London Stock Exchange Group has agreed to acquire Quantile Group Limited for a maximum aggregate consideration of up to £274 million.
Portfolio, Margin, Capital Optimisation and Compression
Quantile will remain a standalone entity within LSEG’s Post Trade division, reporting to Daniel Maguire, LSEG’s Group Head of Post Trade.
LSEG will be able to leverage Quantile’s optimisation engine that provides advanced trade compression and risk rebalancing services to banks, hedge funds and other financial institutions trading OTC derivatives.
The portfolio, margin and capital optimisation and compression services will join LSEG’s range of Post Trade risk management solutions.
Daniel Maguire, Group Head, Post Trade, LSEG & CEO, LCH Group, said: “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. I look forward to working with Andy and his team at Quantile to further support innovation for the market and develop our businesses.”
Andrew Williams, CEO, Quantile, said: “I am delighted with this agreement to become part of LSEG. Quantile and LSEG share many of the same values, including a culture of innovation and a focus on delivering market leading services. I look forward to working with Daniel and the team to accelerate our growth and to continue to deliver efficiencies and portfolio optimisation for our customers and the wider OTC derivatives marketplace.”
Quantile Chairman and minority shareholder Stephen O’Connor was a Senior Independent Director of LSEG. He stepped down from the LSEG Board on 6 August 2021, but remains a director of LSEG’s subsidiary, London Stock Exchange plc.
The acquisition is being funded from existing cash resources and credit facilities and is expected to close in 2022, subject to antitrust and other regulatory approvals.
LSEG loses talents from Refinitiv and FXall
LSEG has recently acquired Refinitiv for an astronomical sum of $27 billion and, as usual, the merger led to executive moves. The most recent one was FXall General Counsel Jim Sullivan, who left LSEG to join oneZero Financial Systems.
His wealth of experience in the legal side of the trading industry has been sought by committees involved in the governance and compliance of FX trading and overall financial regulation.
Jim Sullivan helped the Federal Reserve Bank of New York’s Foreign Exchange Committee in designing policy relating to MTFs (multilateral trading facilities) and SEFs (swap execution facilities).
His legal experience also includes jurisdictional approval in several countries and customer agreements.
