LSEG Shuts CurveGlobal After Failing to Make a Dent in European Interest-Rate Derivatives Trading

London Stock Exchange Group has announced the closure of its derivatives trading segment, CurveGlobal. In 2016, LSEG launched the joint venture with seven investment banks and CBOE in an effort to challenge Deutsche Boerse’s and Intercontinental Exchange’s dominance in the European fixed-income derivatives market. We maintain our fair value estimates for LSEG and Deutsche Boerse of GBX 9,200 per share and EUR 150 per share, respectively. Our wide moat ratings for both exchange groups are also unchanged.