Markit, a provider of independent data, portfolio valuations and over-the-counter derivatives trade processing, has completed the acquisition of SwapsWire, the electronic trade confirmatio
Markit, a provider of independent data, portfolio valuations and over-the-counter derivatives trade processing, has completed the acquisition of SwapsWire, the electronic trade confirmation network for the OTC derivative markets, and expects to complete the full integration of the company by July.
According to the latest Markit Metrics report, trade confirmation backlogs in credit derivatives stabilised in the first quarter of this year at some 6,000 trades per dealer per month, relative to average monthly trading volumes of 25,000 trades per dealer.
However, Markit says, with OTC derivative markets continuing to grow at a rapid pace, market infrastructure will remain a key concern among regulators.
‘The combination of the Markit and SwapsWire trade processing platforms gives us critical mass and a global network at a time of increased consolidation in the vendor market,’ says Markit executive vice-president Jeff Gooch, co-head of trade processing and head of valuations. ‘As the industry focuses on cost reduction and improved risk management, the efficiency and scalability of the SwapsWire platform will become even more valuable.’
Adds co-head of trade processing Chip Carver: ‘We are enjoying record growth driven by increases in adoption of the platform and growth in trading volumes across the industry. By bringing SwapsWire and Markit together, we are able to offer market participants the powerful tools they need to overcome operational challenges.’
The integrated Markit Trade Processing services have been re-branded with immediate effect. Markit Trade Manager, previously MTP, provides comprehensive cross-asset class trade workflow and reporting services for buy-side clients, including links to Markit Wire and DTCC Deriv/Serv. Markit Tie Out, which forms part of Markit Trade Manager, allows buy-side and sell-side firms to affirm the key economics of trades on trade date.
Markit Wire, previously SwapsWire, is a trade date legal confirmation service with real time messaging and trade resolution. Markit PBWire is a trade acceptance service for prime brokers and their counterparties, while Markit PortRec is a portfolio reconciliation service.
The addition of SwapsWire’s workforce brings Markit’s total workforce to more than 650. Carver, SwapsWire’s chief executive, will join Markit’s executive team as co-head of MTP, based in New York, alongside London-based Gooch.
Markit acquired SwapsWire from Bank of America, Bank of Tokyo-Mitsubishi UFJ, Barclays Bank, Bayerische Hypo-und Vereinsbank, BNP Paribas, Calyon, Citi, CDC Ixis Capital Markets, Credit Suisse, Deutsche Bank, Goldman Sachs, HSBC Bank, J.P. Morgan Chase, Lehman Brothers, Merrill Lynch, Mizuho Capital Markets, Morgan Stanley, Royal Bank of Scotland, Société Générale, Sumitomo Mitsui Banking Corporation and UBS Investment Bank.
Markit Group, a provider of data, portfolio valuations and OTC derivatives trade processing to the global financial and commodities markets, receives daily data contributions from 90 dealing firms, and its services are used by almost 1,000 institutions to enhance trading operations, reduce risk and manage compliance.
