IHS Markit expands regulatory reporting offering with Cappitech acquisition

The two firms have collaborated since 2019 when IHS Markit selected Cappitech’s platform for its securities financing transactions regulation (SFTR) solution.

Data and analytics provider IHS Markit has expanded its regulatory reporting offering with the acquisition of compliance technology firm Cappitech.

The move follows the May announcement by US derivatives exchange CME Group that it would be winding down its regulatory reporting businesses at the end of 2020.

The announcement has meant rival providers have been scrambling to fill the top spot left by CME’s reporting businesses, NEX Regulatory Reporting and the Abide Financial division.

Cappitech’s cloud-based platform, which is used by more than 200 buy and sell-side firms, was the first platform to complete porting of CME trade reporting data in August following the exchange’s departure from the market.

The acquisition of the firm by IHS Markit will therefore offer it an edge in this newly competitive market and significantly expand its regulatory reporting offering to the financial industry.

“Regulatory reporting demands will continue to grow rapidly around the globe and customers are looking for a reliable, frictionless, and cost-effective way to comply with requirements across jurisdictions,” said Pierre Khemdoudi, managing director of global equities at IHS Markit.

However, IHS Markit is not the only firm that has stepped up to the plate in recent months hoping to claim the top spot.

Regulation technology firm SteelEye has also been bolstering its offering, on-boarding broker Capital Index as a client of its EMIR and MiFIR reporting services last week.

SteelEye was also hot on the trail of customers left searching for a replacement provider for CME Group last summer. Weeks after CME Group’s announcement it partnered with the London Stock Exchange Group’s (LSEG) regulatory reporting platform UnaVista to support firms in their migration away from NEX and Abide.