London Stock Exchange Group plc (LSEG) today announces that it has agreed to acquire Acadia, a leading provider of automated uncleared margin processing and integrated risk and optimisation services for the global derivatives community. The acquisition furthers LSEG’s strategy to enhance and grow its multi-asset Post Trade offering for the uncleared derivatives space.

Acadia was established in 2009 and provides risk management, margining and collateral services to global financial institutions for the uncleared derivatives markets. Acadia’s risk and margining products span all OTC derivative asset classes and provide direct connectivity to over 2,000 market participants. The company enables over $1 trillion in collateral exchanges daily.

LSEG has held a minority stake in Acadia since 2018 and has supported the business in driving substantial growth in recent years.

With deep domain expertise in margining, collateral and risk management, Acadia is highly complementary to LSEG’s Post Trade capabilities. The transaction will strengthen LSEG’s provision of resilient and systemically important financial market infrastructure to its customers. LSEG and Acadia share a commitment to an open model, giving customers a choice as to how they process trades. 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.

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.”

Chris Walsh, CEO, Acadia said:

“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.”

The transaction is subject to regulatory approval. The terms of the transaction have not been disclosed.

Barclays is acting as sole financial adviser to LSEG and Broadhaven is acting as sole financial adviser to Acadia in relation to the transaction.