CME Group and IHS Markit launch post-trade services company 

The equally owned joint venture between CME and IHS Markit offers post-trade solutions across interest rates, FX, equity and credit.

CME Group and IHS Markit have launched a post-trade services company after collaborating on the joint venture earlier this year.

Known as OSTTRA, the new company combines CME’s optimisation businesses including Traiana, TriOptima, and Reset and IHS Markit’s derivatives reporting service, MarkitSERV, to offer post-trade service to OTC markets.

Confirmed in January, IHS Markit paid the derivatives exchange a $113 million equalisation payment to purchase 50% of the newly launched entity. Further terms were not disclosed. 

CME and IHS Markit said OSTTRA will give users improved front-to-back office workflow, connectivity, trading certainty, risk management and post-trade operational efficiency.

“These complementary businesses provide clients with enhanced platforms and services for global OTC markets,” Terry Duffy, CEO of CME Group, commented. 

“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.” 

Headquartered in London, CME Group’s former global head of optimisation services, Guy Rowcliffe, and IHS Markit’s former senior vice president, John Stewart, have been appointed as co-chief executives.

Rowcliffe will also serve as chief commercial officer while Stewart has also been appointed as chief operating officer.

“OSTTRA brings together the people, processes and networks to solve the market’s most pressing problems through innovating, integrating and optimising the post-trade workflow,” added Lance Uggla, CEO of IHS Markit.

“John, Guy and the team have the experience and vision to meet the increasingly complex post-trade challenges of today and address the operational needs of the future.”