Markit buys BOAT

Markit acquires BOAT for Mifid-compliant derivatives transaction reports

LONDON – Markit, a UK provider of data, valuations and over-the-counter derivatives trade processing, has bought BOAT, the platform that allows market participants to publish their pre-trade quotes and report their OTC trades in equities in compliance with the Markets in Financial Instruments Directive (Mifid).

Launched in September 2006 by nine investment banks, BOAT went live on November 1, 2007 and is now used by 24 global financial firms. Trades reported on it now account for 25% of Europe’s equity markets. Before Mifid and the launch of BOAT, OTC trade information in certain countries was not readily available, making it difficult for market participants to understand fully how the OTC markets were moving.

Niall Cameron, Markit’s executive vice-president and head of equities and indexes, says: “BOAT fits neatly with Markit’s goal to bring transparency to the OTC markets. As calls for greater transparency multiply, we see this acquisition as very timely. It will also reinforce Markit’s position in the equity markets and its footprint within the financial sector.”

“BOAT shows how consortium-led initiatives can bring efficient solutions to the global financial markets,” says Niki Beattie, managing director and head of EMEA market structure at Merrill Lynch. “Having launched successfully in November – just over a year after we announced the creation of the consortium – BOAT is going from strength to strength, and provides critical information on a growing share of the OTC markets. Markit, as the consortium’s business partner, is the ideal candidate to take ownership of BOAT.”

The platform will now be known as Markit BOAT.