Following its acquisitions of MayStreet and Tora earlier this year, London Stock Exchange Group (LSEG) has now turned its sights on the derivatives post trade space by agreeing to acquire Acadia, a provider of derivatives margin processing and risk and optimisation services.
Acadia, established in 2009, 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 provide direct connectivity to over 2,000 market participants, enabling over $1 trillion in collateral exchanges daily.
Following completion, Acadia will be part of LSEG’s Post Trade division, with CEO, Chris Walsh reporting to Daniel Maguire, Group Head of Post Trade, LSEG.
“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,” commented Maguire. “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.”
Wlash added: “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.”
LSEG originally took a minority stake in Acadia in 2018 and since then has supported the business in driving substantial growth. The two companies share a commitment to an open model, giving customers a choice as to how they process trades. This transaction aims to strengthen LSEG’s provision of resilient and systemically important financial market infrastructure to its customers.
The terms of the transaction, which is subject to regulatory approval, have not been disclosed.
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