The London Stock Exchange Group (LSEG) has moved to further expand its post-trade capabilities with the acquisition of Axoni’s post-trade technology.
The transaction remains subject to closing conditions and is expected to complete in the fourth quarter.
Amongst the new technology acquired by LSEG is Axoni’s Veris network, a post-trade lifecycle and reconciliation management platform for equity swaps that launched in 2020.
Veris streamlines the post-trade data reconciliation process and prevents cash flow breaks by enabling counterparties to share data associated with equity swap deals, positions, trades, and related cash flows, Axoni said.
Following the transaction, LSEG will own and operate the Veris network after a transition period.
“This acquisition represents a significant step forward in our efforts to modernise OTC derivative post-trade infrastructure,” said Greg Schvey, chief executive at Axoni.
“In recent years, we’ve partnered closely with LSEG to develop our trade processing applications and are confident they are the right party to help realise its growth potential.”
The deal follows LSEG’s acquisition of Acadia in 2022 in a bid to build out its multi-asset post-trade capabilities. Acadia provides risk management, margining and collateral services for the uncleared derivatives markets. LSEG had held a minority stake in the firm since 2018.
In the same year, the exchange group also received regulatory approval for its Quantile acquisition, also building out its post-trade division.