Cinnober Financial Technology, a provider of solutions and services to trading and clearing venues, including exchanges, clearinghouses, banks and brokers, has acquired Markit’s trade reporting service, aka BOAT. Cinnober has provided the core technology and operated the BOAT platform since its inception in 2007, the company notes.
The BOAT platform, says Cinnober, is compliant with the trade reporting regulations of the Markets in Financial Instruments Directive (MiFID) reforms of the European Union. The MiFID rules enable the usage of multilateral trading facilities (MTFs) and investment firms to meet pre-trade quoting and post-trade reporting obligations for all their European over-the-counter (OTC) cash equity trades. “BOAT collects, collates, validates and stores OTC trade data and publishes it to the market in real time,” the company adds.
The service was founded in 2006 by a consortium of banks, in conjunction with the introduction of the first round of MiFID rules and other market regulations, says Cinnober.
Earlier this year, Markit had announced plans to discontinue the trade reporting service, Cinnober adds. “However, with significant market demand for an independent trade reporting service and an extensive client base, Cinnober has decided to acquire BOAT,” Cinnober explains in its statement.
“This acquisition reflects our long-term strategy to increase our footprint in providing services to banks and brokers,” says Cinnober’s CEO Veronica Augustsson in a prepared statement. “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.”
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