LONDON and CHICAGO,
Jan. 12, 2021 /PRNewswire/ -- CME
Group (NASDAQ: CME), the world's leading and most diverse
derivatives marketplace, and IHS Markit (NYSE: INFO), a world
leader in critical information, analytics and solutions, today
announced that they have agreed to combine their post-trade
services into a new joint venture.
The new company will include trade processing and risk
mitigation operations. It will incorporate CME Group's
optimization businesses –Traiana, TriOptima, and Reset – and IHS
Markit's MarkitSERV.
The combination of these complementary offerings will provide
clients with enhanced platforms and
services for global OTC markets across interest
rate, FX, equity and credit asset classes. Market participants will
benefit from a more efficient front-to-back workflow with enhanced
connectivity and improved trading certainty. As a result, OTC
market participants will be able to improve risk management and
streamline post-trade operations.
"As OTC derivatives markets become increasingly fragmented,
market participants are seeking to more effectively manage their
risk and optimize their balance sheets," said Terry Duffy, CME Group Chairman and Chief
Executive Officer. "By combining the strengths of these diverse
businesses into one organization, the joint venture will be better
positioned to serve clients worldwide by driving innovation,
developing valuable products and providing operational
efficiencies."
"As the trade processing ecosystem continues to evolve, we
believe there is an opportunity to reduce operational complexity
and deliver additional value to customers," said Lance Uggla, IHS Markit Chairman and Chief
Executive Officer. "Through our combined resources and
best-of-breed services, we will have a strengthened framework to
serve dynamic global markets and design new solutions in
partnership with our joint customer base."
Traiana, TriOptima and Reset offer a wide range of pre- and
post-trade services with capital efficiencies across markets,
delivering trade processing connectivity, credit controls,
optimization and risk mitigation solutions.
MarkitSERV provides end-to-end trade processing and workflow
solutions that support all participants across the derivatives and
FX markets, from post-trade notices of execution, trade
confirmation and allocations to clearing and reporting.
The transaction is expected to close in summer 2021 subject to
customary antitrust and regulatory approvals and other customary
closing conditions.
At closing, IHS Markit will make an equalization payment of
$113 million to CME Group to achieve
50/50 ownership and shared control in the joint venture.
Further financial terms were not disclosed.
About CME Group
As the world's leading and most diverse derivatives marketplace,
CME Group (www.cmegroup.com) enables clients to trade futures,
options, cash and OTC markets, optimize portfolios, and analyze
data – empowering market participants worldwide to efficiently
manage risk and capture opportunities. CME Group exchanges offer
the widest range of global benchmark products across all major
asset classes based on interest rates, equity
indexes, foreign exchange, energy, agricultural
products and metals. The company offers futures and
options on futures trading through the CME Globex® platform, fixed
income trading via BrokerTec and foreign exchange trading on the
EBS platform. In addition, it operates one of the world's
leading central counterparty clearing providers, CME
Clearing. With a range of pre- and post-trade products and
services underpinning the entire lifecycle of a trade, CME Group
also offers optimization and reconciliation services through
TriOptima, and trade processing services through Traiana.
CME Group, the Globe logo, CME, Chicago Mercantile Exchange,
Globex, and, E-mini are trademarks of Chicago Mercantile Exchange
Inc. CBOT and Chicago Board
of Trade are trademarks of Board of Trade of the City of Chicago, Inc. NYMEX, New York
Mercantile Exchange and ClearPort are trademarks of New York
Mercantile Exchange, Inc. COMEX is a trademark of Commodity
Exchange, Inc. BrokerTec, EBS, TriOptima, and Traiana are
trademarks of BrokerTec Europe LTD, EBS Group LTD, TriOptima AB,
and Traiana, Inc., respectively. Dow Jones, Dow Jones
Industrial Average, S&P 500 and S&P are service and/or
trademarks of Dow Jones Trademark Holdings LLC, Standard &
Poor's Financial Services LLC and S&P/Dow Jones Indices LLC, as
the case may be, and have been licensed for use by Chicago
Mercantile Exchange Inc. All other trademarks are the
property of their respective owners.
About IHS Markit (www.ihsmarkit.com)
IHS Markit (NYSE: INFO) is a world leader in critical
information, analytics and solutions for the major industries and
markets that drive economies worldwide. The company delivers
next-generation information, analytics and solutions to customers
in business, finance and government, improving their operational
efficiency and providing deep insights that lead to well-informed,
confident decisions. IHS Markit has more than 50,000 business and
government customers, including 80 percent of the Fortune Global
500 and the world's leading financial institutions. Headquartered
in London, IHS Markit is committed
to sustainable, profitable growth.
CME-G
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SOURCE CME Group