The London Stock Exchange Group (LSEG) has strengthened ties with major global banks after confirming a 拢170 million investment in its Post Trade Solutions arm, valuing the business at 拢850m.聽
Eleven leading banks – Bank of America, Barclays, BNP Paribas, Citi, Deutsche Bank, HSBC, J.P. Morgan, Morgan Stanley, Nomura, Societe Generale and UBS – will take a 20% stake in the company.聽
The announcement coincided with the company鈥檚 Q3 2025 results, which showed continued growth across all divisions and rising profitability.聽
Total income reached 拢2.3 billion, up from 拢2.2bn a year earlier.聽
Gross profit increased 6.5% to just over 拢2bn, as cost of sales grew more slowly than revenue.
LSEG鈥檚 Data & Analytics division generated 拢982m in revenue, up 4.9%, while FTSE Russell climbed 9.3% to 拢241m.
Post Trade Solutions, which provides risk and operations technology for the over-the-counter (OTC) derivatives market, recorded 拢96m in revenue and 拢16m in EBITDA in 2024.聽
Under the new deal, the organisation will also increase its share of revenue from the SwapClear business, cutting the founding banks鈥� revenue entitlement from 30% to 15% in 2025 and to 10% from 2026.聽
LSEG will pay 拢1.15bn over two years for this change, with up to 拢200m more dependent on performance.
鈥淲e continued our strong momentum in Q3, driving growth across all business lines,鈥� said LSEG chief executive, David Schwimmer.聽
鈥淲e are also improving profitability and are now expecting EBITDA margin at the top of guidance for 2025.聽
鈥淲e have significantly accelerated our strategic progress in the last few months, driving the long-term growth potential of the business: we have launched a series of innovative new products for customers positioning LSEG as the partner of choice in AI with the likes of Microsoft and Databricks.
鈥淭oday we are announcing a significant transaction in our post trade business: a group of leading banks is acquiring a 20% stake in Post Trade Solutions, and in parallel we have amended and extended the revenue share arrangements within SwapClear.聽
鈥淭his deal strengthens our partnership and strategic alignment with key customers, while delivering attractive margin and earnings enhancement.聽
鈥淗aving returned nearly 拢1bn to shareholders through buybacks in the last three months, we are committing to a further 拢1bn by February 2026.鈥�
Daniel Maguire, head of markets and CEO of LCH Group, which operates SwapClear, added: 鈥淥ur SwapClear business was at the forefront of innovation when it was founded in collaboration with our clearing members 25 years ago – and that spirit continues today.聽
鈥淲ith this proven track record of success, I鈥檓 pleased our partners are committed to continuing the approach with our Post Trade Solutions business.鈥�
LSEG is also looking to continue expanding its technology footprint through partnerships with Microsoft, Databricks, Rogo and Snowflake, embedding its data into AI and analytics tools used across global finance.聽
It has also launched an Azure-based trade routing network for 1,600 investment firms and is rolling out new AI features on its Workspace platform.
The group has completed 拢938m of its current 拢1bn share buyback and will begin a new 拢1bn programme by early 2026, taking total capital deployment for 2025 to around 拢3.5bn.
It comes as welcome news for the group which has suffered in the markets so far this year, seeing its share price dip by 20% in 2025.
Today, it is up by over 5% to 9,172p and holds a market cap of 拢44.83bn, as it enters the last quarter of 2025 with 鈥渟trong momentum, accelerating profitability and clear strategic direction鈥�.
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