Markit Makes Play for Fitch’s CDS Pricing Service in Latest M&A Move

Markit (Nasdaq:MRKT), a global provider of financial information services, has acquired the credit default swap (CDS) pricing service of Fitch Solutions for an undisclosed sum in its latest merger and acquisition (M&A) move, according to a Markit statement.

The move is the latest by Markit’s since it acquired CoreOne Technologies back in December. As part of its latest agreement however, Markit will integrate Fitch's CDS pricing with the assimilation effectively allowing Fitch to utilize Markit's best CDS data available in its services.

Markit currently provides independent pricing of CDS single names, indices, and data tranches to help leverage price discovery, Risk Management Risk Management One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, Read this Term, compliance, research, and valuations, among other utilities. The move is important as it will help expand Markit’s support of credit markets, as well as a developed client base.

According to Ed Chidsey, Global Head of Pricing and Reference Data at Markit, in a recent statement on the acquisition: “We’re excited to expand our capabilities as a leading service provider to the credit markets. Our agreement with Fitch is an essential part of this expansion and we look forward to working with Fitch and their clients.”

“Fitch continues to strengthen and expand its information services business, and this agreement aligns with our strategic focus on delivering clients a world class platform for data, research, ratings and Analytics Analytics Analytics may be defined as the detection, analysis, and relay of consequential patterns in data. Analytics also seeks to explain or accurately reflect the relationship between data and effective decision-making. In the trading space, analytics are applied in a predictive manner in an attempt to forecast the price more accurately. This predictive model of analytics generally involves the analysis of historical price patterns that are used in an attempt to determine certain price outcomes. Analy Analytics may be defined as the detection, analysis, and relay of consequential patterns in data. Analytics also seeks to explain or accurately reflect the relationship between data and effective decision-making. In the trading space, analytics are applied in a predictive manner in an attempt to forecast the price more accurately. This predictive model of analytics generally involves the analysis of historical price patterns that are used in an attempt to determine certain price outcomes. Analy Read this Term,” added Brian Filanowski, Global Head of Product, Fitch Solutions, in an accompanying statement.

Earlier this week, Markit made headlines after it introduced its new MarkitSERV FX Broker Affirmation service, which enables banking groups to affirm foreign exchange (FX) trades executed by inter dealer brokers. The passage of the launch had also seen the sign-up to this service by several industry entities, including a total of seven inter-dealer brokers and eight banks.