LSEG to acquire Acadia 19 December 2022UK Reporter: Carmella Haswell
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The London Stock Exchange Group (LSEG) is to acquire automated uncleared margin processing provider Acadia, subject to regulatory approval.
The acquisition furthers LSEG’s strategy to enhance and grow its multi-asset post-trade offering for the uncleared derivatives space.
LSEG has held a minority stake in Acadia since 2018 and has supported the business in driving growth in recent years.
Acadia provides risk management, margining and collateral services to global financial institutions for the uncleared derivatives markets.
The firm’s risk and margining products span all over-the-counter (OTC) derivative asset classes and provide connectivity to market participants.
The transaction is expected to strengthen LSEG’s provision of resilient and systemically important financial market infrastructure to its customers, says LSEG.
Both firms say they share a commitment to an open model, giving customers a choice as to how they process trades.
Following the completion of the acquisition, Acadia will be part of LSEG’s post trade division, with Acadia CEO Chris Walsh reporting to Daniel Maguire, group head of post trade at LSEG.
Commenting on the news, Maguire says: “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.”
Walsh adds: “This transaction is a significant milestone for our business, 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.”
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