Jefferies Joins Markit Collaboration Services Messaging Network

The bank is now in live production with the federation and directory components of the Collaboration Services, including the Markit Directory "phone book" of validated identity and contact data, and the Federated Chat platform that allows any instant messaging or communication platform based on XMPP (Extensible Messaging and Presence Protocol) or SIP (Session Initiation Protocol) to interoperate-or "federate"-with each another. For example, firms can use the service to send instant messages, use video and chat rooms, and exchange documents across disparate messaging platforms.

"Jefferies was able to connect and federate in production within 24 hours of starting the work to configure their existing messaging platform to the network because we are an open network that used standard technologies," says Andrew Eisen, managing director and head of Collaboration Services at Markit.

The bank currently leverages Microsoft Lync as its internal messaging platform, and also has some users on the Eikon Messenger open messaging tool from Thomson Reuters, which is also an official partner in Markit's initiative.

The addition of Jefferies will bolster the Markit network by almost 4,000 individual users on the network and directory, though the bank intends to add its employees in phases over the coming months, rather than all at once.

"With Markit's network, we are giving our team another tool with which to communicate and do business with clients. The innovation here is that we are not adding software to our platforms, but rather extending the capabilities of our existing messaging systems," says Marty DeMonte, managing director and chief information officer at Jefferies, in a statement.

Indeed, operational and cost efficiencies are key drivers for firms like Jefferies joining Markit's Collaboration Services, Eisen says.

"Collaboration Services will enable Jefferies to bring together the front, middle and back office. They use Lync internally, so now they can use that same platform to connect to counterparties across different groups, which will have an immediate improvement on operational efficiency. And then in terms of cost savings, it will provide a real opportunity for improved information sharing, idea generation and interaction with clients," Eisen says.

The addition of Jefferies is also "validation" that the market recognizes the value of Markit's Collaboration Services initiative, which also includes S&P Capital IQ as a vendor partner, nine other banks, including Morgan Stanley, JP Morgan, Goldman Sachs, Credit Suisse, Deutsche Bank, Bank of America Merrill Lynch, Barclays and Citigroup.