The TRADE 56 - Page 9

UPDATE SELL-SIDE DATA Goldman Sachs banker charged with insider trading IHS Markit to acquire Ipreo, sell MarkitSERV derivatives business A vice president and senior investment banker at Goldman Sachs has been charged by the US financial watchdog after making $140,000 in profits from an insider trading scheme. The SEC alleged that Woojae “Steve” Jung, who worked at the bank’s New York and San Francisco offices, used access to sensitive information for illicit trades. A spokesperson for Goldman Sachs told The TRADE: “We are aware of the situation regard- ing Mr Jung and are cooperating with legal authorities on the matter.” Between 2015 and 2017, the SEC alleged that Jung used an account held in the name of a friend living in South Korea to evade detection by circum- venting requirements to report trades to Goldman Sachs and use an approved broker. According to the complaint, Jung generated profits of around $140,000 from trades in securities of 12 different com- panies prior to market-moving announcements. I HS Markit has agreed to buy rival data company Ipreo for $1.9 billion, while initiating the process to sell derivatives process- ing business, MarkitSERV. The firm will acquire Ipreo from private equity funds managed by Blackstone and Goldman Sachs Merchant Banking Division, which acquired Ipreo in 2014 for $975 million. The deal is expected to close in the second half of the year pending regulatory approval. “Ipreo has an extremely strong brand in financial markets and its services are a logical and highly complementary extension to our financial services business and our customer base,” said Lance Uggla, CEO of IHS Markit. “Across multiple product lines, we will deliver a more comprehen- sive service that will allow clients to streamline their workflow and make quicker and better decisions. We are excited to expand our footprint in the rapidly growing alternatives sector.” Ipreo is currently based in New York and employs more than 1,700 people. Scott Ganeles, CEO of the firm, commented that the acquisi- tion marks the coming together of “two strong organisations” to the benefit of both firms’ clients. “IHS Markit will be a tremendous partner as we continue to build on our position as a leading provider to global capital markets partici- pants,” Ganeles said. IHS Markit added that following a detailed review of the financial services business as part of its cap- ital allocation strategy, it has also begun the process of selling off its derivatives business, MarkitSERV. MarkitSERV provides end-to-end processing and workflow services across over-the-counter (OTC) derivatives asset classes, including credit, equity, foreign exchange (FX) and interest rates. Issue 56 // // 9