The London Stock Exchange Group (LSEG) has invested in UK fintech Finbourne as part of a strategy to provide digital data services to fund managers.
Under the terms of the deal, LSEG will adopt Finbourne’s cloud-based, investment data management platform Lusid within its digital and cloud program.
The exchange will also make an investment in Finbourne, in order to jointly develop services within its data and analytics division.
The development efforts will focus on two specific areas within LSEG – wealth management and investment solutions. The wealth service will look to integrate client data from multiple sources, similar to the ‘open banking’ principle adopted in the retail banking sector.
The investment solutions will look to develop investment book of record, or IBOR-related services.
According to Emily Prince, LSEG’s group director of fixed income analytics, the partnership with Finbourne is designed to help clients access the “breadth of data, analytics and integrated workflow solutions” offered by the exchange.
Exchanges have increasingly looked to monetise the data they hold over the past decade and more as the cost of trading has reduced significantly while competition has increased thanks to the introduction of regulations like MiFID.
LSEG's data strategy received a huge boost in January 2021 when its $23 billion takeover of data and analytics provider Refinitiv was completed.
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