CME Group, IHS Markit To Combine Post-trade Services Into JV – Quick Facts

CME Group Inc. (CME), a derivatives marketplace, and IHS Markit Ltd. (INFO), a provider of critical information, analytics and solutions, said Tuesday 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 companies expect the transaction to close in summer 2021.

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 of the deal were not disclosed.

CME Group and IHS Markit noted that the combination of the 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.

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