OTC Post-Trade Just Consolidated Further
CME and Markit have combined four post-trade business lines into one new business 'OSSTRA' including triOptima, MarkitSERV, Traiana and RESET.
CME and Markit have combined four post-trade business lines into one new business 'OSSTRA' (answers on a postcard with amusing explanations for that name). The new business combines:
- MarkitSERV (which was once DTCC DerivSERV and SwapsWire and provides two methods of matching or affirming your OTC trades)
- Traina (an assortment of post-trade services)
- triOptima (The first portfolio transformation service)
- Reset (once part of iCAP then NEX, and provides a portfolio risk transformation service)
This catapults OSSTRA into a big league of post-trade providers covering such a wide range of services from matching and reconciliation to post-trade processes and settlement that this might begin to move the industry towards an integrated post-trade platform. Read the full release below.
CME Group and IHS Markit Complete Joint Venture and Launch OSTTRA, a New Post-Trade Services Company
LONDON AND CHICAGO, September 1, 2021 – CME Group (NASDAQ: CME), the world's leading and most diverse derivatives marketplace, and IHS Markit (NYSE: INFO), a world leader in critical information, analytics and solutions, today announced they have launched their joint venture, OSTTRA, a new post-trade services company.
OSTTRA, 50/50 owned by CME Group and IHS Markit, is a leading 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 optimization 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 J.P. Morgan.
“These complementary businesses provide clients with enhanced platforms and services for global OTC markets,” said 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 optimizing the post-trade workflow,” added 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 $113 million equalization 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.