London Stock Exchange Group revealed a major deal on October 23, 2025, where 11 top global banks agreed to buy a 20% stake in its Post Trade Solutions business for 170 million pounds. This move values the unit at 850 million pounds and boosts LSEG’s control over revenue from its SwapClear service, aiming to drive growth and efficiency in financial markets.
Deal Highlights and Financial Terms
The agreement lets these banks invest in Post Trade Solutions, a key part of LSEG’s operations that handles risk management for over-the-counter derivatives. This business earned 96 million pounds in revenue last year and posted a normalized EBITDA of 16 million pounds.
LSEG will pay 1.15 billion pounds to gain a bigger share of SwapClear’s revenue surplus. This payment splits into two parts, with 900 million pounds due in 2025 and 250 million pounds in 2026. An extra payment up to 200 million pounds could follow if growth targets hit.
The deal should lift LSEG’s earnings per share by 2 to 3 percent in 2025. It also extends the revenue sharing setup for SwapClear until 2045, down from 30 percent to 15 percent in 2025 and 10 percent from 2026 onward.
Experts see this as a smart step to align banks and LSEG closer, building on SwapClear’s success over 25 years. The unit has grown by offering strong risk tools and clearing services amid rising market demands.
Banks Involved and Their Views
The 11 banks stepping in are big players in global finance, all key users of LSEG’s clearing services. They include Bank of America, Barclays, BNP Paribas, Citi, Deutsche Bank, HSBC, JP Morgan, Morgan Stanley, Nomura, Societe Generale, and UBS.
Leaders from these banks shared positive thoughts on the deal. For example, Bank of America’s co-president stressed how tech teamwork boosts growth and risk handling. Barclays’ head noted the push for new solutions to cut costs and improve operations.
BNP Paribas’ executive called it a way to strengthen financial markets through better post-trade work. Citi’s markets head praised ongoing innovation for better risk management in uncleared derivatives.
JP Morgan’s co-CEO highlighted past wins with SwapClear and chances to expand benefits like standardization. Nomura and Societe Generale leaders echoed the focus on reducing risks and boosting efficiency for all market users.
This partnership adds three bank-nominated directors to the Post Trade Solutions board, giving them input on future plans.
Impact on LSEG’s Performance
LSEG reported strong third-quarter results alongside this news, with total income up 6.4 percent organically. Key areas like Risk Intelligence grew 13.9 percent, and FTSE Russell rose 9.3 percent.
The company raised its EBITDA margin outlook to about 100 basis points higher for 2025, not counting the deal’s extra boost. With the transaction, margins could improve by another 100 basis points.
LSEG’s CEO, David Schwimmer, said the move fits their strategy to partner on AI and data tools. They plan more share buybacks worth 1 billion pounds by February 2026, after recent returns of nearly 1 billion pounds.
| Key Financial Metrics | 2024 Figures | 2025 Projections |
|---|---|---|
| Post Trade Revenue | £96 million | Growth expected |
| Normalized EBITDA | £16 million | Margin boost |
| Deal Valuation | £850 million | 20% stake sold |
| Revenue Share Payment | €0.2 billion | Reduced to 10% |
| EPS Accretion | N/A | 2-3% in 2025 |
This table shows core numbers from the announcement, pointing to better profits and efficiency.
Markets reacted well, with LSEG shares up over 5 percent in early trading. Analysts predict this strengthens LSEG’s role in post-trade services amid global shifts like AI in finance.
Broader Market Effects
This deal reflects trends in financial markets, where banks and exchanges team up for better tech and risk tools. It comes as AI transforms trading, with LSEG partnering with firms like Microsoft and Databricks for data-driven insights.
Recent events, such as Goldman Sachs expanding in the Middle East and JP Morgan’s new headquarters, show growing investments in infrastructure. The push for efficiency in derivatives markets ties into regulatory changes and economic uncertainty.
Industry watchers note similar moves, like SGX FX partnering with BBVA for liquidity in Latin America. These steps aim to cut costs and improve operations across borders.
- Key benefits for banks: Strategic say in growth, shared innovation, and efficiency gains.
- For LSEG: More revenue control, stronger ties, and margin lifts.
- Market-wide: Better risk management and potential for new tools in uncleared trades.
Looking Ahead
The transaction should close in 2025, pending approvals. LSEG expects ongoing growth in subscriptions and AI products, with annual value up 5.6 percent at quarter’s end.
Experts forecast this model could inspire more partnerships in finance, especially as derivatives markets expand. With economic pressures, such deals help manage risks and support global trade.
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