London Stock Exchange Group (LSEG) has secured a £170 million investment from 11 of the world's largest banks, which will strengthen its post-trade operations and strengthen relationships with key industry partners.
The investment, announced alongside the group’s Q3 2025 results, values LSEG’s post trade solutions arm at £850 million and marks another milestone in the company’s strategy to expand its data and risk management technology footprint.
Participating banks include Bank of America, Barclays, BNP Paribas, Citi, Deutsche Bank, HSBC, JP Morgan, Morgan Stanley, Nomura, Societe Generale and UBS, which will take a 20% stake in the post trade solutions business.
The announcement came as LSEG recorded another quarter of consecutive growth. Total income rose to £2.3 billion from £2.2 billion a year earlier, while gross profit rose 6.5% to more than £2 billion, as costs rose slower than revenues.
Its data and analytics division – home to key products such as Refinitiv and Workspace – posted revenue of £982 million, up 4.9%, while FTSE Russell rose 9.3% to £241 million.
The Post Trade Solutions business, which provides technology for the over-the-counter (OTC) derivatives market, brought in £96 million in revenue and £16 million in EBITDA last year.
Under the new structure, LSEG will increase its share of revenues from SwapClear, the central clearing service operated by its subsidiary LCH Group.
The revenue entitlement of the founder banks will drop from 30% to 15% in 2025, and then to 10% in 2026, while LSEG will pay £1.15 billion over two years to fund the change – with an additional £200 million linked to performance milestones.
Chief executive David Schwimmer said the transaction “strengthens our partnerships and strategic alignment with key customers” and “delivers attractive margin and earnings growth.”
“We continued our strong momentum in the third quarter, driving growth across all business lines. With our partnerships in AI and data analytics and a new phase of buyback, we are confident in LSEG's long-term growth potential.”
The group also reiterated its ambition to establish itself as a data and technology powerhouse in global finance. LSEG is expanding its collaboration with Microsoft, Databricks, Rogo and Snowflake, embedding their data into AI-powered analytics and trading platforms.
It has launched an Azure-based trade routing network connecting more than 1,600 investment firms, and new AI features on its Workspace platform are expected to go live before the end of the year.
LSEG has already completed £938 million of its current £1 billion share buyback, and will launch a further £1 billion program in early 2026 – bringing the total planned capital deployment to £3.5 billion.
The group's shares, which had fallen almost 20% earlier this year, rose more than 5% to 9,172p after the announcement, giving LSEG a market capitalization of £44.8bn.
Schwimmer said the company is entering the final quarter of 2025 “with strong momentum, growing profitability and clear strategic direction.”
Daniel Maguire, Head of Markets and CEO of LCH Group, said: “SwapClear was a leader in innovation 25 years ago. This transaction reaffirms that spirit – and our partners’ commitment to advancing the post-trade ecosystem.”
jamie young
Jamie is a senior reporter at Business Matters, with over a decade of experience in UK SME business reporting. Jamie has a degree in Business Administration and regularly attends industry conferences and workshops. When Jamie is not reporting on the latest business developments, he is passionate about mentoring budding journalists and entrepreneurs to inspire the next generation of business leaders.
