London, Jan 27, 2026, 08:32 GMT — Regular session
- Shares of London Stock Exchange Group jumped in early trading following the launch of a consultation on “free float” rules by its index division.
- The group revealed an additional tranche of share buybacks, pushing forward with its capital returns.
- Investors are eyeing late February for the consultation deadline as well as LSEG’s full-year results.
Shares of London Stock Exchange Group (LSEG.L) ticked up 0.6% to 8,630 pence in early Tuesday trading. The boost came after its FTSE Russell unit proposed adjustments aimed at simplifying the process for foreign companies to enter major UK indices. (London South East)
This consultation is key since index eligibility influences investor interest. A large number of passive funds follow the FTSE 100 and FTSE 250, so adjusting the rules could expand the range of firms considering a London listing down the line.
For LSEG, this move comes as investors focus on what might boost new listings and trading volumes in the City, while the group intensifies its shift toward subscription-style income streams like data, index licensing, and clearing.
FTSE Russell has suggested lowering the minimum free float—the share portion available for public trading—to 10% for both UK and non-UK incorporated companies in its FTSE UK Index Series. This means cutting the current 25% threshold for non-UK firms. According to a consultation paper, the change wouldn’t have an immediate effect. Responses are open from Jan. 26 to Feb. 26. (LSEG)
Charles Hunt, Peel Hunt’s head of research, praised the development, noting: “Anything that makes London more competitive and attractive to international businesses is a positive.” (Financial Times)
Separately, LSEG reported purchasing 167,800 shares on Jan. 26, paying between 8,620 and 8,828 pence each, with an average price of 8,690.37 pence. The company plans to cancel these shares. (TradingView)
The stock dropped 2.2% on Monday, closing at 85.78 pounds, underperforming the modest gains seen in the broader FTSE 100, according to MarketWatch data. (MarketWatch)
Despite Tuesday’s early gains, traders remain skeptical about whether the new rules will actually boost the flow of big international listings — the type that generate hefty fee income for the exchange and ripple through derivatives and index businesses.
But the consultation risks becoming little more than a box-ticking exercise, delivering scant benefits in the short term. FTSE Russell noted in the paper that the real impact hinges on whether eligible companies decide to list in London down the line.
Investors are eyeing Feb. 26 as the next major date, when LSEG will release preliminary results for the year ending Dec. 31, 2025. (LSEG)