The London Stock Exchange Group LON:LSEG has agreed to sell a 20 per cent stake in its Post Trade Solutions business to a consortium of 11 global banks for £170mn, in a deal that values the unit at £850mn and deepens long-standing ties between the exchange and the world’s largest financial institutions.
The investing banks — including Bank of America, Barclays, BNP Paribas, Citi, Deutsche Bank, HSBC, J.P. Morgan, Morgan Stanley, Nomura, Société Générale and UBS — are among LSEG’s biggest clearing clients. The transaction mirrors the ownership structure of LCH, LSEG’s clearing house, whose partnership model has proved highly successful over the past two decades.
How much money does Post Trade Solutions make?
Post Trade Solutions, which provides risk management and optimisation services for the uncleared derivatives market through platforms such as Acadia, Quantile, SwapAgent and TradeAgent, generated revenue of £96mn and normalised EBITDA of £16mn in 2024.
The new investors will gain board representation, with three directors nominated by the banks joining the business’s board.
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LSEG also announced an overhaul of the revenue-sharing arrangement in its flagship SwapClear clearing business. Under existing terms, founding member banks were entitled to roughly 30 per cent of SwapClear’s “revenue surplus” through 2035. Following the new agreement, that share will fall to 15 per cent in 2025 and to 10 per cent from 2026 onwards.
Banks reaffirm commitment to London Stock Exchange
In return, the banks have extended their participation in SwapClear for a further decade, through to 2045, reaffirming their commitment to one of the world’s most important interest rate derivatives clearing platforms. LSEG will pay a total of £1.15bn in cash for the revised terms, spread over two instalments in 2025 and 2026, with a further £200mn payable subject to future growth milestones. The payments will be recognised as an intangible asset and amortised over time.
The group said the transaction would be accretive to its Markets division’s profitability, lifting adjusted earnings per share by 2–3 per cent in 2025 and providing additional benefits the following year.
Daniel Maguire, head of markets at LSEG and chief executive of LCH Group, said the deal reflected “a continuation of the spirit of innovation and partnership” that characterised the creation of SwapClear 25 years ago. “We see an opportunity to bring material efficiencies across capital, risk and operations to the bilateral OTC derivatives market,” he said.
Senior executives from the participating banks said the investment underscored their commitment to developing post-trade infrastructure. Jim DeMare, co-president at Bank of America, called the partnership “a vital component of enabling growth and efficiency in our industry”. Stephen Dainton, president of Barclays Bank, said the deal would “drive material capital and operational efficiencies for the industry”.
Other executives from BNP Paribas, Citi, J.P. Morgan and Nomura highlighted the strategic value of the collaboration in extending clearing-style benefits — such as transparency and risk reduction — to the uncleared derivatives market.
The transaction is expected to close in 2025.
