Tokyo Stock Exchange Group (TSE Group) and Markit Group have agreed upon a Memorandum of Understanding (MOU).
Under the terms of the deal, the groups will work together to examine the feasibility of potential business alliances for joint promotion/distribution of appraisal and valuation services for financial instruments; joint developments of new indices in the Japanese market and promotion of utilisation of various indices (including ones owned by Markit) for actual trading activities; distribution tie-ups for information contents. The firms will also cooperate to promote the improvement of the infrastructure of post-trade operations in the OTC derivatives market in Japan.
“There have been growing demands for a more transparent evaluation of portfolios, as well as more reliable and efficient post trade operations for financial instruments,” commented Atsushi Saito, president and CEO, TSE Group.
“Proper delivery of price information for the assets with less liquidity is getting more important and market participants desired to obtain a means/solution to prepare for volatile market conditions,” said Katsumi Mizutani, president, Markit Group Japan. “At the same time, promotion of STP processing in OTC post trade activities will contribute a lot to reduce operational risks in the financial institutions. It is important to develop momentum in the market by making this announcement of a partnership between two major companies in the Japanese capital market.”