Financials

Report by Galliano's Financials Research

Victor Galliano names LSEG his top pick among developed-market exchanges, arguing the stock has been unfairly de-rated in 2025 on concerns that AI could disrupt its data and analytics business. This segment is protected by a defensive moat, with ~90% of data and feeds revenues covered by intellectual property rights. He also highlights the FTSE Russell index segment as a growing, structurally defensive revenue stream, benefitting from the continued rise of passive investing. LSEG ranks highest in his exchange scorecard (see above), driven by attractive valuation metrics and its good score in data revenue share. He estimates LSEG trades at a c.44% discount to Nasdaq on 2026E EV/EBITDA.

Financials

Report by Galliano's Financials Research

Victor Galliano sticks with his core theme for global exchanges of growing post-trading revenues, as well as capitalising on “big data” in financial transactions and data services, as we move into 2023. He identifies four relative value opportunities. In addition to the two mentioned above, HKEx and MexBolsa feature positively multiple times in Victor’s value screens and they are all diversifying revenue streams. He sticks with Coinbase as the exchange to avoid. Its revenue streams are heavily exposed to low volumes of crypto transactions and recent events highlight counterparty risk.