OMX, the leading expert in the exchange industry, has signed an agreement with HCL Technologies (HCL), the global IT services provider, regarding an extended partnership.
HCL will take on the responsibility for support, maintenance and development of systems for securities management targeting banks and brokers.
"We have excellent experiences of working together with HCL over the last years. Their proven technical capabilities and customer focus is a good basis for extending our relationship to the next level. We believe this partnership will strengthen the offering to our customers using systems for securities back-office." says Hans-Ole Jochumsen, President Business Area Information Services & New Markets, OMX.
Rajeev Sawhney, Corporate Vice President, HCL, comments: "We're delighted to be extending our working relationship with OMX further still. Our specialist skill-set and sector experience make us an ideal partner and we'll be helping OMX to drive through benefits such as a more efficient and secure service. The agreement highlights HCL's expertise in the financial services sector and our continued commitment to developing value-add technology solutions to meet the specific needs of our customers."
The partnership with HCL means that OMX will no longer have any discontinued operations in the Nordic region. A part of the discontinued operations, will be moved to Business Area Information Services & New Markets, and be included in the unit Broker Services. A number of employees´ work tasks will be within Business Area Market Technology to replace resource consultants and decrease new recruitments.
The business that is moved to Business Area Information Services & New Markets had sales of SEK 160 million and costs of SEK 195 million in 2006. It is expected to show a profit during 2007, following the agreement with HCL. For the fourth quarter 2006, the business' revenue was SEK 43 million while costs were SEK 49 million, levels that are expected to remain in the first quarter of 2007.
In August 2005, OMX announced the focusing of its technology business through the divestment of operations targeting banks and brokerages within the Banks & Brokers business area. Following the agreement with HCL, only the UK operations in securities administration services remains in operations being discontinued. The changes are implemented in OMX accounting as per January 1, 2007.