Banks using LSEG’s post-trade solutions have taken a 20% stake in the business, paying £170 million for the shares.
The transaction is expected to close this year.
Post Trade Solutions generated £96 million in 2024, and normalised EBITDA of £16 million. This deal values the business at £850 million.
The eleven banks in the group are Bank of America, Barclays, BNP Paribas, Citi, Deutsche Bank, HSBC, J.P. Morgan, Morgan Stanley, Nomura, Societe Generale and UBS. Three directors will be nominated from the banks to join the Post Trade Solutions board.
LSEG head of markets and LCH Group CEO Daniel Maguire commented, “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 over-the-counter (OTC) derivatives market.”
The collective are also founding members of OTC interest-rate swap solution SwapClear, part of the post-trade solutions business. Following their investment in the overall business, their share in revenue surplus for SwapClear will drop from 30% to 15% this year, and to 10% from 2026 onwards.
LSEG expects this transaction to be 2-3% accretive to adjusted earnings per share in 2025, with further benefits next year.
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