IHS Markit enhances securities finance data and analytics platform
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IHS Markit enhances securities finance data and analytics platform 06 January 2021UK Reporter: Natalie Turner
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IHS Markit has added new functionality and enhancements across its securities finance data and analytics platform, including a unique tool that offers daily analytical reports that can complement a firm’s approach to best execution.
The other additions to the product suite involve enhanced corporate actions tools, a stability metrics for measuring programme performance and daily disclosure data on short positions from Chinese exchanges.
According to Kabin George, executive director and global head of product management at IHS Markit securities finance, the new tools provide “additional transparency and new unique insights” which will help counter the revenue shortfalls many suffered in 2020.
The first-of-its-kind daily analytics tool, called the Securities Transaction Execution Analytics Report, is customisable to each user and leverages IHS Markit’s more than $29 trillion securities finance dataset to examine transactions against all other similar market transactions over a one-day or three-day period, the firm says.
This aims to focus reviews on trade exceptions and provide greater transparency utilising the most comprehensive data available. The report can be tailored to deliver additional depth and flexibility that can align the outputs to a firm’s respective best execution policy.
The corporate action tools bring together IHS Markit’s securities finance platform and Managed Corporate Actions business to provide notifications of more than 15 corporate actions types.
Customers can be alerted to record dates, effective dates and meeting dates of upcoming corporate actions, including bonus issues, dividend reinvestment plans, exchange offers, rights issue, stock dividend, spin-offs, annual and special general meetings, stock splits, reverse stock splits, mergers and acquisitions/takeovers.
The new fields for corporate actions are available through the securities finance web portal, Excel toolkit, application programme interfaces and data feed.
These data points will bring customers greater visibility on corporate actions for increased revenue opportunities, enhanced risk management and to help with voting and environmental social and governmental (ESG) activities, says IHS Markit.
Thirdly, IHS Markit says clients now have an additional option to align their programme and peer group by stability and turnover of the fund by using its stability metrics in performance measurement.
The filter can be used in conjunction with the client and group filters available in the IHS Markit securities lending performance measurement tool.
Finally, the new daily disclosure data on short positions on the Shanghai Stock Exchange and Shenzhen Stock Exchange broadens IHS Markit’s breadth and depth of coverage in the Asia Pacifc region.
Elsewhere, IHS Markit has added more than 20 new data contributors to our platform which Paul Wilson, managing director and global head of IHS Markit securities finance says expands the firm’s analytical universe to more than $29 trillion in securities finance transactions.
The new functionality comes amid the merger of IHS Markit and S&P Global which was made public last month and is expected to close in the second half of the year.
In a joint statement, the firms say the combined entity will offer greater scale and business mix, creating strong offerings in high-growth adjacencies such as ESG, counterparty risk management, supply chain and trade, and alternative data, which together represent $20 billion of total addressable market, growing at least 10 percent annually.
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