Markit acquires syndicated loan technology from J.P. Morgan
Markit (Nasdaq: MRKT), a leading global provider of financial information services, today announced it has acquired systems integration software developed by J.P. Morgan. Markit will make the software available to sellside and buyside 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 straight through processing of loan transactions and is 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, “Acquiring this software allows Markit to provide the global syndicated loan market with a proven solution for integrating with the newest technology for straight through processing of loan transactions and lifecycle events. 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 FpML for electronic communication of loan information.”
Customer deployments of the software are expected to begin in the second half of 2016. Markit’s comprehensive solution for efficient 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.