London Stock Exchange Group plc (LSEG) today announces that it has agreed to acquire Acadia, a leading provider of automated uncleared margin processing and integrated risk and optimisation services for the global derivatives community. The acquisition furthers LSEG’s strategy to enhance and grow its multi-asset Post Trade offering for the uncleared derivatives space.
Acadia was established in 2009 and provides risk management, margining and collateral services to global financial institutions for the uncleared derivatives markets. Acadia’s risk and margining products span all OTC derivative asset classes and provide direct connectivity to over 2,000 market participants. The company enables over $1 trillion in collateral exchanges daily.
LSEG has held a minority stake in Acadia since 2018 and has supported the business in driving substantial growth in recent years.
With deep domain expertise in margining, collateral and risk management, Acadia is highly complementary to LSEG’s Post Trade capabilities. The transaction will strengthen LSEG’s provision of resilient and systemically important financial market infrastructure to our customers. LSEG and Acadia share a commitment to an open model, giving customers a choice as to how they process trades. Following completion, Acadia will be part of LSEG’s Post Trade division, with CEO, Chris Walsh reporting to Daniel Maguire, Group Head of Post Trade, LSEG.
Daniel Maguire, Group Head, Post Trade, LSEG & CEO, LCH Group said: “The acquisition of Acadia is part of LSEG’s strategy to enhance and grow our multi-asset Post Trade offering for the uncleared derivatives space. Our customers are looking for more ways to optimise their financial resources, and Acadia’s services enable significant efficiencies in risk management, margining and collateral. I look forward to working with Chris and the team at Acadia to continue to innovate and drive efficiencies across the derivatives landscape.”
Chris Walsh, CEO, Acadia said: “This transaction is a significant milestone for our business, and we are delighted to be joining LSEG. They have a strong track record serving the derivatives marketplace and combining this with Acadia’s expertise in risk mitigation, margining and collateral will result in exciting opportunities for our clients to optimise their post trade operations more efficiently.”
The transaction is subject to regulatory approval. The terms of the transaction have not been disclosed.
Barclays is acting as sole financial adviser to LSEG and Broadhaven is acting as sole financial adviser to Acadia in relation to the transaction.
About LSEG
LSEG (London Stock Exchange Group) is more than a diversified global financial markets infrastructure and data business. We are dedicated partners with an open approach and a commitment to excellence in delivering the services our customers expect from us. With extensive experience, deep knowledge and worldwide presence across financial markets, we enable businesses and economies around the world to fund innovation, manage risk and create jobs. It’s how we’ve contributed to supporting the financial stability and growth of communities and economies globally for more than 300 years.
Data & Analytics
Our acquisition of Refinitiv means we can provide the breadth and depth of financial data and best-in-class analytics that customers expect – driving innovation and growth across global markets. And our high-performance solutions – from trading to market surveillance, to wealth solutions and more – help to enhance the performance of our customers. FTSE Russell is a leading global provider of financial indexing, benchmarking and analytic services with more than $17 trillion benchmarked to our indices – and offers an extensive range of data services and research. The combination of Refinitiv and FTSE Russell provides LSEG with leading capabilities in data, analytics, indices and benchmarks.
Capital Markets
We offer our customers extensive access to capital markets and liquidity across multiple asset classes. We operate a broad range of international equity, fixed income, exchange-traded funds/exchange traded products and foreign exchange markets. Our Group is home to several capital formation and execution venues: London Stock Exchange, AIM, Turquoise, FXall and Tradeweb (through a majority ownership interest).
Post Trade
We support our customers’ clearing and reporting obligations, providing risk, balance sheet and financial resource management solutions, whilst working with our other divisions to extend this support across the value chain.
A leading global clearing house with a strong presence across multiple asset classes, LCH helps financial institutions all over the world use their capital efficiently and manage counterparty risk. We work closely with sell-side clearing members and buy-side clients in conjunction with trading venues globally.
UnaVista, a regulated platform that helps customers meet their reporting compliance obligations and reduce operational and regulatory risk through reporting, reference data and analytics solutions, further complements our Post Trade offering.
Through a comprehensive suite of trusted financial market infrastructure services – and our open-access model – we provide the flexibility, stability and trust that enable our customers to pursue their ambitions with confidence and clarity.
LSEG is headquartered in the United Kingdom, with significant operations in 70 countries across EMEA, North America, Latin America and Asia Pacific. We employ 23,000 people globally, more than half located in Asia Pacific. LSEG’s ticker symbol is LSEG.
Source:LSEG
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