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CME Group, ​IHS Markit To Form Post-Trade Services Joint Venture For OTC Markets

Derivatives exchange owner CME Group and data and analytics provider IHS Markit have agreed to combine their post-trade services into a new joint venture. The new company will include trade processing and risk mitigation operations and will incorporate CME Group’s optimization businesses –Traiana, TriOptima, and Reset – and IHS Markit’s MarkitSERV.   

“As OTC derivatives markets become increasingly fragmented, market participants are seeking to more effectively manage their risk and optimize their balance sheets,” said Terry Duffy, CME Group Chairman and Chief Executive Officer. “By combining the strengths of these diverse businesses into one organization, the joint venture will be better positioned to serve clients worldwide by driving innovation, developing valuable products and providing operational efficiencies.” 

“As the trade processing ecosystem continues to evolve, we believe there is an opportunity to reduce operational complexity and deliver additional value to customers,” said Lance Uggla, IHS Markit Chairman and Chief Executive Officer. “Through our combined resources and best-of-breed services, we will have a strengthened framework to serve dynamic global markets and design new solutions in partnership with our joint customer base.”

The transaction is expected to close in summer 2021 subject to customary antitrust and regulatory approvals and other customary closing conditions. 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 were not disclosed.


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