Illiquidx

MARKIT CREATES E-TRADE LOAN PLATFORM

Markit, the financial information provider, has acquired ClearPar of the US to create a platform that for the first time will allow banks and investors to process loan trades electronically from start to finish.

The move is intended to help reduce counterparty and operational risk in a market with $1,000bn of loans outstanding.

The acquisition of the loan settlement platform by London-headquartered Markit – which describes itself as the Google of the credit world – highlights a shift in international debt markets towards a more efficient and transparent loan market.