Markit Group Limited, the provider of independent data, portfolio valuations and OTC derivatives trade processing to the global financial and commodities markets, has launched a Trade Finance pricing and index service to broaden further its coverage of the loan asset class in support of growing interest from customers. This service incorporates the pricing service recently acquired from LTP Trade.
Trade Finance assets are fixed income receivables that are generated in consideration of the cross border sales of goods or services. According to the World Trade Organisation, global import/exports totalled USD11 trillion in 2004 with an estimated USD4 trillion of this conducted on deferred payment terms. Trade Finance is a traditional business for banks and a fast developing area of interest among portfolio managers for investment and risk management purposes.
“We are delighted that Markit has acquired the data service from LTP,” says James Parsons, the Managing Director of LTP Trade. “As the Trade Finance area gains more appeal within the investment community, Markit will add more independence, quality and scale to this key asset class.”
“Trade Finance is a new and exciting area of interest for our clients and fits well within our existing platform which includes syndicated loan pricing and portfolio valuation services,” adds Kevin Gould, an Executive Vice President and Head of Data Products and Analytics at Markit. “We are pleased to integrate LTP Trade’s data service into our suite of products and we expect our new pricing service to accelerate the development of Trade Finance as an asset class.”