The leading knowledge platform for the financial technology industry
The leading knowledge platform for the financial technology industry

A-Team Insight Blogs

CME Acquires Credit Data Specialist CMA

The acquisition of credit derivatives data specialist Credit Market Analysis (CMA) by derivatives exchange CME Group is positioned as enabling CME to grow its activities in the OTC credit derivatives market, and as generating opportunities to combine the CMA data services with CME’s trade execution and clearing capabilities to create new offerings for the marketplace both in the credit space and beyond.

When CMA bolstered its flagship QuoteVision price discovery tool with DataVision, its end of day pricing service, it made something of a splash in the credit derivatives data world, until that point dominated by Markit. CMA says it is differentiated from other providers because DataVision is based on buy side, rather than sell side, pricing data. CMA clients include European hedge fund BlueCrest Capital Management.

CMA will be a wholly-owned subsidiary of CME Group, and will remain headquartered in London and continue to operate under the CMA name. Laurent Paulhac will carry on as CEO, and, according to CME, the existing CMA management team is expected to remain in place. CME will, through its subsidiary CME Swaps Marketplace, buy 100 per cent of the share capital of CMA, and all of its operating assets and intellectual property. Further terms of the sale are not being disclosed.

Says Paulhac: “This move will take CMA’s business to new levels, enabling us to expand our product line and explore opportunities within and beyond the credit derivatives market. Taking the longer view, we will leverage synergies between CMA’s products and CME Group’s market data and trading-related capabilities to provide greater market transparency and to better serve the industry.”

Adds CME CEO Craig Donohue: “CME Group’s OTC strategy has focused on identifying opportunities where we can leverage our strengths in technology and clearing services, which will create greater efficiencies and opportunities for market participants. It’s impossible to overestimate the importance of accurate, timely and reliable sources of market data to the smooth functioning of financial markets, especially in today’s environment. Working together, we believe that we can expand CMA’s existing services in the credit derivatives markets, as well as to additional asset classes that would benefit from additional transparency or central counterparty clearing services.”

Related content

WEBINAR

Recorded Webinar: Evolution of data management for the buy-side 2021

The buy-side faced a barrage of regulation in 2020 and is now under pressure to make post-Brexit adjustments and complete LIBOR transition by the end of 2021. To ensure compliance and ease the burden of in-house data management, many firms turned to outsourcing and managed services. But there is more to come, as buy-side firms...

BLOG

Rimes Names Brad Hunt – Former Strategy Lead at BNY Mellon – as CEO

Rimes Technologies, a provider of managed data services, has appointed Brad Hunt as CEO. The company describes the appointment as a follow-on from a ‘significant growth investment’ in Rimes by Swedish private equity firm EQT Partners in February 2020. Rimes’ co-founder and former CEO, Christian Fauvelais, retains a role on the company’s board and will...

EVENT

TradingTech Summit London

TradingTech Summit London will explore how trading firms are innovating in today’s cloud and digital based environment to create flexible, scalable trading platforms to support speed to market and business agility. Leveraging the cloud, AI and ML technologies to get an edge, automate processes and simplify operations in a cost effective way is the name of the game and will share practical insight from practitioners and technology leaders who are innovating and driving forward change in trading operations.

GUIDE

Risk & Compliance

The current financial climate has meant that risk management and compliance requirements are never far from the minds of the boards of financial institutions. In order to meet the slew of regulations on the horizon, firms are being compelled to invest in their systems in order to cope with the new requirements. Data management is...