Reuters and Capco have formed a multi-million pound joint venture to develop a range of software data management services for increased operational efficiency and straight-through processing (STP) of financial transactions.
Under the agreement, both companies are investing £16 million of cash each in the joint venture. Capco will license its e-STP software platform to the new company and provide consulting and software development services. Reuters will sell the range of services developed by the new company and provide global customer support.
The new company will focus on developing Web-based products and services that will complement the existing range of Reuters Data Management Solutions, addressing areas such as data cleansing and failed trades.
Devin Wenig, president, Reuters investment banking and brokerage services, says: "Effective management of data is key to all our customers achieving STP and the requirement for T+1. Providing fast accurate data and ways to manage it is one of Reuters core competencies."
Reuters and Capco will each appoint three directors to the new company’s board.
This development is the first major venture of the Reuters and Capco alliance initiated in February 2001, when both companies committed to develop back-office software solutions for the financial services industry.
Rob Heyvaert, chairman and CEO of Capco, says: “We believe this new venture will enable financial institutions to achieve greater efficiency as they move to STP."