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Banks buy stake in LSEG's post trade business

The London Stock Exchange Group (LSEG) has sold a 20% stake in its Post Trade Solutions business to a consortium of 11 banks.

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Banks buy stake in LSEG's post trade business

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This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community.

The consortium is made up of "major customers" of the exchange group's clearing services as well as the Post Trade Solutions service. 

The transaction, which is expected to close before the end of the year, increases the valuation of Post Trade Solutions to £850m.

In addition to the 20% stake, the banks will also get to nominate three directors to join the board.

LSEG will also acquire an increased share of the revenue from SwapClear, the derivatives post-trade platform that is jointly  owned by LSEG and its clearing members, which includes some of the banks in the aforementioned consortium.

This includes Citi, Barclays, BNP Paribas, Societe Generale, JP Morgan and Nomura. 

According to LSEG's head of markets Daniel Maguire, the investment is an "opportunity to bring material efficiencies across capital, risk and operations to the bilateral OTC derivatives market". 

 

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Editorial

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