Key Points
- Activist investor Elliott Investment Management, led by Paul Singer, has built a substantial stake in London Stock Exchange Group (LSEG), though the exact size remains undisclosed as it may be below the 3% disclosure threshold under UK rules.
- Elliott is engaging with LSEG to improve performance, pushing for a £5 billion share buyback over the next 12 months, a full portfolio review, enhanced margins, and potential divestments including scrutiny of its bond trading operations.
- LSEG’s shares have fallen over 35% in the past year due to AI disruption fears, reduced listings, and competition in data analytics, with nearly half of revenue now from data rather than exchange trading post-Refinitiv acquisition.
- Elliott specifically urges review of LSEG’s complex structure, including its 51% stake in US-listed Tradeweb Markets and bond trading arm, viewing all assets as undervalued without demanding immediate break-up.
- LSEG CEO David Schwimmer, formerly a Goldman Sachs M&A banker, faces pressure to think like a banker again amid Elliott’s activism on a £38 billion market cap company.
- Elliott has assured the UK government it will not seek LSEG break-up or a New York listing shift.
- Following LSEG’s announcement of a record buyback and margin initiatives, Elliott welcomed it as a “positive first step” but called for more value-enhancing actions to close valuation gaps with peers.
- LSEG spokesperson stated: “LSEG maintains active dialogue with investors while remaining focused on executing our strategy.”
- Elliott’s recent activism includes a £3.8 billion stake in BP in early 2025 and past bids like £700 million for Currys plc in 2024.
- No comment from Elliott on specifics, but it anticipates “constructive dialogue” with LSEG.
Activist hedge fund Elliott Investment Management has placed London Stock Exchange Group (LSEG) under intense scrutiny by building a significant stake and demanding sweeping changes, including a review that spotlights its bond trading arm. The US-based firm, known for its corporate raiding tactics, is pushing LSEG to launch a £5 billion share buyback and conduct a comprehensive portfolio overhaul amid a sharp decline in the company’s shares. This development, first reported across major outlets, comes as LSEG grapples with artificial intelligence threats and dwindling listings on its historic exchange.
As reported by journalists at the Financial Times (FT), cited in multiple sources, Elliott has been in talks with LSEG to boost performance, close the gap with competitors, and consider a new share repurchase programme. The FT broke the story on Elliott’s stake, noting the firm’s activist approach at a time of reduced listings and AI concerns.
What Stake Has Elliott Built in LSEG?
Elliott Investment Management, managed by Paul Singer, has acquired a “substantial” holding in LSEG, though the precise percentage remains undisclosed. Under UK regulations, investors must reveal stakes over 3%, suggesting Elliott’s position may hover around or just below that threshold. A person familiar with the matter told Reuters that Elliott is increasing its position while engaging on performance improvements.
Bloomberg News reported on 18 February 2026 that Elliott is pressing for a full portfolio review and £5 billion ($6.8 billion) buyback over 12 months, according to people familiar who asked not to be identified. The fund views LSEG’s structure—spanning data business, exchange operations, and its 51% stake in Tradeweb Markets—as ripe for scrutiny, with all assets seen as undervalued.
The Wall Street Journal (WSJ) confirmed Elliott’s stake on 11 February 2026, stating the activist expects to push for bigger stock repurchases and margin improvements despite LSEG shares dropping 35% in the past year.
Why Is Elliott Targeting LSEG’s Bond Trading Arm?
Elliott has urged LSEG to review its operations, potentially leading to the sale of its bond trading arm, as announced by Elliott Management Corporation on 20 February 2026. Marketscreener reported this call alongside the £5bn buyback demand following a 33% share fall. Reuters added that while no specific asset sales are demanded yet, the 51% Tradeweb stake—linked to electronic trading including bonds—offers liquidity potential.
As per Bloomberg’s 16 February 2026 opinion piece, LSEG’s £38 billion ($52 billion) market value makes it a “risky” but big target for Elliott’s $80 billion fund, diluting the exchange’s trading revenue significance. The Guardian noted Elliott’s talks aim to enhance performance amid AI worries impacting data services.
LSEG’s capital markets segment, including bond trading via platforms like Tradeweb, now contributes just 21% of revenues, down from traditional exchange fees post-2021 Refinitiv buy.
How Has LSEG Responded to Elliott’s Demands?
LSEG shares surged up to 6% on 11 February 2026 after the stake news, closing down 1% , and rose 1.5% to 77.94 pounds on 25 February. A company representative stated: “LSEG maintains active and dialogue with investors while remaining focused on executing our strategy.”
On 26 February 2026, LSEG announced strong results, a record buyback, and margin initiatives, which Elliott praised in a PR Newswire statement: “We note the strong operational performance and initial value-creation measures announced by LSEG yesterday, including a record share buyback programme and margin-improvement initiatives. The Company’s encouraging guidance, enhanced financial disclosures and improved communication of its AI strategy demonstrate the strength of LSEG’s business.” Elliott added: “While this is a positive first step, we believe that there is still an opportunity for further value-enhancing actions. Elliott looks forward to maintaining a constructive dialogue with LSEG as the Company works to realise the full potential of its market-leading assets, close the valuation gap to industry peers and generate long-term value.”
CEO David Schwimmer, ex-Goldman Sachs M&A banker, must now “think like a banker again” per Bloomberg. Last year, Schwimmer planned selling 20% of post-trade services and a £1 billion buyback; shareholders nearly doubled his pay to £13 million.
What Challenges Is LSEG Facing Amid AI and Listings Slump?
LSEG shares plunged over 35% in 12 months, hit by AI tools like Anthropic’s for legal departments threatening data revenues (nearly 50% of total). A 13% drop followed Anthropic’s launch. Investor Lindsell Train (4% holder) defended LSEG’s data moat against AI startups.
Fewer listings plague London amid mergers and delistings, despite 2025 uptick. LSEG partners with Microsoft, OpenAI’s ChatGPT, Anthropic’s Claude for AI data rollout, but critics say it’s too slow.
Will Elliott Push for LSEG Break-Up or US Listing?
Elliott told the British government it won’t seek break-up or New York listing shift, per FT on 25 February 2026. FT earlier said no full sale or spin-off of exchange ops. Reuters confirmed no break-up push.
What Is Elliott’s Track Record in Activism?
Elliott’s latest before LSEG: early 2025 £3.8 billion BP stake, third-largest holder. In 2024, Elliott Advisors (UK) bid £700m for Currys plc at £0.62/share, rejected by Currys board with Citigroup advising. Elliott owns stakes in Waterstones and Barnes & Noble, eyeing London IPO boost.
Implications for London Stock Exchange?
Elliott’s involvement spotlights LSEG’s shift from exchange to data powerhouse, pressuring Schwimmer on divestments like bond trading for value unlock. As UK listings wane, this could spur reforms or boost activity.
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