Reuters: Mergers News: UPDATE 1-Markit buys analytics firm Data Explorers

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UPDATE 1-Markit buys analytics firm Data Explorers Apr 2nd 2012, 14:10 Mon Apr 2, 2012 10:10am EDT By Luke Jeffs LONDON, April 2 (Reuters) - Financial data firm Markit has bought Data Explorers, a stock lending analytics firm, marking its first move into the $12 trillion securities lending business. Markit said in an emailed statement on Monday it had acquired Data Explorers from private equity firm Bowmark Capital. Financial details were not disclosed. The acquisition is Markit's first move into the vast securities lending business at a time when financial firms are looking to increase their use of this market to meet regulatory requirements for more collateral. "Markit's acquisition of Data Explorers represents a logical extension to our existing data, research and analytics for the equity markets and complements our extensive fixed income offering," said Lance Uggla, Chief Executive of Markit. Investment banks, hedge funds and asset managers are looking to the stock lending market -- which involves firms borrowing stock and bonds for a short period in return for a fee -- to help them find an $2 trillion in extra collateral. Firms' collateral needs are set to increase dramatically after Dodd-Frank legislation in the United States and European Market Infrastructure Regulation (EMIR) in Europe force over-the-counter products to use clearing houses, likely next year. A Morgan Stanley and Oliver Wyman report released last month said the revenue opportunity for data providers, such as Markit, providing stock lending data, could be as high as $17 billion. Link this Share this Digg this Email Reprints

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