The deal will enable Markit to meet the growing demand for risk analytics and enterprise risk management services by combining its strengths in data and valuations with QuIC’s analytics expertise.
“Risk analytics begin with good inputs and I am confident that, with Markit’s data and resources, we will provide an even better service to our clients and be able to develop exciting new offerings, together with Markit,” says Nigel Cairns, president and chief executive of QuIC. The firm was founded in 1998.
Markit’s range of data on prices, correlations, volatility and liquidity on all cash and over-the-counter instruments such as credit default swaps, bonds, loans, equities, commodities and rates – can now be input into the QuIC Engine. That engine is a high-speed computational framework which allows Tier One and Tier Two broker-dealers to assess their market and credit risk through stress and scenario testing.
But Markit hopes to expand the product reach to banks, hedge funds and mutual funds, which use Markit’s products.
QuIC will become part of Markit’s valuations and analytics services unit and the 105 staffers of QuIC located in Vancouver, Calgary, London and New York will join Markit. They will all report to executive vice president Sal Naro who has now been given oversight of Markit’s valuations and new analytics services. In addition to QuIC, those services consist of Markit’s Totem, Portfolio Valuations, Valuations Manager, Evaluated Bonds and Structured Finance businesses.
“By acquiring one of the leading providers of risk analytics, Markit will gain significant enterprise risk management capabilities which will allow us to provide our customers with the comprehensive solutions they require to identify and manage risk,” says Lance Uggla, chief executive of Markit in a statement.
This story originally appeared on Securities Technology Monitor.
Chris Kentouris is senior international editor at Securities Technology Monitor. Chris can be reached at by email.
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