Group said:
“The Global Equity Segment allows a diverse set of investors to trade major international stocks, including the likes of Amazon, General Motors and major American Depository Receipts (ADRs) such as Alibaba and Ctrip in the world’s most convenient financial time zone. The new segment builds on broker relationships already established through Shanghai-London Stock Connect and leverages London’s location as a global bridge between the Americas and Asia. Moreover, existing connections to CREST’s CDI workflow facilitates cost effective and efficient cross border settlement. The Global Equity Segment is a great example of the uniqueness of London’s time zone, trading expertise, and global investor community.”

Yi ZHOU, Chairman of Huatai Securities said:
“Being the first listed GDR issuer under Shanghai-London Stock Connect has opened doors for us to new and broader markets. Huatai is very pleased to see more impressive and innovative progress, such as GES, which has been made by London Stock Exchange to further facilitate the interactions between UK and Asian capital markets. As a leading broker in China and a new member of London Stock Exchange, we do see tremendous opportunities and look forward to deepening our relationship with London Stock Exchange on many fronts in the future.”

Luc Renard, Head of Financial Intermediaries & Corporates, Asia Pacific, BNP Paribas Securities Services said:
“Supporting cross-border investments is part of BNP Paribas’ DNA and we have developed unrivalled expertise to support clients to access new investments opportunities across the globe including the GES. Our job is to make sure that the post-trade infrastructure is in place to allow a seamless, simple and efficient operating model which is supported by a strong and global client relationship framework.”

Source: LSEG

Brian Schwieger spoke to Markets Media about the planned launch in August.

Related articles

  1. Assessing Bond Liquidity

    The association said improving data should be prioritised.

  2. Eurex Clearing Transforms Access Model

    The partnership increases interoperability across the European post-trade landscape.

  3. Trading Europe From ‘Across the Pond’

    There is latent demand from systematic and index funds to trade equity futures and options in Europe.

  4. Fragmentation Worries OTC Users: Survey

    Closing auction is one of most important daily liquidity and price formation events in European equities.

  5. Rate Hike May Nudge Vol Higher
    From The Markets

    OCC June Volume Rises 80%

    Three trading days in June landed within the top five trading days on record.