CME Group and IHS Markit have launched OSTTRA, a new post-trade services company joint venture.
OSTTRA, 50/50 owned by CME Group and IHS Markit, is a provider of progressive post-trade solutions for the global OTC markets across interest rate, FX, equity and credit asset classes. It incorporates CME Group’s optimization businesses –Traiana, TriOptima, and Reset – and IHS Markit’s MarkitSERV. Headquartered in London, OSTTRA will be led by Co-CEOs Guy Rowcliffe and John Stewart.
Rowcliffe will serve as Co-CEO and Chief Commercial Officer, with oversight for leading the company’s full product portfolio and sales teams. Most recently, Rowcliffe was Global Head of Optimization Services at CME Group and Head of TriOptima and Reset. Previously, he was Head of Asia Pacific for NEX Group’s post-trade and optimisation businesses.
Stewart will serve as Co-CEO and Chief Operating Officer responsible for leading business strategy, operations and technology as well overseeing corporate services and finance. He has extensive experience in institutional and investment banking including serving as global head of investment banking operations and chief data officer at UBS, and in various operations and technology roles in derivatives and securities businesses at JP Morgan.
“These complementary businesses provide clients with enhanced platforms and services for global OTC markets,” says Terry Duffy, CME Group Chairman and Chief Executive Officer. “The combined force of the product suite ensures a streamlined post-trade ecosystem that will help clients drive even greater efficiencies. As the demands for automation continue to transform the post-trade landscape, OSTTRA will be at the forefront of helping market participants build a secure and sustainable market infrastructure.”
“OSTTRA brings together the people, processes and networks to solve the market’s most pressing problems through innovating, integrating and optimising the post-trade workflow,” adds Lance Uggla, Chairman and CEO of IHS Markit. “John, Guy and the team have the experience and vision to meet the increasingly complex post-trade challenges of today and address the operational needs of the future.”
The terms of the deal included a USD113 million equalisation payment from IHS Markit to CME Group to achieve 50/50 ownership and shared control in the joint venture. Further financial terms were not disclosed.