Major banks invest in LSEG's post-trade solutions

London Stock Exchange Group said on Thursday that a consortium of 11 global banks will invest 170 million British Pounds for a 20% stake in its Post Trade Solutions business.

The deal values the unit, which provides risk management services for the uncleared derivatives market, at 850 million British Pounds, according to the company.

The investing banks, which include Bank of America, Barclays, and J.P. Morgan, will gain three seats on the board of the business.

Separately, LSEG will pay 1.15 billion British Pounds to increase its share of revenues from its SwapClear interest rate swaps clearing service.

This payment reduces the portion of revenue surplus shared with the banks, which are founding members of the service, the company said.

"Our partnership with SwapClear has been highly successful in growing and scaling the first interest rate swaps clearing service into an established and profitable business," said Troy Rohrbaugh, Co-CEO of Commercial & Investment Bank at J.P. Morgan.

"We see great opportunity for the many benefits associated with clearing such as risk management, standardisation and efficiencies, to be replicated by those trading uncleared derivatives."

LSEG stated the transaction is expected to boost its adjusted earnings per share by 2-3% in 2025, with the deal anticipated to close during the year.