The London Stock Exchange Group (LSEG) has sold a 20% stake in its Post Trade Solutions business to a consortium of 11 banks, which consist of key clients using the exchange’s clearing services.
This transaction, expected to finalize by year-end, values Post Trade Solutions at £850 million. Along with the stake, the banks will have the right to nominate three directors to the board.
Additionally, LSEG will secure a larger share of the revenue from SwapClear, the derivatives post-trade platform jointly owned by LSEG and its clearing members, including some of the banks in the consortium, such as Citi, Barclays, BNP Paribas, Societe Generale, JP Morgan, and Nomura.
According to Daniel Maguire, LSEG’s head of markets, this investment presents an “opportunity to bring material efficiencies across capital, risk, and operations to the bilateral OTC derivatives market.”