Reuters has taken full control of ICor Brokerage, the joint venture platform for interbank foreign exchange derivatives trading, acquiring the outstanding 50% stake from partner ICor JV Holdings.
Reuters says the move takes the firm a step nearer to achieving its aim of becoming the leading provider of electronic broking services for global treasury markets. The acquisition also extends Reuters product coverage beyond the spot and forward foreign exchange (FX) markets to include FX options.
The consideration for the acquisition will be paid in cash and will be based on future transaction revenues.
Most of the ICor employees will transfer to Reuters, although chief executive and ICor founder Jeff Larsen is to step down.
Mark Robson, global head of treasury and fixed income, says the timing for the acquisition is good given the active FX markets over the last year.
"With the ICor acquisition, Reuters will be able to directly meet our customers' needs for cost-effective brokerage and the straight through processing of FX options," he says. "ICor's customer base includes virtually every significant bank in the world which trades FX 0ptions and all will transact their business from Reuters Dealing 3000 key stations."
Seperately, Reuters has confirmed plans to launch an interest rate swaps trading system, further extending its interests beyond foreign exchange and into the fixed income and derivatives markets. The system, to be launched in Europe sometime during the first quarter, will likely target the higher volume euro interst rate swaps market, which is already catered to by electronic trading systems ATFox and e-Mid.