IHS Markit, a specialist in information, analytics and solutions firm, has acquired compliance technology provider Cappitech, to expand its suite of global, multi-asset class regulatory reporting offerings to the financial industry.
Details of the transaction are undisclosed, but the aim is to deliver a single global regulatory reporting solution that meets the fast-evolving needs of clients.
The demand for regulatory reporting has grown exponentially with the onslaught of regulations since the financial crisis in 2008. A survey published by Cappitech last November showed that 65% of the companies polled had to change their reporting due to inefficiencies and errors.
Regulatory reporting demands will continue to grow rapidly around the globe and customers are looking for a reliable, frictionless and cost-effective way to comply with requirements across jurisdictions,” said IHS Markit’s managing director for global equities, Pierre Khemdoudi, said.
Ronen Kertis, Cappitech’s CEO and Founder, added, “Based on our extensive engagement with IHS Markit over the past two years, we are confident that combining our mutual successes and sector expertise will enable us to accelerate our product enhancement and services for the benefit of our global clients.”
IHS and Cappitech joined forces in 2019 to offer a best-of-breed solution that automates and streamlines transaction reporting to trade repositories for all securities finance instruments reporting under the Securities Finance Transaction Regulation.
It has been a busy time for IHS who is also set to buy New York-based S&P Global for $44 bn in the second half of this year, subject to regulatory approval.
The market for financial information has increased sharply, driven by more complex products and algorithm-driven strategies.
Spending grew around 5.6% in 2019 to a record $32 bn and while Covid-19 has had an impact, it has remained relatively resilient, only dipping marginally, according to a study by Burton-Taylor International Consulting.