Credit pricing and valuations specialist Markit Group has acquired QuIC, a risk analytics firm that allows institutions to test market and credit risk scenarios. The move will give Markit a set of analytical applications to complement its data and valuations offerings, particularly in the credit area.
Markit positions the transaction as an entre into the risk analytics and enterprise risk management area. The company believes it will be able to offer “a comprehensive solution for risk-related services spanning independent pricing, valuations and analytics across asset classes.” QuIC will become part of Markit’s valuations and analytics services unit, and will continue to provide all of its existing high-quality services to clients throughout the financial industry. Markit’s data sets across all major asset classes in the cash and over-the-counter derivative markets – including credit default swaps, bonds, loans, equities, commodities and rates – will become inputs into the QuIC Engine, the high speed computational framework that powers QuIC’s solutions.
Markit recently combined its valuations and analytics services – comprised of its Totem, Portfolio Valuations, Valuations Manager, Evaluated Bonds and Structured Finance businesses – under the direction of executive vice president Sal Naro. “Entering the risk analytics space is a natural evolution for Markit and our combination with QuIC will give us a market-leading offering in this fast-growing area,” Naro says. Lance Uggla, CEO of Markit, agrees that “The field of risk analytics continues to grow at an accelerated pace and presents some very interesting opportunities for Markit. By acquiring one of the leading providers of risk analytics, Markit will gain significant enterprise risk management capabilities which will allow us to provide our customers with the comprehensive solutions they require to identify and manage risk.” For QuIC, which has enjoyed significant traction in the risk analytics space since its founding in 1998, Markit will allow it to expand into a broader set of market segments. CEO Nigel Cairns, says: “Risk analytics begin with good inputs and I am confident that, with Markit’s data and resources, we will provide an even better service to our clients and be able to develop exciting new offerings.”