30 April 2016
Find out more

Markit to buy SwapsWire

04 December 2007  |  16451 views  |  0 keyboard

UK market data vendor Markit has agreed in principle to acquire SwapsWire, the dealer-backed electronic trade confirmation network for OTC derivatives processing. Financial terms of the deal were not disclosed.

SwapsWire is owned by a consortium of 21 derivative dealers and employs 100 staff based in offices in London, New York and Tokyo.

The service, which launched in November 2002, enables market participants to complete trade date confirmation immediately upon execution.

Markit says it plans to combine the SwapsWire confirmation capabilities with its trade processing workflow platform to provide the OTC derivative markets with a cross-asset trade processing system. The enhanced platform will have over 200 buy-side institutions, 50 dealers and 45 inter-dealer brokers as clients.

The combined business will be co-headed by Jeff Gooch, EVP and head of trade processing and valuations at Markit and CEO of SwapsWire, Chip Carver.

Commenting on the acquisition, Markit CEO Lance Uggla, says: "The SwapsWire business is highly complementary to our current suite of data, valuations and processing products, and its confirmation capabilities fit neatly with Markit's affirmation and workflow services.

"The need to automate trade processing has never been more acute, and we believe that the combination of Markit and SwapsWire delivers critical mass and will underpin the future growth of these markets, positioning us as a multi-asset class solution with strong presence in rates, equities and credit."

Markit says the trade processing business will be an increasingly important part of its overall offering to clients.

The deal is expected to complete in early 2008, subject to agreement of definitive documents, due diligence, shareholder and regulatory approval.

Swapswire is the latest in a string of acquisitions by Markit. Last month the vendor bought out International Index Company (IIC), owner of the the iTraxx indexes, and CDS IndexCo, which owns the CDX indexes. Last year the Markit acquired Communicator, a New York-based provider of automated systems for OTC derivatives trade processing, US risk modelling firm Chasen and MarketXS Holding, a Dutch provider of data distribution and trading technology.

However, Aite Group senior analyst Brad Bailey says the Swapswire acquisition will solidify Markit's role "as a powerhouse brand in the derivatives space".

"Since the start of the subprime market meltdown, derivative volumes have greatly increased. This has put tremendous stress on the ability of the developing operational infrastructure to handle the volumes in an effective way," says Bailey. "By increasing its strength in derivatives processing with the acquisition of SwapsWire, Markit is giving the market exactly what it is looking for: an effective tool to handle the processing of derivatives without the myriad errors that plague the process."

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Markit buys IIC; to acquire CDS IndexCo

Markit buys IIC; to acquire CDS IndexCo

14 November 2007  |  10142 views  |  0 comments
Markit buys MarketXS

Markit buys MarketXS

04 September 2006  |  6635 views  |  0 comments
Swapswire appoints JPMorgan's Kerry Williams CTO; expands tech team

Swapswire appoints JPMorgan's Kerry Williams CTO; expands tech team

02 August 2006  |  5247 views  |  0 comments
Markit Group buys Communicator

Markit Group buys Communicator

10 May 2006  |  7950 views  |  0 comments
TradeWeb and SwapsWire team for OTC STP

TradeWeb and SwapsWire team for OTC STP

01 March 2006  |  8386 views  |  0 comments
RBS books first interest rate swap give-up trade on Swapswire

RBS books first interest rate swap give-up trade on Swapswire

07 February 2006  |  14871 views  |  0 comments
Swapswire signs seven to prime broker platform

Swapswire signs seven to prime broker platform

15 September 2005  |  6237 views  |  0 comments
Markit hires Meldrum to direct acquisition strategy

Markit hires Meldrum to direct acquisition strategy

22 June 2005  |  8085 views  |  0 comments
Swapswire signs 12 to new equity derivatives confirmation service

Swapswire signs 12 to new equity derivatives confirmation service

10 January 2005  |  3745 views  |  0 comments
SwapsWire rolls out buy-side service

SwapsWire rolls out buy-side service

01 July 2004  |  4129 views  |  0 comments
Swapswire signs five to credit default swap confirmation service

Swapswire signs five to credit default swap confirmation service

19 November 2003  |  4081 views  |  0 comments
Swapswire commences operations

Swapswire commences operations

14 November 2002  |  3482 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
Visit equens.comFind out moreVisit www.abe-eba.eu

Top topics

Most viewed Most shared
Morgan Stanley report dampens distributed ledger hypeMorgan Stanley report dampens distributed...
8564 views comments | 26 tweets | 28 linkedin
The digital interface is the future of bankingThe digital interface is the future of ban...
8521 views comments | 32 tweets | 25 linkedin
Deutsche Bank prepares for digital futureDeutsche Bank prepares for digital future
8315 views comments | 28 tweets | 53 linkedin
Apple Pay picks up 1 million new users a week; comes to ANZ customersApple Pay picks up 1 million new users a w...
7327 views comments | 20 tweets | 20 linkedin
ECB investigates use of distributed ledger but warns of far-reaching consequencesECB investigates use of distributed ledger...
6306 views comments | 16 tweets | 23 linkedin

Featured job

£100,000 basic, £180,000 OTE + Benefits
London

Find your next job