10 May 2017
New York
Reporter: Drew Nicol
trueEX sues IHS Markit for anti-competition
Interest rate swaps exchange trueEX has brought an anti-competition action against Markitserv, accusing the IHS Markit business of cutting it out of the market.

According to trueEX, Markitserv, an over-the-counter post-trade platform, recently terminated their long-running trading relationship due to trueEX’s unwillingness to allow Markit to manage its post-trade processes.

The decision means that Markiserv is no longer able to accept ‘drop copy’-only messages from trueEX. The legal complaint was filed in the US District Court for the Southern District of New York on 8 May. It seeks an injunction delaying the termination of their agreement.

It has been alleged that Markitserv’s decision to cut ties with trueEX comes in response to trueEX’s launch of its own post-trade service provider truePTS in December 2015, which is eating into Markitserv’s market share.

In a statement on the decision to file the legal action, trueEX co-founder and CEO, Sunil Hirani, said: “What I have surmised from my conversations with Markit, is they would like us to interact with them in a manner that most closely resembles the way voice broker IDB firms interact with them for voice trades—meaning the transaction would be executed on trueEX (FIX or UI) and then Markit exclusively would perform the matching, clearing and SDR messaging lifecycle events.”

“This change requires trueEX to insert Markit in the middle of all of our activities in order to process, clear and report transactions, thereby creating additional workflow steps, potentially slower response times, additional software and connectivity changes and higher costs.”

Hirani encouraged mutual clients of the two platforms to lend their voices to trueEX’s calls for the trading relationship to be reinstated.

IHS Markit has yet to respond to a request for comment.

More news
The latest news from Securities Lending Times
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
LSEG and IBM partner for SME blockchain
example 28 September 2009 | | Reporter: Drew Nicol
The framework will be built on Hyperledger Fabric version 1.0 and hosted by The Linux Foundation
Northern Trust commits to EU hub
20 July 2017 | Luxembourg | Reporter: Drew Nicol
Northern Trust is set to establish a banking presence in Luxembourg, and has appointed a new head of continental Europe, in a move that it says is “further establishing its commitment to the region”
Strate and CloudMargin partner for South African OTC derivatives solution
19 July 2017 | Sandton, South Africa | Reporter: Drew Nicol
CloudMargin and South African central securities depository Strate have integrated their platforms to provide improved automation and efficiencies to the country’s OTC derivatives market
BoE refines margin liquidity risk assessment proposals
18 July 2017 | London | Reporter: Drew Nicol
Securities financing margin liquidity risk assessments should be based on historical margin posted, with a stress uplift applied, according to the Bank of England’s Prudential Regulation Authority
Kentucky Retirement Systems picks BNY Mellon for securities lending
18 July 2017 | Kentucky | Reporter: Drew Nicol
BNY Mellon is set to provide securities lending services for Kentucky Retirement Systems, a major US public retirement fund and longstanding participant in the securities lending market.
Ex-Visa CEO takes helm at BNY Mellon
18 July 2017 | New York | Reporter: Drew Nicol
BNY Mellon has named Charles Scharf as CEO and director of the company, effective immediately.
LCH’s CDSClear launches CDX high-yield clearing
18 July 2017 | New York | Reporter: Drew Nicol
Global clearinghouse LCH has extended its CDSClear service to offer clearing for the CDX North American high yield index