Markit

{{Infobox company|

| name = Markit Ltd.

| logo = MarkitLogoPriorToMerger.png

| type = Public

| traded_as = {{NASDAQ was|MRKT}}

| foundation = {{Start date and age|2003}}

| locations = 21 offices

| area_served = Worldwide

| revenue = {{Nowrap|{{Increase}} US$ $1.5 billion}} {{cite web | url = https://www.sec.gov/Archives/edgar/data/1598014/000119312514242776/d661473d424b4.htm | title = Final Prospectus | publisher = SEC | date = 20 June 2014 | accessdate = 24 June 2014}}

| location = London, United Kingdom

| fate = in 2016 merged with IHS Inc. to form IHS Markit

| defunct = {{end date|2016|07|12|df=yes}}

| successor = IHS Markit

| key_people = Jerre Stead (CEO IHS Markit) & Lance Uggla (president IHS Markit){{cite web|url=https://ihsmarkit.com/about-us.html|title=IHS Markit - About Us|website=ihsmarkit.com}}

| divisions = Information
Processing
Solutions

| products = Financial information
Financial processing
Financial services
Financial solutions
Market data vendor

| industry = Financial services

| num_employees = 4,500 (October 2015)

| homepage = {{URL|http://www.markit.com/}}

}}

Markit was a British financial information and services company that focused on credit derivative pricing. It was founded in 2003 and merged in 2016 with IHS to form IHS Markit.

Prior to its merger it had 4,500 employees in 21 offices worldwide and was as an independent source of credit derivative pricing.{{cite report|url=http://www.cdsmodel.com/assets/cds-model/docs/Interest%20Rate%20XML%20v1.3.pdf|title=Markit USD Interest Rate Curve XML Specification|date=30 March 2009|publisher=Markit}} The company provided independent financial data, trade processing of derivatives, foreign exchange and loans, customised technology platforms and managed services. The company aimed to enhance corporate transparency, reduce financial risk and improve operational economic efficiency. Its client base included institutional participants in the financial marketplace.

On 12 July 2016, Markit and IHS Inc. merged in an all-stock merger of equals to form IHS Markit.{{cite web|url=http://www.businesswire.com/news/home/20160321005378/en/IHS-Markit-Merge-Creating-Global-Leader-Critical |title=IHS and Markit to Merge, Creating a Global Leader in Critical Information, Analytics and Solutions |publisher=BusinessWire|date=21 March 2016}}{{cite web|url=http://press.ihs.com/press-release/corporate/ihs-markit-rings-opening-bell-nasdaq-unveils-new-logo|title=IHS Markit Rings Opening Bell at Nasdaq, Unveils New Logo - IHS Online Newsroom|website=press.ihs.com}} IHS Markit later merged with S&P Global on 28 February 2022.{{Cite web|date=2022-02-28|title=S&P Global Completes Merger with IHS Markit, Creating a Global Leader to Power the Markets of the Future|url=https://markets.businessinsider.com/news/stocks/s-p-global-completes-merger-with-ihs-markit-creating-a-global-leader-to-power-the-markets-of-the-future-1031239981

|access-date=2024-03-05|website=businessinsider.com |language=en}}

History

= Foundation and early years =

Markit was founded in 2003 by Canadian Lance Uggla{{cite news| url=https://www.economist.com/news/finance-and-economics/21580494-private-company-controlled-banks-connects-much-financial | newspaper=The Economist | title=Plumbers in suits | date=6 July 2013}}Companies House information in St Albans, outside London, as Mark-it Partners to provide daily credit default swap (CDS) pricing.{{cite news | url = https://www.reuters.com/article/mergersNews/idUSL1444559220071114 | title = Markit says buys IIC, agrees to buy CDS IndexCo | publisher = Reuters | date = 14 November 2007 | accessdate = 14 December 2007 | first=Natalie | last=Harrison}}

Markit's credit derivative data sales rose during the subprime mortgage crisis in 2007 and later years.{{cite news | url = http://www.financialpost.com/story.html?id=6c4652ed-aee7-4d11-bc86-1b849872c586 | title = Global investors struggle to value credit assets | first = Jane | last = Baird | publisher = Financial Post | date = 23 November 2007 | accessdate = 16 December 2007 | url-status = dead | archiveurl = https://web.archive.org/web/20071206090140/http://www.financialpost.com/story.html?id=6c4652ed-aee7-4d11-bc86-1b849872c586 | archivedate = 6 December 2007 }}

In September 2009, Markit and Depository Trust & Clearing Corporation (DTCC) launched MarkitSERV, a joint venture to provide over-the-counter (OTC) derivative trade processing.{{cite news | url = http://www.finextra.com/fullpr.asp?id=29316 | title = Markit and DTCC launch OTC derivatives trade processing JV | publisher = FinExtra.com | date = 1 September 2009 | accessdate = 30 October 2009}}

=Acquisitions 2004 - 2009 =

Totem Valuations, a supplier of consensus valuations and month-end data, was bought by Markit in May 2004.{{cite news | url = http://www.finextra.com/news/fullstory.aspx?newsitemid=11761 | title = Mark-It Partners acquires Totem Valuations | publisher = Finextra | date = 5 May 2004 | accessdate = 10 October 2010}}

The International Index Company (IIC) and CDS Index Company (CDSIndexCo), owners of the iTraxx and CDX credit default swap indexes, were acquired by Markit in November 2007.{{cite news | url = https://www.bloomberg.com/apps/news?pid=20601080&sid=awvPyvPEPnug&refer=asia | title = Markit Buying Owners of iTraxx, CDX Credit Indexes | publisher = Bloomberg | date = 14 November 2007 | accessdate = 14 December 2007}}{{Cite web |date=14 November 2007 |title=Markit says buys IIC, agrees to buy CDS IndexCo |url=https://www.reuters.com/article/idUSL14445592/ |access-date=7 March 2024 |website=Reuters}}

In December 2007, Markit announced the acquisition of SwapsWire.{{cite news | url = http://www.finextra.com/fullstory.asp?id=17820 | title = Markit to buy SwapsWire | publisher = Finextra.com | date = 4 December 2007 | accessdate = 14 December 2007}}

The BOAT, Markets in Financial Instruments Directive-compliant trade reporting platform acquired by Markit from a consortium of nine investment banks In January 2008. The BOAT was owned by consortium of nine investment banks —ABN Amro, Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs, HSBC, Merrill Lynch, Morgan Stanley and UBS who had launched the system in September 2006.{{cite news | url = http://www.finextra.com/fullstory.asp?id=17973 | title = Markit buys Boat | author =Finextra |publisher=Finextra Research | date = 22 January 2008 | accessdate = 4 February 2008}} The Boat platform was established by these nine banks "for the collection and sale of trading data following the introduction of EU's Markets in Financial Instruments Directive (MiFID) in November 2007.

JPMorgan Chase's FCS Corporation, a provider of syndicated loan market portfolio and risk management software and services, including the Wall Street Office family of products, was acquired by Markit in July 2008.{{cite news | url = http://www.wallstreetandtech.com/operations/showArticle.jhtml?articleID=209602186 | title = JPMorgan's FCS Corporation Acquired By Markit | publisher = Wall Street & Technology | author = Dave Valiante | date = 28 July 2008 | accessdate = 21 September 2008 | archive-url = https://web.archive.org/web/20110718230413/http://www.wallstreetandtech.com/operations/showArticle.jhtml?articleID=209602186 | archive-date = 18 July 2011 | url-status = dead }}

Fidelity Information Services's ClearPar, an electronic loan-trade-processing platform, was acquired by Markit in October 2009 which helped Markit to work with DTCC to improve the processing of syndicated loans.{{ cite news | url = https://online.wsj.com/article/BT-CO-20091030-713564.html | title = Markit To Acquire Electronic Loan-Trading Platform ClearPar | author = Michael Aneiro | publisher = The Wall Street Journal | date = 30 October 2009 | accessdate = 30 October 2009}} {{Dead link|date=October 2010|bot=H3llBot}}

= Public listing and growth =

In 2013, Temasek Holdings bought 10% of shares for $500 million, thereby valuing the company at $5 bn.{{cite news | url = http://www.ft.com/cms/s/0/c07ea58c-c24c-11e2-ab66-00144feab7de.html#axzz2iuEULNrw | title = Temasek stake in Markit values data company at $5bn | publisher = Financial Times | date = 21 May 2013}}

By 2012, the company had annual revenues of US$860 million, with over 3,000 employees and had a $5 billion valuation. In 2013, different banks held 51% of Markit shares. 20% of shares were held by Markit employees and executives.

On 5 May 2014 Markit Ltd., a company registered in Bermuda, filed for an initial public offering (IPO), to be listed on the NASDAQ Global Select Market under the symbol MRKT.{{cite news | url = https://dealbook.nytimes.com/2014/05/05/financial-data-company-markit-files-for-i-p-o/?_php=true&_type=blogs&_r=0 | title = Financial Data Company Markit Files for I.P.O. | author = Alden, William | work = The New York Times | date = 5 May 2014 | accessdate = 5 May 2014}} The stock began trading on 19 June 2014 with an initial pricing of $24 per share.{{cite news | url = http://americasmarkets.usatoday.com/2014/06/19/markit-ipo-jumps-after-selling-shares/ | title = Markit IPO jumps after selling shares | date = 19 June 2014 | publisher = USA Today}}

= Merger =

On 12 July 2016, Markit and IHS Inc. merged in an all-stock merger of equals to form IHS Markit.

Index products

On 17 January 2006 CDS IndexCo and Markit launched ABX.HE, a subprime mortgage backed credit derivative index, with plans to extend the index to underlying asset types other than home equity loans.{{cite news | url = https://www.markit.com/marketing/press_releases.php?date=17Jan2006 | title = CDS Indexco and Markit Launch Synthetic ABS Index | publisher = Markit | date = 17 January 2006 | accessdate = 14 December 2007}}

On 19 January, 2006 it launched the Home Equity (ABX.HE) ABX.{{Cite web |date=2006-01-23 |title=ABX.HE makes its grand debut |url=https://asreport.americanbanker.com/news/abxhe-makes-its-grand-debut |access-date=2024-03-07 |website=Asset Securitization Report |language=en}}{{Cite web |last=Brinded |first=Lianna |date=18 January 2008 |title=Markit aims to shine light on sub-prime murk |url=https://www.fnlondon.com/articles/markit-aims-to-shine-light-on-sub-prime-murk-20080118 |access-date=2024-03-07 |website=www.fnlondon.com |language=en-GB}} The following year in 2007 the loan credit default swap index (LCDX), a loan-only credit default swap index was created by CDS Index Company (CDSIndexCo).{{cite news|url=https://www.forbes.com/2007/08/06/croesus-chronicles-indexes-oped-cz_rl_0807croesus.html|title=Profiting From The Meltdown|work=Forbes|date=8 August 2007|quote="Some top banks are quietly indexing credit, avoiding the credit bubble and raking in big bucks."|first=Robert|last=Lenzner}}

Sixteen financial institutions including: JPMorgan, Goldman Sachs, Deutsche Bank, Barclays Capital, Bank of America, BNP Paribas, Citigroup, Credit Suisse, Lehman Brothers, Merrill Lynch, RBS Greenwich,{{cite web |title=RBSGC |url=http://www.rbsgc.com |url-status=dead |archive-url=https://web.archive.org/web/20090422184731/http://rbsgc.com/ |archive-date=22 April 2009 |access-date=30 January 2020 |website=www.rbsgc.com}} UBS and Wachovia, owned the private company called the CDS Index Company (CDS IndexCo), that developed the ABX index. By 2007 Markit marketed had acquired (CDS IndexCo). The ABX index was a credit default swap of asset-backed mortgages of 30 of the most liquid mortgage-backed bonds.

In 2013, Atlanta-based IntercontinentalExchange, a derivatives exchange and clearing house operator, announced four credit index futures contracts, based on the Markit CDX and Markit iTraxx indices—Markit CDX NA IG, Markit CDX NA HY, Markit iTraxx Europe (Main), and Markit iTraxx Crossover, would start in May 2013.{{cite |title=IntercontinentalExchange (ICE) announced the launch of credit index futures contracts |location=New York |date=11 March 2013 |series=Press Release Newswire |publisher=IntercontinentalExchange (ICE) }}{{better source needed|date=June 2021}}

Divisions, products and services

Markit organized itself in three divisions:

class="wikitable"
Division	Information	Processing	Solutions
Products and services \|valign=top\| Valuation and Trading Services Portfolio Valuations Totem Pricing and Reference Data major asset classes Reference Entity Database (“RED”) Bond Reference Data Indices PMI series, iBoxx, iTraxx, CDX and iRxx.EM \|valign=top\| MarkitSERV: derivatives MarkitClear: loans \|valign=top\| Enterprise Software Enterprise Data Management (EDM) Analytics Wall Street Office (WSO) Managed Services Markit On Demand (MOD) Counterparty Manager
revenue % (2013) \|align=center\| 48.5% \|align=center\| 28.0% \|align=center\| 23.5%

class="wikitable"

Division

Information

Processing

Solutions

Products and services

|valign=top|