Interactive Data Corporation

Interactive Data Corporation was an American financial information and technology company that supplied market data, pricing, valuation, reference information, analytics, and related infrastructure to financial institutions, professional traders, and individual investors. Although the company ultimately became known primarily as a financial data vendor, it began in 1968 as a Waltham, Massachusetts-based time-sharing services business. Its early systems were built around IBM's CP/CMS time-sharing software for the System/360 Model 67, and the company concentrated on financial-industry applications at a time when commercial computing services were still developing. Chase Manhattan Bank acquired Interactive Data in 1974. Chase subsequently expanded the business through the 1984 purchase of Western Union's Telstat Systems division. Over time, Interactive Data moved beyond general computing services and developed a broad portfolio of financial information products. Its offerings included real-time market data, security pricing and evaluations, reference data, fixed-income analytics, derivatives information, low-latency data distribution, trading infrastructure, Web-based and desktop applications, and services for instruments that were difficult to value. These capabilities supported activities such as securities trading, portfolio management, risk analysis, economic forecasting, compliance, and independent valuation. A significant expansion of the company's pricing business came in 2002, when Interactive Data acquired Merrill Lynch's securities pricing service. The transaction strengthened its position in evaluated pricing and valuation data, particularly for fixed-income and other less-liquid securities. The company also developed the eSignal product suite for active traders and individual investors, while offering institutional services across market data, analytics, and workflow technology. Later product areas included Fair Value Information Services and environmental, social, and governance information, including quantitative ESG risk indicators and related historical data supplied through RepRisk. Interactive Data's growth was supported by acquisitions and by expansion into adjacent data and technology markets. Pearson PLC became a majority owner, holding 61% of the company before the business was taken private. In 2010, Interactive Data announced the completion of its acquisition by Warburg Pincus and Silver Lake Partners. The private-equity ownership period preceded a further change in corporate control: in 2015, Intercontinental Exchange announced an agreement to acquire Interactive Data from those investors. The acquisition was completed in December 2015, after which the business was folded into Intercontinental Exchange and operated under the ICE Data Services identity. Interactive Data therefore no longer exists as an independent operating company, but its market-data, pricing, valuation, and analytics activities became part of ICE's broader data-services platform.

Interactive Data Corporation was established in 1968 in Waltham, Massachusetts, initially operating as a time-sharing services company. Its early technology was based on IBM's CP/CMS time-sharing software for the IBM System/360 Model 67. In contrast with National CSS, another company using related time-sharing technology, Interactive Data concentrated its activities on financial-industry customers. Chase Manhattan Bank acquired the company in 1974. A decade later, Chase expanded Interactive Data through the acquisition of Western Union's Telstat Systems division in 1984. These ownership and expansion steps helped preserve the company's financial-industry focus while broadening its technical and service capabilities. The company gradually transitioned from time-sharing toward specialized financial information services. It became known for delivering real-time market data, security pricing, valuation and evaluation services, reference databases, and information used in economic forecasting. Its services addressed both actively traded securities and instruments whose values were more difficult to determine. The business expanded through acquisitions and by adding products for professional trading, portfolio analysis, derivatives, fixed income, market infrastructure, and online financial workflows. In 2002, Interactive Data acquired Merrill Lynch's securities pricing service. This strengthened its role in evaluated pricing and valuation, particularly for securities for which readily observable market prices might not be available. The company later offered Fair Value Information Services, low-latency data, derivatives services, fixed-income analytics, Web-based tools, desktop products, and the eSignal suite. It also entered ESG information, offering quantitative risk indicators and historical information through RepRisk. Pearson PLC subsequently held a 61 percent ownership interest in Interactive Data. In 2010, the company announced that its acquisition by Warburg Pincus and Silver Lake Partners had been completed, changing the ownership structure from Pearson-controlled ownership to private-equity ownership. The business continued to operate as a financial data and analytics provider during this period. In 2015, Intercontinental Exchange announced its acquisition of Interactive Data from Warburg Pincus and Silver Lake Partners. The transaction was completed in December of that year. Interactive Data was then integrated into Intercontinental Exchange and became associated with ICE Data Services. As a result, Interactive Data Corporation ceased to operate as an independent corporate brand, while many of its data, pricing, valuation, analytics, and infrastructure capabilities continued within ICE's financial-data organization.

• 2015

  Interactive Data becomes part of Intercontinental Exchange

  [1]Interactive Data Corporationen.wikipedia.org

  Intercontinental Exchange completes its acquisition of Interactive Data in December, integrating the business into ICE Data Services.

• 2010

  Private-equity acquisition is completed

  [1]Interactive Data Corporationen.wikipedia.org

  Warburg Pincus and Silver Lake Partners complete their acquisition of Interactive Data.

• 2002

  Merrill Lynch securities pricing service is acquired

  [1]Interactive Data Corporationen.wikipedia.org

  The acquisition broadens Interactive Data's securities pricing and valuation business.

• 1984

  Telstat Systems division is acquired

  [1]Interactive Data Corporationen.wikipedia.org

  Chase expands Interactive Data by purchasing Western Union's Telstat Systems division.

• 1974

  Chase Manhattan Bank acquires Interactive Data

  [1]Interactive Data Corporationen.wikipedia.org

  Chase Manhattan Bank acquires the time-sharing and financial-technology company.

• 1968

  Interactive Data is founded as a time-sharing company

  [1]Interactive Data Corporationen.wikipedia.org

  The company begins operations in Waltham, Massachusetts, providing time-sharing services with a particular focus on financial-industry applications.

Institutional financial data, valuation, analytics, and market-infrastructure provider

• Financial market data

  Market data services

  Interactive Data supplied real-time and low-latency information relating to financial markets and securities trading. These services were intended for institutional users, active traders, and other customers requiring current market information for execution, monitoring, research, and portfolio workflows.

• Valuation and pricing

  Pricing and evaluation services

  The company provided time-sensitive security pricing, evaluated prices, reference information, and fair-value services. These products were particularly relevant to fixed-income and other instruments whose values could be difficult to establish from frequent, transparent market transactions.

• Financial analytics

  Fixed-income and derivatives services

  Interactive Data offered information and analytics for fixed-income securities and derivatives. The services supported valuation, analysis, trading, risk work, and related institutional processes across instruments with differing levels of liquidity and complexity.

• Trading software and market data

  eSignal

  The eSignal suite served active traders and individual investors with market-data and desktop-oriented tools. It represented Interactive Data's offering for users seeking accessible trading information and analytical functionality outside large institutional workflows.

• Environmental, social, and governance data

  ESG data and risk indicators

  Interactive Data offered ESG information that included quantitative risk indicators for individual companies and sectors, along with current and historical observations. The referenced ESG analytics were supplied by RepRisk, a business-intelligence provider specializing in ESG risk metrics.

• 2015

  Sell the company to Intercontinental ExchangeM&A

  Background

  Interactive Data operated across market data, pricing, valuation, analytics, and trading infrastructure, making it a strategic fit with an exchange and financial-data operator.

  Action taken

  Intercontinental Exchange acquired Interactive Data from Warburg Pincus and Silver Lake Partners.

  Aftermath

  The transaction closed in December 2015, and Interactive Data was folded into ICE Data Services rather than continuing as an independent company.

  Source

• 2010

  Complete acquisition by Warburg Pincus and Silver Lake PartnersM&A

  Background

  Interactive Data had become a diversified financial information and analytics provider under Pearson ownership.

  Action taken

  Warburg Pincus and Silver Lake Partners completed the acquisition of Interactive Data.

  Aftermath

  The company entered a private-equity ownership period before its subsequent sale to Intercontinental Exchange.

  Source

• 2002

  Acquire Merrill Lynch's securities pricing serviceM&A

  Background

  Interactive Data was expanding from a technology and market-data provider into a broader pricing and valuation business.

  Action taken

  The company acquired Merrill Lynch's securities pricing service.

  Aftermath

  The transaction strengthened Interactive Data's evaluated pricing and securities valuation capabilities.

  Source

1. 1Interactive Data Corporationen.wikipedia.org