Chicago's CME Group has acquired Credit Market Analysis (CMA), a London-based provider of credit derivatives market data to asset managers. Financial terms of the deal were not disclosed.
Under the deal CME, through its subsidiary CME Swaps Marketplace, will purchase 100% of the share capital of CMA, all of its operating assets and intellectual property.
The market data firm will become a wholly owned subsidiary of CME but continue to operate under the CMA brand and remain headquartered in London. CME says Laurent Paulhac will continue in his role as CMA's chief executive officer, whilst the rest of the management team is also expected to remain in place.
CMA offers two products to over-the-counter credit derivative market participants - the QuoteVision price discovery tool and the DataVision end-of-day pricing service.
CME says the QuoteVision system provides a clear structured view of live indicative quotes and capitalises on the "e-mail-based quoting model" prevalent in the credit default swap market. The system enables traders to view, organise and store quotes that they receive in real time, regardless of format, says the exchange.
Meanwhile the DataVision end-of-day pricing service provides objective buy-side consensus price verification data, says the CME.
CME says the acquisition will provide it with "greater exposure to the rapidly growing $46 trillion in notional outstanding credit derivatives market".
"It's impossible to overestimate the importance of accurate, timely and reliable sources of market data to the smooth functioning of financial markets, especially in today's environment," says CME CEO Craig Donohue. "Working together, we believe that we can expand CMA's existing services in the credit derivatives markets, as well as to additional asset classes that would benefit from additional transparency or central counterparty clearing services."
The deal comes a week after CME Group agreed a cash and stock deal worth around $9.4 billion to buy the New York Mercantile Exchange (Nymex).