London – Reuters, (LSE: RTR, NASDAQ: RTRSY) the global information group, today revealed its plans for fixed income trading featuring an extensive range of tradable instruments from some of the leading global dealers such as ABN AMRO, Deutsche Bank, Dresdner Kleinwort Wasserstein, Goldman Sachs, JPMorgan, Rabobank, RBC Capital Markets and UBS, with others expected to join in 2005. The new electronic trading capability is aimed at helping banks dramatically extend the reach and distribution of their tradable prices and liquidity over Reuters 327,000 desktops. This news was made in concert with a wider transaction strategy announcement also issued today.
The fixed income trading capability will bring asset managers, corporate treasurers, regional dealers and hedge funds real-time, executable prices from more than 12,000 fixed income securities across 21 currencies.
Jon Robson, Reuters Executive Vice President and Global Head of Focus Group Accounts, said, “There is increasing market demand for efficient fixed income trading and Reuters is opening up the full reach of its unique distribution to enable capital markets participants to interact and execute trades across our global network. Reuters entry into the fixed income transactions market is backed by some of the biggest names in the financial community. We are excited about the possibilities here for efficient trading in fixed income and indeed across multiple asset classes.”
Thousands of market participants use Reuters as their primary mechanism for real-time price discovery and news. The fixed income trading capability is a natural extension of Reuters service, enabling customers to trade electronically. The navigation makes it easy for customers to view the overall market picture, search for depth of liquidity on individual bonds, or go straight to the trade ticket.
Carl Norrey, Head of Flow Distribution at JPMorgan, said, “JPMorgan’s successful fixed income trading platform is a leading brand among users in the fixed income space. Working with Reuters will allow us to further expand the reach of our prices and our distribution capabilities by offering an alternative channel for clients to connect to JPMorgan. We are pleased to be committed to ‘Reuters Trading for Fixed Income’ and to see Reuters taking advantage of its significant desktop franchise to serve the fixed income market in this manner.”
Michael Schmidt, Global Head of Fixed Income Retail Trading, at UBS, said, “We are constantly seeking innovative ways of extending the reach of our products and liquidity. We are excited to work with Reuters to offer our fixed income prices to dedicated customers via its global desktop. This move from Reuters will bring the industry more choice in finding a trading platform to fit their needs in order to handle customer flow in a fast and cost efficient way.”
Sean Park, Global Head of Debt Syndicate and Credit Trading at Dresdner Kleinwort Wasserstein, said, “This is a clear sign that electronic trading has become a vital component of any fixed income service. We are happy to be one of the first liquidity providers on board as it underlines our commitment to providing our customers with a broader choice of how and where they connect to us for electronic trading and distribution.”
The fixed income trading capability supports both bilateral and multilateral trading models, via a single sign on from the Reuters desktop, allowing for convenient price discovery and electronic trading over a highly secure environment. The combination of both trading models provides traders with broad instrument coverage whilst providing depth of liquidity in the most liquid instruments. Reuters plans to enrich the range of trading models over time as new models gain traction in the marketplace.
Reuters fixed income trading capability will allow traders to search executable prices on an extensive range of instruments and send orders for automatic execution to the preferred bank or send a competitive request for quote to a number of liquidity providers.
In addition to straight order submission, bilateral and multilateral request for quote, the service also supports limit orders trading to support different trading styles. The fixed income trading capability integrates Reuters Messaging functionality to support dialogue around the point of trade and also dealer services to provide a simple, intuitive and seamless tool for traders.
Reuters fixed income trading capability will initially be available as part of the flagship Reuters 3000 Xtra desktop and subsequently Reuters Trader.