CME Group and IHS Markit create post trade joint venture
Market data companies, CME Group and IHS Markit, have signed a joint venture combining their post trade services.
The new company will combine CME’s Traiana, TriOptima, and Reset solutions with IHS Markit’s MarkitServ.
IHS Markit is making equalisation payment of $113 million to CME Group to achieve 50/50 ownership and shared control in the joint venture.
The first three systems provide pre- and post-trade services. The latter offers trade processing, connectivity, credit controls, and risk mitigation.
CME and IHS Markit say the combination will provide clients with enhanced platforms and services for global over-the-counter (OTC) markets.
Terry Duffy, CME Group chairman, says market participants are seeking to more effectively manage their risk.
“By combining the strengths of these diverse businesses into one organisation, the joint venture [can] serve clients worldwide.”
The transaction will close in summer 2021 subject to customary antitrust and regulatory approvals.
The joint venture announcement arrives a few days after IHS Markit confirmed its capture of compliance firm Cappitech.
IHS Markit is involved in another takeover saga, as data firm, S&P Global, seeks to acquire it in a deal worth around $44 billion.