The London Stock Exchange Group (LSEG) has acquired a minority stake of approximately 16 percent in Acadiasoft, a risk workflow tech solutions company. The acquisition is part of a deal that aims to service the non-cleared derivatives market.
Alongside the said investment, LCH, a multi-asset clearinghouse group that is majority owned by LSEG, has signed an agreement with Acadiasoft to collaborate on a series of new products that are aimed at automating the margin process for the non-cleared derivatives.
Daniel Maguire, the chief executive of LCH Group and a member of the executive committee of LSEG, said that the said acquisition is a part of the strategy of the exchange to move into the non-cleared space, and as the rules on non-cleared margin continue to affect the dealer and buy-side community.
Maguire continued: “It is crucial that integrated services are available to support market participants in reducing risk while maximising their capital and operational efficiencies.
He added: “LCH Swap Agent brings our expertise in managing risk, and operational resilience to the bilateral market and we are delighted to be collaborating with Acadiasoft to foster further innovation in this market.”
The CEO of Acadiasoft, Chris Walsh, stated: “We welcome this investment and we’re excited to embark on this new opportunity to collaborate so we can bring more products to LCH Swap Agent and Acadiasoft’s mutual customer base. We see our services as extremely complementary and look forward to continuing to bring standardisation and simplicity to the non-cleared market.”
He added: “This investment by London Stock Exchange Group is a significant building block to a fully automated post-trade process for OTC derivatives and is a testament to the continued strong industry support for AcadiaSoft.”
Walsh continued: “By integrating LCH SwapAgent with the AcadiaSoft Hub, we can significantly reduce disputes in uncleared markets and create the path to a single, standard cross-market margin process. LCH’s addition to our existing board structure will further strengthen our collaborative approach.”