Markit buys syndicated loan tech from JP Morgan
Markit has acquired systems integration software developed by JP Morgan. The provider of financial information services will make the software available to buy- and sell-side institutions seeking to integrate with major systems used in the syndicated loan market, including agent servicing platforms and Markit’s trade settlement services.
Facilitating systems integration is an important step toward in the development of straight-through-processing for loan transactions and it is widely expected to help the industry become more efficient in settling trades.
Scott Kostyra, managing director and head of Loan Settlement in Markit’s Processing division, said, “We are offering an alternative to expensive and risky internal software builds and helping expedite industry adoption of risk and cost reducing initiatives such as Markit Clear for trade settlement and Financial products Markup Language (FpML) for electronic communication of loan information.”
Customer deployments of the software are expected to begin in the second half of 2016. Markit’s solution for loan management includes pricing, reference data, credit and portfolio analysis, indices, agent servicing portals, automated trade settlement, messaging hubs and portfolio management.
Financial terms of the acquisition were not disclosed. The transaction is not expected to have a material impact on Markit’s financial results this year.
Reported by Dan Barnes