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

A-Team Insight Blogs

Markit Gains Rights to Distribute Euroclear Bank’s Eurobond Reference Data

Euroclear Bank is transferring all existing and future distribution and commercialisation of its Eurobond reference data to Markit, leaving the bank to focus on core business around settlement and clearing, and giving the financial information services provider rights to distribute reference data covering more than 200,000 Eurobonds. The strategic agreement covers a broader set of Eurobond reference data than the Xtrakter data that Markit currently receives from Euroclear under a standard vendor licensing arrangement and that Euroclear will continue to offer on a standard vendor-licensing basis.

As part of the strategic deal, Euroclear will continue to provide its clients with direct access to the Eurobond reference data that Markit will distribute. Markit is expected to review its licence covering the Xtrakter data feed, which is dedicated to the wholesale market segment that is particularly interested in prices and volumes, once it has integrated the more comprehensive portfolio of Eurobond reference data covered by the distribution agreement into its reference data service and made the data available to market participants late this year.

As part of the Euroclear integration, Markit will optimise the data by cross-referencing it to its own entity and industry sector identifiers, making it easier for customers to consume.

Euroclear initially considered providing the Eurobond reference data to Markit as part of Xtrakter, but having looked at other options decided on a direct strategic distribution agreement with Markit. Euroclear says Markit’s network, customer relationships, product range and track-record in packaging and distributing reference data are the best fit for the Eurobond data the bank has available and is willing to share with international capital markets.

 

Ed Chidsey, managing director and head of global data services at Markit, says: “The Euroclear content is a robust data set that covers the vast majority of Eurobonds. To the extent that we require additional European Eurobond content, we will consider other strategic relationships to fill any gaps.”

Markit will offer the Euroclear reference data as a regional package in Europe and as part of its global bond reference data service, adding data on over 200,000 Eurobonds to its global universe of about one million bonds.

“We are building out our reference data capabilities in support of our evaluated bond pricing service that we introduced a couple of years ago,” says Chidsey. “We needed broad reference data that would have been difficult to source from competitive data vendors, so we decided to be self sufficient. Across our multi-asset class reference data offering we are always looking at strategic licence deals in Europe and other jurisdictions, but we want to create a balance between self-sourced data and rights arrangements with other suppliers.”

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

Observational Learning Boosts Data Quality, Improves Reconciliations, Cuts Costs of Exceptions

Large data volumes and manual data validation techniques are making it difficult for firms to achieve levels of data quality required to support seamless transaction processing and regulatory reporting. The problem is exacerbated by MiFID II and other emerging regulations that impose new processes on transaction reporting, including reconciliation of transactions from the trade repository...

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

Data Lineage Handbook 2019

Welcome to our latest handbook on data lineage, a critical concern for data managers working to achieve regulatory compliance, deliver operational gains, and provide meaningful value to the business. The handbook covers the complete scope of data lineage, with a view to helping you win management buy-in and budget, decide whether to build or buy...