The London Stock Exchange is working with a group of major investment banks, including Goldman Sachs and JP Morgan, on a new swap futures contract that will form part of plans to build its derivatives franchise.

People familiar with the matter said that Bank of America Merrill Lynch and Barclays are also involved in the current discussions, while the LSE has approached others about joining the project. Financial News first reported in February that the LSE had spoken to around 10 banks about the project.