The Reuters Trade Notification Service (RTNS) is a trade messaging hub that enables the electronic transfer of all trade related messages. Banks and brokers can use the service to deliver trade related messages electronically to their respective counterparties.

Initially, RTNS will focus on trade affirmation and confirmation, and will be expanded to cover allocation and settlement instructions, amongst others. The service supports industry standard message formats such as FIX, FPML and Twist and provides direct connectivity to risk and trade management systems.

RTNS is one of the fist investments out of Reuters new growth strategy announced in July, known as Core Plus. The market need for this service is driven by the growth of both electronic and voice trading volumes - particularly trading of complex instruments like options, bonds, credit swaps which are still largely traded by voice brokers. These have higher margins and getting the confirmation right is critical.

Reuters says the service will initially support FX spot, FX forwards, non-deliverable forwards, FX swaps and currency deposits and will be expanded to cover FX options, fixed income, interest rate and credit products over the coming months.

Rich Kiel, SVP of transactions, Reuters, comments: "The more complex the instrument, the more costly and complicated it is to process the transaction, especially given the number of technologies employed by the involved parties.

"The release of RTNS is in direct response to customer needs and allows users to lower their costs and operational risk by supporting all trade related messages – whether conducted by voice or over an electronic platform."

Reuters says Icap is already using RTNS, while UK stockbroker RP Martin is expected to go live later this month. Calyon and Lehman Brothers will go live with the system later this year.

Don McClumpha, MD of electronic broking at Icap, says: "Using additional channels like RTNS extends direct integration. We can rapidly transfer post trade information and improve the operating efficiencies of those banks where direct integration would be both costly and time consuming."

The vendor says RTNS will also act as a single straight-through processing channel for Reuters new trading platforms, including the recently launched Reuters Trading for Fixed Income, Reuters Trading for Foreign Exchange, CME FX on Reuters and Reuters Electronic Trading – Automated Dealing.