Moving forward with its commitment to provide information and technology solutions for straight-through processing, Reuters has appointed Dr. Anthony Kirby to the position of group marketing director. Kirby, who was formerly the executive director of the Global Straight Through processing Association, will be responsible for directing Reuters' STP strategy across asset classes worldwide.
As part of its on-going strategy, Reuters will be looking to form key alliances with industry providers and groups to help financial services firms in three major areas--information or data management, integration management and transaction management. "I see there is a renewed focus across the entire transaction life cycle spanning from middle and back office with the opportunity to leverage the information culture and the information competencies that Reuters already has," says Kirby. With the joining of Reuters' InterTrade Direct global order routing service and its recently acquired Bridge IOE or Institutional Order Entry Service, the company looks to leverage its front office position in the move to T+1 settlement processing.
Reuters will be tapping into its TIBCO connections for the integration management aspect with workflow management tools in the processing of securities. For the transaction management part, Reuters will be leveraging TIBCO's recent acquisition of Talarian for transaction-oriented middleware technologies. "We'll continue to develop based on the addition of Talarian and we'll continue to develop the value add that we put into that middleware stack for our customers," says Alex Hungate, chief marketing officer at Reuters.
"It's really the third piece, that we call data management that we're most excited about because Reuters is uniquely positioned in understanding data management," says Hungate. "And it turns out that data management accounts for about 30 percent of the broken trades that occur in the securities industry." For this area, Reuters has teamed up with Capco to provide technology and services specifically for managing reference data necessary in the move toward straight-through processing. With proprietary software owned by the Reuters/Capco joint venture, consultants will help financial firms find areas where data discrepancies occur and therefore trades could possibly be broken. "The obvious next step as the analyses are taking place in the financial institutions is how can they manage this? How can they fill these gaps," explains Hungate.
Kirby explains that Reuters' STP efforts will be focused on two levels--working with individual firms to differentiate themselves by improving the information process and in turn their internal STP. In addition, Reuters aims to work with the securities and investment industry as a whole and particularly with the fund management community where Kirby says, "the business case to migrate to STP is a little more marginal than some of the others." In order to do this, Reuters is exploring the potential for alliances with other vendors and providers. For example, Reuters might be looking to partner with vendors in the workflow management, portfolio management or order management areas to lend its expertise as a major data provider. "We want to raise the game here by coupling with vendors or ASP entities in the space so we don't end up re-inventing the wheel," says Kirby.