London Stock Exchange to buy ex director Stephen O’Connor’s risk firm

London Stock Exchange to buy risk administration firm based by former director for £274m

Ex-Morgan Stanley banker Stephen O’Connor is promoting risk administration service Quantile  to the London Stock Exchange

A former director of the London Stock Exchange Group will money in when it buys the company he based for £274million. Ex-Morgan Stanley banker Stephen O’Connor based risk administration service Quantile in 2015.

The 59-year-old owns between 25 per cent and 50 per cent of the firm so will web up to £137million from the LSEG sale, which is about to be accomplished subsequent year. The sale continues LSEG’s growth past simply share buying and selling.

Quantile is a spinoff buying and selling software that helps banks and hedge funds minimise risk. The platform’s two most important providers are compression, which goals to make buying and selling extra environment friendly, and optimisation, which helps handle risk. 

In its most up-to-date submitting on Companies House, Quantile mentioned it made £11.7million in gross sales in 2020, which was up from £8.6million in 2019. It reported a £4million loss for the year after making £692,000 revenue in 2019.

Co-founder O’Connor began his career with a three-year stint as an engineer after a level within the topic from Imperial College London.  He switched fields to tackle an accounting function with large 4 firm PwC in 1984 the place he stayed for 4 years.

For most of his career – virtually 25 years – he labored at funding financial institution Morgan Stanley the place he was a member of the fastened earnings division’s administration committee.

O’Connor has labored with regulators on monetary providers market reform together with as chairman of the International Swaps and Derivatives Association from 2011 to 2014.

He additionally labored with the Government on a project began in 2010 exploring how computer buying and selling in monetary markets would change by 2022. 

The City veteran was a non-executive director on LSEG’s board from 2013 till August this year and stays on the board of the London Stock Exchange, a part of LSEG.

After the sale Quantile will sit as a company in LSEG’s post-trade division, which goals to assist traders lower risk and improve effectivity. 

The head of the post-trade division Daniel Maguire mentioned the acquisition builds on its ‘strong growth’.

O’Connor’s co-founder and Quantile chief government Andrew Williams mentioned the businesses have ‘many of the same values’ and he was ‘delighted’ with the settlement. He mentioned: ‘I look forward to working with Daniel and the team.’

LSEG purchased knowledge supplier Refinitiv in 2019 for £22billion in an try to capitalise on more and more profitable knowledge providers and rival Bloomberg as a supplier. 

It was praised on the time however the price of integrating Refinitiv into LSEG has spooked traders and shares within the group have fallen 26.75 per cent this year.


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