Trade workflow applications and real-time data replication technology provider Axoni has agreed to sell its post-trade processing business and related intellectual property to the London Stock Exchange Group (LSEG).
Launched in 2020, Veris is a post-trade reconciliation and lifecycle management platform for equity swaps, used by leading banks and asset managers. The platform streamlines data reconciliation and prevents cash flow discrepancies by allowing counterparties to share and compare data associated with equity swap deals, positions, trades, and related cash flows.
“Axoni and LSEG have collaborated closely for many years,” Greg Schvey, CEO, Axoni, tells TradingTech Insight. “We believe LSEG is the right party to help maximise the business potential of the Veris business as they continue to develop products and services within their Post Trade Solutions business.”
Following a transition period, LSEG will take over the ownership and operation of the Veris network. The changeover will be seamless as all Veris customers will become LSEG customers, enjoying uninterrupted access to the platform, confirms Schvey. Veris customers will also continue to benefit from leveraging Axoni’s HYDRA data platform, which enables secure, real-time data replication between institutions. “There are additional market infrastructures who are implementing HYDRA currently, with more coming soon,” he says. “Axoni will continue to work with the leading institutions to help them share data in the easiest, most secure way possible.
Axoni has always been focused on solving the data coordination problem in capital markets, explains Schvey. “Historically, we’ve achieved that by partnering with large market infrastructures to help them develop new services that leverage the HYDRA platform to share data with their clients. Going forward we are increasingly licensing HYDRA to firms with existing market infrastructure systems where Axoni is not involved in the development process. We intend to expand the capabilities of HYDRA to different database types, data warehouses, cloud platforms and grow the business with additional financial services firms globally.”
The acquisition includes additional software designed to support post-trade processing for other derivative asset classes, which will boost LSEG’s post-trade capabilities following its acquisition of Acadia, a provider of derivatives margin processing and risk and optimisation services, in January last year.
The acquisition is expected to close in the fourth quarter of 2024, subject to standard closing conditions. Financial terms have not been made public.
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