Markit was a British financial information and services company with over 4,000 employees,[3] founded in 2003 as an independent source of credit derivative pricing.[4] The company provides independent data, trade processing of derivatives, foreign exchange and loans, customised technology platforms and managed services. The company aims to enhance transparency, reduce financial risk and improve operational efficiency. Its client base includes institutional participants in the financial marketplace.[3] On 12 July 2016, Markit and IHS Inc. merged in an all-stock merger of equals to form IHS Markit.[5][6] IHS Markit later merged with S&P Global on 28 February 2022.
By 2009 Markit had "1,000 institutions as clients - including investment banks, hedge funds, asset managers, central banks, regulators, rating agencies, and insurance companies."[4]
In 2012, the company had annual revenues of US$860 million, with 3000 employees. In 2012, Markit had a $5 billion valuation.[7]
By 2013 Markit served 3,000 institutions across the financial markets which include investment banks, hedge funds, asset managers, central banks, regulators, auditors, fund administrators and insurance companies.[3]
Acquisitions
Totem Valuations, a supplier of consensus valuations and month-end data, was bought by Markit in May 2004[14]
The International Index Company (IIC) and CDS Index Company (CDSIndexCo), owners of the iTraxx and CDX credit default swap indexes, were acquired by Markit in November 2007[15]
SwapsWire's acquisition by Markit announced In December 2007.,[16]
JPMorgan Chase's FCS Corporation, a provider of syndicated loan market portfolio and risk management software and services, including the Wall Street Office family of products, was acquired by Markit in July 2008.[18]
Fidelity Information Services's ClearPar, an electronic loan-trade-processing platform, was acquired by Markit in October 2009 which helped Markit to work with DTCC to improve the processing of syndicated loans.[19]
Index products
On 17 January 2006 CDS IndexCo and Markit launched ABX.HE, a subprime mortgage backed credit derivative index, with planned to extend the index to underlying asset types other than home equity loans.[20][21]
They launched the Home Equity (ABX.HE) ABX on 19 January 2006.
Others, such as Credit Cards (ABX.CC), Student Loans (ABX.SL) Auto Loans (ABX.AU) were to be announced in the future.
Atlanta-based IntercontinentalExchange (NYSE: ICE), a derivatives exchange and clearing house operator, announced four credit index futures contracts, based on the Markit CDX and Markit iTraxx indices—Markit CDX NA IG, Markit CDX NA HY, Markit iTraxx Europe (Main), and
Markit iTraxx Crossover, would start in May 2013. The contracts were subject to review by the Commodity Futures Trading Commission.[24][better source needed]
Management and employees
Markit had 150 employees in 2003, and by the end of 2013 had around 3200 employees across the globe.[8]
In 2013, different banks held 51% of Markit shares. 20% of shares is held by Markit employees and executives.
As of October 2013, General Atlantic is the biggest independent shareholder with 11% of shares.[26] General Atlantic's CEO William E. Ford serves on the board of directors.[27] Temasek Holdings bought 10% of shares in 2013 for $500 million, thereby valuing the company at $5 bn.[28]
^ abLenzner, Robert (8 August 2007). "Profiting From The Meltdown". Forbes. Some top banks are quietly indexing credit, avoiding the credit bubble and raking in big bucks.
^"RBSGC". www.rbsgc.com. Archived from the original on 22 April 2009. Retrieved 30 January 2020.
^"IntercontinentalExchange (ICE) announced the launch of credit index futures contracts". Press Release Newswire. New York: IntercontinentalExchange (ICE). 11 March 2013. ((cite web)): Missing or empty |url= (help)
US$ $1.5 billion [2]