The partners intend, where appropriate, to make joint business proposals on a revenue-sharing basis, and will combine resources to provide clients with 24-hour round-the-world system support. The venture will concentrate initially on foreign exchange, but other asset classes in the over-the-counter treasury markets are likely to be developed, a joint company statement said. Logicscope is already preparing to announce a foreign exchange options deal delivery product.
The companies believe that they offer complementary products, as Velocity operates mainly in the pre-trade environment, Logicscope largely in the post-trade sector.
Logicscope's main products are TradeSTP, a post deal notification product that delivers completed deal data from the FX trading environment to the counterparties' back office, and RT Server, which connects market data across platforms and pricing engines.
Velocityâs expertise is in both the provision of bespoke trading systems development for the international treasury markets and related support services
This partnership means that both companies are able to offer the services and solutions spanning the complete deal life cycle.
John Jessop, Logicscope's Chief Operating Officer, commented: "This is the kind of collaboration we at Logicscope favour, and we found Velocity to have a similar mindset. Small companies such as ours simply can't afford to be all things to all people. Even the big vendors have discovered that. Cooperative ventures between companies offering complementary products and services and operating in different time zones, makes all the sense in the world."
Alan Scott, chairman and chief executive officer of Velocity added: "We've been working to penetrate the London and European markets, and a partnership with Logicscope, which is already established there, suits our need perfectly. In Australia, we have market presence and a fine group of developers, as does Logicscope in London. Combining those resources, both companies will be able to offer clients products and solutions that makes full use of that expanded range of talents."