CME Group and IHS Markit Launch Post-Trade Joint Venture

The joint venture is owned equally by both companies.

CME Group (NASDAQ: CME) and IHS Markit (NYSE: INFO) announced on Wednesday the launch of a joint venture which was formed by combining the post-trade services of the two giants.

Dubbed OSTTRA, the joint venture is headquartered in London and is owned equally by CME and IHS. It will provide post-trade solutions for the global OTC markets across interest rates, FX, equity, and credit asset classes.

The joint venture was formed by combining IHS Markit’s OTC derivatives and foreign currency trade processing business (MarkitSERV) and of CME Group’s OTC derivatives optimization businesses, which it operates as Traiana, TriOptima and Reset.

“These complementary businesses provide clients with enhanced platforms and services for global OTC markets,” said Terry Duffy, CME Group’s Chairman and CEO. “The combined force of the product suite ensures a streamlined post-trade ecosystem that will help clients drive even greater efficiencies.”

A Strong Leadership

OSTTRA will be headed by Guy Rowcliffe and John Stewart as Co-CEOs. Rowcliffe, who was the Global Head of Optimization Services at CME Group and Head of TriOptima and Reset, will additionally take the role of Chief Commercial Officer and will oversee the joint venture’s full product portfolio and sales teams.

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Stewart will take the additional responsibility of OSTTRA’s Chief Operating Officer and will head corporate services and finance.

CME and IHS first publically floated the idea of creating the joint venture earlier in January. The launch came after they received approvals from the antitrust regulators in the European Union and the United Kingdom in late July.

To balance the ownership of the joint venture equally, IHS paid $113 million to CME Group.

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

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