The Cable & Wireless Real Time Nostro system (CWRTN) was developed to address liquidity and risk management issues relating to account balances and transactions between banks. Live trials of the subscription-based system, which provides participants with a real-time intra-day view of their Nostro account positions from their correspondent banks, commenced in late 2003 with the backing of a number of big liquidity providers. But the idea, first mooted by Gresham in 1999, has been slow to take off as second tier banks have questioned the value of real-time transactional data.

Under the revised agreement, Cable & Wireless is to hand over responsibility for the day-to-day sales and management of the programme to Gresham, while retaining a core role in providing the secure hosting and managed IP infrastructure for the utility.

The two companies say revenue-sharing arragements have been adjusted accordingly and that Cable & Wireless will make a "substantial up-front cash payment to Gresham and an ongoing contribution to the costs of taking CWRTN to market".

Gresham recently upgraded the system to accept data from banks using the new SwiftNet IP-based networking infratructure and is consequently anticipating an upturn in users as more banks evaluate the platform.

Andrew Walton-Green, CEO, Gresham Computing comments: "We believe that the realignment of responsibilities and our focus on a SwiftNet centric data delivery model will offer an improved level of service for all current and prospective users and accelerate the global roll out of the service."

The announcement was met with some relief by Richard Pattinson, chairman Real Time Nostro User Group and senior director, Barclays. He says: "Real time information is all pervasive in the banking world and a service such as real-time nostro is likely to play a major part in accessing and controlling such data as regulatory pressures grow. Today's announcement is confirmation that real-time nostro will be available to meet those needs.'

News of the deal comes as Gresham reports a slight increase in pre-tax losses of £1.2 million for the year-ending December 2005, on revenues of £14 million (2004: revenues £12.4 million, loss £1.1 million).

Chairman Alan Howarth says the revised agreement with Cable & Wireless will mean greater investment than previously anticipated over the next two years, but adds: "The additional revenue share and long term potential of CWRTN make this a worthy area for investment".