Sophis is to integrate Markit’s credit price and reference entity data (RED) together with their dividend forecasting (formerly DaDD) and index management services into its trading and risk management system.
“This agreement is another step in Sophis strategic move into credit derivatives, and follows Sophis collaboration with AXA IM, announced in December 2004,” says Herve Vinciguerra, CEO of Sophis. “Data management is a critical issue in our industry; along with our platform, we need to provide access to the best data sources on the market to ensure that we fuel our pricing and risk management engines with quality information. I am confident that this partnership will bring a significant added value to our customers.”
Markit data will be available via Sophis’s new data management module, the Data Service, which collects data from any source type (vendor or proprietary) and allows customised extractions. Users will have automatic access to over 12,000 daily CDS curves, over 8,500 global indices and ETFs, 4 years of dividend forecasts and to market standard reference entity names, reference bonds and codes.
“The combination of Sophis cross-asset, front to back office capability and exposure in the derivatives area is an ideal fit for Markit’s derivative, dividend forecasting, index price and reference data services,” adds Mark Hunt, Director of product development at Markit. “It will give mutual customers real benefits by accurately modelling their trade activity, measure risk profiles more effectively and reduce operational overheads as the growth of the credit derivatives area expands in terms of interest and customer demand.”