Markit (Nasdaq: MRKT), a leading global provider of financial information services, today announced it has agreed to acquire the position reconciliation technology assets of DTCC Loan/SERV LLC (Loan/SERV), a subsidiary of The Depository Trust & Clearing Corporation (DTCC).
Nearly 400 asset managers representing approximately 6,000 funds in the global syndicated loan market use the Loan/SERV Loan Position Reconcilement Service to reconcile over one million positions with the records maintained by administrative agent banks.
Scott Kostyra, managing director and head of Loan Settlement in Markit’s Processing division, said, “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.”
In conjunction with the acquisition Markit will develop new cash settlement functionality in its loan trade settlement platforms to better synchronise asset delivery with payment, reduce risk and improve efficiency in the market.
Under the terms of the transaction, DTCC will continue to run the Loan/SERV application on behalf of Markit until it is integrated into Markit’s Processing division. The transaction is expected to close on January 21st, subject to customary conditions, and is not expected to have a material impact on Markit’s financial results this year. Financial terms were not disclosed.
Markit’s comprehensive solution for efficient loan management includes pricing, a credit and portfolio analysis solution, indices, reference data, agent servicing portals, automated trade settlement, messaging hubs, and portfolio management.