Cinnober acquires BOAT from Markit — independent European trade reporting service is here to stay

01 Jul 2014 News alert
  • A seamless transition for clients with no change to the BOAT trade reporting service.
  • Independence from exchanges and marketplaces so all Over The Counter (OTC) trading activity remains free from conflicts of interest. 
  • MiFID-compliant platform for Multilateral Trading Facilities (MTFs) and investment firms to meet their pre-trade quoting and post-trade reporting obligations. 
  • A future-proof solution for MiFID 2/MiFIR with support for Market Model Typology (MMT) trade reporting standards.
  • The only Trade Data Monitor (TDM) recognized by both the Financial Conduct Authority (FCA) and SIX Swiss Exchange.

Cinnober Financial Technology today announced the acquisition of Markit Trade Reporting (“BOAT”) from Markit with Cinnober taking full control of BOAT’s European trade reporting service as of July 1st. Earlier this year, Markit announced plans to discontinue the trade reporting service. However, with significant market demand for an independent trade reporting service and an extensive client base, Cinnober has decided to acquire BOAT. Cinnober has provided the core technology and operated the BOAT platform since its inception in 2007.  

“This acquisition reflects our long-term strategy to increase our footprint in providing services to banks and brokers,” said Cinnober’s CEO Veronica Augustsson. “The BOAT platform has huge potential for further development and the demand for a continued service and a broader offering is very high according to discussions we’ve had with customers. More than 40 leading investment firms and MTFs currently report trades and quotes to BOAT, which is more than any other platform. We fully expect that number to increase as we build on the service offerings.” 

BOAT is a MiFID-compliant trade reporting platform that enables MTFs and investment firms to meet their pre-trade quoting and post-trade reporting obligations for all their European OTC cash equity trades. BOAT collects, collates, validates and stores OTC trade data and publishes it to the market in real time.    

Mark Schaedel, managing director of equities at Markit, said: “We believe the sale of BOAT to Cinnober is in the best interests of customers as it provides a seamless transition for their trading reporting requirements. We have a long-standing relationship with Cinnober and are pleased that they will continue to provide the service.”

“The reasons why BOAT was set up in the first place under MiFID are still very pertinent today, which is why the customers we have spoken to have had a very positive response to the service continuing under Cinnober,” says Jamie Khurshid, CEO of Cinnober’s BOAT Services. “The transition in ownership will have no effect on current operations for customers and we will offer cost-effective and independent services. The Cinnober product portfolio covers the entire trade lifecycle, from price discovery, real-time risk management, compliance and surveillance, through to our world-leading clearing capabilities, all of which can be added as services to the BOAT platform to increase the value of the offering to our customers.”

Jamie Khurshid added: “We see BOAT as a perfect fit for us to be able to offer world-class technology and services to the banking and broking communities using this service.”

Christian Katz, CEO of SIX Swiss Exchange said: “We welcome the seamless transition and a continuity of service offering this transaction offers, which enables our mutual members to continue to meet their reporting obligations”.

BOAT was founded in 2006 by a consortium of banks in order to create a neutral hub in conjunction with the introduction of MiFID and other market regulations. Its technical solution, based on Cinnober TRADExpress, has been in operation since 2007. BOAT was sold to Markit in 2007 and was subsequently rebranded to Markit Trade Reporting. 

Since its inception 15 years ago, Cinnober has established a world-leading position within financial technology for marketplaces and clearinghouses. Current customers include major global players with extremely high demands for reliability and performance, such as BM&FBOVESPA, Deutsche Börse, Dubai Gold & Commodities Exchange, the London Metal Exchange, LME Clear, Quadriserv, MarkitSERV and the Stock Exchange of Thailand. Given the current regulatory climate, the company’s customer profile is naturally broadening to include banks and brokers.

For further information or discussion, please contact:

Fredrik Backlund
Head of Corporate Communications
Cinnober Financial Technology
Tel: +46 (0) 73 403 12 39
fredrik.backlund@cinnober.com

About Cinnober Financial Technology
Cinnober provides solutions and services to leading trading and clearing venues, including exchanges, clearinghouses, banks and brokers. Cinnober’s solutions are largely based on the TRADExpress™ Platform, incorporating everything needed for mission-critical solutions in terms of performance, robustness and flexibility. The portfolio of offerings includes price discovery and matching, real-time risk management, clearing and settlement, index calculation, data distribution and surveillance. Cinnober’s customers include BM&FBOVESPA, Deutsche Börse, Dubai Gold & Commodities Exchange, Eurex, Johannesburg Stock Exchange, London Metal Exchange, LME Clear, MarkitSERV, NYSE Liffe and Stock Exchange of Thailand. For additional information, please visit www.cinnober.com

About Markit
Markit is a leading global diversified provider of financial information services.  Markit provides products that enhance transparency, reduce risk and improve operational efficiency. Markit’s customers include banks, hedge funds, asset managers, central banks, regulators, auditors, fund administrators and insurance companies.  Founded in 2003, Markit employs over 3,000 people in 10 countries. Markit shares are listed on NASDAQ under the symbol “MRKT”.  

About SIX Swiss Exchange
SIX Swiss Exchange is the most important independent exchange in Europe. We connect companies from around the world with international investors and trading participants and create particularly market-oriented framework conditions for listing and trading in our highly liquid segments Equities, Bonds, ETFs, ETPs and Structured Products and Warrants. SIX Swiss Exchange is an ideal listing location for companies of every origin, size and sector. With the world’s fastest trading technology X-stream INET as well as the most advanced connectivity options, we offer our trading participants excellent trading conditions. We maintain a close dialogue with both our domestic and foreign customers, working intensively with them to create optimal conditions for their success. Furthermore, we offer them access to a strong global network. www.six-swiss-exchange.com