Post Trade Solutions

Post Trade Solutions brings together Acadia, Quantile and SwapAgent to streamline operations, reduce risk and improve capital efficiency for our customers. Individually, we’re experts in our field. Together, we’re changing post trade for the better.

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Overview
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Post Trade Solutions enables customers to increase efficiency and optimise capital across the post trade landscape. By connecting with existing cleared infrastructure we bring the benefits of clearing to the bilateral space, driving efficiency no matter where customers choose to trade their risk.

We work with the market to identify pain points so we can provide solutions that materially improve processes and reduce costs. By bringing together three innovative businesses we aim to reinvent the post trade landscape.

$700 trillion.That's the growing size of the global OTC derivatives market.While clearing houses efficiently process and hold$450 trillion of that figure.What happens to the remaining $250 trillion?Well, that remains uncleared.Every institution calculates its own version of reality,reconciles with counterparties,resolves disputes, manages risk, and repeats the cycle the next day.That's millions of trades, thousands of counterparties.Yet still no centralised ledger.Still no consistent process.This source of endless reconciliation, dispute and cost is a choice.That's where change is needed.What if the future of derivatives could minimise counterparty risk daily?What if it could be fully automated across the entire network?What if it could be based on authoritative data?And finally, a single source of truth?This would be true industry wide transformation.And it isn't just a vision.It's now becoming a reality.For years, LSEG has been working with the industry,to make continual improvements.Now, we are building the infrastructure to reshape the future,delivering the benefits of clearing to the bilateral space.Introducing LSEG Post Trade Solutions.Together, we will streamline workflows and operations,centralise data on open access platforms,optimise to reduce risk and improve capital efficiency,analyse to simplify regulatory compliance,and advise our community of over 3,000 firmsto solve the industry's most complex challenges.This isn’t just an incremental improvement, it's a necessary shift.The more institutions adopt Post Trade Solutions,the stronger, safer, and more efficient the market becomes.We believe we have the key components in place to build and deliver this vision,and are excited to work with our clients to make this a reality.Post Trade Solutions is backed by the network, scale and stability of LSEG,with decades of expertise and deep market relationships,its ability to deliver transformation at an industry-wide level is already proven.The industry has waited long enough.It's time for a single source of truth.It's time for solutions built for the future.It's time for LSEG’s Post Trade Solutions.

Post Trade Solutions fact sheet

5.0MB • PDF

To help you overcome your pain points, we’ve brought together three innovative businesses:

Bringing the benefits of clearing to the bilateral space

Driving down the cost of capital to boost trading capacity

Providing enhanced risk management across the trade lifecycle

Delivering unparalleled operational efficiency

Enabling continuous innovation through collaboration with our customers

We’re incrementally transforming post trade

Acadia Workflow overview. Post Trade Solutions brings the benefits of clearing to the bilateral space. Trading cycle from… Trade Matching & Affirmation has 3 blocks. 1. Bilateral Solutions - Bilateral agreements - Collateral management - Margin workflows. 2. Centralised Solutions - Standard legal framework & rulebook - Central calculations - trade cashflows - variation margin. 3. LCH, Cleared CCP - Standard legal framework & rulebook - Central calculations - Central risk & initial margin management - Settlement services - Default management, Covering 4 aspects. 1. Initial Margin: IM calculation & reconciliation. 2. Settlement: STP, netting & funding optimisation. 3. Authoritative Data Store: Golden source of trade & agreement data. 4. Optimisation: Optimise risk, notional, capital & IM. To complete the Trading cycle.

From an ecosystem where each participant:

Independently stores trade data
Maintains significant bilateral reconciliation processes
Supports multiple post trade workflows

To a seamless process where:

Workflows are delivered through centralised services backed by authoritative trade data
The process is fully automated
Risk is reduced while optimising capital and cost

Post Trade Solutions is a great example of how LSEG is helping customers like us to manage risk, comply with increased regulations and optimise capital.  In consultation with Goldman and market participants, LSEG is seeking to import best practices and innovation from the cleared markets to the uncleared markets. As a result, I expect that the industry will have much better tools at our fingertips to manage our risk as well as optimise our capital footprint.