Reuters is to work closely with its electronic broking subsidiary Instinet to provide financial institutions with enhanced e-trading capabilities via its range of desktop products.
The move establishes a preferred commercial and soft-dollar arrangement for Instinet customers who purchase Reuters products. The aim is to improve customers' investment and trading performance, increase transactional capabilities for Reuters customers, and further develop Reuters and Instinet's operational efficiencies, say the companies.
Under the plan, institutional customers will be able to view Instinet's full orderbook and use Reuters Institutional Order Entry (IOE) service to submit US and international equities orders to Instinet. Instinet's orderbook information will be made available on Reuters 3000Xtra terminals and Reuters Bridgestations globally.
Devin Wenig, Reuters president, investment banking & brokerage says: "By working more closely with Instinet, we can now provide a more compelling product line from data through to trade execution that facilitates quick, easy and more profitable trades."
Jean-Marc Bouhelier, Instinet Corporation's chief operating officer adds: "This initiative allows us to package our services better to include news, data, technology, trading and brokerage tools in one comprehensive offering."
Further initiatives will involve:
* adding new trading destinations to Reuters IOE service to provide buy-side institutions with connectivity to Instinet's Working Order Desk, Crossing Network, and Smart Router;
* adding enhanced features to the IOE interface so users can take full advantage of Instinet's proprietary trading functionality such as pegging, sweep, discretion and reserve trading; and
* connecting Instinet's new patent pending trading application (Newport) for passive and quantitative fund managers to IOE - with Newport to be driven by Reuters data.