LSEG announces £274m deal for Quantile, OTC derivatives optimisation platform

Rick Steves

Acquiring Quantile furthers LSEG’s strategy of providing customers with a multi-asset class financial markets infrastructure operating across the trading ecosystem.

London Stock Exchange Group has agreed to acquire Quantile Group Limited, a provider of portfolio, margin and capital optimisation and compression services, for up to £274 million.

Founded in 2015 by experts in risk management, quantitative analysis, and trading technology, Quantile offers an optimisation engine platform for advanced trade compression and risk rebalancing.

The deal is expected to close in 2022, subject to antitrust and other regulatory approvals.

Optimisation engine platform for OTC derivatives

Banks, hedge funds, and other financial institutions trading OTC derivatives may rejoice as LSEG acquires Quantile’s technology.

The inclusion of Quantile will help LSEG to expand its range of Post Trade risk management solutions to its customers through trade compression, capital and margin optimisation services.

The solution is complementary to LSEG’s global OTC Derivatives clearing services, which provide risk management and capital efficiencies to customers.

Quantile will be made available on an Open Access basis that will continue to offer customers the choice of where to clear, compress and optimise their trading activity.

Quantile will remain a standalone entity

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 will remain a standalone entity within LSEG’s Post Trade division, reporting to Daniel Maguire, LSEG’s Group Head of Post Trade.

The deal may go up to a maximum aggregate consideration of £274 million, subject to customary adjustments. The acquisition is being funded from existing cash resources and credit facilities.

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