𝓤𝓷𝓲𝓽𝓮𝓭 𝓝𝓮𝔀𝓼

The London Stock Exchange Group (LSEG) has struck a deal to sell a minority stake in its Post Trade Solutions to a group of banks including JP Morgan and Barclays.

In an announcement alongside its latest financial results, LSEG said it will sell a 20% stake in the division to a group of 11 global banks.

The firms will pay a total of £170 million to invest into the Post Trade Solutions business, which provides risk management services to the uncleared derivatives market.

It will value the business, which generated revenues of £96 million and earnings of £16 million last year, at around £850 million.

The banks involved in buying a stake in the business are all significant customers of the division and LSEG’s clearing services.

It came as LSEG reported that profit margins are on track to be at the “top” of its guidance for the year after positive trading over the past quarter.

Total income grew by 6.4% over the quarter to the end of September, as it was buoyed by strong growth in its risk intelligence arm, which grew 13.9%.

Meanwhile, it saw 9.3% growth in its FTSE Russell business and a 4.9% rise in data and analytics.

The company also hailed “continued strong” growth across its subscription businesses.

David Schwimmer, chief executive of LSEG, said: “We continued our strong momentum in Q3, driving growth across all business lines.

“We are also improving profitability and are now expecting EBITDA (earnings before interest, tax, depreciations and amortisation) margin at the top of guidance for 2025.

“We have significantly accelerated our strategic progress in the last few months, driving the long-term growth potential of the business: we have launched a series of innovative new products for customers positioning LSEG as the partner of choice in AI with the likes of Microsoft and Databricks.”

Shares in the FTSE 100 firm moved 6% higher in early trading.