Markit (Nasdaq:MRKT), a comprehensive global provider of financial information services, has acquired the position reconciliation technology assets of the Depository Trust & Clearing Corporation (DTCC) Loan/SERV LLC, according to a Markit statement.
DTCC Loan/SERV LLC is a subsidiary of the broader DTCC organization. The Loan/SERV operation boasts nearly 400 asset managers, collectively representing over 6,000 funds across globally syndicated loan markets.
The acquisition is important as it will help allow Markit to foster and develop new cash settlement functionality across its loan trade settlement platforms in order to better harmonize asset delivery with payments, whilst reducing risk, and improving overall efficiency.
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Per the transaction terms, the DTCC will continue to run its Loan/SERV application for Markit until it is fully assimilated into Markit’s Processing division. Overall however, the transaction is slated to close by January 21, 2016 pending regulatory approvals – as a result, the transaction is not expected to yield any substantial impact on Markit’s financial results for the 2016 fiscal year.
According to Scott Kostyra, Managing Director and Head of Loan Settlement in Markit’s Processing division, in a recent statement on the acquisition: “Adding position reconciliation is an important step for our loan franchise as we integrate Loan/SERV’s position reconciliation service into our Markit Clear loan inventory platform and further enhance the functionality provided to lenders and agent banks.”
“The combination of the data from Loan/SERV with the real time position data in Markit Clear will unify the experience for lenders and help them operate more efficiently by reducing the number of systems required to manage loan assets,” he added.
Market made headlines last month after it constructed a $200 million accelerated share repurchase in tandem with several leading banks, following an earlier multi-tiered share repurchase in the 2015 year. During the summer, Markit had originally launched a secondary public offering of its common shares to investors. The new public offering saw roughly 24.5 million common shares for sale, having granted underwriters the right to purchase up to approximately 1.7 million additional common shares from the selling shareholders.