Landmark LSEG deal a pacer for user-owned post-trade infrastructure models

11 global banks have bought a 20% stake in the London Stock Exchange Group’s (LSEG) Post Trade Solutions business for GBP170 million, valuing the unit at GBP850 million. 

Bank of America, Barclays, BNP Paribas, Citi, Deutsche Bank, HSBC, J.P. Morgan, Morgan Stanley, Nomura, Societe Generale and UBS now have strategic input into the user centric infrastructure, of which they are major customers, and its future growth amid ongoing consolidation in the post-trade sector.

The acquisition replicates LSEG’s London Clearing House (LCH) ownership structure and gives LSEG a greater portion of the revenue share while reducing the banks’ revenue entitlement from LCH’s SwapClear from 30% to 15% in 2025 and 10% from 2026 to 2045, in exchange for long-term equity participation. LSEG is paying GBP1.15 billion for this change in terms.

This equity participation, at the cost of revenue, gives the major banks a governance seat in the global market infrastructure and reflects a pivot toward long-term control and participation in post-trade systems. Three directors nominated by the banks will join the board of Post Trade Solutions.  

The deal is the latest pace setter for financial participants taking strategic stakes in the post-trade infrastructures they use heavily under a collaborative model.

The Clearing House was the first to set the trend with this model. More recently, other financial participants have jumped on board, with KKR’s acquisition of Osttra, an OTC post-trade infrastructure company, in April 2025 and Euroclear’s strategic stake in Marketnode for digital market infrastructure in October 2024. 

Post Trade Solutions’s businesses, including Acadia, Quantile, SwapAgent and TradeAgent, provide risk management and optimisation to the uncleared derivatives market.

SwapClear provides clearing and risk management to OTC derivatives market and was founded 25 years ago in collaboration with clearing members. In a press release, Daniel Maguire, Head of Markets, LSEG and CEO, LCH Group commented on leveraging the model further: “With this proven track record of success, I’m pleased that our partners are committed to continuing the approach with our Post Trade Solutions business, where we collectively see an opportunity to bring material efficiencies across capital, risk and operations to the bilateral OTC derivatives market.”

Jim DeMare of Bank of America hailed the deal as a “technology-led collaboration” that shows the bank’s “commitment to driving innovation that enhances operational resilience.”