London Stock Exchange Group plc (LSEG) revealed on Monday it has agreed to acquire Acadia, a provider of automated uncleared margin processing and integrated risk and optimisation services. The move further strengthens LSEG’s growth strategy for its multi-asset Post Trade offering for the uncleared derivatives space.
The terms of the deal have not yet been disclosed.
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.
Established in 2009, Acadia provides risk management, margining and collateral services to global financial institutions for the uncleared derivatives markets. The company’s risk and margining products cover all OTC derivative asset classes and offer direct connectivity to more than 2,000 market participants. According to the official announcement, Acadia enables more than $1 trillion in collateral exchanges daily.
LSEG purchased a minority stake in Acadia in 2018.
Chris Walsh, CEO, Acadia commented:
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.
Acadia complements LSEG’s Post Trade capabilities with its domain expertise in margining, collateral and risk management. The deal will enhance LSEG’s provision of financial market infrastructure to customers. The two companies share a goal to offer customers a choice on how they process trades.
On completion of the acquisition deal, Acadia will become part of LSEG’s Post Trade division. Chris Walsh will be appointed CEO, reporting to Daniel Maguire, Group Head of Post Trade, LSEG.
Earlier this year, LSEG announced the acquisition of market data solutions provider MayStreet and digital identity verification firm GDC.
