OMX Technology and Orc Software have today signed an agreement regarding the development of a new front-office product for trading in shares and derivative instruments on multiple electronic markets.
Highlights of the cooperation:
- The new multi-asset and multi-market product will complement both companies' existing product offerings.
- The product is mainly designed for brokers and traders who use the exchanges' terminals.
- OMX Technology will gain access to Orc Software's extensive experience in front-end development and market connections.
- Orc Software, via OMX Technology, will gain access to a global distribution channel for sales through the exchanges of both the product and other Orc Software products.
As a result of the agreement, the approximately 12 employees who have worked on the development of the front office product at OMX Technology will be transferred to Orc Software as of October 1, 2005. Accordingly, Orc Software will assume responsibility for the further development of the product. For an initial period extending up to the end of 2006, OMX will be responsible for the cost of developing and commercializing the new product. The two parties will share the sales revenues, after OMX has received coverage for the costs incurred during the initial period.
The new product is expected to be launched to customers at the beginning of 2006.
The agreement also entails that OMX Technology will obtain global distribution rights to Orc Software products. Accordingly, OMX Technology will have a complete front-end offering and Orc Software will increase its opportunities for added sales.