JPMorgan Chase, Goldman Sachs and Morgan Stanley are teaming up on a new company that will pull together clean reams of reference data, according to the Wall Street Journal.
Citing people familiar with the matter, the WSJ says that the three Wall Street giants are each investing seven figure sums in 'SPReD' (Securities Product Reference Data), which could launch in the next six to 12 months.
By pooling their resources to create a stream of clean, scrubbed reference data for use in determining pricing and transaction costs, the banks hope to cut costs. The entity will initially focus on listed derivatives and equity data, with fixed income-related data added later.
Vendor SmartStream Technologies has been brought in on the project and some of its business will be spun off into SPReD with the banks taking a stake, says the Journal.