CME and IHS Markit team up for derivatives servicing

Derivatives marketplace CME Group and IHS Markit, a provider of information, analytics and solutions, have launched a joint venture, OSTTRA, a new post-trade services company.

OSTTRA, 50/50 owned by CME Group and IHS Markit, is a 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 also serve as 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.

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Stewart will serve as COO 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 CEO, noting the market continues to demand automation in post-trade processing.

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.