Moneyline Telerate has moved to thwart a threat by Reuters to disconnect its market data business by placing a disputed $18.3 million in ticker technology fees into an escrow account.
By placing the cash into escrow, Moneyline says it has removed the sole purported basis for Reuters' termination of its Transitional Services Agreement (TSA).
In a statement, Moneyline Telerate CEO, Christopher Feeney, says the action was taken "in the interest of putting our clients first and quelling any concerns they may have".
"We are shocked and extremely disappointed in Reuters' improper and unjustified actions, as they are a clear attempt to put our clients in the midst of a commercial dispute," he adds.
Moneyline claims that Reuters has not abided by the dispute resolution process set in the TSA and has so far refused to participate in an audit to verify customer user counts and ticker plant costs.
Feeney adds: "We have ample resources to continue to fund all of our commitments and, unlike Reuters, we are committed to abiding by the terms of the agreement. We will proceed to an expeditious resolution of this dispute."
Moneyline Telerate says it has invoiced Reuters $13.4 million for services provided in Europe and Asia for which payment will be due shortly.