The London Stock Exchange Group (LSEG) has bought a minority stake of around 16 per cent in risk workflow tech solutions company Acadiasoft, as part of a deal to service the non-cleared derivatives market.
Alongside the investment, multi-asset clearing house group LCH, which is majority owned by LSEG, has signed an agreement with Acadiasoft to collaborate on new products aimed at automating the margin process for non-cleared derivatives.
LCH Group chief executive and member of LSEGs executive comittee Daniel Maguire said that the acquisition is part of the exchanges strategy to move into the non-cleared space, and as non-cleared margin rules continue to impact the dealer and buy-side community.
He added: "It is crucial that integrated services are available to support market participants in reducing risk while maximising their capital and operational efficiencies.
"LCH Swap Agent brings our expertise in managing risk, and operational resilience to the bilateral market and we are delighted to be collaborating with Acadiasoft to foster further innovation in this market."
Chris Walsh, CEO of Acadiasoft, said: “We welcome this investment and were excited to embark on this new opportunity to collaborate so we can bring more products to LCH Swap Agent and Acadiasofts mutual customer base. We see our services as extremely complementary and look forward to continuing to bring standardisation and simplicity to the non-cleared market.”