CME Group and IHS Markit Launch Post-Trade Joint Venture OSTTRA

The world’s leading derivatives marketplace CME Group and IHS Markit,  a global leader in information, analytics and solutions, announced yesterday the launch of a joint venture - OSTTRA​, which operates as a post-trade services company headquartered in London.

According to the official press release, the new joint venture 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 integrates CME Group’s optimization businesses –Traiana, TriOptima, and Reset – and IHS Markit’s MarkitSERV.

OSTTRA will be in the charge of 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. And Stewart will hold the position of Co-CEO and Chief Operating Officer, leading business strategy, operations and technology and overseeing corporate services and finance.

“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.”

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.