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Markit Selected By OCC To Supply Implied Volatility Data On Equities

New York, Chicago and London (January 9, 2013) Markit, a leading, global financial information services company, today announced that it has been selected by OCC, the world's largest equity derivatives clearing organisation, to provide daily implied volatility data on the S&P 500 index.

OCC will use Markit's data, including implied volatilities, forwards and discount factors, as inputs in the calculations of prices for settlement of over-the-counter (OTC) equity options. The service provided to OCC will be based on the Markit Daily Vol - Equities service which covers major indices and single stocks in EMEA, Asia-Pacific, and the Americas.

Nigel Hyde, Managing Director and Global Head of Sell-Side Valuations and Fixed Income Pricing at Markit, said: "We have been collecting and returning OTC equity option data to the market for 15 years and are looking forward to working with OCC. We believe OCC, and other clearers in the longer term, will benefit from our robust and accurate data set and our ability to track prices on longer-dated, out-of-the-money and OTC options."

Michael E. Cahill, President and Chief Operating Officer at OCC, said: "OCC is pleased to partner with Markit as we prepare to bring to market the first clearing solution for OTC equity options. Having access to daily implied volatility data will help enhance OCC's precision in the valuation of OTC contracts."

Russell 2000 and NASDAQ 100 indices will be added to the service provided by Markit to OCC in Q1 2013 with the full flexibility to add additional securities as requested.

About Markit

Markit is a leading, global financial information services company with over 2,500 employees. The company provides independent data, valuations and trade processing across all asset classes in order to enhance transparency, reduce risk and improve operational efficiency. Its client base includes the most significant institutional participants in the financial marketplace. For more information, please see www.markit.com.

About OCC

OCC is the world's largest equity derivatives clearing organization. Founded in 1973, OCC operates under the jurisdiction of both the Securities and Exchange Commission (SEC) as a Registered Clearing Agency and the Commodity Futures Trading Commission (CFTC) as a Derivatives Clearing Organization. OCC now provides central counterparty (CCP) clearing and settlement services to 17 exchanges and trading platforms for options, financial and commodity futures, security futures and securities lending transactions. More information about OCC is available at www.theocc.com.

For further information, please contact:

Markit

 

OCC

Caroline Lumley
Director, Corporate Communications
+44 20 7260 2047
caroline.lumley@markit.com

 

Jim Binder
Director, Public Relations
1 312 322 9853
jbinder@theocc.com