Markit

Markit was a British financial information and services company founded in 2003 by Canadian entrepreneur Lance Uggla. It began as Mark-it Partners in St Albans, outside London, with a focused purpose: to supply independent daily pricing for credit default swaps and other credit derivatives. At a time when much market information was supplied bilaterally by banks and dealers, Markit positioned itself as an independent source of reference prices and valuation data for institutional financial-market participants. The company expanded rapidly as demand grew for transparent pricing, risk measurement, and post-trade infrastructure. Its business broadened beyond credit-derivative data to include pricing and valuation services, financial indices, trade processing, foreign-exchange and loan-market information, customized technology platforms, and managed services. Its clients included banks, asset managers, hedge funds, insurers, corporations, and other institutional participants that required market data and workflow tools for valuation, trading, risk management, regulatory reporting, and operations. The global credit-market disruption associated with the subprime mortgage crisis increased demand for independent information about complex credit instruments. Markit developed and distributed products connected with mortgage credit, corporate credit, loans, and broader derivatives markets. Its index activities included the ABX family of indices, which tracked credit derivatives referencing asset-backed mortgage exposures, and the Markit CDX and iTraxx families, which became important reference points in credit markets. The company also built infrastructure for processing over-the-counter derivatives and syndicated-loan transactions. Markit's growth was supported by a series of acquisitions and partnerships. It acquired Totem Valuations, the International Index Company, CDS Index Company, SwapsWire, the BOAT trade-reporting platform, FCS Corporation, and ClearPar. In 2009 it formed MarkitSERV with the Depository Trust & Clearing Corporation to provide over-the-counter derivatives trade-processing services. These transactions extended Markit's role from a data vendor into a broader financial-market infrastructure provider. The company became publicly traded in 2014 after Markit Ltd., incorporated in Bermuda, filed for an initial public offering. Its shares began trading on Nasdaq under the symbol MRKT in June of that year. Markit subsequently entered an all-stock merger of equals with IHS Inc. on 12 July 2016. The combined company was named IHS Markit, and the standalone Markit corporate entity ceased to operate as an independent public company. IHS Markit later merged with S&P Global on 28 February 2022. Markit's businesses therefore became part of S&P Global's broader financial information and market-intelligence operations.

Markit was established in 2003 by Lance Uggla as Mark-it Partners in St Albans, near London. Its initial business addressed a structural problem in the credit-derivatives market: institutional users needed independent daily pricing for credit default swaps, but much of the available information was generated within dealer relationships. Mark-it Partners developed a data service intended to provide more consistent reference pricing and valuation information. The company's relevance increased during the expansion of structured credit and the subprime mortgage crisis. As complex credit instruments became harder to value and market participants became more concerned with counterparty and liquidity risk, demand grew for independent pricing, consensus valuations, and credit-market indices. Markit acquired Totem Valuations in May 2004, adding consensus-valuation and month-end data capabilities. Markit then expanded its index business. In November 2007 it acquired the International Index Company and CDS Index Company, associated with the iTraxx and CDX credit-default-swap index families. These products gave market participants standardized benchmarks for European and North American credit exposure. Earlier, in January 2006, Markit and CDS IndexCo had launched the ABX.HE index, a reference index for credit derivatives linked to asset-backed home-equity exposures. A loan-only credit-default-swap index, LCDX, was introduced in 2007 through CDS IndexCo. Between 2007 and 2009, Markit also pursued infrastructure and workflow businesses. It announced the acquisition of SwapsWire in December 2007. In January 2008 it acquired BOAT, a trade-reporting platform created by a consortium of investment banks following the implementation of the European Markets in Financial Instruments Directive. In July 2008 it acquired FCS Corporation from JPMorgan Chase. FCS supplied syndicated-loan portfolio and risk-management software, including the Wall Street Office product family. In October 2009 Markit acquired ClearPar from Fidelity Information Services, adding an electronic platform for loan-trade processing. Markit later worked with DTCC to improve syndicated-loan processing. A major partnership arrived in September 2009, when Markit and DTCC launched MarkitSERV. The joint venture provided processing services for over-the-counter derivatives, helping institutions manage trade confirmation, matching, and related post-trade workflows. This initiative reflected Markit's evolution from a specialized credit-pricing company into a broader provider of financial-market infrastructure. The company continued to grow through the early 2010s. In 2013, Temasek Holdings acquired a 10 percent stake, and Markit was valued at approximately five billion dollars according to contemporary company disclosures cited in reference material. Markit filed for an initial public offering on 5 May 2014. The company was incorporated in Bermuda for listing purposes, and its shares began trading on the Nasdaq Global Select Market on 19 June 2014 under the symbol MRKT. Markit's independent corporate history ended with its combination with IHS Inc. On 12 July 2016, the companies completed an all-stock merger of equals and formed IHS Markit. The transaction combined Markit's financial-market data, indices, and processing businesses with IHS's information and analytics operations. IHS Markit subsequently became part of S&P Global through a merger completed on 28 February 2022. Markit is therefore best understood today as the predecessor brand and business platform whose financial-information activities were absorbed into IHS Markit and then S&P Global.

• 2022

  IHS Markit joins S&P Global

  [1]Markiten.wikipedia.org

  IHS Markit merged with S&P Global, ending the former Markit business's independent corporate identity.

• 2016

  Merger with IHS

  [1]Markiten.wikipedia.org

  Markit and IHS completed an all-stock merger of equals, creating IHS Markit.

• 2014

  Initial public offering

  [1]Markiten.wikipedia.org

  Markit Ltd. completed its public-market debut on Nasdaq under the ticker MRKT.

• 2009

  MarkitSERV is launched

  [1]Markiten.wikipedia.org

  Markit and DTCC created MarkitSERV as a joint venture for processing over-the-counter derivatives.

• 2008

  BOAT and FCS acquisitions

  [1]Markiten.wikipedia.org

  Markit acquired the BOAT trade-reporting platform and FCS Corporation's syndicated-loan portfolio and risk-management software operations.

• 2007

  Credit-index and infrastructure expansion

  [1]Markiten.wikipedia.org

  Markit acquired the International Index Company and CDS Index Company and announced the acquisition of SwapsWire, strengthening its index and derivatives infrastructure businesses.

• 2006

  ABX.HE index is launched

  [1]Markiten.wikipedia.org

  Markit and CDS IndexCo launched ABX.HE, a credit-derivative index linked to asset-backed home-equity exposures.

• 2004

  Acquisition of Totem Valuations

  [1]Markiten.wikipedia.org

  Markit acquired Totem Valuations, expanding into consensus valuations and month-end financial-market data.

• 2003

  Mark-it Partners is founded

  [1]Markiten.wikipedia.org

  Lance Uggla founded Mark-it Partners in St Albans, near London, to provide daily pricing for credit default swaps.

Independent market-data and financial-market infrastructure provider focused on transparency, valuation, risk management, and operational efficiency for institutional participants.

• Market data and valuation · 2003

  Credit-derivative pricing

  Markit's original business supplied independent daily pricing for credit default swaps and related credit derivatives. The service supported valuation, risk analysis, portfolio monitoring, and market transparency for institutional users.

• Credit index

  Markit CDX

  The CDX family consists of North American credit-default-swap indices used as standardized references for corporate-credit exposure, trading, hedging, and portfolio analysis. Markit became associated with the index family after acquiring CDS Index Company.

• Credit index

  Markit iTraxx

  The iTraxx family provides European credit-default-swap benchmarks. The indices enabled market participants to express views on credit markets and manage exposure through standardized index products.

• Structured-credit index · 2006

  ABX.HE

  ABX.HE was a credit-derivative index referencing a basket of asset-backed mortgage exposures. It was created to provide a standardized market reference for a segment of structured credit and home-equity risk.

• Derivatives trade processing · 2009

  MarkitSERV

  MarkitSERV was a joint venture with DTCC designed to support post-trade processing for over-the-counter derivatives. Its functions addressed trade matching, confirmation, processing, and related operational requirements for institutional market participants.

• Trade reporting · 2006

  BOAT

  BOAT was a trade-reporting platform established in connection with European financial-market transparency requirements following the introduction of MiFID. Markit acquired the platform from its investment-bank consortium owners in 2008.

• Loan trade processing

  ClearPar

  ClearPar was an electronic platform for processing syndicated-loan trades. Its acquisition expanded Markit's presence in loan-market operations and complemented its data and post-trade services.

• Valuation data

  Totem consensus valuations

  Totem supplied consensus valuations and month-end data used by financial institutions for valuation control, portfolio oversight, and market-risk processes. Markit acquired the business in 2004.

• 2022

  Combination of IHS Markit with S&P GlobalM&A

  Background

  IHS Markit pursued a larger combination with S&P Global, bringing together major financial-information, ratings, indices, and market-data businesses.

  Action taken

  IHS Markit merged with S&P Global on 28 February 2022.

  Aftermath

  The former Markit businesses became part of S&P Global, completing the transition away from the standalone Markit corporate identity.

  Source

• 2016

  Merger with IHSM&A

  Background

  Markit and IHS sought to combine complementary financial, economic, industry, and market-information capabilities.

  Action taken

  The companies completed an all-stock merger of equals on 12 July 2016, forming IHS Markit.

  Aftermath

  Markit ceased to exist as an independent public company and its businesses operated within IHS Markit.

  Source

• 2014

  Public-market listingOther

  Background

  After a period of expansion in data, indices, and financial technology, Markit pursued access to public capital markets.

  Action taken

  Markit Ltd. filed for an IPO and listed its shares on Nasdaq under the symbol MRKT.

  Aftermath

  Markit became a publicly traded financial-information company before later combining with IHS.

  Source

• 2009

  Expand into derivatives post-trade processingStrategy

  Background

  Markit's initial focus was independent credit-derivative pricing, but institutional clients also needed more efficient processing for over-the-counter derivatives.

  Action taken

  Markit partnered with DTCC to establish MarkitSERV, a joint venture focused on OTC derivatives trade processing.

  Aftermath

  The initiative broadened Markit's role from market-data supplier to financial-market infrastructure provider.

  Source

• 2022

  IHS Markit merges with S&P Global[1]Markiten.wikipedia.org

  M&A

  IHS Markit merged with S&P Global, placing the former Markit businesses within S&P Global.

• 2016

  Markit and IHS complete merger[1]Markiten.wikipedia.org

  M&A

  Markit and IHS completed an all-stock merger of equals, creating IHS Markit and ending Markit's existence as a standalone company.

• 2014

  Markit files for initial public offering[1]Markiten.wikipedia.org

  Other

  Markit Ltd. filed for an initial public offering intended for the Nasdaq Global Select Market.

• 2014

  Markit begins trading on Nasdaq[1]Markiten.wikipedia.org

  Other

  Markit's shares began trading under the symbol MRKT after the company priced its initial public offering.

• 2009

  Markit and DTCC launch MarkitSERV[1]Markiten.wikipedia.org

  Product launch

  Markit and the Depository Trust & Clearing Corporation established MarkitSERV as a joint venture for over-the-counter derivatives trade processing.

1. 1Markiten.wikipedia.org