The London Stock Exchange Group (LSEG) will be acquiring financial services provider Quantile Group in a deal valued at GBP 274 million (US$364 million). The acquisition is expected to close in 2022.

Quantile will support LSEG’s global OTC Derivatives clearing services, helping the company to expand its post trade risk management customer solutions, according to a statement.

The acquisition will enable LSEG’s to tap into Quantile’s trade compression, capital and margin optimisation services.

Quantile’s optimisation engine provides banks, hedge funds and financial institutions trading OTC derivatives, with advanced trade compression and risk rebalancing capabilities.

The 2015-founded Quantile will work as an independent entity within LSEG’s Post Trade division. Quantile was co-founded by chairperson Stephen O’Connor, who is also a minority shareholder in the company.

O’Connor was the senior independent director on LSEG’s board until August, and remains a director of the London Stock Exchange. O’Connor is in line for a payout from the takeover because he is a shareholder in Quantile.

LSEG and Quantile’s services will be made available on an open access basis where customers can choose where to clear, compress and optimise their trading activity.

“The acquisition of Quantile builds on the strong growth delivered by LSEG and our Post Trade division.

 

It significantly enhances LSEG’s multi-asset class customer offering across the transaction lifecycle by providing more sophisticated tools and infrastructure for customers to optimise their financial resources and drive greater operational efficiencies in OTC derivatives,”

said Daniel Maguire, Group Head, Post Trade, LSEG & CEO, LCH Group.

Featured image credit: Photo by David Vincent on Unsplash