CME, IHS Markit Post-Trade JV Goes Live

CME Group and IHS Markit have launched their joint venture, Osttra, a new post-trade services company that is 50% owned by each. 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.

The new entity will offer post-trade solutions across interest rates, FX, equities and credit markets and incorporates CME’s Traiana, TriOptima and Reset businesses with IHS Markit’s MarkitServ.

Guy Rowcliffe and John Stewart have been named as co-CEOs of the business, Rowcliffe will also serve as chief commercial officer, responsible for the business’ sales teams and product portfolio. Rowcliffe was global head of optimisation services at CME Group, and head of TriOptima and Reset.

Stewart, meanwhile, will also serve as chief operating officer and be responsible for leading business strategy, operations and technology. At IHS Markit he was senior vice president technology, having joined the firm in 2016 from UBS, where he worked for more than 10 years, including a spell as global head of operations, and head of transformation.

“These complementary businesses provide clients with enhanced platforms and services for global OTC markets,” says 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.”

Lance Uggla, chairman and CEO of IHS Markit, adds, “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. 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.”