LONDON, Nov 14 (Reuters) - 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 indexes.
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)