Investment banks launch trade ideas utility

Investment banks launch trade ideas utility

Investment banks Citigroup, Credit Suisse First Boston (CSFB), Dresdner Kleinwort Wasserstein (DrKW) and Merrill Lynch have teamed up to develop a single platform for the distribution of trade ideas to their clients.

The four banks will distribute trade ideas to clients through a central Web-based hub, called the repository and distribution centre (RDC). The banks inolved in the platform will not be able to see each other's trade ideas.

Previously these messages, which comprise short- or long-term trading ideas rather than fundamental research, were sent to clients across a range of bespoke systems.

Chris Driscoll, deputy head of Pan-European and equity customer trading at CSFB, told reporters that the service is designed as a utility for the industry, although it is not intended to distribute research or replace existing systems.

The hub will be operated by Trade Ideas Limited (TIL), which is in turn owned by each of the banks.

TIL commissioned the software house, youDevise Limited, to develop the RDC software but has ultimate responsibility for the RDC operation, which it out sources for day-to-day operation to youDevise Limited.

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