LONDON Nov 14 Markit Group, a derivatives
pricing specialist company, announced a double acquisition on
Wednesday which is expected to improve transparency in the
credit market and propel innovation of new products.
Markit said it had acquired International Index Company
Limited (IIC), which owns the iTraxx Europe and iTraxx Asia
credit derivative indexes as well as the global iBoxx bond
Markit has also agreed to acquire CDS IndexCo LLC, which
owns the CDX credit derivative indexes and the synthetic
structured finance and loan indexes ABX.HE, CMBX and LCDX. That
transaction is expected to be finalised by the year end.
"The acquisition of IIC and CDS IndexCo will put us at the
very heart of the global credit and rates markets," said Lance
Uggla, chief executive officer of Markit.
"By bringing the indices together, we will create the next
generation of credit benchmarks and stimulate innovation in
trading across the entire fixed income market."
Markit said the acquisitions would help it expand its index
products into new asset classes such as interest rate
derivatives, foreign exchange and commodities.
Both IIC and CDS INdexCo are owned by a number of investment
banks. Markit, founded in 2001 to provide daily consenus credit
default swap pricing, is owned by 16 investment banks, four fund
managers and company employees
The official names of the indexes will remain unchanged but
will be known as Markit indexes.
(Reporting by Natalie Harrison; Editing by Quentin Bryar)