London Stock Exchange Group (LSEG) has acquired a minority stake of 16 percent in AcadiaSoft.
Alongside LSEG’s investment, LCH SwapAgent and AcadiaSoft have signed a heads of terms for an agreement to deepen collaboration on new products.
The new products are aimed at automating and standardising the margin process for non-cleared derivatives.
The proposed collaboration provides the opportunity for the two firms to work together to provide market participants with a simplified operational process for margin calculation.
As part of the collaboration, LCH SwapAgent would provide its independently calculated collateral information to AcadiaSoft Hub (The Hub).
This would help the customers who use The Hub to improve processing efficiency and reduce margin disputes.
Daniel Maguire, CEO, LCH group and member of the executive committee, LSEG, said: “The acquisition of a stake in AcadiaSoft underlines our strategy to expand into the non-cleared space, an area in which AcadiaSoft has considerable experience.”
“The non-cleared margin rules continue to impact the dealer and buy-side community, and it is crucial that integrated services are available to support market participants in reducing risk while maximising their capital and operational efficiencies.”
Maguire, added: “LCH SwapAgent 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, AcadiaSoft, commented: “We welcome this investment and we’re excited to embark on this new opportunity to collaborate so we can bring more products to LCH SwapAgent and AcadiaSoft’s 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.”
