The London Stock Exchange, which is under pressure to redefine its long-term strategy after its failed attempt to merge with Canadian counterpart TMX Group, is eyeing opportunities in settlement, its chief executive said this week. And it could be just the right time.

Settlement is the exchange of cash for securities and is part of the unglamorous, essential plumbing of securities trading. Europe currently has a system of many national central securities depositories offering settlement services, making the process slow and expensive.