Mark-itâs acquisition of Totem - the leader in the provision of OTC derivatives valuation services to major market participants - will enable the Group to offer its combined client base of over 160 corporate and financial institutions, data on markets in Europe, Asia and North America. On completion of the acquisition, Tim Barker, CEO of Totem, will join Mark-it Partnersâ management team as executive vice president
The acquisition represents Mark-itâs first penetration of new areas such as equity derivatives, interest rates, foreign exchange and commodities, allowing it to offer a greater breadth and depth of services to new and existing customers. The combined business will also have an immediate impact on each otherâs marketing channels through cross referrals and easier access to a larger number of clients.
OTC derivatives markets continue to grow exponentially, as evidenced by the $170 trillion in notional value outstanding at mid-year 2003, according to the Bank for International Settlements. Significant changes to accounting standards and increased regulatory pressure ensure that the demand for high quality data and valuation services will continue to grow.
Lance Uggla, Mark-it Partners CEO and Founder, commented, "The continuing fall-out from recent accounting debacles demonstrates that there is a clear need for independent and vigilant mark-to-market data. Totemâs impressive seven year track record, as well as the strength of its relationships with the regulatory and accounting communities, provided us with the impetus for our initial approach to the business. We are confident that the combined platform will deliver a valuable service to all OTC market participants and continue to grow."
Tim Barker, Totem Market Valuations CEO and Founder, commented, "A rapidly growing OTC derivatives market coupled with increasingly onerous accounting, regulatory and risk management requirements, has placed enormous pressure on financial institutions. This transaction ensures that, no matter how the markets develop, our customers can look forward to us developing more of the high quality and authoritative services on which they have come to rely."
The Totem subsidiary, Dividend Directory Limited (DaDD), will be an important part of the enlarged business. DaDD provides two essential services to the financial markets: the Dividend Directory, the market standard in dividend forecasting used by major investment banks and funds; and TIMS, the Index Management Service, which consolidates and validates indices provided by a wide range of global index providers.
Lance Uggla added: "The combination of Dividend Directoryâs services with Mark-it Partnersâ fixed income data and reference entity database, Mark-it RED, will bring significant benefits to all institutions running portfolios of dividend and interest paying securities."