Markit Group Ltd. bought Data Explorers, which collects and sells information on securities lending, from private-equity firm Bowmark Capital LLP.
The price wasn’t disclosed. Markit, with more than 2,300 employees, provides derivative and bond data and competes with Bloomberg News parent Bloomberg LP in selling information to the financial-services industry. Data Explorers, whose information is carried by Bloomberg, says it offers data on more than $12 trillion of securities and 20,000 institutional funds.
“This acquisition comes as the new regulatory environment is changing the dynamics of the securities financing markets,” the companies said in a statement today. “By combining Data Explorers’ data set with its own products and services, Markit will be able to develop new offerings allowing clients to optimize their use of collateral.”
Data Explorers provides information on securities lending as a lens into short sales, which involve borrowing a stock and selling it in a bet that the price will fall. Markit said it plans to develop new products in exchange-traded funds, dividend forecasting and quantitative research after the Data Explorers purchase.