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

A-Team Insight Blogs

TSE and Markit Sign Cooperation Agreement for Potential Valuations JV

Tokyo Stock Exchange Group (TSE Group) and Markit Group have signed a cooperation agreement, under which the two parties will work together to examine the feasibility of potential business alliances for areas including valuations and indices. The memorandum of understanding, which was signed on 28 October, includes the foundations for the establishment of a joint venture company if necessary.

The agreement includes the potential for the joint promotion and distribution of appraisal and valuation services for financial instruments and the development of new indices in the Japanese market and promotion of utilisation of various indices, including ones owned by Markit, for actual trading activities. It also includes distribution tie-ups for information contents and cooperation to promote the improvement of the infrastructure of post-trade operations in the OTC derivatives market in Japan.

Atsushi Saito, president and CEO of the TSE Group, explains: “Recently, there have been growing demands for a more transparent evaluation of portfolios, as well as more reliable and efficient post trade operations for financial instruments. This opportunity will allow us to examine the possibility of business cooperation in such areas as providing objective appraisal services for financial instruments, developing new financial products using knowledge of indices owned by the company, and promoting electronic post-trade administration for OTC derivatives.”

Katsumi Mizutani, president of Markit Group Japan, adds: “Proper delivery of price information for the assets with less liquidity is getting more important and market participants desired to obtain a means or solution to prepare for volatile market conditions. At the same time, promotion of STP processing in OTC post-trade activities will contribute a lot to reduce operational risks in the financial institutions. It is important to develop momentum in the market by making this announcement of a partnership between two major companies in the Japanese capital market.”

TSE and Markit have indicated that they will establish a taskforce to conduct discussions on the feasibility of these projects and will make an announcement on the details when a specific agreement has been reached.

Related content

WEBINAR

Recorded Webinar: Brexit: Reviewing the regulatory landscape and the data management response

With Brexit behind us and the UK establishing its own regulatory regime having failed to reach equivalence with the EU, financial firms face challenges of double reporting, uncertainty about UK regulation, and a potential exodus of top talent. The data management response is not easy and could stretch some firms to the limit as they...

BLOG

SimCorp Collaborates with J.P. Morgan Securities Services to Deliver Front-to-Back Integration

SimCorp is collaborating with J.P. Morgan’s securities services to provide mutual clients with front-to-middle office and custody integration. The integration is live at an asset owner in Asia-Pacific and is designed to address costly and fragmented investment processes that contribute to operational risk by automating workflows and increasing data transparency. The companies suggest post-trade processing...

EVENT

RegTech Summit New York City

Now in its 5th year, the RegTech Summit in NYC explores how the North American financial services industry can leverage technology to drive innovation, cut costs and support regulatory change.

GUIDE

Managing Valuations Data for Optimal Risk Management

The US corporate actions market has long been characterised as paper-based and manually intensive, but it seems that much progress is being made of late to tackle the lack of automation due to the introduction of four little letters: XBRL. According to a survey by the American Institute of Certified Public Accountants (AICPA) and standards...