LSEG Strengthens Its Hand in SwapClear Revenues
Beyond the sale, the transaction also restructures LSEG’s revenue-sharing agreement for its SwapClear business — a key player in the global OTC interest rate swap clearing market.
Previously, the banks were entitled to receive 30% of SwapClear’s surplus revenue until 2035. Under the new terms, that share will drop to 15% in 2025 and 10% from 2026 onward, significantly increasing LSEG’s retained earnings.
To compensate for the shift, LSEG will pay £1.15 billion in cash to the banks — a strategic trade-off that allows it to capture a greater portion of future profits.
“Material Efficiencies” Across Markets
Daniel Maguire, LSEG’s Head of Markets, emphasized that the partnership marks a pivotal moment for the industry:
“Our partners are committed to our shared vision — to bring material efficiencies across capital, risk, and operations in the bilateral OTC derivatives market.”
The deal is expected to close by the end of 2025, with LSEG projecting robust long-term returns.
In addition, the exchange said it will return £1 billion to shareholders by February 2026, following a 4.8% rise in gross profit to £2 billion in its latest quarterly results — up from £1.9 billion during the same period last year.
