Under the arrangement, Thomson Reuters customers will have access to Redkite's Redeye technology as a managed service within Elektron or as a deployed software implementation within a firm's own enterprise environment.

The move comes as regulatory reform on both sides of the Atlantic - Esma and the extensions to the Market Abuse Directive in Europe and Dodd-Frank in the US - drives firms to boost risk management, compliance and surveillance.

A recent study from Tabb Group predicted that this wave of regulation will see brokers across the US and Europe spend over $200 million on new market surveillance programs this year.

Thomson Reuters says that, as the industry's first trade surveillance offering available through Elektron, users of Redeye will have access to a fully managed, integrated system powered by its real-time pricing, news and tick history data.

Financial firms can also tap Elektron Hosting to co-locate their trading applications and market connectivity in a fully managed, low latency environment, enabling them to integrate, test and use new surveillance strategies according to changing market requirements.

Mike Powell, global head, enterprise real time solutions, Thomson Reuters, says: "Globally, we are seeing increased demand for improved surveillance products and processes in the face of imminent market structure changes. The combination of Thomson Reuters Elektron and Redeye will provide a high performance solution to support customers' trading workflow and better enable them to meet new regulatory requirements."